1. PECO Smart Ideas for Your Business AFCOM Midlantic Chapter Meeting 5/1/2014

2. Agenda PECO Smart Ideas Program Accomplishments PA Act 129, New Phase
Commercial Incentive Programs 2

3. Smart Ideas Program Accomplishments
Since June 2009, more than:
32,000 audits completed for Low Income customers
7.6 million CFLs bulbs sold
328,400 home rebates issued
30,990 refrigerators, freezers recycled
79,000 home e-audits completed
3,890 commercial incentives awarded
579,000 customers participated (excludes lighting purchases)
2,648 education outreach events
PECO named ENERGY STAR® Partner of the Year in & 2013 3

4. PA Act 129, new phase Three-year program cycle
June 1, 2013 to May 31, 2016
PECO energy savings target is 2.9% or 1,125 GWh
10% of Plan savings must come from Government, Institutional and Non Profit business customers (existing requirement)
4.5% of Plan savings from Low Income (new requirement)
No demand reduction requirements in new program cycle
PA State Wide Evaluator analyzing cost effectiveness for possible program inclusion 4

5. PECO Smart Ideas Programs
Residential:
PECO Smart Appliance Recycling
PECO Smart Lighting Discounts
PECO Smart Home Rebates
PECO Smart Driver Rebates
PECO Smart A/C Saver
PECO Smart House Call
PECO Smart Usage Profile
PECO Smart Energy Saver
PECO Smart Builder Rebates
Commercial:
PECO Smart Equipment Incentives (C&I)
PECO Smart Equipment Incentives (GNI)
PECO Smart Construction Incentives
PECO Smart A/C Saver
PECO Smart Business Solutions
PECO Smart Multifamily Solutions
PECO Smart On-Site 5

6. PECO Smart Multifamily Solutions
Energy savings for multifamily property owners and tenants
Buildings with four or more units
Includes master-metered and residentially metered properties
C&I, GNI, and low income properties are eligible
Program marketed directly to building management
Free direct install of low-cost measures for multifamily residents
Free energy assessment for common areas including a report of potential energy-saving upgrades
Prescriptive incentives for installation of high-efficiency equipment that address common areas or whole building improvements 6

7. PECO Smart Business Solutions
Direct installation of energy saving measures
Small business customers with peak demand less than 100 kW
Target: neighborhood shops, “mom and pop” stores
Incentives cover up to 50-60% or more of direct installation costs
Includes eligible lighting, refrigeration and electric hot water measures
Program CSP offers
Interest free financing available provided by CSP
Discounts for lump-sum payments
Program promoted directly to small business owners
Add the numbers… key metrics missing the face to face interaction direct install outreach… 7

8. PECO Smart Ideas Commercial Programs

9. New, Major Changes Incentive levels now higher for GNI customers, +20%
Lighting paid on a per watt reduced basis
Chillers, LEDs, motors are custom measures
Pre-approval applications must be submitted before project begins
Retroactive projects are not eligible
Pre-inspections may be required before application is approved and funds reserved
Final project applications must be submitted no later than 90 days after project completion

10. Program Eligibility PECO commercially metered distribution customer
Facility improvement must result in reduction in kWh usage and/or permanent load reduction
All installed equipment must meet or exceed the specifications given in the corresponding program application
Code baseline is ASHRAE
Retroactive projects are excluded 10

11. Commercial Program Exclusions
Renewable energy sources
Spaces where end-use is residentially metered
Non-electric energy savings
Electric base cases for thermal projects 11

12. PECO Smart Equipment Incentives
Commercial Programs
PECO Smart Equipment Incentives
Commercial and Industrial (C&I)
Government, Nonprofit and Institutional (GNI)
PECO Smart Construction Incentives

13. PECO Smart Equipment Incentives

14. PECO Smart Equipment Incentives (C&I)
Incentives for a broad range of energy efficiency retrofit measures for Commercial and Industrial customers
Prescriptive incentives paid per watt reduced or per unit
Custom incentives paid per annual kWh saved in the first year of operation at $0.08/kWh 14

