1. Power Saver TM Program Saving Energy Together Reducing Costs with Energy Efficiency Presented by Jerrel Gustafson, Unit Manager American Public Power Association Business & Finance Conference

2. Power Saver TM Program Saving Energy Together Austin Energy – Austin, Texas Municipal-Owned Electric Utility Municipal-Owned Electric Utility 10th Largest Municipal Utility 10th Largest Municipal Utility Serves > 888,000 Population Serves > 888,000 Population 320,000 Residential 320,000 Residential 40,000 Commercial 40,000 Commercial Generation – 3,170 MWs Generation – 3,170 MWs Coal 35%, Nuclear 28%, Gas 28%, Purchase Power 5%, Renewable 4% Coal 35%, Nuclear 28%, Gas 28%, Purchase Power 5%, Renewable 4%Overview

3. Power Saver TM Program Saving Energy Together Austin City Council Resolution September 14, 1999 Cost-effective conservation programs shall be the first priority in meeting new load growth requirements of Austin Energy. Resolution September 14, 1999 Cost-effective conservation programs shall be the first priority in meeting new load growth requirements of Austin Energy. Clean Energy Resolution August 28, 2003 … Austin Energy Strategic Plan to ensure Austin remains a national and international leader in the development and use of clean energy

4. Power Saver TM Program Saving Energy Together Austin Energys Response Energy Efficiency is first priority 15% Demand-Side Management by 2020 20% Renewable Energy by 2020 100 MWs of Solar by 2020 Commercial, Residential and Solar Energy Efficiency Programs

5. Power Saver TM Program Saving Energy Together Program History 25 Years Promoting Energy Efficiency! Original Program Developed in 1982 Original Program Developed in 1982 Low Interest Loan Offered Low Interest Loan Offered Core Group of Contractors Core Group of Contractors 4 to 5 Local Contractors 4 to 5 Local Contractors Home Improvements Offered Home Improvements Offered High Efficiency AC – 10. 0 SEER High Efficiency AC – 10. 0 SEER Home Sealing – Less Than 0.7 ACH Home Sealing – Less Than 0.7 ACH Attic Insulation – R-26 Attic Insulation – R-26

6. Power Saver TM Program Saving Energy Together Top 160 MW is used 40 hours per year DSM Opportunity

7. Power Saver TM Program Saving Energy Together Peak Clipping Strategic Conservation Load Shifting Energy Use Modification

8. Power Saver TM Program Saving Energy Together Peak Clipping Power Partner Power Partner A/C Cycling A/C Cycling W/H Cycling W/H Cycling Load Co-Op Load Co-Op AE DSM Programs Represent 51% of new DSM program mix

9. Power Saver TM Program Saving Energy Together Peak Clipping – Power Partner Cycling Session, June 15, 2005 Cycling Session, June 15, 2005

10. Power Saver TM Program Saving Energy Together Strategic Conservation Home Performance with ENERGY STAR ® Small Business Efficiency Appliance Efficiency Multi-Family Rebates Commercial Rebates Refrigerator Recycling Free Weatherization Municipal Conservation Air Duct Sealing AE DSM Programs Represent 32% of new DSM program mix

11. Power Saver TM Program Saving Energy Together Strategic Conservation Municipal Energy Conservation Program Traffic Signal Conversion to LED 5,500 traffic signals Existing incandescent lamps 135 watts Existing incandescent lamps 135 watts New LED lamps 15 watts Energy savings per lamp 120 watts New LED lamps 15 watts Energy savings per lamp 120 watts 90% energy reduction

12. Power Saver TM Program Saving Energy Together Load Shifting Time-of-Use Rate Time-of-Use Rate Thermal Energy Thermal Energy Storage Systems Storage Systems AE DSM Programs Represent 17% of new DSM program mix

13. Power Saver TM Program Saving Energy Together Load Shifting - Thermal Storage ABIA, kW Demand Profile, August 8, 2000 ABIA, kW Demand Profile, August 8, 2000

14. Power Saver TM Program Saving Energy Together Demand-Side Managements Role Modifies customer electrical energy usage through energy efficiency services & products Modifies customer electrical energy usage through energy efficiency services & products Provides cost-effective resources to defer the need for new capacity Provides cost-effective resources to defer the need for new capacity Enhances customer service Enhances customer service

