1  Is a unique Total System Integrator for reduced electrical consumption  Applies custom solutions that achieve “Whole Facility” electrical energy efficiency  Utilizes power factor correction on inductive loads and large panel systems  Proven by advanced metering and web based integrated power management systems  Reduces electrical system waste, diminishes overall energy costs and lessens your carbon footprint  Compliant with current DOE mandates  Achieves overall reduction of energy consumption reduction in most facilities

2  Planetary distress is an ongoing reality  Energy efficiency is a sensible commitment worth making  Decreases our carbon footprint emissions by doing our part to go GREEN  Help meet planetary requirements and promote financial savings  Venergy Group addresses reducing consumption not just sustainability  EPACT 2005 and the EISA 2007 protocols and mandates from the Federal Government requires all States, Territories and D.C. to comply by 2012

3 Title III, is the Energy Policy and Conservation portion of the American Recovery and Reinvestment Act of 2009 ( ARRA). DOE was given nearly $40 Billion to be applied to some of the Energy Efficiency needs of all States, Territories and the District of Columbia (States) DOE is responsible for overseeing and managing the allocation of all ARRA funds distributed to the States, through the various State Energy Programs (SEP) Purpose:  Stimulating jobs  Saving energy  Increasing energy generation from renewable sources  Reducing greenhouse gas emissions

4 Delaware was the "First State" to enact most of the DOE stimulus mandates. Key Legislation in the form of new Energy Efficiency Building Codes for all Residential and Commercial facilities was signed into State Law late July, 2009 and these new building code requirements will take effect Jan 1, Each State energy conservation plan with respect to which assistance is made available under this Part, on or after the date of enactment of the Energy Policy Act of 2005, shall contain a goal consisting of an improvement of 25% or more in the efficiency of use of energy in the State concerned in calendar year 2012 as compared to calendar year 1990 and may contain interim goals.”

5  All States must enact new legislation to include the following activities and details on compliance prior to being authorized to dispense Stimulus funding  Incorporate energy efficiency criteria into procurement procedures  Implement mandatory thermal efficiency standards (new and renovations)  Establish building codes that require adherence to mandates  Commercial code requirements: meet or exceed the ANSI/ ASHRAE/ IESNA Standard 90.1–2007

6 The adequacy of North America’s electrical grid will decline unless changes are made soon … The demand for electricity is expected to increase over the next 10 years by 19 % in the U.S., but confirmed power capacity will increase by only 6 % - NERC (North American Electric Reliability Council) - “Over $16 billion dollars of electricity is unusable energy, but billable in the US.” - U.S. Dept. of Energy -

7  Up to 25% of billable electricity is unusable  Electric AC motors use more then half of all electricity  Electricity Costs: 1960 ’ s.019/kwh 1970 ’ s energy crisis.044/kwh /kwh  Most AC induction motors operate at 80% efficiency under a full load … the efficiency drops dramatically at lower loads  DOE research proves that substantial savings can be found on the running costs of AC induction motors

8  Power Loss = I² R Loss  Extra reactive power that must be generated is “wasted” due to heat losses in conductors Occur in Transmission, Distribution Facility Conductors & Equipment

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11  Enhance the capacity of existing electrical systems  Supply power to more customers without the generation or acquisition of additional power  Reduces capital expenditures by leveraging the existing infrastructure  Keeps utility costs down  Less fossil fuel being used to generate power  Less dependency on foreign oil

12  Inductive loads consume 80% or more of power in Commercial Buildings & Industrial Complexes  Reactive power provides magnetizing current for inductive loads such as: - Transformers & computers - Motors - Compressors & HVAC equipment - Lighting ballasts - Elevators & escalators - Process machinery  Lightly loaded motors are wasteful and exhibit low power factor  The larger loads with longer run times equals more savings to you

13  Power Factor is the ratio between real power (Working) (kW) and Apparent Power (kVA)  Most loads in electrical distribution systems are inductive  Inductive loads require two kinds of current: - Working Power – performs actual work of creating heat, light, motion, etc. - Reactive Power kVAR – sustains the electromagnetic field  PF measures how effectively & efficiently electrical power is being used

14 you lower your electric bill (kVAR) Absorbed By Capacitors at Motor Purchased Reactive Power From Utility (Reduced) (kVAR) Working Power is Not Changed (kW) Less Apparent Power (Purchased Power) kVA or kWh Power Factor = Cos  (changed) 

15  Too much foam is wasteful because it doesn ’ t quench your thirst  The foam is represented by kVAR (kilo volt ampere reactance)  The total contents of your mug is kVA  kVA the total of kW (the liquid) and kVAR (the foam)  As your kVAR (foam) approaches zero your Power Factor approaches 100% & the amperage & wattage is reduced  Power Factor should always be corrected at the motor in a slightly lag position kVAR (foam) is converted by the capacitors

16  Capacitors re-align the reactive power to help create the electromagnetic field (EMF) around the inductive windings of a motor  As motors operate, reactive power is “ pulled ” and “ pushed ” to and from the capacitor by the motor at 60 cycles per second  Capacitors store & release what motors need to function more efficiently  Capacitors fine tune the motors & eliminate the I ² R Loss  Electricity reclaimed and recycled by the capacitors would normally be pushed back through the power distribution lines  Significantly reduce load on transformers to allow facility expansion  Capacitors align, store, recycle and supplies power to inductive loads (Does not work on resistive loads) How Do Capacitors Work? How Do Capacitors Work?

