Energy Conservation & Rebate Opportunities Barb Jerhoff Minnesota Chief Engineer’s Guild Quarterly Meeting June 16, 2009

2 Minnesota conservation programs  Active environmental community  Legislatively mandated  Strong PUC support

3 How does it work?  Minn. Dept. of Commerce requirements  2% of electric revenue  0.5% of gas revenue  Shows on bill - part of “Resource Adjustment”  DOC approves efficiency programs; we administer them  Justify spending with documented energy savings

4 Environmental impacts  Reduce emissions  Pollution prevention  Avoid new power plants  8 mid-size gas combined cycle (approximately 250 MW each) since 1990

5 Types of programs  Studies  Prescriptive / fixed rebates  Custom rebates  Segment Offering  Rates, discounts and other options

6 Electric programs  Cooling Efficiency  Commercial Real Estate Efficiency  Compressed Air Efficiency  Custom Efficiency  Data Center Efficiency  Efficiency Proposal  Electric Rate Savings  Energy Analysis  Energy Design Assistance  Efficiency Controls  Lighting Efficiency  Motor Efficiency  Process Efficiency  Recommissioning  Saver’s Switch

7 Natural gas programs  Boiler Efficiency  Furnace Efficiency  Commercial Real Estate Efficiency  Custom Efficiency  Efficiency Proposal  Energy Analysis  Energy Design Assistance  Efficiency Controls  Natural Gas Rate Savings  Process Efficiency  Recommissioning

8 Studies  Identify and qualify improvements  Quantify expected results

9 Energy Analysis  Online Assessment  A FREE tool to help you analyze your facility and identify savings  Onsite Assessment  Engineer comes onsite to analyze actual building conditions and indentifies potential savings  Cost to customer is $200 - $300 based on square footage ENERGY STAR Benchmarking  Xcel Energy uses your building information to determine the ENERGY STAR score for FREE  Engineering Assistance Studies  In depth engineering study on a major system or process  Xcel Energy will fund up to 50% of the study cost not to exceed $15,000

10 Recommissioning  Tune up existing building systems and controls rather than replacing them  Optimize HVAC operations  Fine-tune time of day schedules  Improve indoor air quality  Reduce equipment wear and tear  Many measures are low/no cost with paybacks less than one year  Potential savings of 5 to 20 percent

11 Recommissioning  Studies  Up to 50% of the study cost, not to exceed $15,000  Preapproval is required  Implementation  Up to 50% of the project cost  $200/kW or “implied kW” (kWh/8760)  $2/MCF for Xcel Energy natural gas customers

12 Data Center Efficiency  The Data Center Efficiency program is designed to assist Xcel Energy customers with data center efficiency improvements through study funding and rebates.  Customers participate in our two-step program to realize energy savings and earn rebates. Data Center Study  Efficiency study provides up to 50 percent funding, not to exceed $15,000 (special consideration for extremely large projects)

13 Data Center Efficiency Eligibility:  Any size data center  Changes to existing  Adding new to existing site  New construction projects >50,000 sq. ft. analyzed under EDA How to Participate:  Two parts – study & implementation  Part 1: Study  Preapproval application with proposal  Xcel Energy reviews to determine potential study funding, notifies customer  up to 50% of cost; up to $15,000  Study provider completes study and submits final for approval  We review and offer packaged rebates upon approval

14 Data Center Efficiency  Already completed a study?  Apply for Fast Track Study option  Previously completed study  Study review by Xcel Energy  No study funding Part 2: Implementation rebates  Customer selects package of improvements  Up to $300 per kW saved  Customer implements package, submits for rebate  Bundled rebates  Combine short and long payback projects

15 Lighting Redesign Studies & Rebates  Study  By Lighting Certified (LC) professional or lighting professional with demonstrable design experience  Determine proper lighting levels  For overlit or mislit space  Funding up to 50% of study cost; max of $15,000  Implementation rebates  Up to $400 per kW saved

16 Lighting Efficiency  Prescriptive Rebates  Fixed dollar incentives for installing energy efficient equipment  Retrofit rebates for existing facilities of any size  One-to-one equipment change outs  Helps offset the cost of replacing current lighting with more-efficient equipment  New construction rebates for new facilities or major renovations  Rebates available when you choose lighting options that are more efficient than the standard

17 Cooling  Rebate main system components  Prescriptive rebates  Fixed rebates for purchasing common energy efficient equipment  Rebate changes effective June 1st  Rebates available on a $/ton basis  Incremental efficiency bonus  Custom rebates  Unique equipment that does not fall under our prescriptive program  VAVs and cooling towers reviewed through Custom

