1. Achieving Deep Energy Savings in the Grocery Market -A comprehensive approach to retail- Diane Levin November 2, 2010

2. Presentation Objectives 1.Introduce PECI – an experienced market partner 2.Describe typical program approach 3.Describe key program components 4.Discussion

3. Since 1980 – Client experience across North America

4. PECI experience across the market

5. Innovation – our DNA Non-profit status supports long term investment Program design –EnergySmart Jobs Market investment –New grocery measures – 10 in 2010 –Measure refinement for accuracy Trusted partner –California Energy Commission benchmarking and building rating for California

6. Customer - Grocery Market Challenges Energy efficiency is not core business for grocers Technical complexity Lack of trained, qualified contractors Diverse market sector Investment trade-offs and impact to ROI not transparent Grocery market is difficult to reach & motivate Challenges in the Refrigeration Market

7. Utilities - Grocery Market Challenges Lack of in-house expertise and capacity Lack of comprehensive prescriptive measures Custom process is not scalable Grocery market requires special expertise and capacity Where utilities have prescriptive refrigeration measures (most don’t) typical measure count is: 8-12

8. Technical Complexity

9. Market Diversity No wonder this is a difficult market for energy savings!

10. Program Approaches

11. PECI grocery program focus Retrofits New construction Retrocommissioning Independent grocers National and regional chains Convenience chains Ethnic grocers Independent and ethnic C-stores Types of energy savingsMarkets served

12. Inform to Invest Contractors and green jobs National account methodology PECI program design elements Sunshine Market owner and Hussmann representative

13. Program Approach: Inform-to-Invest I2I gives store owners confidence to act on energy saving opportunities

14. Energy audits Customer consultation Persistence and education Technical expertise Program liaison Contractor management Quality control O & M advice Bridging Utilities & Customers: Field Energy Analysts Field Energy Analyst On the ground capacity and expertise to reach and motivate customers

15. Contractors and Green Jobs Trade Ally (contractor) mobilization –Contractor training and mentoring –Lead generation for additional retrofits –Changing contractor business model –Job creation –Market transformation We leverage trade ally relationships On-site contractor training April 2008

16. Bridging utility engineering and scale challenges Engineering and program expertise enabling large, rapid, cost effective savings Tools for scale –GrocerSmart™ audit and energy savings calculations –Sprocket™ utility portals, customer care and project management 13 refrigeration engineers and analysts 62 program staff

17. Sprocket™ - Program Tools Utility Portals Opportunity tracking Incentive tracking Customer follow up Secure CRM platform

18. GrocerSmart™ - “mass custom” energy modeling and calcs for rapid deployment and delivery Day-of-audit on site results

19. PECI’s process ensures end to end quality, continuous improvement, and persistence Educating – investing in the long term success of programs and people –Field – hands on, with veterans –Office – market, engineering –On-line – web based learning environments and testing Focus on best practices –Auditing –Presenting and educating –Project management, tracking, incentive processing

20. PECI has expertise and capacity Tried and true delivery model with tools and infrastructure now operating in 90+ utilities Utility benefits Rapid deployment Rapid delivery Large energy savings Standard approach Good EM&V results Customers happy with utilities and field reps Participant benefits Sustainable business Easy to engage Lower energy bills Understand energy, shift in long term thinking

21. Since 2002 Now deployed in 6 states Refrigeration is focus –60-85% program savings Energy savings –Over 100,000 MWh delivered in 2009 –Retrofit, new construction and recommissioning –“Mass custom” and prescriptive measures Manufacturer and contractor relationships –Working relationships with national manufacturers –Extensive network of contractors across service areas Proven Track Record of Delivery

22. Program Outcomes from Achieving Deep Energy Savings in the Grocery Market On-the-ground representatives for utility Market penetration, high participation rates Network of trained contractors Long-term relationships More energy efficient segment Market transformation

23. Diane Levin, Executive Vice President dlevin@peci.org Jeremy Litow, Director Grocery Practice jlitow@peci.org