CenterPoint Energy Healthcare Energy Efficiency Program (HEEP) CenterPoint Energy Healthcare Energy Efficiency Program (HEEP) November 2013

2 22 Program Summary  Energy conservation program designed for the healthcare industry  Provides services to participants based on eligibility and customer preferences  Services may include benchmarking, energy assessments, incentive processing, etc.  Cash incentives paid directly to customers  Incentive rates are based on type of measure and services rendered

2 33 Potential Customers  Medium Healthcare –Small Hospitals (<=300 beds) –Medical office buildings –Large clinics –Assisted living/ nursing homes  Small Healthcare –Small clinics –Doctor’s offices –Physical therapy

2 44 Program Benefits – Customer  No financial obligation to participate in the program  No deposit required  Provides identification of energy conservation measures (ECMs)  Provides cash incentives for ECM implementation  Annual energy and cost savings  Minimal time required out of your busy schedule

2 55 Program Steps  Application screening  Willdan benchmarks facility  Willdan discusses available services  Customer selects services  Willdan confirms potential ECMs  Customer implements selected ECMs  Post implementation inspection  Incentive processing

2 66 Services – Healthcare  Facility benchmarking  Tier 1: Direct deemed  Tier 2: Concise energy assessment (e.g., small clinics, doctor’s offices, etc.)  Tier 3: Walk-thru energy assessment (e.g., large clinics, medical office buildings, etc.)  Tier 4: Comprehensive energy assessment (e.g., hospitals, assisted living, medical research facilities, etc.)  Tier 5: Measurement & Verification (e.g., hospitals, medical research facilities, etc.)

2 77 Customized Services  Tier 1: Direct deemed –Customer has already identified ECMs, but needs incentives to proceed –Savings are calculated for standard replacement ECMs using deemed method  Tier 2: Concise energy assessment –Smaller facilities w/lower savings potential –Performed off-site using application and phone interview –Includes standard deemed savings measures only  Tier 3: Walk-thru energy assessment –Small – medium facilities w/reasonable savings potential –Basic study, performed using staff interviews, site visit and collected data –Includes deemed and custom capital expenditure measures  Tier 4: Comprehensive energy assessment –Larger facilities, higher than average EUI, high savings potential –Detailed study, performed using staff interviews, site visit and collected data –Includes capital expenditure and low cost/low payback operational measures  Tier 5: Measurement & Verification (M&V) –Custom capital expenditure measures with significant savings potential –Customer may request assistance in performing M&V

Incentive Rates Measure Type Tier 1Tier 2Tier 3Tier 4Tier 5 $/kW$/kWh$/kW$/kWh$/kW$/kWh$/kW$/kWh$/kW$/kWh Lighting – Fluorescent, HID, CFL $120$0.04$108$0.04$102$0.03$102$0.03TBD Lighting – LED $210$0.08$189$0.07$179$0.07$179$0.07TBD Lighting – Relamping $36$0.01$32$0.01$30$0.01$30$0.01TBD Cooling – DX units $240$0.09$216$0.08$204$0.08$204$0.08TBD Cooling – Chiller $260$0.11$234$0.10$221$0.09$221$0.09TBD Motor $235$0.09$212$0.08$200$0.08$200$0.08TBD 1 VFD $180$0.07$162$0.06$153$0.06$153$0.06TBD Window film $200$0.08$180$0.07$170$0.07$170$0.07TBD Window replacement $210$0.08$189$0.07$179$0.07$179$0.07TBD Roofing $240$0.09$216$0.08$204$0.08$204$0.08TBD 2 Operational measures N/A $25$0.01N/A All other measures TBD

2 99 Success Stories Case 1: Hospital A – ~200 beds; 235,000 ft 2 ; Tier 4  Major ECMs identified – Capital Expenditures –Replace high pressure sodium parking lot lights with LED lights –Replace T-12 fluorescent lights with high efficiency T-8 lights –Replace older R-11 chiller with new, energy efficient chiller –Replace electric steam generator with natural gas steam generator –Add VFDs to cooling tower fans and heating hot water pumps  Major ECMs identified – Operational –Optimize chiller plant (chilled water temperature reset, chilled water dP reset, reduce minimum condenser water temperature) –Reset leaving air temperature on all air handling units (AHUs) based on outside air temperature (OAT) & static pressure (SP)  Potential Savings & Incentives – All Identified ECMs –30% electricity savings; >$150,000/year energy cost savings; $27,000 in incentives  Potential Savings & Incentives – Only Low Payback ECMs –7% electricity savings; >$50,000 energy cost savings per year; $8,000 in incentives; <5 month simple payback

2 10 Success Stories Case 2: Assisted Living Facility A – ~300 beds; 240,000 ft 2 ; Tier 4  Major ECMs Identified – Capital Expenditures –Replace T-12 fluorescent lights with high efficiency T-8 lights –Add lighting occupancy sensors –Upgrade roofing (reflective coating, additional insulation) –Add demand control ventilation (DCV) –Add VFDs and controls to kitchen hoods  Major ECMs Identified – Operational –Optimize chiller plant (chilled water temperature reset, chilled water & heating hot water dP reset, chiller sequencing) –Optimize other controls (repair sensors, eliminate simultaneous heating & cooling, correct humidity control, optimize space temperature setpoints, etc.)  Potential Savings & Incentives – All Identified ECMs –19% electricity savings; >$120,000/year energy cost savings; >$100,000 in incentives  Potential Savings & Incentives – All Selected ECMs –14% electricity savings; $90,000 energy cost savings per year; nearly $50,000 in incentives; <2 year simple payback

2 11 Success Stories Case 3: Assisted Living Facility B – Tier 1  Major ECMs Already Identified – Capital Expenditures –Replace air-cooled chiller with higher efficiency chiller  Potential Savings & Incentives – All Selected ECMs –$7,000 energy cost savings per year; $25,000 in incentives

2 12 Next Steps Contact CenterPoint or Willdan to enroll now!  CenterPoint Energy Program Manager David Dzierski Ph:  Willdan Outreach Manager Greg Barker Ph: