Performance Contracting The Honeywell One Source Solution

Performance Contracting Advantage Reduced Project Cost Improved Quality Reduced Overall Time to Complete a Project Improved Communication Ease of Management Clear Focus to Reduce or Eliminate Risks

ò A partnership to effectively utilize technology to optimize customer service and delivery capabilities. ò A self-funded solution for infrastructure and operational improvements. ò A guarantee to deliver results. Performance AMR is …

$3.2M AMR Meter Solution ($400K) Annual Program Debt Payment (10 years) $100k Net Annual Benefit City $480K Annual Increased Water Billing Revenue $120k Annual Operational Savings ($100k) Annual Maintenance Cost Services Labor Equipment Value Proposition

Financial Source Contract Terms Up front Fees Guarantee Change Orders Implementation Value Add Services Budget Expense Only during install and warranty Yes No Yes Multiple vendors Not Typical Self Funding 5-10 years No System performance No Complete Turnkey Tailored to your needs Key FactorBid/SpecPerformance Contracting Performance Contracting - Comparison

ò A commitment to understand your community - in order to develop a “Total Customer” solution. ò Access to the best technologies and vendors - and the ability to mobilize them in a coordinated effort. ò A self-funded solution with guaranteed system performance - allowing you to minimize risk and maximize the benefits of your new system. ò The ability to deliver a wide range of services - beyond the traditional scope of meter services. The Performance AMR Difference

Saving Energy & Water … for our customers Education & Municipal Federal Utility National Accounts

Savings Opportunities Energy and Related Operational Savings System Replacement Premature Major Equip. Failure Tools, Parts, Material Energy Use Administrative Costs Lost Productivity Purchased Services In-House Staff

Technology Categories  Boiler & Chiller Improvements  Building Automation Systems/Energy Management Control Systems  HVAC  Lighting Improvements  Building Envelope Modifications  Chilled, Hot Water & Steam Dist. Systems  Electric Motors and Drives  Refrigeration  Electrical and Co- generation Systems  Renewable Energy Systems  Electric Distribution Systems  Water Conservation  Rate Reduction / Auditing

Energy Management Solutions Vending Miser ­ More than 4,000 installed ­ 4.8 million kilowatt-hours saved annually, ­ Eliminate emission of 10 million pounds of CO2 gases annually Energy Affordability ­ More than 70,000 participants ­ Assist payment-troubled, high energy use income eligible utility customers ­ Improved energy savings, consumer comfort and safety Weatherization Assistance Program ­ More than 60,000 participants ­ Installation of quality, comprehensive energy efficiency measures targeted for maximum cost effectiveness ­ Effective energy education and personal action commitments

Water Conservation Rinse and Save Spray Valve ­ More than 20,000 installed and over the next two years we will install more than 30,000 Spray Valves ­ Lifetime Savings - 325,851 gallons H20 (equivalent to the amount of water a family of 4 uses in a year) Ultra Low Flush Toilets ­ Installed, processed and distributed more than 1 million toilets since 1991 Landscape Irrigation – Audit and reporting, ET Controller rebated and installation, turf buy–back for native landscape.