1. Focus on Energy Business Programs Update WIEG Annual Business Meeting Point Beach Nuclear Power Plant June 24, 2009 Tim Dantoin Industrial Program 920-435-5718 dantoint@saic.com

2. Focus on Energy Program Mission Accelerate energy efficiency in Wisconsin by supporting projects that otherwise would not be completed

3. Why Focus on Energy? Approx 2/3 of each energy $1 leaves Wisconsin Efficient businesses are more competitive Wisconsin’s home owners & businesses save more than $239m annually with Focus programs Preparing for a “carbon constrained” economy

4. Focus on Energy Programs Residential (single and multi-family) Renewable Energy Business Schools & Government Commercial Industrial Agricultural Target Sectors Pulp & Paper Food Processing Metal Casting Plastics Waste & Wastewater

5. Industrial Energy In Wisconsin Electricity 24,329 GWh Natural gas 1.4 Trillion therms Industrial market 35% of total energy IndustryElectricityNat. Gas Pulp & Paper30%18% Food & Dairy13%18% Metal Casting10%12% Chemicals5%10% Printing4%2% Glass1%5% Other Industrial37%35%

6. Focus on Energy Industrial Program Over 2,000 industrial facilities have participated

7. Technical Facility-wide assessments System assessments Project-specific assessments Industrial Best Practices Emerging Technologies Facilitated Energy Management Training & Awareness Financial Prescriptive Incentives Custom Incentives Study Grants Service Grants Renewable New Construction Special Incentives Special Promotions Focus on Energy Assistance www.focusonenergy.com/Incentives/Business

8. Prescriptive Grants HVAC Chillers VFD Compressed Air Food Service Specialty Measures Fixed incentive rate per unit (e.g. $50 per Hp) Incentive paid after project completion Does not require involvement of Focus EA Lighting Motors Boiler Combustion

9. Incentive Rate Depends on Technology Tier 1($0.04 per kWh + $125 per kW or $0.40 per therm) Tier 2 ($0.06 per kWh + $200 per kW or $0.60 per therm) Criteria No. 1 Under 4 Yrs w/o Grant Criteria No. 2 Over 1.5 Yrs with Grant Criteria No. 3 Grant < 30% of Project Cost Criteria No. 4 Grant > 10% of Project Cost Max Grant => $250,000 Custom Grants “Window of Opportunity” Grant must be approved before project begins

10. Study Grants Assistance for quantifying potential savings opportunities Must work with a Focus advisor Must be approved prior to undertaking the study Metering projects may qualify Up to 50% of study cost No more than 10% of the potential energy savings Maximum of $7,500 Will consider larger grants for larger studies

11. Service Grants Burner Tune Up Steam Trap Repair Intended to jump-start routine maintenance Fixed incentive rate up to % of service cost Incentive paid after service completion Does not require involvement of Focus EA Chiller Tune Up Compressed Air Leaks

12. Service Grants Burner Tune Up Lesser of 1) $100 x No. of Burners or 2) 50% of Service Steam Traps Repair Lesser of 1) $50 x No. of Traps Repaired / Replaced or 2) 50% of Service Chiller Tune Up Lessor of 1) $2 per ton ( 500 tons), 2) 50% of Service, or 3) $1,500 Compressed Air Leak Detection 50% of detection service up to $500 < System 250 hp < $1,000 Remaining 50% for leak repair

13. Renewable for Business Biomass Combustion Biomass Digestion Solar Electric Solar Water Heating Distributed Wind

14. Renewable Site Assessments – gauges site suitability Feasibility Studies Grants – more in depth consideration of savings and costs Development Grants – support for larger systems Installation Incentives Cash Back Rewards Implementation Grants

15. New Construction Help customers incorporate energy efficiency into new buildings, additions or major renovations System Incentives Similar to Prescriptive Grants for existing facilities Design Incentives Pre-approval required $2,000 for Daylighting $2,000 for Geotherma Systems $3,000 for Building Energy Simulation

16. Special Incentives Incentive options that offer flexibility for businesses “RFP” programs: businesses can “bid” on incentives needed to complete a project Started in Industrial Sector, now available in Commercial, Schools/Government and Ag sectors Financial needs must be documented and winning proposals are selected on competitive basis

17. Special Incentives Incentive options that offer flexibility for businesses “Retrocommissioning (RCx): currently in the commercial sector; offers incentives to “tuneup”buildings and ensure all systems are operating efficiently Buildings can reduce energy use up to 30% Pilot effort underway in Schools/Gov sector; will likely be offered to a wider audience after this is completed Industrial team taking a systems optimization approach, targeting specific systems instead of whole building; first system is expected to be compressed air.

