1. PNM Energy Efficiency Business Rebates for Facility Managers Retrofit Rebate Opportunities July 13, 2010

2. Agenda Benefits of Investing in Energy Efficiency Overview of the Business Energy Efficiency Program How to get started Trade Allies

3. Why make the investment in Energy Efficiency? Most cost effective energy “resource” Proven and viable Has multiple returns - financial and environmental Effective method to manage energy cost risk Utility Incentives

4. Most cost effective energy “resource” $/ MWH

5. Per Capita Electricity Sales

7. Multiple Returns Financial and Environmental Annual GWh savings Customers will save 5-7 times initial investment in energy bills over equipment lifetime Reduced generation = CO 2 reduction and water reduction (NM electric mix = 83% Coal)

8. Commercial & Industrial Incentive Program Overview Prescriptive measures Lighting Motors HVAC Refrigeration Whole Building Approach (NC) Custom Measures Quick Saver Small Business (Facility) Program

9. Incentives: Retrofit Projects Prescriptive Incentives are offered on per-unit basis for common predetermined energy saving technologies: Lighting & Lighting Controls HVAC Refrigeration Motors VSDs on HVAC fans & pumps

10. Lighting Efficiency (Efficacy)

11. Lighting Equipment Data MLPW = Mean Lumens Per Watt BF = Ballast Factor MLPW = no. of lamps x mean lumens x BF / input Watts

12. Light Quality Color Rendering Index (CRI) Excellent100Incandescent 90T8 high CRI Good80T8 good CRI, Metal Halide Fair70T8 low CRI 60T12, Metal Halide Poor50Mercury Vapor 40High Pressure Sodium 30 20 10 0Low Pressure Sodium

13. Lighting Quality cont’d 80-100 CRI60-75 CRI 0-20 CRI

15. Lighting Specifications

16. PNM NC and Ret Rebate Application – Lighting Menu

17. PNM NC and Retrofit Rebate Application – Custom Lighting

18. Linear Fluorescent - Relative Diameter T12T8T5 12/8” = 1.5” diameter 8/8” = 1” diameter 5/8” diameter

19. Linear Fluorescent Lamps and Fixtures Not all 4’ T8s are created equal 800 Series T8s 80 CRI ~24,000 hours life ~2,400 Initial Lumens ~80+ MLPW High Performance T8s 82+ CRI 36,000+ hours life 3,100+ Initial Lumens 90+ MLPW Reduced Wattage T8s – 28w, 25w 82+ CRI 36,000+ hours life 2,400+ Initial Lumens 100+ MLPW 700 Series T8s do not qualify for utility rebates!

20. Lighting Retrofit Rebate Calculations 48” systems (assuming 40% degradation, NBF, 168w basecase, 3160 hours and $0.10/kWh ) 4’ 4L T12 – 4L T8 Rebate = 4 x $2 = $8 Wattage reduction: 60w Annual Savings: $19/year 164% system lumens 4L T12 – 4L “Hi-Per” T8 Rebate = 4 x $4 = $16 Wattage reduction: 72w Annual Savings: $23/year 184% system lumens 4’ 4L T12 – 3L “Hi-Per” T8 Rebate = $5 + 3 x $4 = $17 Wattage reduction: 89w Annual Savings: $28year 137% system lumens 4L T12 – 2L “Hi-Per” T8 (R) Rebate = $10 + 2 x $4 = $18 Wattage reduction: 120w Annual Savings: $38/year 114% system lumens

21. Lighting Retrofit Rebate Calculations 48” systems (assuming 40% degradation, NBF, 168w basecase, 3160 hours and $0.10/kWh ) 4’ 4L T12 – 4L 28w T8 Rebate = 4 x $4 = $16 Wattage reduction: 86w Annual Savings: $23/year 141% system lumens 4L T12 – 2L 28w T8 (R) Rebate = $10 + 2 x $4 = $18 Wattage reduction: 125w Annual Savings: $40/year 89% system lumens 4’ 4L T12 – 3L 28w T8 (R) Rebate = $5 + 3 x $4 = $17 Wattage reduction: 97w Annual Savings: $31/year 133% system lumens

