1. Intelligent Buildings - Meter Reading and Energy Management Ron Zimmer President & CEO Continental Automated Buildings Association September 8, 2003 St. Louis, MO Mapping Your Future: From Data to Value AMRA 2003 International Symposium

2. Presentation Objectives Mapping Your Future: From Data to Value AMRA 2003 International Symposium 1. Energy Management 2. Meter Reading 3. Intelligent/High Performance Buildings 4. Benefits and Opportunities

3. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Association Continental Automated Buildings Association Mission Statement: “ To encourage the development, promotion, pursuit and understanding of integrated systems and automation in homes and buildings.” www.caba.org

4. Definition of Intelligent Building Technologies Mapping Your Future: From Data to Value AMRA 2003 International Symposium “ The use of integrated technological building systems, communications and controls to create a building and its infrastructure which provides the owner, operator and occupant with an environment which is flexible, effective, comfortable and secure.” Source: Technology Roadmap for Intelligent Buildings (http://www.caba.org/trm)

5. Once Upon a Time... Mapping Your Future: From Data to Value AMRA 2003 International Symposium SOURCE: Equity Office

6. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Energy Through the Century and Beyond 1900 - 1930s Energy Generated on Site Steam - Electric - Mechanical. 1940 - 1970 Large Centralized production, transportation and distribution of power by government regulated monopolies. 1980 Deregulation of natural gas market; Incentives for efficient on site generation of electric power. 1990 Deregulation of electric power (almost)! 2000 & Beyond Market-driven system, promoting efficient generation, supply, production, distribution and utilization of all power commodities.

7. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Overall Energy Market SupplyProductionDistribution $250B - Electric $ 90B - Natural Gas $ 60B - Other Fuels $ 45B - Facilities $ 30B - O & M $ 25B - Electric - Steam - Air - Chilling - etc. $500,000,000,000 Annual Market $400B Total $75 B Total $25 B Total

8. U.S. Energy Consumption By Category Mapping Your Future: From Data to Value AMRA 2003 International Symposium SOURCE: Equity Office

9. Mapping Your Future: From Data to Value AMRA 2003 International Symposium The Commercial Building Sector Will Continue to Grow Its Share of US Energy Consumption

10. Paradigm Shift Demand Bidding, Risk Management, Intelligent Controls Curtailable, Interruptible Direct Control Demand Respond Interactive Market Utility Command/Control Customer Involvement Preserve Reliability Cost Management Peak, Shaving Shifting, Conservation Load Shape Objectives Hourly (Sub-hourly) Loads Time Period Loads Metering Real Time Pricing TOU Rates Pricing After 2000 1970’s-2000 Evolution Trends : Reduced choice Increasing costs Lack of control Declining value to customers Reduced choice Increasing costs Lack of control Declining value to customers Increasing choice Cost volatility Value of information Increasing choice Cost volatility Value of information From Figure 1-1 New Principles for Demand Response Planning EPRI Final Report, May 2002

11. Deregulation legislation not passed Legislation passed; no action taken Partial competition: IOUs restructuring / deregulation suspended Full competition Legend: Status of electricity market restructuring & 2002 prices (c/kWh): Source: Energy Information Administration; Energyguide.com DC (7.5) WA (6.3) OR (6.9) CA(13.2) AZ(6.1) UT(5.5) CO(5.6) TX (6.8) MN(6.0) LA(6.7) IL(8.3) IN (6. 0) FL (6.7) GA(6.5) NC (6.5) VA (5.9) OH (7.7) PA (8.3) MA (10.1) CT (9.3) NY (12.2) Note: Prices in c/kWh for Jan to Sept. 2002 for Commercial sector EOP Is Exposed to Varied & Changing Energy Regulatory Environments and Market Prices SOURCE: Equity Office

