1. Nexant - Energy Efficiency Delivery Confidential November, 2015 Brief Overview of Nexant Services and Introduction of SCE ERCx

2. Confidential  Nexant Overview –Global Presence –Major Clients –Current Offerings in California  SCE Enhance RCx Program –Overview –Retrocommissioning Refresher –ERCx vs Traditional RCx –Data Analytics –Fault Detection and Diagnostics (FDD) –Program Benefits –AutoDR –How it Works –Eligibility and Signing Customers Outline Enhanced RCx 2

3. Confidential Founded on January 1, 2000 Headquartered in San Francisco, California – 32 offices located throughout the United States, Europe, the Middle East, Africa, and Asia Leader in the innovative strategy and planning, design, implementation, and evaluation of many of the largest commercial, industrial, and residential DSM and energy efficiency programs in North America – Senior engineers and consultants have been advising planners, portfolio managers and implementing utility programs to reduce energy consumption for more than two decades Independent provider of intelligent grid software and clean energy solutions and best-in-class energy enterprise software Nexant Overview www.nexant.com 3 Enhanced RCx

4. Confidential Expertise across the globe Atlanta Boston Boulder Chandler Chicago Des Moines Houston Jacksonville Los Angeles Madison Nashville Philadelphia Portland Raleigh Sacramento Salt Lake City San Francisco San Mateo Washington D.C. White Plains Toronto San Francisco London Utrecht Frankfurt Bahrain Cairo Cotonou Abuja Beijing Kuala Lumpur New Delhi Seoul Tokyo Shanghai Bangkok Singapore Global Offices Headquarters Project Offices Representative Offices Planned 2014 Offices energy industry and software specialists, many recognized as industry experts 600+ 4 Enhanced RCx

5. Confidential 5 A diverse customer base Utilities Energy Companies Transmission & Distribution Financial & Private Equity Government And many more…

6. Confidential  PG&E –Refinery Energy Efficiency Program (REEP) –Industrial Retrocommissioning Program (IRCx) –Tribal Casinos –Enhanced RCx Program (Schools and Municipals) –Technical support for Retrofit, New Construction, RCx and audit program for PG&E  SCE –Refinery Energy Efficiency Program (REEP) –Chemical Products Energy efficiency Program (CPEP) –Enhanced RCx Program –Technical Coordinator for Automated Demand Response  SCG –Engineering Support  SMUD –Prop 39 Support  LADWP –Energy Efficiency Technology Assistance Program Current Offerings in CA Enhanced RCx 6

7. Confidential  Third-party program administered by Nexant  Promotes tighter building operation practices  Utilization of Data Analytics and/ or real-time Fault Detection and Diagnostics (FD&D) i.e. next generation monitoring  Program focus is on large commercial buildings (e.g. offices, hospitals, data centers), and industrial facilities with an operational Energy Management System (EMS) and an interval meter  Identification of measures through combination of analytics and onsite investigation at no direct cost  Customer support and technical assistance during the implementation phase  Detailed M&V for the quantification of final savings and incentives SCE Enhance Retrocommissioning Program - Overview Enhanced RCx 7

8. Confidential Lawrence Berkeley Labs studied 60 buildings of different types that showed:  Over 50% had control problems  40% had HVAC equipment problems  15% had missing equipment  25% had BAS with economizers, VFDs, and advanced applications that were simply not operating correctly. Source: Assoc. of State Energy Research Technology Internships and US Department of Energy Why is Retro-Commissioning Important? Enhanced RCx 8

9. Confidential  Retro-commissioning combines commissioning practices with optimization practices for existing buildings/ facilities: existing equipment, systems and controls  Operations typically “drift” away from normal operations decreasing efficiency and increasing energy costs.  Deficiencies can be identified and addressed through site inspection/ testing and trend data analysis.  New control technologies can be installed and programmed to further optimize performance and efficiency. Retro-Commissioning Refresher Enhanced RCx 9

10. Confidential Energy savings measure examples: HVAC scheduling Chiller Lockout Variable Speed Drives Chilled Water Temp Reset Static Pressure Reset Condenser Water Temp Reset OA Economizer Hot Water Temp Reset Supply Air Temp Reset Pump Control CHWV/HWV Repair Air Compressor VFD/ Controls Refrigeration VFD Controls Lighting scheduling Retro-Commissioning Refresher – contd. Enhanced RCx 10

11. Confidential Enhanced RCx maintains energy efficiency over time with the use of Data Analytics and/or FD&D! ERCx vs. Traditional RCx Enhanced RCx Upon completion of RCx, operations drift increasing energy use to baseline conditions With an Enhanced RCx solution, energy efficiency is persistent! 11