15. PECO Smart Equipment Incentives (GNI)
Incentives for a broad range of energy efficiency retrofit measures for Government, Nonprofit and Institutional customers
GNI incentives are higher than those for similar C&I measures
Prescriptive incentives paid per watt reduced or per unit
Custom incentives paid per annual kWh saved in the first year of operation at $0.10/kWh 15

16. Prescriptive Measures
Menu-based with predetermined savings and incentive levels
Lighting
Indoor, outdoor, garage, traffic signals, and lighting controls
Incentives per watt reduced or per unit
HVAC
Air conditioners, heat pumps
HVAC incentives per ton cooling
Energy management systems
EMS incentives per square foot
Refrigeration and Food Service
Commercial refrigeration, freezers, strip curtains, beverage/snack machine controls - incentives per unit
Variable Speed/Frequency Drives
Controlling HVAC fans, pumps, process loads, compressors - incentives per HP
Kitchen exhaust fan - incentives per unit

17. Custom Measures
Non-prescriptive measures that require demonstration of energy savings
Eligibility determined on a case-by-case basis
Examples of custom measures include:
LED tubes - DLC approved
Chillers
High efficiency transformers
PC power management, smart plugs, plug load management
Building envelope - white/green roof, windows, air sealing, weather-stripping
Process cooling - mushroom farming, manufacturing,
Process upgrades- HEPA filtration, aeration, new equipment
VSD/VFD not required by code for new construction or major rehab
ENERGY STAR office equipment
Warehouses - automatic door closers

18. Incentives for Data Centers
PECO Smart Equipment Incentives program includes energy efficiency incentives relevant to data center retrofit, expansion and construction
Incentives for energy efficient design, equipment and processes
Examples of energy efficient opportunities include:
Efficient Lighting
Occupancy Sensors
Server Virtualization
PC Power Management
Economizers
Row-Oriented Cooling
Storage Optimization
Efficient Floor Layout
And More

19. PECO Smart Construction Incentives

20. PECO Smart Construction Incentives
New construction and major building rehabilitation that exceeds ASHRAE code requirements
Prescriptive incentives for energy efficient lighting, HVAC, refrigeration systems
Paid per unit, or watts/square foot under code
Custom incentives for non-prescriptive kWh savings measures including VFD/VSDs not required by code, chillers, exterior lighting, and building envelope measures
Paid per annual kWh saved in the first year of operation at $0.10/kWh
Whole building incentives for modeled interactive building systems performance, at least 5% below baseline.
C&I and GNI customers eligible 20

21. PECO Smart Construction Incentives
Incentives: systems-based and whole building approaches
Prescriptive track for new lighting, HVAC, refrigeration and food service
Custom track for non-standard equipment such as compressors, specialty lighting applications, HVAC controls and VFDs
Whole Building Performance track captures interactive equipment savings
Systems-Based Approach
Whole Building Approach

22. PECO Smart Construction Design Team Incentives
Intended to encourage integrated energy efficient designs
Captures interactive equipment savings
Allows incentives to the design team to help support the additional analytical work
Owner’s intention to seek whole building incentives must be documented in the pre-approval application
Design team incentives are only available under the whole building performance approach
Not available for prescriptive, custom or lighting-performance measures
Modeled performance must be at least 10% below baseline
Design team total incentives cannot exceed $50,000

23. Customer and Design Team Incentives Whole Building Approach
Building performance in excess of ASHRAE baseline building
Customer incentives
Design team incentives
≥ 5 to < 10%
$0.05/kWh
$0.00/kWh
≥ 10 to < 20% more efficient
$0.10/kWh
$0.03/kWh
≥ 20 to < 30% more efficient
$0.12/kWh
$0.04/kWh
≥ 30% more efficient
$0.15/kWh
Clarification points:
- LEED points are based on percentage reduction in total energy COSTS vs. the baseline building.
PECO incentives are based on the percentage of ELECTRICAL ENERGY CONSUMPTION (kWh per year) as compared to the code baseline building.  (FP)
Although included in the total energy costs for LEED, receptacle/process load and exterior lighting are not eligible for incentives in the PECO program. Therefore, the LEED points and respective Smart Construction Incentive rates may vary. (CKS) 23

24. PECO-SAVE ( )