2. Energy Efficiency Guidelines Power Correction Systems, Inc. Brahm Segal Developed by: 1800 S. Robertson Blvd. PMB 419, Los Angeles, CA 90035 Phone: 310 247-4848 Fax: 310 273-7719 www.activeharmonicfilters.com

3. Power Correction Systems, Inc. Energy Efficiency Guidelines ENERGY COST RELIABILITY COMPETITION ENVIRONMENT GREENHOUSE GASES SOCIAL ISSUES SHAREHOLDRS EMPLOYEES CUSTOMERS SUSSTAINIBILITY BUSINESS ADVANTAGE

4. Power Correction Systems, Inc. Energy Efficiency Guidelines Companies shall be committed to energy excellence to realize a competitive advantage in their businesses and establish an energy conservation program to attain: Efficient energy use Reduced energy emissions Power facilities renewal

5. Power Correction Systems, Inc. Energy Efficiency Guidelines CommunityEmployeesCustomersShareholders Cleaner Environment Lower Energy Price Energy Availability Better Job Security Sense of Stewardship Increased Pride Lower Price Higher Quality Better Reliability Better Image Improved Earnings Competitive Advantage Stakeholders

6. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Organization Strategy Team Emissions Renewal Energy Use Leadership Team Plants Engineering Global Businesses Key Pursuits Team Technology Metrics Procurement CommunicationsConstituents Plant Sites Customers Employees Shareholders Society Businesses

7. Power Correction Systems, Inc. Energy Efficiency Guidelines EmployeesCommunityCustomersShareholders Awareness Job Security Ethical/Moral What can I do? Waste Stability Emissions Environment Natural Resources Life-Cycle content Value Price Quality Offering Reliability Resources Facilities Costs Earnings Financial Score Card Regulatory Compliance

8. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Tool Box Energy Survey / Audit Awareness Lighting Standards Motor Standards Maintenance Recognition Pinch Technology System Monitoring Instruments Energy Technology Library Co-Generation Energy Engineering Efficiency Standards Training / Education Computer Programs

9. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Initiatives Motor Challenge Program Sustainable Energy Vision Multi-Company Energy Forum Business Growth Facilities Renewal Plans Retail Wheeling Conference Climate-Wise (Pacesetter) Green Lights Program Compressed Air Challenge Program

10. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop Program for the use of Alternative Energy Thermal Energy Storage Systems Solar Systems Cogeneration Waste Heat Recovery Systems Ground Water Heat Pumps Micro Turbines Wind Power Hybrid Cooling and Heating Systems Fuel Cells

11. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Project Financing Cash purchase Loan Capital lease Operating lease Performance contract

12. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Supply Chain Energy Value Chain SupplerSuppler CustomerCustomer ELECTRICITY AND FUELS POWER GENERATION ENERGY CONSUMPTION PRODUCT DISTRIBUTION ENERGY TOOLS ENERGY LEADERSHIP PRODUCT LIFE-CYCLE ENERGY PRICE RELIABILITY QUALITY

13. Power Correction Systems, Inc. Energy Efficiency Guidelines Networking Network Relationship Effective Accountable Unpredictable Innovates Discovers / Evaluations Heterogeneous Does the right thing Line Organization Structure Efficient Measure / Audits Implements Homogeneous Discovers / Evaluations Predictable Does the right thing NeedsPossibilities

14. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Identifying Electric Use-Power Monitoring System Allocating and managing energy costs Submeter system architecture and services Metering instruments for collecting and analyzing data Evolution of metering technology

15. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Energy Audits a Key Management Tool Type of audits Identifying energy conservation measures Survey instrumentation Data collection and trending using a personal computer Identifying baselines and variable loads

16. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Developing a Facility Energy Index Utility bill analysis Energy accounting End-use profiles External benchmarking Database resources available to establish target indices

17. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Plant Level Energy Management Process Forecasting energy consumption How to evaluate energy management performance Analysis techniques Benchmark data for plant efficiency comparison Maintaining the effectiveness of energy management programs

18. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Measurements and Verification of Savings Standards and protocols Methods for measurements - engineering calculations - computer models - measurements vs. monitoring Practical considerations - expenses vs. benefits - accuracy - instrumentation

19. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop an Effective Energy Management Program Purchase of Energy Resources Natural gas transportation - economics, operation regulatory issues - balancing and bypass Electricity wheeling-obstacles Electric deregulation initiatives Cogeneration opportunities Water and sewer

20. Power Correction Systems, Inc. Energy Efficiency Guidelines Power Factor Correction Group Compensation Eliminates kVA surcharge Increases service panel capacity Substation Compensation Eliminates kVA surcharge Increases service panel capacity Partial reduction in line losses Partial increase in plant distribution capacity

21. Power Correction Systems, Inc. Energy Efficiency Guidelines Power Factor Correction Individual Compensation Eliminates kVA surcharge Increases service panel capacity Maximizes reduction of line losses Improves voltage unbalance between phases Increases life expectancy of motors Adds flexibility for future expansion and changes

22. Power Correction Systems, Inc. Energy Efficiency Guidelines Changes in recent years including T-8 lamps, T5- lamps, electronic ballast's, new dimming technologies, occupancy sensors, and pulse- start HID lamps and ballast's. Implement these new technologies with the ability to control and shed loads on demand. This will be driven by utility deregulation's. Rate plans will provide attractive discounts for facilities they can control and shed loads during peak times Improving Lighting Performance

23. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy cost for lighting $75 Billion in the US for commercial buildings (Source DOE) Modern lighting technology and products can bring savings in energy cost for commercial and industrial facilities of up to 15 to 40% Energy managers can lower their electrical costs without lowering the quality of light, on quality of life Improving Lighting Performance

24. Power Correction Systems, Inc. Energy Efficiency Guidelines Improving HVAC Performance Reduce Energy and Operating Cost Improve Air Quality Standards Improve Comfort Requirements Reduce Maintenance Cost Develop Program for Measurements of HVAC Equipment Energy use and Performance

25. Power Correction Systems, Inc. Energy Efficiency Guidelines Heat Recovery Reduce Scale and Corrosion Load Management Select Optimum Prime Mover / Fuel Improve Characteristics of Working Fluid High Efficiency Motors Variable Speed Drives Energy Management Monitoring Program Improving HVAC Performance Develop Program to Reduce HVAC Generating Costs

26. Power Correction Systems, Inc. Energy Efficiency Guidelines Heat Recovery Reduce Scale and Corrosion Load Management Select Optimum Prime Mover / Fuel Improve Characteristics of Working Fluid High Efficiency Motors Variable Speed Drives Energy Management Monitoring Program Improving HVAC Performance Develop Program to Reduce HVAC Generating Costs

27. Power Correction Systems, Inc. Energy Efficiency Guidelines Control Chilled Water Flow Rate Control Chilled Water Temperature Improve Cooling Tower Performance Control Condenser Water Temperature High Efficiency Chillers Improve Pumping Performance Tower Free Cooling Control Air Flow Improving HVAC Performance Develop Program to Reduce HVAC Generating Costs

28. Power Correction Systems, Inc. Energy Efficiency Guidelines Control Outside Air Control Ventilation Balance Air Handling Systems Insulate Control Supply Air Temperature Avoid Simultaneous Heating / Cooling Use Economizer Control Use Air Quality Sensors Use Air Pressure Control Improving HVAC Performance Develop Program to Reduce HVAC Distribution Costs

29. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Benchmarks Heating BTU/SQFT Cooling BTU/SQFT Cooling TON/SQFT Heating cost per square foot Cooling cost per square foot Electrical cost per square foot Total Utility cost per square foot Lighting cost per square foot Water & sewer cost per square foot

30. Power Correction Systems, Inc. Energy Efficiency Guidelines Investigate and reduce point-of-use pressure requirements Determine actual air quality requirements and treat air appropriately Investigate and address high-volume, intermittent applications Improving Compressed Air Performance Develop a system block diagram Create a system pressure profile Address point-of-use issues Develop a compressed air system maintenance program