15. Power Saver TM Program Saving Energy Together Historical Peak Demand Saving

16. Power Saver TM Program Saving Energy Together Residential Efficiency Home Performance with ENERGY STAR Home Performance with ENERGY STAR Air Conditioning Rebates Air Conditioning Rebates Duct Diagnostic & Sealing Duct Diagnostic & Sealing Refrigerator Recycling Refrigerator Recycling Free Home Weatherization Free Home Weatherization ENERGY STAR Lighting ENERGY STAR Lighting Multi-Family Multi-Family

17. Power Saver TM Program Saving Energy Together WARNING!

18. Power Saver TM Program Saving Energy Together WARNING! Beware of the Octopus!

19. Power Saver TM Program Saving Energy Together Customer Options Home Performance with ENERGY STAR Rebate Option Attic Insulation, Solar Screens, Window Film, Home Sealing, Duct Sealing, Duct Replacement Air Conditioning Rebates Up to $650 Bonus Rebates of $200 - $650 Covers up to 20% of Total Cost of Job Texas Gas Service Rebates Attic Insulation, Duct Sealing

20. Power Saver TM Program Saving Energy Together Customer Options Home Performance with ENERGY STAR Loan Option Velocity Credit Union 0%-3.5% APR Fixed Interest Loans 3 to 10 Year Term Options Single Family – Duplex Properties Eligible Toll Free# 1-800-933-2029 Credit Approval

21. Power Saver TM Program Saving Energy Together Customer Options Appliance Rebates Existing Construction Air Conditioning & Heat Pumps ACHeat Pump Air Conditioning & Heat Pumps ACHeat Pump Energy Star 14.0 SEER – 11.5 EER$180 $240 Tier 1 14.0 SEER – 12.0 EER$300 $360 Tier 2 15.0 SEER – 12.5 EER$480 $540 Tier 3 16.0 SEER – 13.0 EER$600 $650 ENERGY STAR - Room Air Conditioners – $50 per Unit ENERGY STAR - Room Air Conditioners – $50 per Unit Solar Water Heater System - $2,000 per Unit Solar Water Heater System - $2,000 per Unit

22. Power Saver TM Program Saving Energy Together Customer Options Duct Diagnostic & Sealing Onsite Duct Diagnostic $50 per Unit Contractor Provides Duct Improvement Recommendations Rebates Available for Duct Improvements

23. Power Saver TM Program Saving Energy Together Customer Options Refrigerator Recycling Austin Energy Pays $50 per Unit Recycled To Schedule Call 1-800-452-8685 Picks Up Refrigerators and Freezers For Single Family & Multi-Family Customers Must be in Working Condition

24. Power Saver TM Program Saving Energy Together Customer Options ENERGY STAR Lighting Coupon $2.00 & $4.00 off, Instant Coupon for Energy Star CFLs $10.00 off, Instant Coupon for Energy Star Light Fixtures Local Retailers Redeeming Coupons

25. Power Saver TM Program Saving Energy Together Demand Response Power Partner – Free Thermostats Power Partner – Free Water Heater Timer Power Saver Volunteer Load Co-op Program Aggregator Program

26. Power Saver TM Program Saving Energy Together Demand Response Power Partner Free White-Rodgers Programmable Thermostat Ability to Save 10% - 20% Annually Greater Temperature Control Opportunity to Partner with Austin Energy

27. Power Saver TM Program Saving Energy Together Demand Response Power Partner Benefits to Austin Energy Available for Residential, Small Business & Commercial Free Installation Online Programmable

28. Power Saver TM Program Saving Energy Together Demand Response Power Partner

29. Power Saver TM Program Saving Energy Together Demand Response Power Saver Volunteer Environmentally Conscious Volunteers Receive Alerts via Email or Text Message Most Cases – The Day before notifications Delay using energy between 4 p.m. – 8 p.m. Sign Up at www.austinenergy.com/go/volunteers Receive Free Weatherization Kit

