1. PERFORMANCE CONTRACTING – 360 A ROUNDTABLE DISCUSSION

2. AGENDA Introductions I.Donovan Stevens – Midstate Energy (dstevens@midstate-energy.com 602-615-4959)dstevens@midstate-energy.com II.Lee Davis– National Bank of Arizona (lee.davis@nbarizona.com 602-402-8202)lee.davis@nbarizona.com III.Jim Giel– Gust Rosenfeld (jgiel@gustlaw.com 602-257-7495)jgiel@gustlaw.com IV.Tim Leedy– Balsz Elementary School District (tleedy@balsz.org 602-629-6400)tleedy@balsz.org I.Performance Contracting Presentation II.Round Table Q&A

3. Concept is simple: Money saved on energy costs pay for building improvements. If the project fails to reduce costs as guaranteed, the Energy Services Company (ESCO) pays the difference. Implement improvements now rather then budget at some time in the future 3 Midstate Energy’s Performance Project

4. Background Complies with A.R.S 34-105 Supported by Governors Office as outlined in its master energy plan, Empower Arizona “ Energy Performance Contracts have been used by public and private customers for over 20 years and have been proven to be an effective method for upgrading existing facilities…”

5. Procurement Procurement Options include… – State Procurement Office Contract – 1GPA, SAVE, TCPN (Purchasing Cooperatives) – RFP, RFQ

6. Balsz Elementary School District Scope of Work – Mechanical upgrades and retro-commissioning – Interior and exterior lighting upgrades – Building automation system upgrades Cost $2,500,000 + Annual Savings Guarantee $250,000+ 10 Year Financing Package

7. Typical ECM’s Lighting Mechanical Building Automation Systems Water, Wastewater Energy Behavior Training

8. Q&A Panel Questions?