12. NEW PARADIGM - Supply Management In the New Paradigm you’ll have to be just as knowledgeable on energy supply products as energy conservation methods due to value-cost tradeoffs. New products connect the value of the hedged volumes with the cost of demand response alternatives. Corporate guidelines for commodity risk management /accounting to support real time, value-cost decision making. In the New Paradigm you’ll have to be just as knowledgeable on energy supply products as energy conservation methods due to value-cost tradeoffs. New products connect the value of the hedged volumes with the cost of demand response alternatives. Corporate guidelines for commodity risk management /accounting to support real time, value-cost decision making. SOURCE: Sempra Energy Solutions

13. Demand Response “Market rules…must not unduly bias the choice between demand or supply resources, nor provide competitive advantages or disadvantages to large or small demand or supply resources. Demand resources…should be able to participate fully in energy, ancillary services and capacity markets.” “Demand can best respond by participating in the day-ahead market. Demand response options should be available so that end users can respond to price signals and reduce loads as they feel the price exceeds their individual willingness to pay for delivered electricity.” SOURCE: Sempra Energy Solutions FERC, Electricity Market Design and Structure Working Paper, 3/02 The FERC On Demand Response…

14. Demand Response Real time telemetry/metering system to include sub- metering of system segments. Segmenting critical, non-critical loads, high priority & low priority loads. Deploy/effectively control all on-site distributed resources. Incorporate software that can respond to real time price signals by automatically controlling load segments. Incorporate all the EnergyStar® Buildings design and construction materials to ensure lowest absolute energy needs. Real time telemetry/metering system to include sub- metering of system segments. Segmenting critical, non-critical loads, high priority & low priority loads. Deploy/effectively control all on-site distributed resources. Incorporate software that can respond to real time price signals by automatically controlling load segments. Incorporate all the EnergyStar® Buildings design and construction materials to ensure lowest absolute energy needs. SOURCE: Sempra Energy Solutions

15. NEW PARADIGM - Examples Retail customers will be linked to wholesale (ISO/RTO) markets in real time. Demand reduction as an option: Pay for the right to ask you to shut down some of the load. On-site generation as an option: Via load reduction. Dispatch to the grid. Pay you for the right to turn on your generator. Need to view long-term retail supply and ability to dynamically manage it as an asset. Retail customers will be linked to wholesale (ISO/RTO) markets in real time. Demand reduction as an option: Pay for the right to ask you to shut down some of the load. On-site generation as an option: Via load reduction. Dispatch to the grid. Pay you for the right to turn on your generator. Need to view long-term retail supply and ability to dynamically manage it as an asset. SOURCE: Sempra Energy Solutions

16. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Perform Rate Analysis Perform Rate Analysis Performance Metrics Energy & Expense Profiles Energy & Expense Profiles Energy Alarms Dispatch Distributed Generators Weather/Occupancy Compensation Weather/Occupancy Compensation Energy Monitoring and IT Utility Bill Analysis & Validation ENTERPRISE – EMS SOURCE: Equity Office

17. Mapping Your Future: From Data to Value AMRA 2003 International Symposium SOURCE: Gridlogix, Inc.

18. Energy Monitoring & IT Mapping Your Future: From Data to Value AMRA 2003 International Symposium Distributed processing provides low-cost access to real time revenue-grade data. Digital revenue-grade meters can store months of information. Web-based systems provide communications to thousands of meters. Systems are capable of integrated energy and financial algorithms. SOURCE: Equity Office

19. BUILDING & ENERGY MGT. SYSTEMS Mapping Your Future: From Data to Value AMRA 2003 International Symposium 1. Energy Information Systems (EIS) 2. Building Management Systems (BMS) 3. Energy Management and Control Systems (EMCS) 4. Enterprise Energy Management (EEM) 5. Demand Response Systems (DRS) 6. Advanced Demand Response Systems (ADRS) 7. Intelligent Energy Management Systems (IEMS) Source: WebGen Systems