18. Special Incentives Incentive options that offer flexibility for businesses Staffing Grants: initiative that funds the staff time required to get energy efficiency projects implemented Must submit proposals with project lists to be completed Applications reviewed on proposed energy savings of project, need for funding and life of the project savings Competitive review of proposals Efficiency projects may be eligible for implementation incentives as usual

19. Special Promotions Bonus incentives to engage market as needed Thus far in 2009 PC Network Energy Management Lighting: T12 “bounty”, high bay fluorescent, sensors Change-A-Light CFL promotion Commercial Refrigeration System Tune-Up Variable Frequency Drives Chiller Tune-Up

20. Technical Facility-wide assessments System assessments Project-specific assessments Industrial Best Practices Emerging Technologies Facilitated Energy Management Training & Awareness Financial Prescriptive Incentives Custom Incentives Study Grants Service Grants New Construction Renewable Special Incentives Special Promotions Focus on Energy Assistance

21. Best Practice Technologies Off-the-shelf, market-proven technologies Little or no perceived technological risk Focus incentives promote deployment

22. Common Industrial BP’s Lighting - Upgrade to T8 Fluor. - Occupancy Sensors Compressed Air -Repair Leaks -Reduce Pressure -Eliminate Inappr. Use -VSD Compressors -Waste Heat Reuse Pumps & Fans -Right-size Motors -Variable Speed Control Ventilation -Air Balance -Reduce Vol. of O.A. -System Controls

23. BP Sector Guidebooks Pulp & Paper (pulping rotors) Dairy Processing (floating head pressure) Plastics Industry (ceramic barrel heaters) Water & Wastewater (fine bubble diffusion) Metal Casting (reduce scrap) Process Specific Opportunities www.focusonenergy.com/Business/Industrial-Business/Guidebooks/default.aspx

24. Emerging Technologies Technologies that have not been adopted in Wisconsin Real or perceived technical risk Eligible for FOCUS incentives as well Investment or shared savings available through CleanTech Partners (CTP)

25. …in Theory Management Commitment… Energy Champion… Energy Policy… Energy Team… Measure & Monitor… Report & Communicate… Set Energy Savings Goal… Implement Projects… …in Practice …Management Concern …Another “Hat” for Someone …Nice Words – No Teeth …Another &*#@ Meeting ! ! …No Payback on Sub-Meters …Monthly Actual vs. Budget …Based on What ? …No Support Facilitated Energy Management

26. Facility Profile Energy in Business Context Electricity Propane Natural Gas No.2 Oil Total Btu’s 3.14% % Increase in Profits with 5% Reduction in Energy Costs 62.75%Energy as % of Profits $3,450,000Annual Profits 6.46%Energy as % TF Costs $33,500,000Total Facility Costs 14.43%Energy as % Oper. Costs $15,000,000Operating Costs $2,164,782Total Energy Cost (Annualized) 2006 Business Indicators $0.52Water $ p Lbs Resin $5.29Tot Energy $ p Lbs Resin 0.339Gas MMBtu p Lbs Resin $2.53Gas $ p Lbs Resin 0.180Electric MMBtu p Lbs Resin $2.76Electric $ p Lbs Resin 408,858Lbs Resin (Annualized) 2006 Key Performance Indicators

27. Equipment Use Profile Estimating Energy Uses Electrical MMBtu Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other

28. e.g. “Free Cooling” Project Save 2.5% Opportunity Profile Best Practices & Emerging Technologies Chiller #1 Chiller #2 Chiller #3 Lighting Comp Air Office Other Electrical MMBtu

29. Base Load Variable Load Production Level or Heating D.D. Total Energy Use KPI & Energy Tracking y = mx + b m = energy per variable unit b = base load R 2 = correlation coefficient Continual Improvement

30. Briefings & Reports for Senior Management Facilitated Energy Management Prioritized List of Energy Projects Energy Management Plan Energy Management Plan Effective Energy Team Effective Energy Team It All Starts Here

31. Leader usually has personal convictions on enviro. & energy Develop clear action plans that are regularly updated Address both technical and management aspects of energy Act as opportunities arise Measure existing conditions & impact of change Engage other employees as needed Focus on continual improvement Have effective meetings Effective Energy Teams

32. Contact Information Tim Dantoin Energy Advisor Focus on Energy 920-435-5718 dantoint@saic.com www.focusonenergy.org