Welcome to the 2013 Trade Ally Kickoff Meeting

Agenda Rate Change in Iowa New Energy Efficiency Plan New Trade Ally Portal 2013 Plan/Program Changes Questions Break-Out Sessions

MidAmerican Energy 16 years of rate stability Average rate: 6 cents/kWh Average rate: 40% below national average for investor-owned utilities Revenue sharing with customers in place since 2001; returned a value of more than $306 million 1,877 MW of wind added during rate stability Approved energy efficiency programs are in place

Rate Plan Update Filed for increase in February 2012 $38.7 million in 2012 and $76 million in 2013 collected through a rider Began collecting interim rates in March 2012 Revenue increase needed for environmental equipment costs and increase in the cost of producing energy Rider no longer in effect after 2013 Settlement achieved with Office of Consumer Advocate and large industrial customers Final Iowa Utilities Board order issued October 8, 2012 Deferred a general rate increase until 2014

Iowa Electric 2014 Rate Plans Cost Drivers for Rate Increase: Rider from rate filing ends by Dec. 31, 2013; future method for recovery of these costs needs to be determined MidAmerican Energy took a conservative approach and requested a smaller increase than it supported in the rate filing 2012 costs adjusted for known and measurable changes will be used as the basis to revise base rates for all business-related expenses, such as labor; benefits; generation and delivery operation and maintenance costs; and investments in generation and distribution, including Walter Scott, Jr. Energy Center Unit 4, Greater Des Moines Energy Center and all wind generation projects

Iowa Electric 2014 Rate Plans Cost Drivers for Rate Increase: 2011 compared to 1995, the year of MidAmerican Energys last base electric rate increase 16 years ago: Increase in net investment in new generation: $3.4 billion (332% increase) Increase in other net infrastructure investment: $1.1 billion (106.4% increase) Increase in Iowa operations and maintenance expenses: $309.6 million (57.2% increase) Significant upcoming costs Environmental investment beyond 2012: $480 million Coal transportation cost increase in 2013: $30 million

Iowa Electric 2014 Rate Plans 2014 Rate Case Thoughts Adjustment clauses are possible for energy and transmission expenses Individual customer increase will be available once information has been determined Pursuing a series of smaller rate increases over a period of years addressed in one rate case Continuation of revenue sharing is preferred Multiple cost allocation methods and rate designs will be included in the filing Define how costs are allocated among customer classes (industrial, commercial and residential) and how costs are recovered from customers Rate equalization/cost of service plan will be included in the filing Differences exist in rates between north, east and south pricing zones Within pricing zones, some rates differ significantly from cost of service Plan to recommend a period of time to bring rates to cost of service across all pricing zones, resulting in reasonable steps

Iowa Electric 2014 Rate Plans 2014 Rate Case Timing Meet with customers – October 2012 through May 2013 Send customer notice – April 2013 File rate case May 1, 2013 Interim rates could go into effect Aug. 1, 2013 Adjustment clauses in case would terminate when interim rates begin Final rates effective April 1, 2014 Adjustment to rates due to rate equalization will be implemented as ordered by the Iowa Utilities Board

MidAmerican Energy Has Low Electric Rates and Plans to Remain Competitive

Most Effective Offset to Rate Changes EnergyAdvantage® Programs Industrial Commercial Residential

New Energy Efficiency Plan Development of new five-year plan underway No new plan details to share with you at this time Proposed plan will be filed with Iowa Utilities Board on February 1, 2013 Once through the regulatory process and approved, new plan will be effective April 1, 2014 Additional education and training sessions related to the new plan will be held starting in August 2013 Last collaborative meeting scheduled for December 5, 2012, at 9:30 a.m., Embassy Suites in Des Moines Additional suggestions may be directed to product managers

New Trade Ally Portal One-stop spot where customers can: Find a qualifying trade ally Understand program offers Review program requirements Contact trade allies or the program administrator via phone or Will enhance Trade Ally Central Framework under development Multiple phases to the upgrade o Consolidated Trade Ally information o Performance reporting and contact management o Event management o Online application & rebate process o Incentive calculators Register at the Trade Ally Central website

SAVE Training Register for an HVAC SAVE class in 2012 and earn your certification, CEUs and become eligible for additional qualifying utility incentive programs and rebates.

Trade Ally Central Please visit Trade Ally Central at:

2013 Program Changes

Major 2013 Changes Maximum incentive for any program is 70% of installed materials and reasonable labor Pre-approval is required for all Custom projects – exceptions occurred in the past but no longer

Nonresidential Program Changes

Nonresidential Equipment Changes to incentives and qualifying equipment for the following programs: Commercial Kitchen Equipment Money for Motors & Variable-Speed Drives Nonresidential HVAC Nonresidential Lighting Nonresidential Building Shell (Iowa only) Refer to handout for list of changes. Additional information is available at the Money for Motors and Variable-Speed Drives breakout session or Nonresidential Programs table.

