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

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

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 2012 & 2013 3

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

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

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

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

PECO Smart Ideas Commercial Programs

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

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 90.1 2007 Retroactive projects are excluded 10

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

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

PECO Smart Equipment Incentives

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

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

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

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

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

PECO Smart Construction Incentives

PECO Smart Construction Incentives New construction and major building rehabilitation that exceeds ASHRAE 90.1 2007 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

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

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

Customer and Design Team Incentives Whole Building Approach Building performance in excess of ASHRAE 90.1 2007 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

1-888-5-PECO-SAVE (1-888-573-2672) PECOSmartIdeas@kema.com www.peco.com/SmartIdeas