1. Energy Efficiency Program Presentation for Senator Padilla December 15, 2011

2. 2 Customer Energy Efficiency Guiding Principles Establish Clear & Achievable Annual Energy Savings Targets to 2020 Offer Cost-Effective Program Elements Provide Customer Support & Continuous Improvement of Customer Experience Support Job Creation in Los Angeles Demand Rigorous Field Verification of Program Measures & Energy Savings Invest in Los Angeles Promote Conservation & Sustainable Practices Save Money for our Customer

3. 3 Energy Efficiency: A Smart Investment Customers save money by using less energy Reduces amount of energy needed to meet customer demand Reduces City’s carbon footprint (GHG emissions) by displacing fossil fuel Avoids infrastructure costs Creates local jobs Continues LA’s commitment to conserve CREATES LOCAL JOBS REDUCES CARBON FOOTPRINT

4. 4 Low Cost of Energy Efficiency The least expensive kilowatt is the one never generated Data as of November 2011 Avoided cost of Energy Efficiency includes the blended cost of gas fired and renewable generation of 8.5 cents/KWh; does not capture avoided fixed costs of capacity, like distribution and integration costs. *

5. 5 Energy Efficiency Funding Revenue Sources Today LADWP Customers Federal Grants New Borrowing

6. 6 Energy Efficiency Program Drivers Customer Needs Technology Advances Reasonable Incentives Adequate Resources Outreach Regulatory Standards

7. 7 Potential Study Key Findings: Commercial Sector shows highest potential for savings with biggest opportunities in lighting Share of Energy Use 2009-10 Commercial 57% Residential 34% Industrial 9% *Based on Advanced Program Share of Cumulative Energy Savings by 2019-20* Commercial 68% Residential 28% Industrial 4%

8. 8 Top Energy Uses by Customer Sector Commercial 13,156 GWh Industrial 2,300 GWh Residential 7,677 GWh

9. 9 Energy Efficiency Progress to Date In 2006, LADWP set goal of 10% energy savings over 10 years. Progress to date is less that we’d like: 3.1% in 5 years

10. 10 Annual Energy Savings We are not on Target to meet 10% by 2020

11. 11 LADWP Follows Strict Protocols to Measure & Verify Energy Efficiency In-House Reviews: Conduct pre- and post-installation inspections 3 rd -Party Reviews (AB2021) Since 2003, we have received independent measurement and verification of energy savings Revising 3rd-party review to reflect new evaluation component in collaboration with California Energy Commission. Expect to develop new external review in 1 st Quarter, 2012

12. LADWP ARRA Programs Presentation for Senator Padilla December 15, 2011

13. 13 – Other Program Drivers – ARRA Grant Programs Federal Grant Programs - American Recovery and Reinvestment Act of 2009 (ARRA) Low-income Weatherization $ 8.5 million Energy Efficiency & Conservation Block Grant (EECBG) Non-Profit Conservation Program:$1.9 million Community Outreach, Research and Public Education Grants to Non-Profits : $1.5 million Enhanced Utility Incentives - Whole house incentives -Retrocommissioning -Commercial Lighting and Custom Measures -Refrigerator Exchange for Transitional Housing $4.1 million Study of On-Bill Financing:$.05 million Total$16.05 million

14. 14 ARRA Programs 2010-11 Commercial Programs Non-Profit Conservation Program: No-cost audit & retrofit services to selected non-profits Lighting replacements offered Rebates provided for selected upgrades and retrofit work Benefits through reduced energy use, lower bills, & hands-on experience to share with communities served Recipient Non-Profits: ~80 non-profits have received audits and/or technical assistance through the program ~60 are expected to receive actual retrofits through the program Recipients are distributed throughout the City, every Council District represented Retrofits to be completed April/May 2012

15. 15 2010-11 ARRA Grant Program Community Outreach Recipients

16. 16 ARRA Programs 2010-11 Summary of Outreach Efforts 24 community outreach partners: $90,000 granted per Council District Two at-large projects Each provides quarterly community reports Outreach Activities: Developed conservation messages in multiple languages and media Held conservation fairs with targeted information and activities Conducted topic-focused workshops and forums Engaged community members in door-to-door campaigns Provided CFLs, showerheads, aerators, and energy monitors to selected recipients Utilized youth to develop and deliver messages Efforts to be completed March-April 2012

17. 17 ARRA 2010-11 Grant Funded Commercial Programs RCx Express - Retro-commissioning: Pilot introduced in June 2011, www.ladwp.com/rcxwww.ladwp.com/rcx Rebate for up to 13 building “tune-up” measures HVAC airside and waterside measures, plus lighting Examples: adjusting airside economizers & restoring lighting occupancy sensors Innovative prescriptive process helps achieve savings quickly Rebate to commercial buildings on $0.08 per kWh saved Savings estimated by online tool at California Commissioning Collaborative and verified by LADWP engineers Projects must be completed by April 2012

