1. Maryland Clean Energy Summit Microgrid Round Table – October 15, 2013 Energy Reliability and Security

2. Honeywell.com  2 Copyright 2013 © Honeywell International Inc. All rights reserved. Are YOU Ready? Projected Supply ShortfallInclement Weather Technology is Ready - Now

3. Honeywell.com  3 Copyright 2013 © Honeywell International Inc. All rights reserved. What Are Your Critical Issues? Hurricanes Educational Offerings Retaining Top Students and Faculty Protect Research Economic Development Mission Critical Activities Earthquakes Energy Reliability Energy Security Ice Storms Snow Storms $$ Economics

4. Honeywell.com  4 Copyright 2013 © Honeywell International Inc. All rights reserved. The Case For Micro-Grids Heavily burdened, aging electrical grid The toll of power disruptions

5. Honeywell.com  5 Copyright 2013 © Honeywell International Inc. All rights reserved.

6. Honeywell.com  6 Copyright 2013 © Honeywell International Inc. All rights reserved. How a Microgrid Works

7. Honeywell.com  7 Copyright 2013 © Honeywell International Inc. All rights reserved. White Oak Microgrid DefinitionWhite Oak FDA Microgrid Local Power Generation26MW power supply (currently being expanded to 55MW to handle the installation’s peak load) Leverage waste heat (Trigen) to condition buildings Puts more power on the grid than it takes off Co-exist With The UtilityWorks in parallel with Pepco under a three-party Interconnect Agreement. Participate in demand response events Utilize spinning reserve to maintain energy surety Can Operate Totally Independent of Utility Grid (Islanding Capability) Operate mission critical functions independent of Pepco, enabling FDA to continue operations regardless of what happens outside the campus Ability to Manage and Control Your Local Load Match load to supply Ability to make power purchase decisions

8. Honeywell.com  8 Copyright 2013 © Honeywell International Inc. All rights reserved. FDA White Oak Challenge Mission: Campus integrates FDA’s functions to increase scientific synergy and collaboration. Protect consumers from unsafe products, address threats before they arise, and help deliver safer foods and safer, more effective medical therapies. Requires an islanded microgrid to meet GSA/FDA requirements Needs: Energy Security Energy Surety Energy Efficiency & Renewable Energy Mandates Ability to Expand as Campus Expands Challenges: Budget Constraints (New Construction ESPC) Ability to Balance Sometimes Conflicting Needs Aging Utility Infrastructure

9. Honeywell.com  9 Copyright 2013 © Honeywell International Inc. All rights reserved. Optimization – Key to Success Additional Value: Expanded Auto Load Shed Scheme Additional Dual-fuel Generation Assets Combined Heat and Power – Maximizing BTUs Interconnect Agreements With the Utility Honeywell, GSA and FDA Work Together to Operate the Facility in the Best Interest of the Government. Initial Strategy Near continuous operation of engine- generator Current Operations Real-time “make or buy” decision based upon cost of natural gas, electric tariff, campus loads vs. engine & cogeneration efficiencies

10. Honeywell.com  10 Copyright 2013 © Honeywell International Inc. All rights reserved. Innovative ECMs Instituted capability to participate in Pepco Gold Days putting power back on the grid when requested. Eliminated peak load charges as well. Automated Demand Response (Auto DR) Quantified above standard efficiency in new buildings, purchased equipment and provided funding. Combined Heat & Power (Trigen) Waste heat utilized to heat/cool buildings. More BTUs for every KW. Biofuels Adding capability to use biofuels for fuel flexibility for energy security and increasing options if natural gas prices increase. Lowered Total Energy Consumption Through Both Innovative and Traditional ECMs Throughout The Entire Campus. Chilled Water Thermal Energy Storage Water supply was single point of failure – needed to keep cooling towers operational. Chilled Water Storage connected to towers mitigating risk. New Construction

11. Honeywell.com  11 Copyright 2013 © Honeywell International Inc. All rights reserved. Utility Service Enhancements –Physical and Functional Separation of Utility Generation Systems –Electrical Bus Ties between Central Utility Plants (CUP) 1 and 2 –Dual Distribution Loop For Redundancy Two Additional Black Start Generators CUP and Building Level Load Shed Thermal Energy Storage –Electrical Load Shed of Chillers –Backup Water Supply Reliability Enhancements Electricity Produced Turquoise -CUP Generators Blue - Photovoltaic Arrays MW hrs

