Energy Efficiency and Demand Response Commercial Efficiency Advice and Incentive Program

1. Energy Efficiency and Demand ResponseCommercialEfficiency Advice and Incentive Program Product Manager-Jeromy W. Cotten

2. Commercial Advice and Incentive Program • Program Designed for: • Commercial Customers • Retrofit Projects • HVAC and Lighting • ≥ 50 kW Demand • Definition of program: The Commercial Efficiency Advice and Incentives Program (CEAI) offers commercial customers varying levels of facility energy assessments to help them make informed energy-saving investment decisions (ADVICE). Financial assistance is also available for those projects that help reduce power use during TVA’s peak periods (INCENTIVE).

3. Pilot Distributors Tennessee • Nashville Electric Service Mississippi • Amory Utilities • Central Electric Power Association • City of Oxford Electric Department • City of Tupelo Water and Light Department • Columbus Light and Water Department • City of West Point Electric System • 4-County Electric Power Association • Northcentral Mississippi Electric Power Association • North East Mississippi Electric Power Association • Philadelphia Utilities • Prentiss County Electric Power Association • Starkville Electric Department

4. Incentives • To reduce project’s payback period and encourage customer’s participation Lighting: $200 per kW reduced HVAC: $200 per kW reduced • 180 days implementation time limit after executing Tri-Party Agreement

5. ≥25 kW Potential Savings End User Onsite Energy Review Initial Energy Assessment/ Potential Savings Report Incentive Only ≥5 kW Potential Savings ESCO/Trade Ally N/A <5 kW Potential Program Pilot Process ≥550 kW & >10% Potential Savings PPN Path-Statistical Verification DES - 50% Paid By Customer 50% Paid By TVA CS Field Staff Non-PPN Path-All Jobs Verified Power Distributor Incentive Payment Incentive Payment Post Measurement Post Measurement Pre- Installation Inspection Pre- Installation Inspection Tri-Party Agreement Tri-Party Agreement Application & Pre-measurement Application & Pre-measurement Post Installation Inspection Post Installation Inspection Verification Verification Design/ Proposal Obtained Design/ Proposal Obtained Installation Installation PPN projects may require pre- and post installation inspection and verification; selection will be based on a statistical sampling. Non PPN projects will require 100% pre- and post installation inspection and 100% verification. Cost of verification is the customer’s responsibility. Implementation and Incentive Efficiency Advice Power Distributor TVA ESCO/Trade Ally/ Customer

6. Steps to Participate Step 1 Customer Contacts the Local Power Distributor • Customer must have a demand of 50 kW or greater • Customer must be a Commercial customer • ESCO/Trade Ally should direct customer to Local Power Distributor Step 2 Power Distributor will verify billing and direct to TVA field staff Step 3 TVA field staff will contact customer to begin initial energy assessment

7. Steps to Participate Step 4 Customer provides facility information • Verbal • Questionnaire Step 5 TVA field staff executes initial energy assessment • Complimentary Step 6 If customer has a savings >5kW - Eligible for Incentive

8. Additional Technical Advice • Initial Energy Assessment illustrates savings: • Qualifies for Onsite Energy Review if: • 25 kW or greater • Complementary • Onsite Energy Review illustrates savings: • Qualifies for Detailed Energy Study provided if: • 10% or greater savings potential of the highest demand in last 12 months billing AND • Demand 550 kW or greater • 50:50 Shared Cost

9. Steps to Receive Incentive Step 1 Customer should obtain pricing proposals for EE project: • Lighting • HVAC Step 2 Get Application: • Get application from • Local Power Distributor • www.tva.com/commercial/measurement • Two Sections: Customer and ESCO/Trade Ally • Customer Part - Facility Information and Signature • ESCO/Trade Ally Part - ESCO/Trade Ally Information and Pre- and Post Measurement

10. Steps to Receive Incentive Step 3 Submit application: • Email to jwcotten@tva.gov • Mail it to address on application form • Must include all Pre-Measurement documentation Step 4 Pre-Installation Inspection-TVA/Contractor • PPN - Statistical Selection of Jobs • Non PPN - 100% of Job

11. Steps to Receive Incentive Step 5 Tri-Party Agreement Executed: • Initiated by TVA • Indicates estimated kW saved and estimated incentive • Customer, TVA, and PD sign Step 6 Customer Installs Project • DO NOT install until Tri-Party Agreement is executed • 180 Days to implement Step 7 Post Measurement Documentation: • Mail to the address on Post Measurement form • Email to jwcotten@tva.gov • To be filled out by ESCO/Trade Ally • Must include all Post Measurement documentation

12. Steps to Participate Step 8 Post Installation Inspection-TVA/Contractor • PPN - Statistical Selection of Jobs • Non PPN - 100% of Job Step 9 Final Incentive Notice Mailed to Customer Step 10 Final incentive mailed to Power Distributor • Power Distributor will deliver to customer (time 45 - 60)

13. Pilot Product Features • **Note: • Paid for each kW reduced coincident with TVA’s critical peak period, as determined through the pilot measurement process • TVA’s critical peak period is defined as the hours from 2:00 p.m. until 5:00 p.m., Central prevailing time, June - September

14. Commercial Pilot Expansion • Program Administrator– starting October 2009 • Continue pilot expansion through December 2009 • Offer full program contract – January 2010