CITY OF PALM SPRINGS CITYWIDE ENERGY INFRASTRUCTURE UPGRADE PROJECT THE BUSINESS CASE FOR PROJECT APPROVAL Larry Baebler Chevron Energy Solutions October 4, 2013

Chevron Energy Solutions  What is an Energy Services Company?  How do they develop projects?  What are their guiding principles?  What services do they provide?

Lighting Technology Upgrades  We have identified almost $270K/yr. of energy savings by upgrading city lighting systems  Some existing florescent lamps no longer manufactured Palm Canyon Lighting T-12 Lighting FixtureNew LED Lighting

Energy Management/Water Controls  Many City facilities currently consume lighting, heating/cooling on a 7/24 basis but occupancy of facility is currently 4/8  Upgrading energy management and water controls saves City over $190k per year  We have identified over 100 million gallons of water saved annually by upgrading controls Baristo Park Ruth Hardy Park

We Fixed These Problems at No Cost to the City  Currently estimating general fund expenditure of $21 million needed over next 20 years to fix these problems  We have identified over $1.3 million in annual energy and O&M savings plus incentives that can be used to implement needed infrastructure upgrades now  Using this $1.3 million we can install needed upgrades without using any general funds

Why Was The Project Approved?  Equipment upgrades were needed  Project funded through energy savings  Favorable cost of money and gas pricing  Incentives were available  Improved air quality  Reduced annual O&M expenses  Avoid equipment cost escalations  Satisfied City’s sustainability goals  Energy savings guaranteed