18. ARRA 2010-11 Grant Funded Financial Assistance Programs Study of On-Bill Financing: Exploration of on-bill financing for home energy improvements & repayment through utility bill Expanded research includes consideration of non-residential customers Potential options include: 3 rd party financing Partner with local gas utility Targeted MOU with selected customers as pilot Consulting with various entities, including CA utilities and other interested & experienced entities

20. Total Grant Allocation: $8.5 million* Total funds expended to date: $5.1 Million Units Weatherized: 979 Customers in queue: 1,689 Projected Number of Customers Served: 2,668 Targeted Goal: 2,544 Total Jobs Created: 85 *Funds will be fully expended by March 2012 Program Progress To Date Forecasted Unit Production

21. Weatherization Production Schedule

22. Partnerships* with local agencies to establish a “Green Jobs Pipeline” in Los Angeles for the creation of clean energy jobs and to support the City’s commitment to increased energy efficiency and renewable energy production. The UPCT program provides 18 months of on-the-job training for new employees who gain on the job training with journey-level or skilled craft workers. IBEW Local 18, LAANE, SCOPE, LATT, and LA WorkSource Centers Green Jobs Creation

23. After ARRA: Going Forward Develop a residential home services, direct install program. Targeted Customers: Low-income and moderately low-income* residential customers. Install energy efficiency weatherization measures that positively impact the LADWP’s core fuel sources. *Low-income customer who don’t qualify under the current “low-income guidelines.

24. 24 Questions or Comments?

25. 25 SUPPLEMENTAL INFORMATION

26. 26 LADWP Recommendations for Savings: Residential Customers Areas of achievable savings from new and existing programs through 2020 Existing Programs: Consumer Rebate Refrigerator Recycling Low-Income Refrigerator Exchange New Programs Low-Income Weatherization Whole-House Approach -Rebate Program -Audits for High Users Residential Lighting Education & Outreach

27. 27 LADWP Recommendations for Savings: Commercial & Industrial Customers Areas of achievable savings from new and existing programs through 2020 Existing Programs: Commercial Lighting Efficiency Offer Chiller Efficiency Refrigeration Custom Performance New Construction Incentive Energy Efficiency Loans Energy Audits Technical Assistance New Programs: Retro-commissioning Rebates LAUSD Efficiency Program Non-profit Energy Conservation Program HVAC Rebate Program Thermal Energy Storage Rebate Program Accelerated City Lighting Program Business Lighting Direct Install On-bill Financing

28. 28 Putting It All Together Example: Large Office Buildings 28 Energy Efficiency Rebates in Action Estimated Energy Savings (kWh)*$ RebatesSimple Payback** Custom Performance Program (VFDs on HVAC equipment) 2,821,600$107,00010 months ($310,376 svgs/yr) Custom Performance Program (Carbon Monoxide control system in parking structure) 1,953,300$34,6252 months ($214,753 svgs/yr) Chiller Efficiency Program (300 ton) 147,700$59,4500 months ($16,245 svgs/yr) Commercial Lighting Program (Hi-perf ballasts, reduced watt tubes) 596,300$100,8750 months ($65,500 svgs/yr) Commercial Lighting Program (Hi-perf ballasts, reduced watt tubes) 161,223$96,4505 months ($17,735 svgs/yr) * Estimated annual kWh savings ** Estimated using $0.11 per kWh

29. 29 Putting It All Together Example: Medium Retail 29 Energy Efficiency Rebates in Action Estimated Energy Savings (kWh)* RebatesSimple Payback** Custom Performance Program (Energy mgmt control system) 30,734$2,45933 months ($3,424 svgs/yr) Commercial Lighting Program (Hi-perf ballasts and tubes) 53,134$9,1505 months ($5,845 svgs/yr) Commercial Lighting Program (Hi-perf ballasts and tubes) 39,213$6,9963 months ($4,313 svgs/yr) * Estimated annual kWh savings ** Estimated using $0.11 per kWh

30. 30 Putting It All Together Example: Large Hotel 30 Energy Efficiency Rebates in Action Estimated Energy Savings (kWh)* RebatesSimple Payback** Custom Performance Program (VFD, energy mgmt ctrl system) 959,100$76,72424 months ($105,500 svgs/yr) Commercial Lighting Program (High-performance ballasts and tubes) 128,825$33,8580.5 months ($14,171 svgs/yr) Chiller Efficiency Program (Water cooled centrifugal) 39,213$53,2560 months ($10,634 svgs/yr) * Estimated annual kWh savings ** Estimated using $0.11 per kWh

31. Cost Comparison 31

32. 32 Program information and rebate applications can be found online www.LADWP.com www.LADWP.com/cleo (Commercial Lighting Program) www.LADWP.com/custom (Custom Performance Program) www.LADWP.com/newconstruction (coming soon!) www.LADWP.com/crp (Residential Rebates) 32 For More Information