0 OLD TECHNOLOGY NEW TECHNOLOGY ON THE RIGHT TRACK WITH ENERGY CONVSERVATION

1 DISCUSSION TOPICS OVERVIEW PROJECT REVIEW PROCESS PROJECT FACTS CONTRACT SPECIFICS CHALLENGES BENEFITS/REWARDS HOW COULD WE GET SUCH A DEAL SUMMARY/ QUESTIONS

2 NEW YORK PENN STATION LIGHTING PROJECT OVERVIEW Amtrak is America’s Passenger Railroad. Last year, more than 24 million passengers traveled on Amtrak trains, representing the 4 th straight year of record ridership. Amtrak has over 1,400 utility accounts and spends over $130 million annually on utility expenses. Approximately $40 million of this expense pays for electricity, water, gas and steam to facilities and stations around the country.

3 NEW YORK PENN STATION LIGHTING PROJECT Pennsylvania Station in New York City is Amtrak’s busiest train station and serves over 500,000 Amtrak, New Jersey Transit, Long Island Rail Road and New York City subway passengers per day. Amtrak’s electrical utility provider in New York City, Consolidated Edison (Con Edison), began a program to encourage business to lower energy usage. One of Con Edison’s contractors, Quality Conservation Services Inc. (QCS) approached Amtrak about participating in their Lighting Express Program. QCS offered Amtrak free installation and labor of Compact Fluorescent light bulbs. QCS also provided Amtrak with a supply of replacement light bulbs equal to 5% of the light bulbs installed.

4 NEW YORK PENN STATION CFL PROJECT Replacing the incandescent and HID bulbs in Penn Station at no cost seemed too good to be true! QCS wanted to discuss the change out of all the bulbs in Penn Station. They explained that some of the bulbs were free, while others may require a sharing of the costs. We decided to go with free work only and look at the other work as Plan “B”. QCS was asked to provide a proposal for the free portion of the project which would be a little more manageable to coordinate.

5 PROJECT REVIEW PROCESS A multi-departmental team was organized to discuss and manage the project: -UTILITIES MANAGEMENT -PROCUREMENT -LAW -REAL ESTATE -ENGINEERING -PASSENGER SERVICES

6 Utilities Management Coordinated the project and managed the contract Procurement Ensure all procedures were being followed even though there was no money involved. Law Review the contract Real Estate Coordinate the involvement of Amtrak’s retail tenants, including gaining approval for specific lighting changes and installation Engineering The in-house electricians and supervisors responsible for the maintenance of the existing bulbs (who are union employees) had to been on board with the project. We also needed an electrician with the contractor at all times for safety and operational reasons. Passenger Services Responsible for the utility budget and for passenger safety and comfort. NEW YORK PENN STATION CFL PROJECT

7 PROJECT FACTS Building Size - 1,000,000 Square Feet (not counting platforms) Bulbs Changed – 4,752 KWH Reduced Annually – 3,200,000 CO2 Gases Eliminated - 4,997,000 lbs First Conversation About Project - January 2006 Start Date – June 2006 Finish Date - November 2006

8 PROJECT FACTS Original Bulb - Types/Wattage 75 Watt – 900 Watt – HID/Incandescent Replacement Bulbs/Wattage 2 Watt Watt CFL Eleven Year Contract Device Installed in Fixtures to Eliminate Possibility of Using Incandescent or HID Bulbs Instead of CFL

9 CONTRACT SPECIFICS Handling and Disposal of Old Bulbs and Other Waste Spare Bulbs Hours to Perform Work Bulb Specification: Size, Shape, Color, and Lumen Output Bulb Guarantee Project Duration

10 CONTRACTS SPECIFICS Cost Savings and Greenhouse Gas Reduction - Statistics Maintenance Requirements for New Lights Getting Approval of Scope of Work and Contract Terms Bulb Manufacturer Track Record Contractor Training Guidelines

11 CHALLENGES Some of the lights were near active railroad tracks. Contractors had to be trained to work around an active railroad. There were 26 retail vendors that were asked to buy into the project. The Amtrak Electricians (IBEW) Union Contract had to be adhered to which required a formal labor clearance be drafted and approved. Getting all the parties together to agree on the scope of work and contract terms. Review and approvals of the bulb specifications and design.

12 BENEFIT/REWARDS Reduction of 3,244,000 Kilowatts annually in electricity usage. 4,997,000 pounds of CO2 eliminated. Estimated annual savings of $370,000 in electricity costs. CFL’s last ten times longer and produce 75% less heat. Reduced maintenance time to replace lights that are very hard to reach. Color consistency. Lights stay on 24/7 in most cases so benefits are better than usual. Free lights and installation.

13 KEY FACTORS IN SUCCESS OF PROJECT Having an understanding of our internal organization. Relationships with the individuals who were responsible for each phase of the project. Communication with the affected parties about how this project will benefit them and the corporation. Have a single point of contact to organize the administration of the project. Having a partnership with the contractor - not a one way relationship. Organized with meetings and action items. Team work between Amtrak field forces and the contractor to navigate through problems.

14 HOW DID WE GET SUCH A DEAL? Load reduction during peak times in the summer would eliminate the need to build additional costly power plants.

15 CARBON DIOXIDE Global Warming POUNDS NOT PRODUCED 4,997,000 SULFUR DIOXIDE Acid Rain POUNDS NOT PRODUCED 24,167 FUEL NOT BURNED 5,803 BARRELS OF OIL 1,515 TONS OF COAL POLLUTION REDUCTION ANNUALLY KWH REDUCED ANNUALLY 3,244,148 NITROGEN DIOXIDE Acid Rain & Smog POUNDS NOT PRODUCED 9,240

16 NEW YORK PENN STATION CFL PROJECT QUESTIONS ? Bob Jones Senior Director - Utilities Management - Amtrak