12. Honeywell.com  12 Copyright 2013 © Honeywell International Inc. All rights reserved. Reliability Features Fast, Dependable Separation From Utility Instability –Reliable Detection of Utility Deviations –Instantaneous Separation to Island Mode –Operation With Adequate Spinning Reserve –Smooth Generator Transition To Load-Sharing Island Mode Control Fast Load Management for Generator Demand Control, When Required –Accurate Real-Time Generator Capacity and Spinning Reserve Assessment –Fast Updated Load Measurement –Fast Load Shed of Prioritized Demands –Coordinated Load Restoration Process Synchronized Transfer from Island to Utility Parallel Operation Black Start Capability to Island Mode Operation

13. Honeywell.com  13 Copyright 2013 © Honeywell International Inc. All rights reserved. Reliability Metrics Uptime over the last 12 months is > 99.999%. Redundancy provided for all critical systems. Islanded, either automatically or manually, more than 70 times over the past 2 ½ years. Operations have not been interrupted for any weather related events. On a yearly basis more power is supplied to Pepco than Pepco supplies to the White Oak Campus.

14. Honeywell.com  14 Copyright 2013 © Honeywell International Inc. All rights reserved. The Benefits Annual Energy Savings –Current: 640,000 MMBtu –Under Construction: 275,000 MMBtu Pollution Prevention (annual) –Current: 50,000 metric tons CO 2 -equivalent –Under Construction: 22,000 metric tons CO 2 - equivalent Co-Generation reduces GSA NCR Demand –Response during “Gold Days” (approximately 22 MW currently; nearly 33 MW post-ESPC III Base) Rainwater Harvesting –Makeup water for cooling towers 30% Reduction from Baseline Equivalent to 15,000 Cars Removed from Road $3M in Demand Savings and Program Participation Good water stewardship

15. Honeywell.com  15 Copyright 2013 © Honeywell International Inc. All rights reserved. Summary of Benefits Reduced First-Cost to Government Reduced Recurring Costs to Government More Energy Efficient Campus Fixed Accountability for Systems Performance Flexibility to Meet Evolving Program Requirements Adaptive Re-use of Historic Structures Demand Response Capability ($ to GSA) Ability to Continue Mission Independent of the Grid Enhanced Energy Security

16. THE CITY OF Wilmington DELAWARE Hay Road Waste Water Treatment Plant October, 2013 Renewable Energy Biosolids Facility Maryland Clean Energy

17.  Reduce energy and operational costs  Reduce greenhouse gas emissions  Insulate the City from future electricity and biosolids cost escalation  Two phases:  Phase I completed in September 2011.  The REBF is Phase 2.  Honeywell guarantees cost savings over a 20 year period In June 2009, Wilmington initiated a Project to

18.  PHASE 1 completed October 2011 Solar Panels at Porter and Municipal Complex Building Energy Savings LED Traffic Lights Water Pumping Peak Load Shift  PHASE 2 4 Megawatt Electricity Generation Using Renewable Fuels Dry 140 Tons Per Day of Wastewater Sludge Estimated to Save Over $16 million Overview of Projects

19. Cherry Island Landfill Landfill Gas Plant

21. Wilmington Microgrid – What Has Been Accomplished Energy Conservation Measures Water Pumping Peak Load Shift Led Traffic Signal Retrofit Dry 140 Tons a Day or Wastewater Sludge Traditional Efficiency Improvements Solar Panels at Porter and Municipal Complex 4 Megawatt Electricity Generation Using Renewable Fuels On-site Generation and Storage Capacity Balance System Supply and Demand Optimization of Power System Based on Performance Metrics Implement Advanced Controls Phase Two of Project is Deploying a Microgrid That Can Support The Grid and Or Go Into Island Mode Operate with Utility Grid or in Island Mode

22. REBF Project Benefits  Save $16.7 Million Over 20 years  >$800,000 Reduction in Annual Costs  Achieve budget certainty  Fix Electricity and Biosolids Costs Over 20 years  Reduce Greenhouse Gas Emissions by 15,000 Metric Tons Per Year  Exceeds 20% Greenhouse Gas Reduction Goal  Over 50% of Wilmington’s Electricity Requirements Will Be Met By Its Own Renewable Energy  Spend Locally  Avoid Exported Utility and Sludge Hauling Costs  The Majority of Construction Subcontracts Go to Local Firms  Over 100 Local Construction Jobs  All Labor Drawn from Wilmington Locals

23. Thank you. kash@ksgroupllc.com