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Honeywell Wins $12.8mn Contract From Pepco Holdings for Energy-Efficiency Programs

Programs Will Help Washington, D.C. and Maryland Residents Reduce Energy Consumption and Costs

Honeywell (NYSE: HON) today announced a three-year, $12.8-million contract with Pepco Holdings, Inc. (PHI), the parent company of Pepco and Delmarva Power, to implement and manage a portfolio of energy-efficiency programs for homeowners in the utilities' District of Columbia and Maryland service territories.

The programs, which include energy audits, equipment tune-ups, appliance rebates, contractor recruitment and training, and consumer education, will help residents cut energy consumption and costs. They are also expected to reduce PHI's electric load and environmental impact by conserving an estimated 220,000 megawatt-hours of energy over the course of the contract. This would result in the utility avoiding almost 158,000 metric tons of carbon emissions, which is equivalent to removing more than 280,000 cars from the road for a year, according to figures from the U.S. Environmental Protection Agency.

PHI and Honeywell expect the programs to reach more than 800,000 customers. And Honeywell will provide training, marketing and customer service to drive participation.

"Implementing multiple programs across a widely-dispersed and diverse customer base requires the right level of experience and an effective, targeted strategy," Charles R. Dickerson, Vice President Customer Care for Pepco Holdings, Inc. "Honeywell offers the range of expertise necessary to help get customers involved and further our energy savings goals."

Honeywell will launch and oversee three programs, and help expand a fourth. The company's data management system will manage all program data and interactions, including customer participation, energy impact calculations and ongoing customer communications, and provide a Web-based reporting dashboard that covers all programs.

  • Home Performance with Energy Star® Program will provide residential Maryland customers incentives for participating in home energy efficiency surveys, undergoing energy audits and implementing energy-efficient improvements in their homes. Local contractors will be recruited to deliver services, and Honeywell will provide marketing, customer education and customer care.

  • Residential Lighting and Appliance Program promotes the switch to high-efficiency lighting and appliances like refrigerators and electric water heaters. Honeywell will help PHI expand the existing program's reach by working with independent retail locations in the district and Maryland. Customers will be eligible for rebates when they purchase specified Energy Star products at participating retailers.

  • Residential HVAC Efficiency Program will increase the number of tune-ups performed on existing air conditioners and heat pumps, and encourage homeowners to buy high-efficiency systems when replacements are necessary. Honeywell will provide local heating, ventilation and air-conditioning (HVAC) contractors with the tools and training to ensure proper equipment installation and maintenance. The company will also help contractors market the program to their customers, who will be eligible for rebates based on work performed and subsequent realized energy savings.

  • Residential Low Income Program will provide energy conservation and education services to qualified income-eligible utility customers in Maryland. Honeywell will coordinate with local community-based organizations and contractors to recruit customers and deliver program services.



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The new programs will begin in the fourth quarter of 2009 and continue through 2012.

"Utilities need to engage their customers for energy-efficiency programs to be a success," said Paul Orzeske, President of Honeywell Building Solutions. "And that's the expertise and experience Honeywell brings. We'll help Pepco and Delmarva Power meet their efficiency goals through tactics that connect with customers and deliver savings."

Source: http://www51.honeywell.com/honeywell/

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