1. Consumers Energy Small Business Solutions 2016 Program Year Kickoff Marina Escobar January 11, 2016 1

2. Today’s Topics 2015 Program Summary 2016 Goals Trade Ally Participation Top Trade Ally Awards Research Results 2016 Program Overview Program Reminders 2

3. 2015 Achievements Total Projects1,320 MWh Savings26,750 Incentives$5.16M Average Incentive $3,900 Small Business Trade Allies helped over 1,300 customers save more than $3.2M in 2015 3

4. Trade Ally Participation Our top three trade allies contributed 47% of the total savings for the program for 2015 4

5. 2016 Goals Total Projects1,455 MWh Savings30,000 Incentives$5.6M With your help we will meet our goals for the 2016 Program Year 5

6. 2015 Trade Ally Awards 6

7. Top Trade Allies for 2015 Hudsonville, MI Saved 8,493 MWh Grandville, MI Saved 2,302 MWh Davison, MI Saved 1,880 MWh 7

8. Research Results Marina Escobar 8

9. SB Program Satisfaction Satisfaction with the program remains extremely high at 93% for Wave 2 The Wave 1 and Wave 2 surveys had similar distributions 23

10. Satisfaction with Program Elements Participants were very satisfied with all program elements 23

11. Quality Requirements High usage (100+ hrs/week) and high wattage fixtures continue to be main risk for realization rate 11

12. 2016 Consumers Energy Small Business Solutions Program Overview Marina Escobar 13

13. Processing Time Improvements Pre-Inspection times have decreased each year due to faster processing times. Has gone down by five days.

14. Processing Time Improvements Post-Inspection times have improved every year due to additional inspection staff. Has gone down by five days.

15. Processing Time Improvements The average number of days to payment has been reduced by five days 16

16. Program Changes A facility may participate three times throughout the life of the program, up to $10,000 total incentives Total ProjectsTotal Incentives 2009-20121 Project$5,000 2013-20152 Projects$7,500 20163 Projects$10,000 17

17. Quality Inspection Bonus Bonus for passed Pre-Inspections Assessed semi-annually in June and December Minimum of five projects completed within each six month time period CriteriaBonus Amount 80%-89% Pass Rate$25 per passed inspection 90% Pass Rate$50 per passed inspection 100% Pass RateAdditional $5,000 18

18. Program Reminders Mindie Graszler 19

19. LED Updates LED Costs Market conditions indicated a decline in cost for LED lighting technologies A per unit material cost decrease was implemented Database reflects cost decrease LED Approval 8 foot LEDs are no longer approved for use Only 4 foot LEDs will be accepted 20

20. Lighting Requirements Fixtures must be listed by one of these organizations Design Lights Consortium (DLC) ENERGY STAR ® Consortium for Energy Efficiency (CEE) Cannot accept rebranding unless listed 21

21. Submitting Documents Checklist Participation Agreement Customer has initialed both waiver sections Document is signed Send in all pages of the document Project Completion Form Project scope changes noted Document is signed Permit or permit waiver is included 22

22. Miscellaneous Reminders Pre-qualify using Customer Look-Up tool Utilize the Search functions Brochures can be requested at any time Dispose/recycle old equipment Collection of co-payments Insurance Requirements The Small Business Solutions Program has limited funding and incentives will be paid until allocated funds are depleted. This program may be modified or terminated without notice. 23

23. Tube LED Program Program Overview Program staff installs linear LEDs up to 20% of compatible fixtures Program Staff instructs the customer to contact Small Business contractor for remaining fixtures in facility Objectives Establish relationship with a larger small business customer base Introduce customers to LED lighting Increase the number of customers served by the Small Business Energy Efficiency Program from 1,320 to 1,455 in 2016 24

24. Questions 25

25. Contact Us Administrative team Mindie Graszler Mindie.Graszler@cmsenergy.com Office: 877-607-0737 ext. 1927 Cell: 517-643-5465 Marina Escobar Marina.Escobar@cmsenergy.com Office: 877-607-0737 ext. 1928 Cell: 517-505-8830 ConsumersEnergySmallBusinessSolutions @CMSEnergy.com 26

26. Contact Us Inspection team Samm Van Houten Samm.VanHouten@cmsenergy.com Office: 877-607-0737 ext. 1940 Cell: 517-455-8692 Josh Smith Josh.Smith@cmsenergy.com Office: 877-607-0737 ext. 1926 Cell: 517-375-1252 Mark Pruchniewski Mark.Pruchniewski@cmsenergy.com Office: 877-607-0737 ext. 1925 Cell: 906-395-0324 27

27. Thank You! We can do this WITH YOU! For more information contact the Consumers Energy Small Business Energy Efficiency team 877-607-0737 Webtools.dnvgl.com/Projects/cepm 28