18 Boiler Efficiency Rebates  New energy-efficient boiler systems  Hot water boilers (condensing & non-condensing)  Steam boilers (high or low pressure)  Efficiency improvements to existing systems  Outdoor air reset controls  Modulating burner controls (  5:1 turndown)  O2 trim controls  Stack dampers  Maintenance measures that boost efficiency  Tune-ups (every other year)  Steam trap repair/replacement  Co-funded studies to identify, analyze and prioritize  Heating System Optimization (system wide or component specific)  Energy Analysis options  Recommissioning

19 Boiler Efficiency Rebate Types  Prescriptive  New boilers  10 million BTUH used for heating or combination heating & domestic water heating  Add-ons or maintenance for any- sized boiler used for heating or combo purposes  Custom Efficiency boiler rebates  New boilers >10 million BTUH regardless of use  Efficiency measures for any process boiler  Requires preapproval prior to purchase & installation  See efficiency requirements and rebate amounts at xcelenergy.com/BoilerEfficiency

20 Custom Efficiency Program Rebates for energy-saving projects or process changes that are not covered by our prescriptive equipment programs.  Rebates are up to $200 per kW saved and $2 per MCF saved.  Pre-approval is required prior to equipment purchase.

21 Custom Efficiency - examples  Controls – CO2 based ventilation, energy recovery  Cooling – control valves, free cooling  Equipment – Ammonia refrigeration, humidification, elevator modernization, transformers  Lighting – LED display signs, daylighting, non one- for-one lighting retrofits  Motors – 500+ HP motors, 200+ HP VFD, VFDs on non-fan or pump applications

22 Efficiency Controls rebates  Energy Management Systems (EMS) and Automated Building Controls  Control Lighting, Heating, Cooling, Ventilation, etc.  Add new system to building  Add control points to existing system  Microprocessor-based controlling  Model-based analysis  Rebate: up to $200/kW saved and up to $400 per kW saved for lighting measures  Easy to participate  EMS preapproval application  Random verifications

23 Efficiency Controls – lighting Good for system-or micro processor-based controls  Benefits  Greater kW savings potential  Constant load  High operating hours  Actual kW (vs. implied)  Reduced cooling load on HVAC systems  Higher rebates ($400/kW vs. $200/kW)

24 Business New Construction – Energy Design Assistance  Free design assistance plus incentives on installed measures  $300 per kW  $4 per MCF  New buildings, additions or major renovations over 50,000 square feet  Design Team reimbursement from $8,000  Xcel Energy does contract directly with specific energy modeling firms  Two program options offered depending on energy goals and design stage  Basic  Enhanced

25 Business New Construction – Energy Design Assistance  “Basic” Track  Timing: Schematic or Early Design Development  Energy Savings Requirement: 5% energy demand savings reduction  Services: Energy modeling, review of CDs, site verification & monitoring of select strategies  “Enhanced” Track  Timing: Pre-design or Early Schematic Design  Energy Savings Requirement: 16% energy demand savings reduction  Services: “Basic” services, plus early modeling/massing, potential daylighting analysis and support for Energy and Atmosphere Credit one for LEED certification or support for other green certifications where applicable

26 Business New Construction – Energy Efficient Buildings  Minimum Project Size: Any size building may apply, but is intended for buildings below 50,000 square feet  Timing: Any time into construction, but are encouraged to apply before completion of construction documents  Rebates: Vary depending on equipment purchased  Services: On site verification to review installed measures

27 Rates, Discounts & Other Options  Rates  Billing/payment options  WindSource SM

28 Electric Rate Savings  Savings up to 60% on Demand Charges  Reduce your demand at our request during peak demand periods to a predetermined level  Must have a controllable load of at least 50 kW to participate  See savings year ‘round  Help reduce the amount of electricity our customers need at critical times

29 Saver’s Switch  More than 13,000 MN businesses participating  Sign up now to begin saving this summer  Single and dual stage central air conditioners  Credit of $5 per ton of enrolled air conditioning June through September  Remote-controlled switch for each unit  Cycle off and on for short periods on peak demand days  No out-of-pocket cost; guaranteed savings

30 Gas Rate Savings  Savings around 25% over firm rates  Switch over to back up fuel during curtailment periods  Must be willing to go off system within one hour of notification  Helps reduce gas consumption during system peak times

31 Billing/Payment Options  Electronic Data Interchange (EDI)  Electronic Funds Transfer (EFT)  Online Account Management

32 WindSource  Voluntary wind energy program  Sold in 100 kWh blocks  Price is $3.53 per block  Receive fuel cost credit for all WindSource energy  Minimum three year commitment

33 Questions? Barb Jerhoff