1. CenterPoint Energy Proprietary and Confidential Information Eric Johansen, PE CenterPoint Energy’s Conservation Improvement Programs January 2016

2. Full Fuel Cycle 2

3. 3

4. 4 Natural Gas Price Update Henry Hub Natural Gas Price

5. 5 Gas Conversions

6. 6 Gas Consumption Magnitudes ≈ 80-100 Dth ≈ 1,500- 5,000 Dth

7. Thank you for your participation Thank you for promoting our Conservation Improvement Program portfolio of rebates and services in 2014! In Minnesota, we were able to save: C&I about 1 BCF saved Results are preliminary as of 1/9/15 7 Dth (MCF) saved CO2 - lbs/M MBtu CO2 in Metric Tons CO2 - Ton/ Yr/ Car (EPA) Cars Removed from Road MCF/ Home/year # of Homes Equival ent $/MCF price Customer Savings 1,677,194117.689,654614,94210016,772$8.00$13,417,552

8. 8 DER

9.  Prescriptive Rebates  Boilers and boiler system components (hot water and steam)  Space heating system rebates  Water heater rebates  Foodservice equipment rebates  Custom Rebates  Engineering Programs Program is valid for 2016 installations 9 2015 MN Commercial Rebate Programs and Services Prescriptive Rebates

10. 10 2015 MN Commercial Programs and Services Prescriptive Rebate Calculator Estimate your rebate amount when you’re installing new or replacing old equipment using our Prescriptive Rebate Calculator  Simply select the equipment piece  Enter in required info  Find out the potential rebate amount you will receive CenterPointEnergy.com/RebateCalculator

11. 11 2015 MN Commercial Programs and Services Affordable Housing Multi-Family Rebate Program If you’re working with a customer offering low-income multi- family housing, they can receive a: 25% rebate bonus in addition to the prescriptive rebate amount Eligibility: Five or more housing units in the building Minimum of 66% of units occupied by low-income households For full details visit CenterPointEnergy.com/AffordableHousingMultiFamily

12. 2015 Custom Rebates 12

13. 2015 Design & Engineering Programs Natural Gas Energy Analysis Energy Design Assistance Process Efficiency Recommissioning Engineering Assistance 13

14. 14 2015 MN Commercial Rebate Programs and Services Natural Gas Energy Analysis What is a Natural Gas Energy Analysis? A certified energy auditor will visit your facility, inspect your building envelope and installed natural gas equipment, examine how it is operated, and identify opportunities to improve energy efficiency. What types of Analyses are available:

15. 15 2015 Design & Engineering Programs Energy Design Assistance Energy Design Assistance (EDA) A free, comprehensive approach to energy savings for our customer’s planned building that includes: Energy modeling Predicted energy use Strategies for energy savings Projected energy cost savings for those strategies

16. 16 2015 Design & Engineering Programs Energy Design Assistance Energy Codes Are Getting Stricter

17. 17 2015 Design & Engineering Programs Energy Design Assistance Energy Modeling Building Types

18. 18 2015 Design & Engineering Programs Process Efficiency Process Efficiency A holistic, 3-phase program that drives sustainable energy conservation for our industrial customers 1.Energy diagnostic session 2.Energy plan development 3.Plan Approvals & Implementation

19. 19 2015 Design & Engineering Programs Process Efficiency http://www.graphet.com/ Graphet, Inc. Overview Objective, fact-based solutions provider Expertise for sustainable energy conservation Vendor-neutral 190+ energy diagnostic sessions conducted

20. 20 2015 Design & Engineering Programs Process Efficiency http://www.envinta.com/

21. 21 2015 Design & Engineering Programs Process Efficiency

22. 22 2015 Design & Engineering Programs Recommissioning Recommissioning: Identifying and implementing low-cost “tune-up” improvements to functional systems in a customer’s existing facility that allow it run as efficiently as possible. 1.Diagnosis: Recommissioning study 2.Implementation ASHRAE Journal October 2009

23. 23 2015 Design & Engineering Programs Recommissioning 1. Study Funding Funding is a function of the customer’s usage and predicted savings potential Up to 75% of study cost, not to exceed $5,000 2. Implementation Rebates $5.00/Dth saved Must have 1 year to 10 year payback

24. 24 2015 Design & Engineering Programs Recommissioning

25. 25 2015 Design & Engineering Programs Recommissioning Investigation results in a Study Report reviewed by CenterPoint Energy, including: Building and equipment description Operational observations Calculations CenterPoint has authorization from Xcel to receive a copy of the completed “Tool” for calculations.

26. 26 2015 Design & Engineering Programs Engineering Assistance Engineering Assistance: A program to offset some of the engineering costs involved with evaluating and designing energy-efficient gas measures with capital costs. 1.Study and identification 2.Implementation

27. 27 2015 Design & Engineering Programs Engineering Assistance Funding:  Up to half the study cost with a $10,000 maximum cap provided in two payment steps  Study payment (up to $5,000) is paid when the engineering report is received  Implementation payment (up to $5,000) is paid if a gas savings project suggested in the report is implemented and rebated by CenterPoint  Rebates for the gas-savings measure may also be available

28. 28 2015 MN Commercial Programs and Services Thank you. Good bye. Questions Questions?