1. City of Palo Alto Utilities Facilities Managers Meeting Palo Alto Research Center March 10, 2011

2. Facilities Managers Meeting Agenda Introductions New CPAU Programs and Updates  Bruce Lesch, Andrea Hart, Catherine Elvert, Karla Dailey Boiler NOx Emissions and Energy Efficiency  Julian Elliot, BAAQMD  Tim Huang & Jeff Guild, Enovity Inc. CPAU’s State of the Art W/G/W Utilities  Greg Scoby, CPAU Engineering PARC’s Building and Energy Management Framework  Dave Ham, PARC

3. Zero Interest Loan Program Interest free financing for commercial electric efficiency improvements  Loans available between $5,000 to $50,000  Loans have a 0% interest rate  Loans are available to pay for electric efficiency projects that are eligible for a rebate through:  Right Lights Plus (Ecology Action)  Commercial Advantage Program (CAP)  Commercial and Industrial Energy Efficiency Installation Program (Enovity)

4. Zero Interest Loan Program Loan amount = total project cost – CPAU project rebate Loan payment = simple payback + one month Loan is designed to be cash flow neutral to your business Loan paid at sign off of project Total Project Cost$18,000 CPAU Project Rebate$3,000 Loan Amount$15,000 Estimated Annual Energy Savings$5,000 Simple Payback (Loan amount/Annual Savings) 36 months Number of Monthly Loan Payments (Simple Payback + 1 Month) 37 months Monthly Estimated Utility Bill Savings ($5,000/12 months) $417 Monthly Loan Payment ($15,000/37 months) $405 Monthly Estimated Cash Flow+$12

5. Zero Interest Loan Program The Fine Print  You must be a non-residential customer  You must be a CPAU customer for the last 24 months and in your current location for the last 12 months  Loans are for electric efficiency projects only  Maximum loan term is 5 years (<5 year payback)  A customer may take out more than one loan, but no more than $50,000 may be loaned out to one customer at a time  Program to begin very, very soon, but you can talk to your Account Rep now!

6. The highest customer participation in the country. Reduction environmental impacts Meet company sustainably goals Demonstrate civic leadership Generate positive publicity Marketing opportunities Improve employee morale Support and stimulate renewable growth

7. EPA: Green Power Partner www.epa.gov/greenpower Nationally recognized No additional cost Join a growing number of companies Marketing- publicity and recognition Credibility

8. Water Efficient Technologies Rebate Custom rebate for water conservation project  Process and equipment changes that reduce water use by 100 CCF/year  Sub-metered before and after installation/retrofit Partnership with SCVWD  Typical project rebate up to $50,000 CPAU facilities can receive up to $100,000

9. YOU Identify the Project Sample projects may include: Reclamation and reuse of rinse water Ozone laundry retrofits Water-saving ice machines Air-cooled chillers Liquid ring vacuum pump replacement Digital X-ray device upgrades Other water reuse technologies

10. City of Palo Alto Utilities Large Commercial Customer Pilot Demand Response Program Customer Meeting March 10, 2011

11. Presentation Outline What is Demand Response (DR)? Major Elements of Pilot CPAU DR Program Benefits for Participating Customers How to Participate Schedule

12. What is Demand Response? (In addition to voluntary curtailment) At the utilities’ request, customers reduce electric usage for short durations on hot summer days  Reduces the need to turn on expensive and more polluting electric generators  Helps maintain grid reliability  Reduces utility operating cost  Participating customers reduce energy cost and are rewarded for participation with a rebate A Win-Win-Win solution!

13. Major Elements of Pilot CPAU DR Program Pilot program for Summer 2011 and 2012  Test customer interest  Refine implementation details  Explore options for broader future program Open to 4 commercial customers:  Must be on Meterlinks program  Flexible load with potential to reduce loads by a minimum of 50 kW Limited number and duration of DR events  2 to 5 hours per day in the afternoons  Up to 15 business days between May and September

14. Benefits for Participating Customers  Reduces energy cost  Rebate of 50 cents per kWh reduced (vs E4/E7 expense of 8 cents per kWh)  Bonus payment of $2 per kW for full performance  No penalty for non-performance  Lower electric bill Lower energy charge May lower monthly demand charge (18-20 cents per kW) Recognized by the City of Palo Alto for program participation Demonstration of company’s environmental stewardship goals

15. How to Participate Contact your Key Account Manager if interested CPAU will provide custom DR evaluation of your facility Key Self-Evaluation Questions  Meterlinks metering?  50 kW demand reduction? Lighting A ir conditioning (e.g. pre-cool buildings, raise thermostat setting, adjust chiller water temperature) Process load Other (reduce elevator usage, turn off fountain) Building energy management system  Is participation in environmentally-friendly programs important to management?  How much effort will it take to prepare to participate in the program?

16. Schedule City Council expected to approve program on March 21, 2011 Customer Applications due April 15 th to participate in May 2011 Please let us know today if you may interested

17. Back –Up Slides  Customer Notification and Response NCPA informs Palo Alto about DR event – 8 am the day ahead (DA) CPAU notifies participating customers – 10 am DA Customer indicates participation – 10 am day of CPAU notifies customer of actual participation and rebate amount earned by the day before – 2pm the day after Total payment made to customer – November

18. Determining Baseline and Reductions