1. New Compressed Air Program Trade Ally Workshop April 12, 2011

2. Introductions Jay Amundson: RCx Outreach and Project Coordinator, Nexant Dylan Matthews: Program Manager, ComEd Compressed Air Program Summary Prescriptive & Custom Compressed Air Incentives Comprehensive Compressed Air Study Case Study Trade Ally Opportunities Questions Agenda

3. A Business Case for Energy Efficiency: The Triple Bottom Line  People (human capital): Industry leadership among peers Employee satisfaction Attract forward thinking tenants/customers Competitive edge among similar facilities  Planet (natural capital): Reducing CO 2 emissions produced by electricity & gas reduces the greenhouse effect  Profit (economic value): Real estate benefit, higher building value, tenant rates Lower operational costs, extends equipment life Reduced electric & gas bill

4. Compressed Air Program Summary

5. The New Program Creates New Opportunities Addresses all aspects of the compressed air system: –Stand-alone Prescriptive & Custom –Studies with Cash Incentives Offers a more simplified incentive and study structure –Easier for Trade Allies, Service Providers and customers to navigate Encourages a complete system assessment, optimizing compressed air use according to best practices –Address capital upgrades as well as retro-commissioning (no/low cost) opportunities

6. Comparison of Old and New Programs OldNew Custom Incentive*$0.03 or $0.07 / kWh depending on measure life $0.05 / kWh excluding leaks Prescriptive Incentives* VSDs on air compressor motors  200 hpVSDs on air compressors motors  200 hp New compressor integrated VSD  100 hp Studies AvailableSmall Compressed Air Optimization150-500 hp OR Industrial RCx for > 500hp Comprehensive Compressed Air Study for >250 hp Study ScopeLow/no cost measures onlyLow/no cost measures AND capital upgrades Commitment Required for Study $10,000 for measures with simple payback  1.5 yr Repair 50% of leak volume Incentive for Projects resulting from Studies* $0.01 / kWh$0.05 / kWh * Eligibility requirements and specific incentive caps apply

7. Smart Ideas Compressed Air Program Capital Project, “Shovel Ready” Prescriptive VSD Install Verify Prescriptive Incentive VSDs on Air Compressor Motors  200 hp Air Compressors with Integrated VSDs  100 hp Custom Project Install Verify Incentive $0.05 /kWh up to 50% of project cost Based on bundle of projects Leaks not eligible Opportunity for Compressed Air Study Approved Provider performs Comprehensive Compressed Air Study Study recommends: - Leak repair - No/low cost fixes - Capital Upgrades Study App Pre-App Final App Pre-App Final App Customer Must: - Sign Program Agreement - Repair 50% of leak volume - Select other measures for implementation

8. Prescriptive & Custom Compressed Air Incentives

9. “Shovel-Ready” projects with established scope of work & price should continue to apply for incentives directly (no study required) Prescriptive Compressed Air VSD installation –VSDs on air compressor motors  200 hp: $60 / hp –New air compressors w/ integrated VSDs  100 hp: $100 / hp Custom Project Incentive for Compressed Air –$0.05 / annual kWh –Maximum incentive = 50% of incremental project cost –Pre-Approval required –Pre- or Post- M&V may be required

10. Comprehensive Compressed Air Studies: RCx & Capital Investment

11. Comprehensive Study The study is fully funded by ComEd. Must be performed using a pre- approved contractor (RSP). Customer must repair at least 50% of leak volume identified by study. The $0.05/kWh incentive is for all compressed air measures and savings except leaks. The incentive is capped at 50% of the bundled, incremental costs. Owner and O&M staff must be actively involved in process.

12. What does the Comprehensive Study include? Perform system tune-up and adjust existing systems –Leak detection –Leak-down test –Supply & demand side assessments –Equipment inventory & system diagram –Investigation of system operation parameters –System monitoring Investigation of no/low cost improvements and capital investment upgrades

13. Typical Compressed Air Measures Compressed Air Leaks –Must be included in Comprehensive Study, but not eligible for cash incentive Other Eligible Measures –Reduce waste and inappropriate use: Install no-loss condensate drain valves Install high-efficiency air nozzles –Reduce compressed air system pressure –Improve control and sequencing optimization of compressors –Schedule end-use of compressed air –Compressor or dryer upgrades Ineligible Measures –Measures that rely solely on behavioral changes or fuel switching

14. Study Process 14 Before Submit application Screening Kick-off Meeting Site Assessment Interview Operators Collect Data Preliminary Report Investigation Implement Measures Incentive Pre-App Select Measures Detailed Investigation Report Sign Agreement Verification

15. Case Study

16. Case Study: Chicago Area Auto Manufacturer The production facility averages over 1,000 units per day, with two shifts operating five days a week. Total cost of operation for electricity at the site was estimated at $7.9 million annually. An automotive assembly plant uses compressed air for holding parts, clamping, and positioning. The assembled body travels to a point where compressed air is also used for painting.

17. Case Study: Chicago Area Auto Manufacturer

19. Trade Ally Opportunities

20. How can Trade Allies Participate? Continue to encourage your customers to apply for incentives for “Shovel-Ready” projects –Prescriptive Compressor VSD Installation  200 hp –Custom $0.05 / kWh up to 50% of project cost Encourage eligible customers to apply for a Study Become a Study Provider for Comprehensive Studies –Nexant will be contacting all current Industrial RCx or Small Compressed Air RSPs –If not currently an approved service provider, submit RFQ forms (including example reports) to Nexant –Study providers are responsible for identifying opportunities and quantifying energy impacts

21. Make a business case for energy efficiency Without ComEd funding, a Comprehensive Study is often difficult to fund (not part of operations budget) The Comprehensive Study is a win-win situation –The Customer is not obligated to implement any projects until reviewing preliminary results –Customers choose measures that best fit their business operations –Bundling no/low cost measures with capital investments will make the large projects more enticing.

22. Your Advantages to Participating The Comprehensive Study typically results in significant, attractive opportunities -If quickest payback measures are selected, simple payback without incentive is often < 1.0 years -With incentive, payback often 3-6 months Advantages for Trade Ally or RSP to the Comprehensive Study -Increase customer engagement through multi-month study process -Uncover opportunities to sell additional services installing energy efficient equipment or implementing energy efficient strategies -Aid the sale of larger projects by bundling with no/low cost projects -Potential to set up a routine leak maintenance program

23. Trade Ally & Service Provider Marketing Trade Allies and Service Providers are a key component of overall program marketing efforts Marketing includes controlling customer expectations throughout the program process Presentations, press releases, etc. are acceptable marketing efforts with approval from Nexant and ComEd. Deliver the triple bottom line message (people, planet, profit) ComEd & Nexant will support your marketing efforts

24. Thank you… Questions ?