12. Confidential  A useful screening tool that provides high level look at the facility, electric consumption and demand profiles.  Also used to ensure appropriate monitoring and energy efficiency Data Analytics Enhanced RCx 12

13. Confidential Data Analytics Enhanced RCx 13

14. Confidential  Retro-commissioning combines commissioning practices with optimization practices for existing buildings/ facilities: existing equipment, systems and controls  FD&D software in conjunction with existing DDC controls can monitor and identify improper operations that affect energy use and costs.  By the use of “Rules”, FD&D is programmed to determine when a system is not operating correctly, identify what needs to be corrected, and what the impact of an issue is. Fault Detection & Diagnostics (FD&D) Enhanced RCx 14

15. 15 Enhanced RCx

16. Confidential  Retro-commissioning combines commissioning practices with optimization practices for existing buildings/ facilities: existing equipment, systems and controls  Identification of energy saving measures for HVAC, lighting & controls –The RCx process is accelerated via the use of FD&D or Data Analytics with deeper implemented savings.  Incentives: (up to 50% of measure cost) –Advanced lighting measures $0.03/kWh –Non-lighting measures$0.08/kWh –Advanced non-lighting measures$0.15/kWh –Peak demand reduction $150/kW  The ability to maintain ongoing savings and operation visibility Program Benefits Enhanced RCx 16

17. Confidential  For new EMS, Automated Demand Response (ADR) functionality is an add- on module.  Available from multiple vendors and can be a combined with the FDD. Incentives available to complete an Auto DR technical study and an available $300 per kW up to 100% of installed cost. Auto DR, A Complimentary Offering Enhanced RCx 17

18. Confidential  Scope the facility  Review interval data & walk the facility.  Is there ample opportunity?  Investigate the facility  Detailed data driven investigation at no cost to the customer  Identify ERCx measures and provide feasibility report with energy and cost savings.  Implement selected ERCx measures  Save energy, energy costs and earn incentives.  Verify savings  M&V makes sure you are saving energy and money.  Incentives are paid out to customers.  Maintain energy savings  FDD real time data provide visibility and alerts to operators OR  Utilize periodic reports from interval meter analysis for identifying high-level issues How It Works Enhanced RCx 18

19. Confidential  SCE customers committed to implementing energy savings measures  Large commercial and industrial facilities with of 100,000 square feet or larger  Similar facility types that could benefit from HVAC and lighting control based measures.  Preferably sites with an existing DDC Building Automation System Eligibility and Signing Customers Enhanced RCx 19

20. Confidential 20 Visit us at www.enhancedrcx.com Enhanced RCx

21. Confidential Chase Kadakia, ERCx Program Manager 909.248.6789 ckadakia@nexant.com Waqar Mustafa, ERCx Outreach Manager 916.478.0057 wmustafa@nexant.com Program Contacts Enhanced RCx 21

22. Confidential Questions Enhanced RCx 22

23. Shared Services Group Site Services Southwest Utilities and Conservation SSG Presentation Template – REV 4/2012 Copyright © 2013 Boeing. All rights reserved. Southwest Region Retro-commissioning Project November 5th, 2015

24. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 SCE & SCG Retro-commissioning Programs  Study Phase –Perform trend based analysis and site survey –Develop recommendations, savings calculations, cost estimates ROI calculations and available incentives. –Submit feasibility study (PFS) for review and approval (SCE, So Cal Gas Lincus, CPUC)  Project Implementation Phase –Sites analyze and prioritize recommendations –Develop implementation plan including funding and potential incentives –Identify root causes and implement measures  Measurement and Verification Phase –Additional trending and analysis –Site inspection –Submit Implementation report (IR) for review and approval (SCE, So Cal Gas, Lincus, CPUC) 24

25. Shared Services Group | Site Services | Southwest Infrastructure Engineering Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Commissioning impacts performance 25 Does not meet design performance Issues will impact performance for the life of the system Many customer complaints / continuous tinkering Manual operation shortly after installation High operating cost / environmental impact Meets design performance Efficient, sustainable performance Comfortable and productive work environment lower maintenance costs Lower operating cost / environmental impact longer equipment life Customer Satisfaction / System Efficiency

26. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Benefits and Risks  Benefits  Validates current building requirements  Identifies energy saving opportunities  Reduces operating and maintenance costs  Risks  Potential savings will not be realized if projects are not implemented properly  How can we mitigate risk?  Use consultant (3 rd party) to verify that recommendations are implemented properly.  Implement continuous commissioning (sustainment) to insure that savings do not evaporate over time (Drift). 26

27. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Efficiency Drift in Buildings 27 Drift Mini retro-commissioning effort

28. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Site Efficiency Drift Year to Year 28 Drift

29. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Major root cause – excessive Chilled water flow resulting in lower Delta T 29

30. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Findings and results to date  Many common opportunities at all sites  Significant simultaneous heating and cooling  Reduce run hours of equipment  Fix and optimize economizer cycles (free cooling)  In many cases HVAC systems are not modified to accommodate changes in occupancy  Optimize control sequences –Supply air temp and static pressure reset – Chiller condenser water temperature reset –Dehumidification / humidification 30

31. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Examples were extracted from installation reports with these qualifications  Life cycle assumes 12 years  Examples were “cherry picked” – average overall simple payback for all measures to date is approximately 11 weeks  Cost to correct measures includes a 50% reduction due to the programs financial incentives  Only electricity costs are factored into the savings. Maintenance, longer equipment life and natural gas savings are not included. 31

32. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Equipment Running Continuously 32 Root causes – schedule overridden, not linked to schedule, schedule priority too low (shown) When inefficiencies occurred – project implementation (shown), operations Life cycle cost – $17,555 Cost to correct – $25 ROI – 6 days

33. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Dehumidification sequence in-efficiencies 33 When inefficiency occurred – design and implementation Life cycle cost – $64,983 Cost to correct – $113 ROI - 1 week

34. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Inefficiencies due to changes in occupancies 34 Root cause – HVAC systems not modified to address changes in occupancy. In this case large warehouse w/ humidify control 24/7 When inefficiency occurred – Change in occupancy Life cycle cost – $148,624 Cost to correct – $260 ROI - 1 week

35. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Simultaneous Heating and Cooling  Root causes – No supply air temp reset programming in place or if in place not working efficiently, min CFM set points too high, boxes out of calibration, VAV seals leaking by, bad VAV controllers or actuators 35 When inefficiencies occurred – Design, implementation (shown) and operations Life cycle cost – $42,193 Cost to correct – $115 ROI – 12 days

36. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Results - Electricity Use in kWh 36 Measures Implemented

37. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Results – Natural Gas Usage in Therms BOEING PROPRIETARY 37 Drift Corrected

38. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Results – Central Plant heat generation in BTU’s 38

39. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Results – 93.6 % Reduction in Trouble Calls 39

40. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Moving forward  Insure new systems are commissioned and optimized  Provide tools and processes to implement continuous commissioning – Pilot program for Data Analytics and Fault Detection and Diagnostics 40 Cx Baseline & Monitor CCx RCx

41. Shared Services Group Site Services Southwest Utilities and Conservation SSG Presentation Template – REV 4/2012 Copyright © 2013 Boeing. All rights reserved. BACKUP 41

42. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 42 Commissioning Cycles New Asset Commissioning (Cx) Formal process for planning, implementing and verifying the construction and operation of a facility according to design intent and user requirements. Retro-Commissioning (RCx) Asset commissioning for systems not previously commissioned Continuous-Commissioning (CCx) Use of Baseline & Monitoring data to perform commissioning improvements on an on-going basis. (Desired future state) Cx Baseline & Monitor CCx RCx Includes documentation of facility and training of operating and maintenance personnel. (PI DTP 218 New Construction and Renovation Commissioning and Documentation)

43. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 Initial Installation Commissioning Retro- Commissioning Trending/ Monitoring Analysis 43 BOEING PROPRIETARY Commissioning Cycle Continuous- commissioning New Building New Equipment or System Major Retrofit

44. Shared Services Group | Site Services | Southwest Utilities and Conservation Copyright © 2013 Boeing. All rights reserved. SSG Presentation Template – REV 1/2012 44 Benefits of Commissioning Commissioning (Cx)Retro-Commissioning (RCx)Continuous Commissioning (CCx)  Reduces rework  Assures operation as- designed  Assures we get what we pay for  Lets our contractors know we are checking their work  Reduces operating and maintenance costs  System not previously Cx’d  Validates current building requirements  Assures efficient operation  Helps identify opportunities not previously known  Reduces operating and maintenance costs  Establishes system/ equipment baselines  Monitors operation to baseline for real-time situational awareness  Enables fast reaction to operational problems  Ability to tie-in Condition Based Maintenance  Sustains-the-gains from Cx & RCx  Reduces operating and maintenance costs