1. Draft SMECO 2012-2014 EmPOWER Plans April 15, 2011

2. Business Solutions – Overview A simple solution to assist non-residential customers with the purchase and installation of efficient technologies that reduce energy consumption Provides financial incentives and limited technical services Primary focus on building system improvements such as mechanical and lighting in new and existing buildings Customer engages their our contract – there are no “program contractors” Primarily delivered utilizing in-house staff for marketing, administration, and program implementation activities Comprehensive portfolio consisting of: Prescriptive measures Custom measures

3. Business Solutions – Description Prescriptive Equipment and incentives are prequalified for the following: Lighting New Construction Performance Lighting LED lighting Unitary HVAC HVAC Variable Frequency Drives Commercial Refrigeration No detailed engineering analysis required Custom Equipment is not pre qualified Site-specific, cost-effective measures Incentives are determine on a project by project bais

4. Business Solutions- Prescriptive Enhancements Reviewed and adjusted all existing prescriptive measures to reflect current market conditions and standard practice Increasing the minimum requirements threshold for New Construction Performance Lighting –Increase Tier 1 minimum requirements from >10% below base LPD to >15% below base LPD; keeping the incentive amount intact. –Increase Tier 2 minimum requirements from >20% below base LPD to >30% below base LPD; keeping the incentive amount intact. Adding a measure for permanent de-lamping to the prescriptive lighting form. Eliminating incentives for LED exit signs. Adopting a tiered incentive approach for High Bay fixtures based on the wattage of the existing fixture being retrofitted. Adopting a single-tier incentive strategy for Unitary HVAC measures to ensure program cost-effectiveness.

5. Business Solutions- Prescriptive Enhancements Commercial Plug Load Addition of a prescriptive commercial plug load offering primarily targeted at commercial real estate customers, K-12, colleges & universities and the hospitality sector A simple, “express” application form will be developed for this offering, using a deemed savings strategy and incentives will be designed to cover approximately 50-75% of the implementation costs Measures include: –Smart power strips –Personal occupancy Sensors –Hotel room master switches –Vending Machine Controls

6. Business Solutions- Custom Enhancements Custom program enhancements will focus on streamlining the process, providing tools to assist customers and trade allies through the process, and targeting underserved sectors Creation of end-use specific worksheets to simplify process for customers and engineers Addition of an Energy savings study component designed to assist customers in identifying energy savings projects. –available to all qualified C&I customers and the contractors of their choice. –Program will provide co-funding for the study with a maximum program contribution of 75% or $15,000, whichever is less

7. Business Solutions- Custom Enhancements Green Building Approach To encourage additional energy savings, incentives will be available to encourage customers and designers to pursue additional LEED credits Eligibility includes: –new commercial and major renovation projects that are registered with the USGBC –an application for the ESFB Program must be submitted before construction documents are completed –the developer or building owner and their design team must agree to set an energy efficiency goal of at least 24% better ASHRAE 90.1-2004 To encourage additional energy savings, incentives will be available for enhanced commissioning that can provide improved energy performance above and beyond basic building commissioning. These include: –Commissioning Design Review –Systems Manual and Commissioning Verification, Training, and Final Systems Manual –A maximum of $15,000 or 50% of the cost is available for ECx services

8. Business Solutions201220132014Total Annual MWh Savings4,2145,4976,59916,310 Annual MW Savings0.81.01.33.1 Participants129156180465 Measures129156180465 Total Program Costs$1,337,449$1,835,118$2,282,592$5,455,159 TRC Ratio1.59 PAC Ratio2.49 RIM Ratio0.77 Participant Test Ratio2.33 Societal Test Ratio2.10 Participation, Costs, Savings, and Cost-effectiveness:

9. Prescriptive Lighting MeasureProposed Incentive Relamp/reballast (meet min watts)$15 Permanent delamping/retrofit$35 New commodity-grade HPT8, Reduced Wattage T8 or T5/T5HO fixtures with qualifying electronic ballast$25 New self-contained fluorescent stairwell fixture with HPT8, Reduced Wattage T8 or T5/T5HO lamps and T8 or CFL standby lamp$50 New high-efficiency advanced recessed fixture with HPT8 or T5/T5HO$65 New 4- or 8-ft industrial fixture with reflector and HPT8 or T5/T5HO lamps$35 New Fluorescent T5HO / HPT8 Highbay Fixture; Replacing ≤250w HID$40 New Fluorescent T5HO / HPT8 Highbay Fixture; Replacing 251w - 400w HID$55 Ne Fluorescent T5HO / HPT8 Highbay Fixture; Replacing 401w - 1,000w HID$85 New hard-wired compact fluorescent fixture or retrofit kit; 1-3 lamps$35 LED exit signs$10 Occupancy Sensor – Wall switch replacement $25 Occupancy Sensor – Remote wall / ceiling mount $100 Occupancy Sensor – Fixture mounted $25 Daylight Control – Continuous dimming - dimming ballasts $40/ballast Daylight Control – On/off control - standard ballasts $100/ballast Occupancy Sensors – Reach-in freezer or cooler lighting $9/door

10. New Construction Performance Lighting MeasureProposed Incentive Tier 1 - >15% below Base LPD$0.40 /watt reduced from LPD threshold Tier 2 - >30% below Base LPD$0.80 /watt reduced from LPD threshold Subject to "cap" of $30/fixture Prescriptive LED MeasureProposed Incentive PAR38 and PAR30 screw-in integral LED replacement lamps$30 MR 16 integral LED replacement lamps$25 Recessed, surface, pendant or track downlight LED fixtures$60 Exterior parking garage or canopy LED fixtures$175 Exterior parking lot, exterior lighting fixtures$150 LED reach-in freezer or cooler lighting$25/ door Variable Frequency Drives HorsepowerProposed Incentive 5-100$1,350-$7,000

11. Commercial Refrigeration MeasureProposed Incentive Anti-Sweat Heat Controls$40/door Reach-In Cooler/Freezer Door Closer$40-$50/door ECM Evaporator Fan Motor$50/motor Evaporator Fan Controller on Existing Shaded-Pole Motor$75/motor Vending Machine/Beverage Cooler Controller$30-$75/controller Solid Door Reach-in Refrigerators$75-$225 Solid Door Reach-in Freezers$100-$500 Glass Door Reach-in Refrigerators$75-$150 Ice Machines$50-$250 Unitary HVAC Sub-CategoryProposed Incentive Air Conditioners, Heat Pumps (Cooling Mode) - Unitary and Matched Split Systems Split System and $25-$50/ton Single Package

12. Technical Services ApproachProposed Incentive Engineering StudiesCo-funds up to 50% of study cost, cap of $15,000 Custom ApproachProposed Incentive Retrofit ProjectsUp to 50% of project cost, buydown to 1.5 yrs payback New Construction ProjectsUp to 75% of incremental cost, buydown to 1.5 yrs payback