17  Capacitors improve the efficiency of the electrical systems, increases amperage capacity and reduces the kWH  Maintains quality voltage levels in your system with less voltage drop especially long runs of cable  Helps reduce the harmful effects from the heating of wireing  Reduces the heat and premature failure of motors and other inductive equipment  Motors run cooler & more efficient  Increases life expectancy  Increase starting torque  Decreases demand charges  Reduces maintenance costs Other Benefits

18  Installed on the line side near the main service  Installed directly on the motor or other inductive load  Used to reduce or eliminate Power Factor Penalties  Used to increase transformer efficiencies and reduce heating Continuing Benefits Continuing Benefits  Maximized design savings  Reduces amperage & kWh to the “ cash register ” (meter)  Saves the customer money on losses

19  Reducing amperage & kW usage directly reflects in dollar savings  All electrical components are purposely oversized by at least 125% - NEC (National Electrical Code)  Eliminate the primary power factor surcharge penalty  Utilities usually charge customers an additional fee (up to 25% more) when their power factor is less than 0.95  Avoid this additional fee by determining the capacitance needed to correct each motor to a higher PF by properly sizing and installing capacitors

20 Explicit - PF Penalty - PF Adjustment - PF Multiplier Subtle - Reactive Demand Charge Confusing - Calculated Demand - Billed Demand

21   Panel mount – accumulation of smaller inductive loads  Equipment mount – larger individual inductive loads There are Good, Better, and Best locations for installation of units Adding PF correction capacitors to a lagging PF load improves the Power Factor on the ENTIRE system

22 Causes  Adjustable Speed Drives  Variable Frequency Drives – VFD’s  SCR Drives  AC Motor Drives (ac/dc/ac)  Nonlinear loads (electronic loads) UPS’s, computers, copiers & rectifiers  Many inductive loads have some amount of harmonic content Are steady or variable voltage & currents at higher frequencies than 60 Hz (or 50 Hz)

23  High harmonic levels can shorten the life of equipment by 75 percent or more and raise your bill  High levels of harmonic distortion can create stress & problems for the utility ’ s distribution system, the plant ’ s distribution system and the equipment that is connected  The result may be the plant engineer ’ s worst fear — the shutting down of important plant equipment ranging from a single machine to an entire line or process Consequences of High Harmonic Distortion Levels Consequences of High Harmonic Distortion Levels

24  The customer is responsible for not causing excessive harmonics  The utility is not supposed to feed you harmonic rich power which alters your meter readings  Some electric utilities are presently charging financial penalties and/or causing service interruptions for customers injecting excessive harmonics into the utility system  A harmonic distortion-based penalty structure, in the manner of IEEE , is forthcoming in addition to poor Power Factor Excessive Harmonics Penalty Charge

25 On November 7, 1940 at approximately 11:00 AM the Tacoma Narrows suspension bridge collapsed due to wind-induced vibrations. The bridge had only been open for traffic a few months. Harmonic Resonance Harmonics = Wind (excites resonance)

26  The “Self correcting” problem  Blown fuses  Failed capacitors  Damaged transformer and equipment

27  Proper analysis & installation  Filtered capacitors & active filters  Proper metering  Web based data monitoring  Interface with existing facility management systems Power Factor correction capacitors can amplify existing harmonic voltages & currents Solution

28 Age of inductive equipment Percentage of PF correction at loads Quantity of PF penalty elimination equipment The amount labor needed to achieve facility optimization kW charged & net kVA Savings Total of monies awarded from Federal stimulus funds or State energy efficiency grants Amount of the project repayment schedule Depends on:

29  You can finally reduce motor temperatures, increase longevity, increase distribution capacity, have better voltage regulation, eliminate surges, remove power factor & other surcharge penalties & SAVE YOU MONEY!  Electrical Rates are climbing everywhere & Energy Conservation and going Green are buzz words  Venergy Group Solutions and our partners have integrated a unique way using data analyzers and other methodologies for determining the amount of capacitance that is needed to optimize inductive equipment, creating an ideal balance for maximum savings  Let’s see how much money can be saved at your facility as we slow down the electric meters… legally

30 Let’s Examine 12 to 24 months of electrical bills Schedule a complete facility analysis Perform detailed analysis on live loads Evaluate “Whole System” monitoring Calculate the approximate ROI and submit a proposal

31 Establish your company as the Energy Savings Leader Be the First to Meet DOE Mandates See amazing Positive Results That Lead to Credible Savings & Increased Revenues Significantly impact recurring costs and Minimize Down Time Empower Your Employees Working in Sustainable Savings Participation Goals Greatly Increase Your Productive Work Time From Increased “Up” Time Build Confidence In Your Electrical System Move Ahead of the Competition