1. © 2009 AirAdvice, Inc. Energy Benchmarking The On-Ramp to Delivering Energy Services

2. © 2009 AirAdvice, Inc. Agenda Session 1 –What is an Energy Benchmark –The Secret –Why You Should Care –3 Magic Questions –Getting Started Session 2 –Crunching the Numbers –Presenting the Results –The Next Step – Creating Action

3. © 2009 AirAdvice, Inc. What is an Energy Benchmark™ Energy metrics –ENERGY STAR® Energy Performance Rating –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint

4. © 2009 AirAdvice, Inc. Energy metrics –ENERGY STAR® Energy Performance Rating –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint Comparison to peers What is an Energy Benchmark™

5. © 2009 AirAdvice, Inc. Energy metrics –ENERGY STAR® Energy Performance Rating –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint Comparison to peers Opportunities for savings What is an Energy Benchmark™

6. © 2009 AirAdvice, Inc. The Secret Source: Commercial Building Energy Consumption Survey (CBECS) Dramatic range of performance = Opportunity Office Buildings ENERGY STAR Score 7525 2.8 X $0.00$0.50$1.00$1.50$2.00$2.50$3.00

7. © 2009 AirAdvice, Inc. The Secret in Practice Seattle, WA

8. © 2009 AirAdvice, Inc. Building 351 Building 501 ENERGY STAR Rating: 45 Energy Use Index: 86.2 Cost per Square Foot: $1.25 ENERGY STAR Rating: 8 Energy Use Index: 164.8 Cost per Square Foot: $2.37 The Secret in Practice

9. © 2009 AirAdvice, Inc. The Secret – Part 2 “Businesses might have armies of clerks that track $20 receipts for cabs and business lunches, but they have no clue about where their $20 million in annual energy expenditure goes.” - Christopher Russell SAIC

10. © 2009 AirAdvice, Inc. Why You Should Care 1.Differentiation

11. © 2009 AirAdvice, Inc. How Do You Differentiate Today?  Better trained techs?  Reputation?  24 x 7 Service? Is this true differentiation?

12. © 2009 AirAdvice, Inc. Differentiation? vs. If one company could increase your gas mileage 25% wouldn’t you use them?

13. © 2009 AirAdvice, Inc. Why You Should Care 1.Differentiation 2.Qualification

14. © 2009 AirAdvice, Inc. Customer Qualification

15. © 2009 AirAdvice, Inc. Why You Should Care 1.Differentiation 2.Qualification 3.Legislation

16. © 2009 AirAdvice, Inc. A Future Trend?

17. © 2009 AirAdvice, Inc. Getting Started with Energy Benchmarking 1.Creating Demand 2.Understanding Utility Bills 3.Crunching the Numbers 4.Presenting the Results

18. © 2009 AirAdvice, Inc. Creating Demand – 3 Magic Questions 1.“Do you know how much you’re spending on energy today?” 2.“Do you know how that compares to similar buildings in this market?” 3.“If I could identify opportunities to immediately reduce your operating costs and improve cash flow, would you be interested in learning more?” “To get started I just need to collect a few pieces of information from you.”

19. © 2009 AirAdvice, Inc. Information Needed  Last 12-months utility bills  Facility usage  Facility size  Occupancy information  Conditioned floor space

20. © 2009 AirAdvice, Inc. Building Types Supported by ENERGY STAR  Primary Space Types –Bank / Financial Institution –Courthouse –Dormitory / Residence Hall –Hospital –Hotel –Houses of Worship –K-12 School  Secondary Space Types –Data Center –Parking –Swimming Pool –Medical Office –Multifamily Housing –Office –Retail –Supermarket / Grocery –Warehouse

21. © 2009 AirAdvice, Inc. Understanding Utility Bills – Units of Energy Electricity –kW  Demand (Power) Instantaneous requirement for power Utility must have generating capacity to meet all customers’ demand for power –kWh  Consumption (Energy) Electrical usage over time (Power x Time) Natural Gas –Therms  energy content 1 therm = 100,000 btu –CCF  volume 1 ccf = 100 cubic feet

22. © 2009 AirAdvice, Inc. A Big Difference Between Electricity and Gas Natural gas can be stored Electricity can’t This drives major differences in how we are charged for these utilities

23. © 2009 AirAdvice, Inc. How We Are Charged for Electricity 10 – 100 watt light bulbs Power = 10 x 100 = 1000 watts Power = 1 kW Consumption = Power x Time Consumption = 1 kW x 1 hr Consumption = 1 kWh

24. © 2009 AirAdvice, Inc. The Challenge for Electric Utilities 0:006:0012:0018:0024:00 Time Power (kW) 400 300 200 100 Customer A 100 kW x 24 h = 2,400 kWh 300 kW x 8 h 2,400 kWh 0:006:0012:0018:0024:00 Time Power (kW) 400 300 200 100 Customer B Which customer is easier to serve?

