USM Energy Initiatives Joan Kowal Energy Manager, UMCP May 1, 2009

Renewable Energy :  UMCP on behalf of USM and DGS has issued a Request for Proposals for Clean Energy  Long term Power Purchase Agreement (PPA)  Projects developed and financed privately  Expect to serve approx. 20% of State agency and USM electric load  Purchase will include energy, capacity and renewable energy credits (RECs)  Contract available to other state entities that have equivalent or better credit than USM  Expect to award to several projects for diversification

Aggregated Procurements:  USM and DGS jointly procure natural gas and electric  Natural gas for large accounts is purchased on a rolling 36 month window  Large electric accounts will start a block and index contract 7/1/09  Allows large accounts to peak shave and reduce costs during high priced hours  Reduces retail premium  Index is PJM locational marginal price  Future efforts include evaluation of USM becoming a PJM member

Case Study for Carbon Neutral Buildings:  Future carbon neutral buildings to consist of:  Increased energy efficiency  Renewable energy technologies  Purchased renewable energy  Evaluate a current capital project process  Modify budget requests  Establish energy efficiency guidelines  Evaluate alternative energy systems (including renewable energy technologies)  Utilize life cycle cost analysis  Provide recommendations as appropriate

Results of On-going UMCP Lighting Project: Footnotes: * University provides materials (purchased in large quantities) to unit price contractors. ** Using ballasts with centrally controlled 50% step dimming at night. *** Excludes: cost of capital (1% fee); GC P&O; prevailing wage; PM is state funded; no performance guarantees.