30. Power Saver TM Program Saving Energy Together Demand Response

31. Power Saver TM Program Saving Energy Together Peak Day: June 2, 2005 Load Shifting - Load Coop Curtailment, June 15, 2005 - Brown Distributing, Inc. June 15, 2005

32. Power Saver TM Program Saving Energy Together Commercial Efficiency Commercial Rebates Commercial Rebates Small Business Lighting Small Business Lighting Free Vending Mizers Free Vending Mizers Building Tune Up Building Tune Up

33. Power Saver TM Program Saving Energy Together Customer Options Commercial Rebates Rebate Available at $250 per kW Rebate Available at $250 per kW Lighting Lighting AC & Chillers AC & Chillers Envelop Envelop Motors Motors Free Energy Audit Free Energy Audit Recommendations to Customer Recommendations to Customer

34. Power Saver TM Program Saving Energy Together Customer Options Fluorescent Light Retrofit Manufacturing Facility Converted (514) 400-watt HID lamps to 4-lamp 240-watt T5 HO Fluorescents Annual Cost Savings: $43,812 Annual Cost Savings: $43,812 Project Cost: $122,800 Project Cost: $122,800 Utility rebate: $33,153 (27% of job cost) Utility rebate: $33,153 (27% of job cost) Payback was 2 years Payback was 2 years

35. Power Saver TM Program Saving Energy Together Customer Options LED Exit Sign Retrofit 5000 units installed 5000 units installed Cost Savings = $84,350 per year. Cost Savings = $84,350 per year. Maintenance Cost Savings = $103,768 / year Maintenance Cost Savings = $103,768 / year Peak Demand Savings = 137 kW Peak Demand Savings = 137 kW Energy Savings = 1.2 million kWh / year Energy Savings = 1.2 million kWh / year

36. Power Saver TM Program Saving Energy Together Customer Options Reflective Roof Coatings Target Commercial facilities with flat, dark colored roofs with flat, dark colored roofs Rebate up to $0.15/sq. ft. Rebate up to $0.15/sq. ft. 300,000 sq. ft. roof 300,000 sq. ft. roof Expected Savings Expected Savings 192,000 kWh/year; total of 148 kW 192,000 kWh/year; total of 148 kW

37. Power Saver TM Program Saving Energy Together Customer Options Small Business Lighting Targets Customers Below 100 kW Demand Targets Customers Below 100 kW Demand Small Business & Non- Profits Small Business & Non- Profits Turnkey Program Lighting Discount Program Turnkey Program Lighting Discount Program Discounts Up to 75% of Cost of Job Discounts Up to 75% of Cost of Job

38. Power Saver TM Program Saving Energy Together Customer Options Vending Mizers Customer Options Vending Mizers Shuts-off refrigerated vending machines when no traffic in the area Shuts-off refrigerated vending machines when no traffic in the area Cuts power costs by 1/3 (~$100/yr) Cuts power costs by 1/3 (~$100/yr) Does not affect product temperatures Does not affect product temperatures Installed over 4,400 VM over 3 year period Installed over 4,400 VM over 3 year period

39. Power Saver TM Program Saving Energy Together Building Tune-Up High Tech Industry Re-Tuning & Calibrating Existing Buildings Savings estimate: $260,000 per year Savings estimate: $260,000 per year Utility incentive: $10,000 for initial assessment Utility incentive: $10,000 for initial assessment Total cost of project was $149,000 Total cost of project was $149,000 Economic payback was 7 months. Economic payback was 7 months.

40. Power Saver TM Program Saving Energy Together Solar Program Rebates Available $4,500 per KW of Solar $4,500 per KW of Solar 3 KW Maximum for Residential per Year 3 KW Maximum for Residential per Year Maximum $13,500 or 80% of Total Cost Maximum $13,500 or 80% of Total Cost Federal Tax Credit Available Federal Tax Credit Available

41. Power Saver TM Program Saving Energy Together Solar Program

42. Power Saver TM Program Saving Energy Together Closing Energy Efficiency & Demand Response Great Option for Future Load Growth! Energy Efficiency & Demand Response Great Option for Future Load Growth! Great Option for Customer Loyalty! Great Option for Customer Loyalty! Its a Cost Effective Option! Its a Cost Effective Option!

43. Power Saver TM Program Saving Energy Together Questions ?