25. © 2009 AirAdvice, Inc. Rate / Tariff Schedules

26. © 2009 AirAdvice, Inc. ConsumptionDemand Small general (< 50 kW) All Year: $0.056 / kWhN/A Medium general (> 50 kW, < 1000 kW) All Year: $0.048 / kWh$1.03 / kW Large general, time-of-day (> 1000 kW) On-peak: $0.054 / kWh Off-peak: $0.037 / kWh Summer: $0.80 / kW Winter: $0.21 / kW

27. © 2009 AirAdvice, Inc. ConsumptionDemand Small general (< 25 kW) Summer: $0.074 / kWh Winter: $0.064 / kWh N/A Small general, time-of-day (< 25 kW) Summer (on-peak): $0.136 / kWh Winter (on-peak): $0.114 / kWh Summer (off-peak): $0.020 / kWh Winter (off-peak): $0.020 / kWh N/A General (> 25 kW, < 1000 kW) All Year: $0.024 / kWhSummer: $10.81 / kW Winter: $7.41 / kW General, time-of-day (Req’d if > 1000 kW) On-peak: $0.031 / kWh Off-peak: $0.020 / kWh Summer: $10.81 / kW Winter: $7.41 / kW

28. © 2009 AirAdvice, Inc. Electric Bills Consumption (what you use) Demand (how you use it) Other –Customer charges –Taxes –Adjustments

29. © 2009 AirAdvice, Inc. Electric Bill – What’s Important 1.Meter Number 2.Rate Schedule 3.Consumption (kWh) 4.Peak Demand (kW) 5.Energy Charges ($) 6.Demand Charges ($) 7.Billing Dates       

30. © 2009 AirAdvice, Inc. Gas Bills Consumption Customer Charges

31. © 2009 AirAdvice, Inc. Gas Bill – What’s Important 1.Meter Number 2.Rate Plan 3.Consumption (therms) 4.Energy Charges ($) 5.Billing Dates     

32. © 2009 AirAdvice, Inc. Two Methods for Energy Benchmarking 1.ENERGY STAR® Portfolio Manager 2.BuildingAdvice Energy Benchmark™

33. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 1.Register / create login

34. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 2.Add a Property

35. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 2.Enter property info

36. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 2.Enter property info, continued

37. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 2.Enter property info, continued

38. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 3.Add Spaces

39. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 3.Add Spaces, continued

40. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 3.Add Spaces, continued

41. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 3.Add Spaces, continued

42. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 4.Add Meters

43. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 4.Add Meters, continued

44. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 4.Add Meters, continued

45. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 4.Add Meters, continued

46. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 4.Add Meters, continued

47. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 5.Current Rating is automatically calculated

48. © 2009 AirAdvice, Inc. ENERGY STAR ® Portfolio Manager 6.Alternate views available

49. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ Excel spreadsheet-based inputs Automated link to ENERGY STAR® site –Data transfer in/out to Portfolio Manager Automated reporting

50. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ 1.Enter building background information

51. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ 2.Enter space allocations

52. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ 3.Enter utility bill information

53. © 2009 AirAdvice, Inc. Utility Bill Inputs Billing Days = End Date – Start Date Enter Total Bill Cost Enter Sum of Demand Charges Consumption Charge = Total Cost – Demand Charge

54. © 2009 AirAdvice, Inc. Billing Days = End Date – Start Date Enter Usage Enter Total Bill Cost Utility Bill Inputs

55. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ 4.Email completed spreadsheet to AirAdvice

56. © 2009 AirAdvice, Inc. BuildingAdvice Energy Benchmark™ 5.AirAdvice emails completed report back

57. © 2009 AirAdvice, Inc. Homework for Next Session Complete an Energy Benchmark 1.ENERGY STAR® Portfolio Manager 2.BuildingAdvice Energy Benchmark™

58. © 2009 AirAdvice, Inc. To Complete Your Benchmark Look for email with link to webinar site (www.airadvice.com/msca_benchmark)www.airadvice.com/msca_benchmark  ENERGY STAR® Portfolio Manager  Link to ENERGY STAR site  Link to additional ENERGY STAR training  BuildingAdvice Energy Benchmark™  Input spreadsheet: Complete and send to benchmark@airadvice.com  Sample utility bills  Email address / phone number for additional help

59. © 2009 AirAdvice, Inc. Questions ? ? ? ? ? ? ? ?

60. © 2009 AirAdvice, Inc. Next Session Thursday, December 10 th, 1:00 pm EST –Crunching the Numbers –Presenting the Results –The Next Step – Creating Action