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Energy Savings through Elevator Modernization and
Utility Reverse Auction Bob Karcher, Vice President, Contracting Services and David Wolf, Director, Strategic Sourcing 2013 Saving Strategy October 12, 2012 1
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Elevator Modernization
Elevators upgraded to more energy-efficient controllers/drive motors Reduced Electricity Demand Load by 60% Low cost, flexible financing through PNC Bank No upfront costs Remain cost-neutral during renovation project Immediate energy bill cost savings that pays off loan 100% electric bill savings after loan satisfaction payoff Getting Started No charge elevator and demand assessment Presentation of savings opportunity summary Agreement on terms of elevator modernization project and loan Retain elevator contractor Initiate project according to hospital phase-in requirements 2
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Elevator Modernization
Elevator OEM ‘agnostic’ – does not interfere with current elevator maintenance agreements (though they should be negotiated DOWN due to upgrade) NYSERDA, ConEd and NYISO Rebate/Incentive Approved WIN/WIN – More efficient elevators at reduced electricity demand Cash flow neutral throughout loan amortization Full service turn key operation On-site project management 3
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Key Facts About World Energy
Bringing together intelligence and tools – enabling energy buyers to obtain the best available price and meet compliance requirements % 20% 5 - 15 15 5 - 30% over 500 over 900 over 30,000 16x #1 over $33B Electricity, natural gas, financial, and green credit transactions Largest primary carbon credit exchange Volume of nearest competitor Procurement events run Supplier contacts Registered suppliers Typical customer savings 13 States and 2 Provinces that utilize World Energy Bids from each supplier per auction Frequency winning supplier outbids itself last minute to ensure a win Additional savings when supplier outbids itself Never beaten by paper-based RFP process on apples-to-apples basis EVEN NET OF OUR FEE! CONFIDENCE ENERGY COSTS 4
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Supplier Margins by Procurement Method
World Energy Works Supplier Margins by Procurement Method $.25 $.20 $.15 $.10 $.05 $.00 5–12 4–8 1–3 Sources: Restructuring Today, Supplier Annual Reports, and World Energy Supplier Survey
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Reverse Auction Event Reverse SOURCING 6 Supplier D Supplier B
Supplier A Supplier C Contact D Contact B Contact A Contact C 6
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Next Steps Interested facilities are required to complete 3 forms for both Opt-In and World Energy to participate in this particular event. Opt-In Event-Specific Letter of Commitment World Energy Letter of Authorization (enables World Energy to contact your energy suppliers to obtain historical rate and use history) World Energy Exchange Agreement (World Energy’s participation agreement) Complete, sign, and submit all three forms to your Client Service Executive or an Opt-In team member by end of October. World Energy begins process. Contacts your energy providers to procure historical utilization and rates Contacts you to conduct initial planning session to solidify your objectives Prepares RFP and contacts you to conduct pre-auction planning session Conducts auction Compiles results, identifies options, prepares contract for review Member reviews results and options. If expectations are achieved, member executes energy procurement contract with supplier
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Questions and Key Contacts
Opt-In John McNamara David Zimba World Energy Luke McAuliffe
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