1. CITY OF POUGHKEEPSIE LED STREET LIGHTING May 5, 2014

2. Preliminary Project Economics 1 Total Project Summary  Proposed LED Project includes the following:  LED Street Lighting Upgrades  LED Traffic Signal Upgrades – 93 Intersections  Purchase Price of Existing Lights from Central Hudson for $327,522 – City is negotiating pricing  Security Deposit on Attachment of Lights to Central Hudson Utility Poles of $149,500

3. Preliminary Project Economics 2  Summary Preliminary LED Project Economics  Estimated Project Cost$5,547,811  Annual Energy Savings 2,158,160 kWh  Annual Energy Cost Savings$165,675  Annual O&M Savings$265,346  Total Cost Savings (First Year)$431,021  Annual Payment$399,232  Simple Payback Period12.2 years  Net Present Value (NPV)$2,032,647  Return on Investment (ROI)36.48%  Savings over 25 Years$5,378,471

4. Preliminary Project Economics 3 Cash Flow BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years

5. Preliminary Project Economics with Rate Increase 4  Summary Preliminary LED Project Economics  Estimated Project Cost$5,547,811  Annual Energy Savings 2,158,160 kWh  Annual Energy Cost Savings$248,594  Annual O&M Savings$265,346  Total Cost Savings (First Year)$513,940  Annual Payment$399,232  Simple Payback Period10.3 years  Net Present Value (NPV)$3,015,315  Return on Investment (ROI)54.35%  Savings over 25 Years$8,411,244

6. Preliminary Project Economics with Rate Increase 5 Cash Flow BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years

7. Comparison of Rate Increase 6  Description Current Rate W/ Rate Increase  Estimated Project Cost$5,547,81$5,547,811  Annual Energy Savings 2,158,160 kWh 2,158,160 kWh  Annual Energy Cost Savings$165,675$248,594  Annual O&M Savings$265,346 $265,346  Total Cost Savings (First Year) $431,021$513,940  Annual Payment$399,232 $399,232  Simple Payback Period12.2 years10.3 years  Net Present Value (NPV)$1,603,168$3,015,315  Return on Investment (ROI)28.90%54.35%  Savings over 25 Years $5,378,471$8,411,244

8. Comparison of Rate Increase 7

9. Next Steps

10. Project Next Steps 8  Council Approval of Project  Central Hudson License Agreement – City Needs to Finalize the Terms of the Agreement with Central Hudson  Authorize Prototype of Different Manufactures to be Installed and Finalize Fixture Selections

11. Project Schedule 9  May 5th, 2014  Presentation to the Common Council  May 5th, 2014  Council Resolution to Approve Project and Financing  August 15, 2014  Estimated Start of Construction  August, 2015  Measurement And Verification

12. Questions & Discussions Thank you. Wendel Energy Services, LLC Joseph DeFazio, PE, Vice President of Energy Services Sam Marotta, CEM, CMVP, BEAP, Project Lead 716.688.0766