Draft SMECO EmPOWER Plans April 15, 2011

Small Business Direct Install - Objective The DI Program can be thought of as a subset of the Prescriptive offering; however, the DI Program warrants a separate implementation plan because of its unique focus on (1) hard-to-reach markets and (2) retrofit opportunities. The DI Program is designed to reduce or bypass market barriers such as: Small business owners without technical expertise or time to devote to energy efficiency improvements. Lack of a cogent set of energy efficiency services that can be easily delivered to this very diverse hard-to-reach market (e.g., corner stores, auto repair shops, strip malls, etc.) Most small businesses have limited access to investment capital

Small Business Direct Install – Description Limited to small business customers Participants are not responsible for the application process, hiring contractors or developing project specifications Turn-key services will be delivered through direct installation contractors Primary focus will be on retrofitting lighting, refrigeration and electric hot water equipment Customers receive a onsite energy assessment to identify cost effective opportunities for saving energy. Customers will not receive a direct incentive. The program contributes up to 80% of the total “turn key” project cost, paid to the direct installation contractors. The customer pays the remaining cost to the contractor.

Small Business Direct Install - Implementation Turn key services include: Direct marketing to customers Performing site visits, collecting all equipment and energy data, identifying cost effective opportunities and performing analysis Presenting all recommendations to the customer Arranging for installing all eligible equipment accepted by the customer Preparing and arranging for lamp and ballast recycling Preparing and submitting completed customer participation agreement form along with project details Tracking all program activity, equipment and recommendations in an electronic database and providing program and project data on an on- going basis

Small Business Direct Install – End Uses Recommended technologies for direct installation include : Lighting measures: –Linear fluorescent high-performance T8 ballasts and fixtures –Hard wired and screw-in compact fluorescent lamps –High efficiency high-bay fixtures –LED lighting –LED exit signs –Wall mount and ceiling mounted occupancy sensors Electric water heating measures: –Pre rinse spray valves –Hot water pipe and/or boiler insulation –Low-flow faucet aerators and water conserving showerheads

Small Business Direct Install – End Uses Recommended technologies for direct installation include: Refrigeration and cooling measures –Evaporator fan motors and controls –Automatic door closers and door heater controls –Refrigerated novelty case controls –Cooler control systems Programmable setback thermostats (for facilities with central A/C) Vending machine controls

Small Business Total Annual MWh Savings1,0281,3881,5273,943 Annual MW Savings Participants Measures Total Program Costs$460,385$621,520$683,672$1,765,577 TRC Ratio1.75 PAC Ratio2.02 RIM Ratio0.77 Participant Test Ratio2.88 Societal Test Ratio2.23 Participation, Costs, Savings, and Cost-effectiveness: