1. © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. How to fund your Virtualization Project SDG&E 2007 Energy Efficiency Program Incentives Guy Hansen SDG&E Sr. Program Manager

2. Virtualization Project Incentives 2007 SDG&E Energy Efficiency Program Incentives What qualifies for SDG&E Energy Efficiency Program Incentives? SDG&E provides Energy Efficiency Program incentives for quantifiable and calculated energy reductions. Energy reductions are measured in reduced kilowatt hours (kWh) per year. What elements of a Virtualization Project would result in energy reduction and qualify for Energy Efficiency Incentives? Consolidation and physical removal of existing equipment, being replaced with less or more energy efficient equipment, by no later than December 31, 2008. Examples: Reduced quantity of, Servers, Storage Area Network (SAN), Disk drives, Tape drives, desktop personal computer consolidation to thin clients etc.

3. Virtualization Project Incentives 2007 SDG&E Energy Efficiency Program Incentives What are the applicable SDG&E Energy Efficiency Programs and their Incentive Rates? Incentives formulas may vary by Energy Efficiency Program are paid on a cents per kilowatt per hour (kWh) basis. Standard Performance Contract (SPC) Energy-efficiency measures with documented savings pays 8 Cents per kWh/yr energy savings. ( Visit www.sdge.com/spc for program details)www.sdge.com/spc Energy Efficiency Savings Bid Program (EE Bid) Offers customers and project sponsors the opportunity to receive larger incentives for projects that produce energy savings of at least 500,000 kWh. Pays 8-10 cent per kWh/yr in documented energy savings. (Visit www.sdge.com/bid for program details)www.sdge.com/bid

4. Standard Performance Contract (SPC) – Eligibility Who? Businesses with an SDG&E electric or gas account What? Retrofit projects that deliver kWh or therms savings How Incentives are paid Calculated – on pre-determined energy savings Measured – on actual measured energy savings Measures must exceed federal and state standards

5. Standard Performance Contract (SPC) – Eligibility SDG&E Electric Service Territory

6. Virtualization Project Incentives – Getting Started What supporting documentation will SDG&E require and at what point should I apply for Program Incentives? Existing audit inventory of potential Servers to be removed from facility Existing Make Existing Model Existing Power Consumption Proposed Quantity of Virtualized Servers New Make New Model New server power consumption Contact SDG&E, submit completed Program Application documents with supporting documentation requesting Pre-inspection prior to equipment order or start of project..

7. Standard Performance Contract – Incentives Incentives on calculated or measured savings pay as follows: Lighting - $0.05/kWh Air conditioning and refrigeration - $0.14/kWh Motors and other equipment (Server Virtualization etc). - $0.08/kWh Gas equipment - $0.80/therm

8. Standard Performance Contract – Process How to Apply Complete and submit a SPC application Downloaded from: www.sdge.com/business/bus_energy_efficiency.shtml, or www.sdge.com/business/bus_energy_efficiency.shtml Request a CD-ROM SDG&E must inspect the site prior to the start of the project Incentive Limits Incentives may not exceed 50% of the measure cost. Incentive caps: Customer Site - $350,000

9. Energy Savings Bid - Whos Eligible? Businesses with an SDG&E electric or gas account Project(s) must save a minimum of 500,000 kilowatt- hours (kWh) annually or 25,000 therms annually all measures must be retrofits or replacements of existing, operating equipment pre-inspections are required before work begins Aggregation of measures and/or project sites is acceptable

10. Energy Savings Bid - Incentives Provides higher incentive rates than the California statewide Incentive/Rebate Programs Incentives may qualify for 100% of measure costs There are no limitations on the maximum incentive amount paid to individual customers or project sponsors All savings and incentives are based on measured, actual savings as approved by SDG&E

11. Energy Savings Bid – How to Apply Participation is easy and user-friendly. There are only two application forms and two simplified spreadsheets --- available at www.sdge.com/business/bid.shtml Measurement & Verification (M&V) is required. M&V can be performed by: SDG&Es independent third-party contractor, or customer/project sponsor We can help with the paperwork

12. Contact Us Contact your SDG&E Account Executive Or Guy Hansen Sr. Program Manager 858-650-4004 whansen@semprautilities.com

13. © 2006 San Diego Gas and Electric. All copyright and trademark rights reserved. Thank You