May 22, 2003

Senator Kevin Sullivan

Room 3300, Legislative Office Building

Hartford, CT 06106

Dear Senator Sullivan:

Lowe’s Companies, Inc. was awarded the prestigious 2003 ENERGY STAR® Retail Partner of the Year award. As an ENERGY STAR partner, we have worked closely with the Connecticut ENERGY STAR program for two years. Throughout that time, our partnership has grown and we have made significant accomplishments in the world of energy efficiency. I am writing on behalf of Lowe’s because we are concerned about the potential legislative action that could eliminate all funding in the state of Connecticut for conservation programs.

The Connecticut ENERGY STAR® program compliments Lowe’s national ENERGY STAR program in that it significantly increases sales associate and consumer awareness of ENERGY STAR. The Connecticut Conservation Fund provides Lowe’s associates the tools to educate consumers on the advantages and benefits of purchasing energy efficient products. The efforts from the funds have also significantly increased consumer awareness of energy efficient products.

Lowe’s has increased inventory dollars in Connecticut stores to support the inflation in sales that occurred as a result of the program. It would be a financial burden on Lowe’s if the Fund were suddenly eliminated. Several new and exciting programs are currently in development between Lowe’s and the Connecticut ENERGY STAR partners. It would be a disappointment to learn that we will be unable to execute these programs due to the elimination of the Fund.

Elimination of the Fund would also result in considerable consumer impact as well as impact to our business if the rebates information we have been distributing all year on behalf of the Program will no longer be valid. The instant coupons and mail-in rebates have expiration dates of June 30, July 15 and even December 31 on the higher value appliance rebates. I have been advised that if the Fund is eliminated, the utilities will no longer honor these rebates. We have distributed the information at our locations with the above listed expiration dates, trusting that the utilities would honor their commitment. I understand that without the Fund, they will be unable to honor. Our customers will not understand or accept the explanation of the Fund being eliminated.

The Connecticut program is working! Consumer purchasing behavior is being positively affected by the efforts of the Connecticut Conservation Fund. Connecticut is one of only a few of the 50 states that have a program in place that shows results. Research has shown that awareness of the ENERGY STAR is much higher in areas of the country in which regional support assists Lowe’s and other retailers with the ENERGY STAR program. Lowe’s can confirm this increase in awareness with actual, measurable results…those regions, including Connecticut, have a higher sales rate of ENERGY STAR qualified products than any other market in the country. This increased flow of ENERGY STAR product into the marketplace means a reduction in kilowatt-hours of energy for that region. The net result is that fewer power plants are required to meet resident’s needs, therefore saving the significant money required to build those facilities.

Please accept this letter on behalf of Lowe’s. We value our partnership with the Connecticut ENERGY STAR partners, and hope it can continue.

Sincerely,

Shana Cockerham

Environmental Specialist