Improving Energy Reliability & Performance

Energy & Environmental Solutions Part of the Siemens history Over 100 years of providing Energy Management Systems and Services Historical advocate and proponent of energy conservation in facilities Documented $1 Billion in energy cost savings in past 10 years Early energy innovator – Siemens holds over 6000 energy related patents

Cooperation in a spirit of partnership Our mission is to help our customers reduce energy costs while improving reliability and performance and minimizing the impact on the environment.

Total Energy Resource Value Chain Management The EES Offerings Total Energy Resource Value Chain Management Rate Analysis Gas and Electric Procurement Alternate Fuel Analysis Incentives/Rebates M&V Benchmarking Mechanical upgrades/retrofits Electrical system upgrades Controls/EMS Sustainability Renewable Energy LEED Certification Energy Star Risk mitigation Reliability Finance

Demand Side Management Mechanical System upgrades/retrofits Electrical upgrades Controls and automation development System Integration Building Infrastructure Other capital improvements The financial model of a classical Performance Contracting Solutions

Performance Contracting which finance Modernizations in  Building automation and control  Heating, refrigeration  Ventilation, air conditioning  Water treatment  Lightning  Energy management  Service Savings in  Heating  Electricity  Refrigeration  Water  Compressed air  Operation results in

Performance Contracting Modernization financed with energy savings  Modernization enhances building value Savings pay back investment No risk thanks to guaranteed savings Sustainable quality assurance due to energy management Secure investment budget

Major Energy Projects Capability Onsite generation - Under a single source of responsibility, Siemens can provide turnkey services for. Concept development and strategic energy master planning Design\build Comprehensive maintenance services Operations services Renewable energy sourcing Gasification of solid fuels (carpet, tires) and biomass Landfill gas, digester gas and other methane gas projects Financial Programs Energy Asset Programs - Integrates technical and financial elements under a single contract agreement with the client. Utility Service Agreement – payment based upon availability of the delivered utility or energy stream.  Siemens retains the risk and burdens associated with owning and maintaining energy asset. We now get to the specifics of the major projects offering. The best starting point, and one of the key reasons for the customer to avoid “tendering” a central plant, is the idea that concept development and strategic energy planning are key elements of a new central plant. Strategic energy planning encompasses many things, including reliability needs analysis, distribution infrastructure analysis (present and future), load growth strategies, financial analysis, operational requirements, etc. A central plant, properly built and operated, involved much more than simply selecting and installing equipment. We are also able to guarantee program outcomes. Such guarantees can take the form of guaranteed equipment performance and efficiency, capacity availability, and potentially dollar savings. The financial aspects of these programs are also important. Many different financing options and mechanisms are available; determining the suitability of any given option requires understanding the client’s current financial needs. Issues of cash flow, tax implications, accounting treatment (ie on- or off-balance sheet), impact on bond rating, and others, all need to be considered when assembling the right financial solution.

Projects Siemens has created and guaranteed the efficient operation of dozens of high reliability energy facilities including: Landfill and Wastewater Methane gas Electrical and steam Generation Co-generation Central Utility Plants and Distribution Steam Chilled Water Thermal Storage Gasification Carpet scraps to Steam (under construction)

Customer Benefits Stabilized energy costs and supply reliability We can provide fixed operating costs and stabilized energy costs Reduced downtime, enhanced comfort Single source accountability for guaranteed results Siemens is responsible for asset value and equipment performance We regularly measure and report on our actual performance compared to predicted Integrated energy and building management strategies Central plant design, construction, operation and maintenance are parts of a larger strategy to enhance overall facility performance Speed We can implement solutions much faster than traditional contracting Innovative financial solutions We can provide a wide range of financing options to help preserve capital for the core business mission These points constitute the basic value proposition. The relative importance of these points will vary depending on the client and his circumstance. Healthcare clients, for example, tend to value reliability and predictability of supply very highly.

Sample Projects Monroe County Shaw Industries Two new combined heat and power plants, incorporating three 1.35 MW generators and associated heat recovery equipment at each site. Heating is provided by three 350 hp high-pressure steam boilers. Approx $21.5 million Shaw Industries Waste-to-energy plant providing 50,000 pounds per hour of process steam for a 24 hour a day, 5 day per week operation. Provides steam base load (approximately 70%) for Shaw’s carpet manufacturing facility. We guarantee quality, reliable steam to Shaw’s plant for 10 years, and we provide a 10-year comprehensive maintenance program. St. Elizabeth Health Center New cooling plant, lighting and control retrofits, water conservation and new waste management equipment have reduced labor by 5 FTE’s and saved over $1.2 m annually in energy and operations costs.