Welcome Speaker to introduce him/herself. Welcome our Trade Allies to this annual event, which is produced as a collaborative effort between the IL Dept of Commerce and Economic Opportunity, Nicor Gas, Peoples Gas, North Shore Gas and ComEd.

Thank You! Your customer satisfaction scores are terrific! Three in five (60%) respondents report learning about the program through a contractor or a trade ally 98% were satisfied with their contractor’s knowledge of the program 97% were satisfied with their contractors overall and with the performance of the equipment rebated 95% were satisfied with their contractor’s assistance with paperwork and processes Source: ComEd customer satisfaction research This slide emphasizes the Trade Ally role in delivering EE programs. First stats shown are from ComEd business customer satisfaction research; this survey is done quarterly with similar results regarding satisfaction with the Trade Ally involved.

Trade Ally Surveys 78% of Trade Allies indicated the program has increased the level of customer service/ satisfaction they provide to new and current customers. 93% of surveyed participating trade allies indicated they will continue participation in the Business Energy Efficiency Program. Source: Nicor Gas Trade Ally survey Nicor Gas surveys trade allies about their satisfaction with the energy efficiency program.

U.S. Efficiency Program Growth Not only are trade allies providing strong customer satisfaction, and finding that using the program increases their customers’ overall satisfaction with their performance – EE is a strong market for trade allies to develop and invest in. Investment in EE programs is growing across the US. Source: From 2006-2008, values represent actual program spending (including customer funded programs); from 2009 on, they represent program budgets. Natural gas spending is not available for the years 1993-2004. Sources: Nadel et al. (2000); York and Kushler (2002, 2005); Eldridge et al. (2008, 2009); Molina, Neubaueret al. (2010); Sciortino et al. (2011). - ACEEE

Which States are focused on Energy Efficiency? * Virtually all states now have state-legislated energy efficiency programs. In 2011, Illinois moved to 17th most improved after only three years of delivering programs – when our gas programs were barely getting started. Source – ACEEE – American Council for an Energy Efficient Economy

Legislative Drivers of Energy Efficiency 6 Legislative Drivers of Energy Efficiency Part of Illinois energy legislation passed in 2007 Programs are implemented by Nicor Gas, Peoples Gas, North Shore Gas, ComEd, Ameren Illinois and the Illinois Department of Commerce and Economic Opportunity Electric programs started June, 2008 Gas programs started June, 2011 Ratepayer funded program 6

Other Legislative Considerations - “Rules of the Game” All measures must pass cost effectiveness tests Gas program goals and budgets “roll-over”; electric program goals and budgets have a yearly allocation and don’t “roll-over” Utilities develop and file 3-year plans which lay out spending and energy savings by program, currently planning for 2014-2017 Utilities meet regularly with a Stakeholder Advisory Group (SAG) to discuss energy efficiency issues and interpretation of legislation As regulated entities, utilities operate under a different set of rules than most businesses. We cannot always bend to market pressures to create certain incentives, or increase incentives beyond a certain level. All decisions we make must stand up to regulatory scrutiny.

Aggressive Savings Targets Therms Savings MBH Electric Savings MWh The Illinois legislation requires utilities to quickly grow their programs to where they are annually reducing overall customer usage by over 1%. While this may sound small, populations and businesses overall are growing and expanding their use of energy. Achieving any reductions in this scenario is challenging, and will require constant commitment from the utilities and their trade allies on accomplishing these annual goals. Totals 57,3486,371 therms 1,651,627,000 kWh 2012 8,328,456 therms 526,537,000 kWh 2013 19,832,532 therms – 58% increase 557,000,000 kWh – 5% increase 2014 29,325,383 therms – 32% increase 568,090,000 kWh - 2% increase

What does this mean for you this year? Incentive Growth Total $399,651,848 - the data is all electric and gas incentives Of course, along with the growth in energy savings targets, is growth in the amount of incentives. As a rule of thumb, incentives cover about 25% of project cost. Applied across incentives available from the utilities, your companies are targeting around $633 million dollars in new business this next program year. 2012 $110,267,500 incentives 2013 $130,948,770 incentives – 16% increase 2014 $158,435,578 incentives – 17% increase The value for estimated energy efficiency projects is the total incentives for 2014 multiplied by 4 - incentives are usually 25% of the project cost. What does this mean for you this year? Over $633 million in energy efficiency projects

Gas-Electric Partnerships Our service territory surpasses most utility programs with our many joint programs: Multi-Family Small Business Retro-commissioning New Construction You saw the map showing utility programs across the U.S. – few of these states have both natural gas and electric efficiency programs; fewer yet have any utilities that are offering joint programs. Joint programs require significant investments of time to coordinate, especially as we are all regulated entities. Your Illinois utilities chose to start right away with joint programs, starting in 2011.

Raising the Bar – Standards & Codes National and State standards & codes This is an opportunity for your business Enhanced codes are making buildings more energy efficient Attend training to keep abreast of these changes Your expertise will make you a stronger competitor In addition to utility programs, State and National laws and codes are driving towards greater energy efficiency.

Workshop Format Change Program Year updates – all being repeated No difficult choices! Deep dives into key topics Lighting incentive updates Multi-Family and Small Business updates New rebates for gas technologies Some things to notice with this year’s Workshop.

Workshop Highlights DCEO Gas Utilities Joint Programs Standards & Codes; training opportunities! Gas Utilities Several new standard measures plus NEW programs Joint Programs Huge growth in Small Business program! Multi-Family Comprehensive Energy Efficiency Program

Networking Session Looking for ways to grow your business? Working on larger projects…? Find industry partners! Working in a niche market? Get your name out there! At the end of the morning, you’ll have an opportunity to meet your peers in energy efficiency, and see if you can find some potential project partners. Many larger projects require the services of more than one contractor – get your name out there.

You will receive a survey and link to all conference materials following the conference. We look forward to hearing your valued feedback!  As many of you know, we provide Trade Ally Workshops each year, and we hope you join us again next year to learn what’s new and maintain your network of peers.