1. Reducing Costs & Achieving Superior Plant Energy Performance Real-time Information & Best Practices in Energy Management Presented by Shiva Subramanya Executive Vice President EPS Corp

2. Introduction to EPS Energy & carbon reduction for industrial manufacturing Energy Intelligence: right information, right time, right context Enabling decisions that: –Improve energy efficiency & reduce costs –Achieve sustainability goals Founded in 2001 –HQ: Costa Mesa, CA –4 regional offices

3. Industrial Energy Use U.S. industrial sector Third of total energy consumption More than residential, commercial, transportation. Globally Half of all energy consumed USA - 33% Worldwide Source: AberdeenGroup 2009 By 2020, U.S. industrial sector will consume 51% of the 2020 baseline end-use energy in the United States

4. Top Market Drivers Need to reduce manufacturing costs Achieve or maintain competitive edge Be a thought leader in sustainability Economic / consumer uncertainty 80% 46% 20% 17% Survey of 240 manufacturers in 2009 “Cost Reduction” outranks “Sustainability”

5. 5 Barriers to Efficiency Low awareness & attention Elevated hurdle rate Capital allocation High transaction cost Procurement & distributor availability constraints

6. Traditional Energy Management McKinsey: energy savings left to human & equipment entropy causes inconsistent results. Lawrence Berkeley National Laboratory Equipment entropy is just as common Some reductions seen… but temporary results

7. Best Practices Determine energy “cost per unit” Develop standards & targets Implement energy intelligence & management system –Enterprise-wide energy visibility Utilize real-time data & continuous monitoring

8. Develop Standards & Targets Establish a baseline Breakdown of current “as is” spend (gas, electricity, water) Which account for bulk of energy use?

9. Develop Standards & Targets Determine “Best in Class” goal Identify equipment for greatest savings Meter for data gathering & continuous improvement

10. Energy Visibility & Intelligence Invest in automated data collection Ensure solution includes –Dashboards –Alerting & event management –Analytics Integrate into: –Overall corporate strategy –Operations & maintenance

11. xChange Point Collects data at macro & device level Real-time information, enterprise wide Includes team of EPS energy experts example Energy Intelligence system

12. Utilize Real Time Data Reveals gaps in plant standards Why & how plant is using more energy than required Alerts play critical role Real-time information enables proactive solutions

13. Continuous Monitoring Automated, real time energy management Continually monitor equipment, processes & personnel behavior to avoid energy savings entropy –Equipment, controls, personnel change over time –Alterations in environment –Addition or removal of equipment –Degradation in calibration of controls / equipment Simple alterations to processes can impact energy reduction practices & lower per-unit-of-production costs –Staffing, training & maintenance

14. Continuous Monitoring

15. Conclusion Industrial Energy management Largely untapped resource Historical approaches deliver disappointing results Key to success: Automated, real-time energy management & Best Practices –Treating energy as a material resource –Stop entropy at the onset through continuous monitoring –Modifying processes & human behavior For low-cost/no-cost savings opportunities –Integrating technology & approach into corporate strategy & processes Key for persistent & measurable savings

16. Thank You! Shiva Subramanya Shiva.subramany@epsway.com Download the Energy Intelligence Best Practices Report @ epsway.com