A new statewide initiative to promote energy conservation and reduce home heating bills was unveiled this week by State Treasurer Robert P. Casey, Jr. that would invest $20 million in the Keystone Home Energy Loan Program.

Under Casey's plan, the Treasury Department will invest up to $20 million to help homeowners throughout Pennsylvania borrow money at low interest rates to purchase energy efficient heating systems and to make other ENERGY STAR improvements to their homes that will conserve energy and reduce heating and cooling costs.

"This program helps families gain control of their energy costs in the face of skyrocketing fuel bills," Casey said. "It's a phenomenal opportunity for middle class homeowners who want to reduce their fuel costs, but who are unable to get a home equity loan or charge a $5,000 furnace on a high-interest credit card."

Examples of ENERGY STAR purchases and home improvements that are eligible for KeystoneHELP loans include: furnaces and boilers, heat pumps, thermostats and controls, central and window air conditioning units, dehumidifiers, ventilation systems, insulation, siding, windows, skylights, doors, ceiling fans and lighting equipment and controls.

The $20 million investment in the Keystone Home Energy Loan Program will provide working capital for AFC First Financial Corporation of Allentown to offer unsecured loans with a 10-year repayment period at 7.99 percent interest to finance the purchase of ENERGY STAR heating and cooling systems or other energy efficient products. Low-income homeowners will be able to obtain loans at an even lower rate of 5.99% interest.

"In 2005, the average household will have spent nearly $1,900 on home energy bills. The KeystoneHELP program provides a win-win opportunity for Pennsylvanians. Not only are they able to make immediate and affordable energy-efficient upgrades to their homes, they will continue to realize the economic benefits of these upgrades through lower utility bills in the future," said Ellen D. Lutz, Director, U.S. Department of Energy Mid-Atlantic Regional Office.

KeystoneHELP was developed by AFC First and the West Penn Power Sustainable Energy Fund as a pilot program in central Pennsylvania. To expand this program statewide, Casey partnered with the Pennsylvania sustainable energy funds (created in 1998 as a result of electric deregulation); the Rendell Administration; the Pennsylvania Energy Development Authority; Pennsylvania regulated energy utilities and petroleum suppliers; the Senate Democratic Caucus, led by Senator Vincent Fumo, chair of the Senate Democratic Appropriations Committee; and Representative Dwight Evans, chair of the House Democratic Appropriations Committee.

The special interest rate of 5.99 percent for low-income homeowners is made possible by voluntary contributions from Columbia Gas of Pennsylvania, Philadelphia Gas Works, PPL electric and gas utilities, and three Pennsylvania FirstEnergy companies - Metropolitan Edison Co., Pennsylvania Electric Co., and Pennsylvania Power Co.

"We are pleased to have worked with our members and Treasurer Casey's office in connection with the development of the Keystone Home Energy Loan Program. This loan program, available to all Pennsylvanians, provides a real opportunity for working families to make home improvements which will conserve energy and lower energy costs," said Donna M. J. Clark, Vice President and General Counsel of the Energy Association of Pennsylvania.

The following Pennsylvania utilities and petroleum marketers are providing significant marketing support for KeystoneHELP: Allegheny Power; Columbia Gas of Pennsylvania; Dominion Peoples; Duquesne Light Company; Equitable Gas Company; National Fuel Gas Distribution; PECO Energy Co.; PG Energy; Philadelphia Gas Works; PPL Electric Utilities and PPL Gas Utilities; Wellsboro Electric Company; UGI Electric Utilities and UGI Gas Utilities; Citizens' Electric Co.; Valley Energy, Inc.; and three Pennsylvania FirstEnergy Companies - Metropolitan Edison Co., Pennsylvania Electric Co., and Pennsylvania Power Co.

The West Penn Fund, the MetED/Pennelec Sustainable Energy Fund and the TRF Sustainable Energy Fund have also approved significant grants to AFC First for marketing support to publicize and promote KeystoneHELP.

For more information, log on to www.KeystoneHELP.com .

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1/13/2006