Money for Motors Program ends December 31, 2013 Recycling fee is paid to motor distributors – end-use customer is ineligible for recycling fee If old motor is not sent to distributor, motor shaft must be cut off and 3x3 section of the motor frame removed Customer must hold old rendered inoperable motor on-site until post-verification completed by MidAmerican Energy Additional information is available at the Money for Motors and Variable-Speed Drives breakout session.

Variable Speed Drives New brochure – separate from the Motors brochure and website Requirements to participate include: New installation or failed unit with bypass capability (fans, pumps or blowers only) 3,000 annual operating hours Must control process with a variable load, not just adjustable, process must be automatically controlled Ineligible to participate if: Replacing working drive Single-phase VSD or used for soft-starting only Spare inventory Where Code requires a VSD to be installed Additional information is available at the Money for Motors and Variable-Speed Drives breakout session.

Nonresidential Lighting T-8 fluorescent lamps must be 800 series to qualify for an incentive; 700 series no longer qualifies New in 2013: 25 & 28 watt T-8 lamps replacing existing T-12 systems with magnetic ballasts 25 & 28 watt T-8 lamps replacing existing T-8 lamps Linear LED lamps replacing existing fluorescent lighting LED fixtures <100 watt HID equivalent LED lamps for recessed cans, spot and track lighting LED A-19 lamp Wall or ceiling-mounted occupancy sensors, controlling 400 watts Fixture-mounted occupancy sensors, controlling 100 watts Refer to handout for list of changes. Additional information is available at the Nonresidential Lighting breakout session or Nonresidential Programs table.

Multifamily Housing Direct installs must be completed in the majority of units to receive the enhanced lighting and insulation incentives. Refer to handout for list of changes. Additional information is available at the Nonresidential Programs table.

Nonresidential Custom Systems Many lighting measures were moved to the prescriptive Nonresidential Equipment program Pre-approval is required for all custom projects Refer to handout for list of changes. Additional information is available at the Nonresidential Programs table.

BusinessCheck Direct installs must be completed prior to receiving the enhanced lighting and insulation incentives. Refer to handout for list of changes. Additional information is available at the Nonresidential Programs table.

Other Nonresidential Program Changes Nonresidential Energy Analysis Detailed study total reimbursement cap of $25,000 Detailed studies limited to those proven cost-effective Commercial New Construction Online application available Net Energy Optimizer solution for smaller buildings (5,000 – 15,000 sq. ft.) Refer to handout for list of changes. Additional information is available at the Nonresidential Programs table.

Residential Program Changes

Residential New Homes ABOP System SAVE requirement is 70 or greater Advanced BOP available in Iowa Pre-enrollment is required for ABOP and ENERGY STAR homes to allow MidAmerican Energy to provide in-field mentoring and quality assurance on program homes. Refer to handout for list of changes. Additional information is available at the Residential New Construction breakout session.

Residential Equipment Program Changes New in 2013: Water-to-water ground-source heat pumps Window air conditioner must be ENERGY STAR-rated Refer to handout for list of changes. Additional information is available at the Residential Programs table or SAVE breakout session.

Benefit to contractors: clear marketing advantage with SAVE installations Customers deserve quality installation of high-efficiency HVAC equipment –Demanding comfort and recognition of savings from the purchase of higher efficiency equipment Two day SAVE training includes fundamentals and advanced training SAVE software fees: $100 per month, information available at tables Training costs: after discounts and scholarship, tech pays $275 –However, $375 MEEA training grant funds depleting and scholarship will be ending early 2013; MidAmerican Energy will continue to offer $375 tuition reimbursement in 2013 SAVE training results: o Over 550 individuals certified in Iowa o 27 participating contractors o Over 500 HVAC jobs currently in progress in CommonCents software in Iowa o Over 1,000 installation incentives processed by MidAmerican Energy o Developed brochure contractors can use to promote SAVE installations to customers 2014: only SAVE installations receive HVAC rebate! Additional information is available at the SAVE breakout session. SAVE Training – System Adjustment & Verified Efficiency

Questions?

Breakout Sessions Please stop by one of the following breakout sessions for more information: Money for Motors and Variable-Speed Drives Programs The System Adjustment & Verified Efficiency Program (SAVE) The Residential New Construction Program Commercial Lighting – Where is LED Technology today?