State of Virginia Energy Managers 2016 Leigh Anne Ratlitf Account Management and Sales Integrated Demand Resources (iDR)

9 th year of participation in PJM demand response programs Through CSP Contract E  Fortune 100 company  World leader in Energy & Sustainability  World market leader in controls & HVAC for complex buildings  Leading provider of Demand Response services  Advanced sophisticated GridConnect customer platform  Driver in industry evolution  Administrator of State of Virginia Demand Response Contract Demand Response: State of the State

Commonwealth Facilities as Assets in the Electric Grid = Facilities in the Commonwealth can deliver services to the electric system comparable to conventional power generation assets Demand Response: Demand response provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives * * U.S. Dept of Energy, 2016

Who We Serve – A Diverse VA Customer Base K12UniversityGovernment

PJM 2016 Emergency Program Details * Notification time based on agreed-upon exception process with PJM Program/ParameterLimitedExtended Mandatory PeriodJun – Sep 2016Jun – Oct 2016, May 2017 Potential Event Hours 12 Noon – 8 PM EDT (weekdays excluding holidays) 10 AM – 10 PM (includes weekends and holidays) Dispatch Notification*30, 120 minutes Dispatch Duration1 – 6 hours1 – 10 hours Dispatch FrequencyUp to 10 times max.Unlimited

2015 Report Card 24 K-12s 10 Wastewater or Pollution Control Plants 9 Department of Corrections 1 Airport 2 National Laboratories 14 County or State Buildings 14 Universities 3 Hospitals $3,338,956

How We Got There? PLAN & Execute

Energy Efficiency PJM will pay for permanent efficiencies in upgrades installed at a facility

Energy Efficiency Replace some Get Some

VCCS Bayside Example: 9 Questions to answer 1, 2, and 3: What did you replace? 1. Type of fixture previously installed (lens fixtures) 2x4 (3 lamp fixtures) 2x2 (2 lamp fixtures) 1x4 (2 lamp fixtures) 2. Kw rating/description 2x4 (3 lamp fixtures) 81 watts 2x2 (2 lamp fixtures) 55 watts 1x4 (2 lamp fixtures) 55 watts 3. Quantity 2x4 (3 lamp fixtures) 589 fixtures 2x2 (2 lamp fixtures) 124 fixtures 1x4 (2 lamp fixtures) 10 fixtures

Questions 4, 5 and 6: What did you replace them with?

Last 3 Questions! Facility Identification and Project Date 7. Facility Name and Address: Tidewater Community College, 1700 College Crescent, Virginia Beach 8. Type of Facility: College/Office Building 9. Month and Date Project finished: September watts saved! Incentive payment $

Energy Efficiency – How the payments work Energy efficiency projects can pay up to 4 years and the clock starts ticking when the project (or phase of a large project) is finished. EXAMPLES A project finished in November 2015 is a 2016 resource, it would pay the incentive in 2016, 2017, 2018 and A project that finished in November 2014 was a 2015 resource BUT, it can still begin payments in 2016 and be paid for the years 2016, 2017, and 2018.

Energy Efficiency Payment Schedule Projects that finished between June 1, 2012 and May 31, 2013 are 2013 resources, would receive incentive in Projects that finished between June 1, 2013 and May 31, 2014 are 2014 resources, would receive incentive in 2016, Projects that finished between June 1, 2014 and May 31, 2015 are 2015 resources, would receive incentive in 2016, 2017, 2018 Projects that finished between June 1, 2015 and May 31, 2016 are 2016 resources, would receive all four years incentive: 2016, 2017, 2018 and 2019.

FERC Vs Electric Power Supply Association

The Evolution of Demand Response 1.Notification period changing from standard 120 minutes to 30 minutes. Participants can apply for an exception through JCI. 2.Use of emergency generators for demand response not allowed unless Tier 4 certified. 3. PJM may call sub-zonal calls now. 4.PJM opening up year round products, Capacity Performance. CP to be considered primary product by 2019.

Important 2016 Season Dates May 1: Final day of enrollment! May 24th: 10am Training Webinar May 25th: 2pm Training Webinar May 26th: 2:00-2:10 Dispatch Contact Verification Exercise June 1: 2016 Demand Response Season Begins! June 21: Time TBD Morning Training Webinar June 22: Time TBD Afternoon Training Webinar June 23: 2pm-3pm Load Drop Test September 30: 2016 Demand Response Season Ends

QUESTIONS