1. U.S. Department of Energy Better Buildings Case Competition 2014 Smart Power Electri-City

2. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Challenge: 20% Energy use reduction within 10 years Mid-Sized US city Focus on ~150 Publicly owned Buildings Obstacles  Data  Lack of collection  No centralization/standardization  Buildings  Antiquated Structure/ out-of-date equipment  Varying building size, location, and usage  Employee Resources  Over-extended maintenance staff  Misaligned incentives  Funding  Competition against non-energy projects  Securing Funds Solution  Data Collection & Analysis  Hardware installation for collection & analysis  Software (Smart Power Application) for building profiles/inventory  Financing/Implementation  Self Sustaining Internal Energy Savings Performance Contract (ESPC)  Behavior Modification  Gamification  Re-aligned incentives

3. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Collection of Data Through Hardware  Self-Reporting Smart Hardware - total cost of 500k  Estimate from Aquicore, a business that specializes in energy monitoring in commercial settings  Installation of ~30 buildings per year over 5 years  Used to track Energy usage  Baseline formation  Identifying energy spikes/unusual consumption (Real Time)

4. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Collection of Data Through Software  During the first year, software can be used to make energy decisions with little investment while hardware is being implemented  Once hardware is fully implemented software and hardware can be used to supplement each other 1)Create an EnergyStar Portfolio Manager account 2)Classify Buildings and square footage 3)If available compile buildings utility bills 4)Create broad energy consumption profile using Federal Energy Information Administration database Used to gain broad picture of energy consumption Used to highlight “hot spots” of energy consumption Focus early energy projects on “hotspots” (inefficient buildings) “Smart Power” Application App that can be download on phones; asks questions about individual buildings Builds detail building profile over time Can spend 1-2 minutes on App or Hours Sample Questions 1)How many elevators does the building have? 2)Age of HVAC system? 3)Is building occupied on weekends? 4)Hours of operation for HVAC?

5. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Data Summary: Hardware for real time data and baseline formation Energy Star Portfolio for board classification Application for detail inventory Identifying Projects  Hardware – look for spike increases / above average consumption  Example: Weekend consumption of a building higher than similar buildings  Example: Energy spikes noticed at 2:00 am (Automatic settings for lights/HVAC off schedule?)  EnergyStar Portfolio - focusing on certain buildings or areas  Focus on buildings classified as high energy use  Focus on older “obsolete” buildings  Application – ideas for specific projects identified by EnergyStar Portfolio  Bulk buying to reduce costs - ex: replace inefficient refrigerators through out multiple buildings  Hardware/EnergyStar identifies high energy consumption building; app gives info on possible projects (age of HVAC system, incandescent lights present, single pane windows, etc.)

6. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Initial Bond offering to Fund an Internal Energy Savings Performance Contract (ESPC) Managed between Energy Office and Finance Department Used for Energy related projects only; no competition against non-energy projects Focus on low hanging fruit with High IRR and quick payback for cash flow at the beginning Ex: lights

7. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Internal Energy Savings Performance Contract (ESPC) Over time less money goes towards bills and debt repayment; more towards projects Once established with cash flow; can focus on larger projects with longer payback periods

8. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Implementation Procurement process stays the same as with any other contract Minimum three qualified bidders Standard remittance schedules Final approval from Energy Office, Finance Dept. and Maintenance Dept.

9. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal Gamification Definition: about taking the essence of games—fun, play, transparency, design and challenge—and applying it to real world objectives rather than pure entertainment Use EnergyStar Guide to Energy Efficiency Competition for Buildings & Plants Buildings & agencies compete against each other Team leaders appointed Promotes the competition Receives recognition and possible monetary awards Winning team(s) receive monetary award Allowed to spend on upgrades/improvements as they please *Nike, Google, Volkswagen & City of El Paso Texas have all used Gamification Empowerment Energy projects only competing against each other due to ESPC Maintenance staff provided “cheat sheets” for optimal building settings Takes thinking out of the process Feeling of contributing by manually adjusting settings Maintenance staff use of Application Can recommend questions Recognition for completing certain amount of questions Gamification Team Leaders Cheerleaders for Energy Reductions Distribute Energy Reports to team members for awareness Opower – Comparing your team against others

10. Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goa l Estimated Energy Reduction of up to 36% Energy Projects – 20 to 25% In short, based on the average commercial building energy portfolio, we’ve established that we can expect a 20 to 25% energy use reduction through energy efficiency upgrade projects. Behavior Modification – 9 to 11% With large variances between examples of Gamification and potential overlaps with other energy reduction techniques, conservative estimate of 9% to 11% in energy reduction. Awareness contributes 2 to 4% Gamification and empowerment contributes 7%.

11. Questions? Introduction Data Collection & Analysis Finance/Implementation Behavior Modification Goal