Auto-Demand Response Slides www.CypressEnvirosystems.com

Commercial buildings present a significant growth opportunity for the demand response market Commercial buildings are vastly underrepresented in utility demand response portfolios Southern California Edison reported 4% of their portfolio is from commercial buildings Commercial buildings account for up to 50% of peak demand Most existing buildings are not equipped to communicate with the Smart Grid Retrofit technologies for existing buildings are needed to enable auto-demand response

Typical Pneumatic Thermostat 70% of existing buildings have pneumatic thermostats, which cannot speak with the Smart Grid—they should be replaced Most commonly used HVAC control technology in existing nonresidential buildings Approximately 70% of buildings in the US have pneumatic thermostats Reliable but manual and analog Temperature setpoints are set manually Bimetallic strip affects air pressure, which controls the temperature and ventilation Cannot communicate, waste energy, require unnecessary maintenance and create unhappy tenants Cannot speak with the Smart Grid, i.e. no Auto-Demand Response Waste HVAC Energy Require unnecessary maintenance Typical Pneumatic Thermostat Pneumatic thermostats need to be replaced with communicating, programmable thermostats to save energy and maintenance costs.

Most pneumatic thermostats have not been replaced because retrofitting them is very expensive and invasive Traditional DDC Retrofit is Invasive Retrofitting pneumatic thermostats to DDC is not practical for most buildings Very expensive: $2,500-$3,000 per thermostat on average 7-10 year pay back Invasive: The retrofit requires walls to be opened to remove the pneumatic components and to run wire and install the digital actuator Retrofits are not feasible if asbestos and other toxic materials are present Disruptive: Building tenants have to be moved while work is completed Each thermostat requires several hours to days Total project time requires months

The WPT eliminates the barriers to retrofitting pneumatic thermostats, enables auto-DR, and saves energy and maintenance The WPT is a new retrofit solution for HVAC control that delivers the same benefits as traditional DDC The WPT makes it feasible for more buildings to retrofit their pneumatic thermostats The system has the OpenADR Protocol to communicate with the Smart Grid Cost: ~$600 per thermostat installed 70-80% less expensive than DDC 18 month payback on average Non-invasive: No opening of walls or running wires Toxic substances (like asbestos) do not impede installation Not disruptive: Tenants can continue working uninterrupted 20 minute installation per thermostat Project time completed in days WPT Provides DDC Zone Control without Disruption Step 1 Step 2 Step 3 Step 4 Step 5 Identify pneumatic thermostat type Remove thermostat and backplate Install WPT backplate to wall Attach pneumatic pipes to WPT Hang on wall and integrate with BAS

ADR paid for 100% of a WPT retrofit County Social Services Building Best DDC Bid vs. WPT DDC Quote WPT Actual Installed price $875,000 $175,000 Project time 6 months 8 days Disruption Significant Minimal Toxic exposure If present None PG&E ADR incentive 31% 100% Realized Benefits and Payback Period Actual Year-Over-Year Utility Data Payback period: 16 months 210 kW Auto-Demand Response shed Energy savings: $42,000/year 350,000 kWh per year at $0.12/kWh Demand Response: $7,500/year 10,700 kWh per year at $0.70/kWh Maintenance Cost Savings: $156,000/year Reduced over 50% due to diagnostic data Full case study available at: http://www.cypressenvirosystems.com/files/pdf/CountyofSantaClara_EnergySavings_Final.pdf

The Wireless Pneumatic Thermostat is an integral part of part of several Smart Grid and auto-demand response programs Smart Grid Research Centers Utility Programs