Veteran Energy Voucher Pilot Program

Veteran Energy Voucher Pilot Program is sponsored by Appalachian Power Company (administered by Dollar Energy). This program provides utility grant assistance to low-income homeless veterans to assist them in obtaining housing.

Veteran Energy Voucher Pilot Program Appalachian Power Company (Appalachian Power or the Company) is entering into its fourth year of implementing the Veteran Energy Voucher Pilot Program. On August 31, 2015, Appalachian Power and Dollar Energy Fund, Inc. (Dollar Energy) signed a letter of agreement setting forth the operating parameters of the Veteran Energy Voucher Program.

As administrator, Dollar Energy is responsible for managing and administering all phases of the Veteran Energy Voucher Program. The goal of the program is to provide utility grant assistance to low-income homeless veterans to assist them getting back into housing.

Those veterans enrolled in the Virginia Veterans & Family Support program or the Total Action for Progress (TAP) program within the Company’s Virginia service area qualify for the assistance. Appalachian Power initially allocated $100,000 to the program: $91,750 for funding of grants and $8,250 for operating fees to Dollar Energy. To date, fund allocations are $74,500.

To access the $500 energy voucher, Virginia Veterans & Family Support or TAP completes the application for new electric service on behalf of the Veteran. The agency also submits an application with Dollar Energy for the energy voucher. Each $500 energy voucher is used for connection fees and deposits, with any remaining voucher funds applied to future billings.

Appalachian Power is honored to implement the Veteran Energy Voucher Pilot Program in the Virginia service area and play a role in the Commonwealth’s initiative to provide housing for all homeless veterans. Since the beginning of the pilot program in October 2015, Appalachian Power has provided approximately 150 energy vouchers to homeless veterans.

Under the provisions of Senate Bill 966 of the 2018 General Assembly, the Company plans to continue the Veteran Energy Voucher Pilot Program in the Virginia service area. The following table provides statistics of the program for this reporting period, June 1, 2017 through May 31, 2018. The table also reports year-to-date total program funding / participation.

Appalachian Power – VA 6/1/2017 – 5/31/2018 # Month Applications Grants Amount Granted August 2017 3 3 $1,500. 00 September 2017 2 2 $1,000. 00 October 2017 8 8 $4,000.

00 November 2017 7 7 $3,500. 00 December 2017 3 3 $1,500. 00 January 2018 8 8 $4,000.

00 February 2018 2 2 $1,000. 00 # Total Program Participation # Month Applications Grants Amount Granted October 2015 – May 2018 151 149 $74,500. 00 # Total Program Participation By Localities # County Applications Grants Amount Granted City of Lynchburg 9 9 $4,500.

00 City of Martinsville 1 0 $0 City of Radford 1 1 $500. 00 City of Roanoke 136 136 $68,000. 00 City of Salem 1 1 $500.

00 City of Staunton 1 1 $500. 00 Total 151 149 $74,500. 00 Multi-Family Residential Energy Efficiency Pilot The goal of the Multi-Family Residential Energy Efficiency Pilot was to weatherize and improve the overall efficiency of a selected multi-family property in the Company’s service territory.

The Company met with representatives from the Virginia Department of Housing and Community Development and determined the need for a multi-family pilot in the Company’s service territory. The selected property, Old Orchard Place, is a 30 unit apartment complex located in Pearisburg. All tenants residing in the property are low income, elderly and/or disabled.

This property was chosen in collaboration with Community Housing Partners and is representative of low-income and elderly multi-family housing in the Company’s service territory.

The Company partnered with Community Housing Partners to develop a synopsis and scope of work for the property, and determined that the best approach to maximize efficiency of the units would be to replace all heat pumps; replace seven refrigerators; install low-flow aerators on all kitchen and bathroom fixtures; and install new light emitting diode (LED) lighting in all units.

After evaluating the results of the Multi-Family Residential Energy Efficiency Pilot program, the Company has determined it would be beneficial to move this program from the pilot stage to a longer-term energy efficiency program. The Company will propose such a program in a future Energy Efficiency Rate Adjustment Clause filing for the Virginia State Corporation Commission’s consideration.

Energy Efficiency Education Pilot The Energy Efficiency Education Pilot identifies Appalachian Power customers who receive financial assistance paying their electric bill through different agencies. The program provides mailings directly to these customers with information regarding measures they can take to save energy and reduce electric bills.

The mailing provides information regarding programs offered by the Company as well as by weatherization providers in the service territory to assist customers with energy conservation. Additionally, the mailing includes an offer for a free energy conservation kit that includes simple, easy to install energy saving measures. The Company partnered with Dollar Energy to collaborate on the pilot program.

The Company and Dollar Energy developed an energy efficiency packet that ultimately gets sent to customers who enroll in the Neighbor-to-Neighbor program, as well as customers receiving electric bill assistance through other agencies identified by the Company. The Neighbor-to-Neighbor program lets customers donate funds to help pay electric bills for low-income customers in the Company’s Virginia service territory.

The energy efficiency packet includes:  Information regarding specific measures or behavior changes customers can take to reduce energy consumption;  Energy Efficiency and Demand Response programs offered by the Company in which customers could participate;  Information on other weatherization assistance programs offered in the Company’s service territory;  Literature to increase energy efficiency awareness; and  A post card with information on how the customer can receive a free energy conservation kit.

In order for the customer to receive the energy conservation kit, they are required to mail back the prepaid information card or call a toll-free number dedicated to the program. Customers receiving a grant from the Neighbor-to-Neighbor program are also able to request a kit during the application phase.

The energy conservation kits are mailed to the customer’s home and contain the following measures:  Six energy efficient light bulbs  Two energy efficient LED night lights  Two energy efficient faucet aerators  One refrigerator thermometer The program eligibility is income based and qualification is assumed based on the receipt of assistance through qualifying programs.

The Company initially estimated 6,000 customers would receive an energy conservation kit through this pilot. At the time of this report, all 6,000 customers have received kits. Under the provisions of Senate Bill 966 of the 2018 General Assembly, the Company plans to continue the Energy Efficiency Education Pilot Program in the Virginia service area.