20. Mapping Your Future: From Data to Value AMRA 2003 International Symposium SOURCE: WebGen Systems

21. Mapping Your Future: From Data to Value AMRA 2003 International Symposium SOURCE: WebGen Systems

22. RECOMMENDATIONS: Mapping Your Future: From Data to Value AMRA 2003 International Symposium 1. Use an open standard, such as BACnet or LonWorks; 2. Manage systems integration between these buildings in- house; and 3. Use an Intelligent Energy Management System. Note: Further information can be found on CABA’s Information Series “Why Intelligent Agents can reduce Energy Costs better than Building Mgt. Systems or Human Experts”. Source: WebGen Systems

23. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Electricity Usage SOURCE: Alan Whitson

24. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Who Gets the Energy Savings... Total Savings $0.50/Sq. Ft. – Tenant Saves $0.15/Sq. Ft. – Landlord Saves $0.35/Sq. Ft. Building Value Increases – $0.35 Net Energy Savings – ÷ 7.5% Cap Rate – $4.67 Increased Value Bottom Line - $1,657,850 355,000 SF 19-Story Building SOURCE: Alan Whitson

25. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Saving Energy Pays Invest $1.25/sq. ft. in an Efficient Lighting Upgrade Saves $0.50/sq. ft. in Energy Costs per Year –Payback - 2.5 Years –ROI - 40% Creates $6.67/sq. ft. in Building Value –ROI - 533.6% SOURCE: Alan Whitson

26. Mapping Your Future: From Data to Value AMRA 2003 International Symposium TIFFANY BUILDING - SAN FRANCISCO Modeled Savings MeasureCost Payback (Yrs.)* Building Controls $250,0004.2 Convert SF 1&2 to VAV Annual Utility Savings VFD Cooling Tower $260,000 $11,000 $521,000 $58,956 $45,093 $2,603 $106,652 5.5 3.5 * Calculations include California energy incentives SOURCE: Kenmark Controls, Inc.

27. Mapping Your Future: From Data to Value AMRA 2003 International Symposium Echelon Building 1 San Jose: 75,000 sq ft 2000 points monitored 2001 Energy Costs: Electricity: $ 296,533 Gas: $35,946 KWh: 1,740,000 (Model): 4,134,000 KWh Savings: -58% SOURCE: Kenmark Controls, Inc.

28. IS METER READING/ENERGY MANAGEMENT IMPORTANT? Mapping Your Future: From Data to Value AMRA 2003 International Symposium NEWS BULLETIN June 23, 2003 - Public Service Electric and Gas (PSE&G), New Jersey’s largest regulated utility, serving nearly 3/4 of the states population, announced spending of $1.4 billion over the next five years to improve its electric systems...

29. National Energy Marketers Association (NEMA) Recommendations: Mapping Your Future: From Data to Value AMRA 2003 International Symposium 1. Upgrade Nation’s Aging Energy Infrastructure. 2. Implement Advanced Metering. 3. Grant Consumers Access to Usage Data. 4. Take Measures to Make Metering Open/Competitive. 5. Encourage Competitive Metering Through Investments Vehicles to Upgrade Metering Systems. 6. Combined Advanced Metering Technology with the Internet. SOURCE: NEMA

30. FUTURE RESEARCH Mapping Your Future: From Data to Value AMRA 2003 International Symposium U.K. CARBON TRUST - LOW CARBON INNOVATION PROGRAMME AIM - To obtain independent data on use of advanced metering techniques applied to utility metering for Metering, Monitoring and Targeting at SME level. www.thecarbontrust.co.uk

31. FUTURE EVENT Mapping Your Future: From Data to Value AMRA 2003 International Symposium Produced and Managed by: CABA and EH EVENTS & EDUCATION www.accessthehome.com

32. Your Information Source for Home and Building Automation Mapping Your Future: From Data to Value AMRA 2003 International Symposium www.caba.org E: caba@caba.org T: 613.990.7407 F: 613.991.9990 US/ Canada: 888.798.2222 Mexico: 001.888.514.2222