22. Lighting Retrofit Rebate Calculations 24” systems (assuming 40% degradation, NBF, 92w basecase, 3160 hours and $0.10/kWh ) 2’ 2UL T12 – 2’L 2UL T8 Rebate = 2 x $4 = $8 Wattage reduction: 18w Annual Savings: $5.5/year 183% system lumens 2’ 2UL T12 – 2L 17w T8 (R) Rebate = $5 + 2 x $2 = $9 Wattage reduction: 43w Annual Savings: $13.6/year 108% system lumens

23. Exterior CFL Wallpacks Rebate = $0.06/kWh (assuming 4380 hours and 40% degradation) 70 watt MH to 42 w Wallpack Rebate = (0.094-0.042) x 4380h * $.06/kWh = $13.70 Wattage reduction: 52w Annual Savings: $23/year 77% system lumens 150 watt MH to 84 w Wallpack Rebate = (0.184-0.084) x 4380h * $.06/kWh = $26.30 Wattage reduction: 100w Annual Savings: $43/year 61% system lumens 250 watt MH to 168 w Wallpack Rebate = (0.291-0.168) x 4380h * $.06/kWh = $32 Wattage reduction: 123w Annual Savings: $53/year 78% system lumens

24. Cold Cathodes T1 Candle lamps assuming 4380 hours 40w Inc to 8w CC Rebate = $3 Wattage reduction: 32w Annual Savings: $14/year 75% system lumens 25w Inc to 5w CC Rebate = $3 Wattage reduction: 20w Annual Savings: $8.70/year 133% system lumens 25w Inc to 3w CC Rebate = $3 Wattage reduction: 22w Annual Savings: $9.6/year 80% system lumens How many lamps on a single chandelier?

25. High Bay and Exterior Solutions (assuming 3160 hours and 40% depreciation) 1000w MH to Induction Rebate = (1.066-0.408) x 3160h * $.06/kWh = $142 Wattage reduction: 658w Annual Savings: $207/year 42% system lumens 400w MH to 4L T5HO Rebate = (0.456-0.234) x 3160h * $.06/kWh = $42 Wattage reduction: 222w Annual Savings: $70/year 93% system lumens 1000w MH to 6L T5HO Rebate = (1.066-0.351) x 3160h * $.06/kWh = $135 Wattage reduction: 715w Annual Savings: $225/year 53% system lumens HID to PSMH Rebate = $20 - $45 Wattage reduction: 100-200w Annual Savings: $32-65/year

26. Additional Lighting Rebates LED Exit Signs = $20 each T8 to 28w or 25w T8 = $0.50/lamp Occupancy controls = $0.06/watt connected Daylighting controls = $0.06/watt connected Must be LM 79/80 tested Must pass TRC test Paid at $0.06/kWh What about LEDs?

27. Energy Efficient Water Cooled Chillers 10% to 30% Chiller Savings 1 to 5 Year Payback on Incremental Cost $15/ton to $30/ton incentive Better Control Better Comfort Maintenance Savings

28. Variable Speed Drives for HVAC Up to 75% Savings 1 to 3 Year Payback $50/hp incentive Better Control Better Comfort Maintenance Savings

29. Incentives: HVAC Projects

30. Energy Efficient Motors  Replace on burn-out  Up to 5% Savings  2 to 10 Year Payback  $10 to $300/motor incentive  Energy Savings  Maintenance Savings

31. Incentives: Motors

32. Computer Network Loads Computer Network Power Management (IT)  Centralized Power Management  Elec. savings x 3: CPU, Monitor, AC load  Conservative 200 kWh/year per station ($12/year @ $0.06/kWh) Datacenter Efficiency  High Efficiency Servers  Virtualization  Hot Isle / Cold Isle configuration  CRAC unit efficiency upgrades

33. Computer Network Loads (cont.) Verdiem Surveyor www.verdiem.comwww.verdiem.com Big Fix; www.bigfix.comwww.bigfix.com Faronics Power Save; www.faronics.comwww.faronics.com ScriptLogic Desktop Authority; www.scriptlogic.com

34. THANK YOU Alena Gilchrist PNM Business Energy Efficiency Programs alena.gilchrist@kema.com 505-938-9400 x 79102 alena.gilchrist@kema.com PNM Business Energy Efficiency Programs PNMenergyefficiency.com