31. Power Correction Systems, Inc. Energy Efficiency Guidelines Improving Compressed Air Performance Analyze existing compressor(s) and system control, and implement an effective control strategy Align supply-side with demand-side operation Implement strategies to maintain system alignment

32. Power Correction Systems, Inc. Energy Efficiency Guidelines Perform a plant wide air leakage survey, using an ultrasonic leak detector device Develop a compressed air load management system Study compressed air distribution piping for pressure drops Develop an education and training program for all employees Investigate whether supply air pressure can be lowered Check and analyze the operating pressure requirements for each system Evaluate changing the specification for new equipment to a lower operating pressure Improving Compressed Air Performance

33. Power Correction Systems, Inc. Energy Efficiency Guidelines Develop a plant wide computerized energy accounting management program Replace standard V-belts with high efficiency type V-belts Develop an automatic shutdown capability for utility and process equipment not in use Develop a plant wide survey program for lighting levels Develop a program for annual performance, efficiency and capacity testing for process and utility equipment Additional Recommendations for Energy Management Improvements

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37. Power Correction Systems, Inc. Energy Efficiency Guidelines VS Comparison of Fluorescent T8 216 Watt Fixture Metal Halide with Pulse Start 360 Watt

38. Power Correction Systems, Inc. Energy Efficiency Guidelines 0 5 10 15 20 25 Percent Chilled WaterCooling WaterSteamCompressed AirHot Oil Plant Utilities Potential Annual Energy Savings Potential MinimumPotential Maximum After Implementation of Energy Conservation Program

39. Power Correction Systems, Inc. Energy Efficiency Guidelines 1 3 5 7 9 11 13 15 17 19 Percent Chilled WaterCooling WaterSteamHot WaterLighting Institutional Buildings & Facilities Potential Annual Energy Savings Potential MinimumPotential Maximum After Implementation of Energy Conservation Program

40. Power Correction Systems, Inc. Energy Efficiency Guidelines 940 4460 13070 36570 500 5500 10500 15500 20500 25500 30500 35500 40500 Millions of KWh SolarWindGeothermalBiomass Type of Energy Sources Electricity Generated by Renewable Energy Sources Source: DOE Energy Information Administration, 1999

41. Power Correction Systems, Inc. Energy Efficiency Guidelines Annual Operating Expenses in Percent Data based on 2000 BOMA Exchange Report Average Cost of Urban & Suburban Non-Government Buildings Cleaning 19% Grounds/Security 10% Utilities 30% Repair/Maintenance 23% Administrative 18% Annual Operating Expenses in Percent Data based on 2000 BOMA Exchange Report

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44. Power Correction Systems, Inc. Energy Efficiency Guidelines Energy Source Source: Energy Information Administration

45. Power Correction Systems, Inc. Energy Efficiency Guidelines End-Use Sector Source: Energy Information Administration

46. Power Correction Systems, Inc. Energy Efficiency Guidelines Typical Fluorescent Lamp Life Cycle Cost One 4 Foot 2-Lamp T-8 Electronic Ballast Fixture (59 Watts) Typical 4000 Hours of Operation per Year Annual Operating Cost $10.62 at ($0.045/kWh) 5 Year Lifetime Operating Cost $60.36

47. Power Correction Systems, Inc. Energy Efficiency Guidelines Motor Life Cycle Cost - 5HP Continuous Operating 90.2% Efficient Initial Purchase Price of Motor $234.00 Annual Operating Cost $1,666 at ($0.046/kWh) 20 Year Lifetime Operating Cost $33,320

48. Power Correction Systems, Inc. Energy Efficiency Guidelines Thank You ! For your time and interest in Power Correction Systems 1800 S. Robertson Blvd. PMB 419, Los Angeles, CA 90035 Phone: 310 247-4848 Fax: 310 273-7719 Brahm Segal; E-mail: bsegal@ activeharmonicfilters.com