The Grand Del Mar Resort A Success Story

1. The Grand Del Mar ResortA Success Story SIEMENS

2. A Unique Participant in Automated DR • World-class resort with a Mediterranean style that was inspired by the pioneering architecture of the 1920s • The Grand Del Mar is San Diego County’s only Forbes Five-star, AAA Five Diamond luxury resort destination. • The resort offers a complete spectrum of first-class amenities, including a Tom Fazio-designed golf course, 21,000-square-foot Renaissance-inspired spa, and 249 elegant guestrooms. • It opened October 2007 and was just rated as the No. 1 Luxury Resort in the U.S. by TripAdvisor. • The Grand Del Mar is host to numerous Dignitaries and Pop Culture starts throughout the year. SIEMENS

3. A Sustainable Background • Sustainability has been a priority since the very beginning; The Grand Del Mar resort was building per Title 24 using the most energy efficient lighting available. • The resort has numerous recycling and re-use initiatives in place, including the use of china, glass cutlery and cloth instead of plastic and paper service ware. • Preservation of the natural environment is equally important, which is why organic fertilization is used, a three-acre lake holding runoff to prevent downstream contamination, and the creation of their own bark/mulch for landscaping out of tree and shrub pruning. • Participated in a semi-automated DR program before Siemens. SIEMENS

4. Semi-Automated DR • The Grand Del Mar first enrolled in a demand response program with an alternative DR provider in the spring of 2010. However, the initial program was not automated, requiring a high degree of manual activities in order to participate in each DR event. “The Grand Del Mar has a very strong commitment to green initiatives, sustainability and to the community. Enrollment and participation in the local utility’s demand response program demonstrated their commitment. The difficulty was implementing their actual demand response performance during an event,” explains Wade Cameron, Account Executive, Siemens. “The Director of Engineering, Vern had to call a number of his staff to stop what they were doing and launch the golf carts to manually turn off various loads which include water features located throughout 4,100 acre site. Then post-event, he would need to pay staff overtime to manually turn these same features back on.” SIEMENS

5. Client Objectives • “The first need was to enhance my capabilities to shed load on days that energy was too costly,” says Vern Blevins, Director of Engineering, The Grand Del Mar. “The second need was to enroll in a DR program that both allowed me to participate in grid emergency events and provide a revenue stream to help offset consumption cost.” • Lastly, participation in a program had to be executed efficiently, without having to pay staff overtime and without compromising the resort’s high standards for customer service. • This site hosts a five-star hotel, five-star spa and five-star restaurant. Their environmental tolerances are exacting, there is no margin for error and unhappy guests. SIEMENS

6. Siemens Solution • Pre-existing relationship with Siemens. • Siemens understands the resort’s needs and motives. “While our business is all about providing our customers’ a five-star experience, we are also very committed to our green and sustainable initiatives. Siemens understands that and incorporates it in our response strategies,” says Blevins. • Intelligent Load Management - ILM is a hardware and software solution that provides the site owner/manager the ability to customize the business rules for the site as to when loads are and are not available for reduction. During an event, Siemens’ site aggregator  determines which loads are available at the site in real time (less than two minutes) during a demand response event. Along with the entire aggregation of sites the demand response commitment is delivered to the utility/ISO at the push of a button; it is entirely automated end-to-end. SIEMENS

7. ILM Implementation • Assessment. Historical demand at the site was reviewed. Then, a site assessment was performed to determine which loads should be included in a response event. As part of this assessment, any special limitations, conditions and/or rules for the availability of each load was discussed with The Grand Del Mar’s Director of Engineering. • Work performed • Equipment: SureGrid Communicator, ILM 250 interface and uninterruptible power supply (UPS), energy meter, and IP/Modbus converters installed. • Siemens also added the PowerCommand hardware and installed connectivity to its secure cloud-based servers; and a shadow meter to mirror real-time demand was also installed onsite. • Siemens auto raised setpoints in non-guestrooms and the clubhouse up four degrees F. • Air-handling unites serving corridor spaces, HHW  pumps, exhaust fans, the laundry facility, and water features on the 18th hole were secured. SIEMENS

8. A Grand Result • No out of pocket costs. All audits, programming, hardware, automation and installation enablement costs were paid for through a statewide incentive program. There were no out of pocket costs for approximately $60,000 of software and hardware upgrades, connectivity and programming for The Grand Del Mar. • Reducing energy and labor costs. “Launch the golf carts! Before Siemens, that was our approach to demand response. I think we actually spent more on labor costs to turn things off and overtime pay to turn things on than the actual monetary reward for participating in the demand response program,” says Blevins. • The Grand Del Mar expects to save up to 300kw of energy per event. • The Grand Del Mar will receive several thousands from the San Diego utility each year as a result of their commitment to participate in grid management events when needed. SIEMENS

9. A Grand Result Cont’d • Reduced Risk. Because Siemens ILM works as an aggregation service, the Grand Del Mar is one of many buildings that participate in events as a portfolio. This diversification reduces the risk of non-performance penalties, since it is the performance of the entire aggregation that matters, not any individual building. • Sustainability without sacrificing five-star service and taxing staff. “Now using Siemens ILM System the events run seamlessly in the background and my staff stays on task. This allows us to meet our community commitment of helping to keep the lights on in San Diego, without sacrificing our customers’ comfort,” notes Blevins. SIEMENS

10. Contact Information Tim Allen LEED GA Sr. Sales Executive Energy Specialist timallen@siemens.com 949.637.0628 Wade Cameron Area Sales Manager wade.cameron@siemens.com 858.925.3160 SIEMENS

11. Intelligent Load Management • Leverages existing BAS equipment to generate cash payments through automated load management • Allows building operators to participate in Demand Response, Critical Peak Pricing and Smart Grid programs • Balances multiple factors: • Corporate standards • Efficiency • Financial • Site conditions • Automated aggregation and monetization service maximizes value at lowest risk • The technology leader in multi-site load aggregation with proven financial results SIEMENS

12. Completely Automated DR Solution • Siemens high-tech approach facilitates reliable participation in short notice programs, generally offering a higher incentive. • Due to our real-time visibility and our aggregation engine, Siemens is able to shield the customer, and itself, from penalty risk. An event notification is received via a change in event status on the California Demand Response Automation Server (DRAS) Our Intelligent Software Aggregation Engine acknowledges an event is being called <1 Minute Response Telemetry Our Aggregation Engine relays signal to onsite communicators and notifies the customer simultaneously Within 1 minute of initial dispatch, load begins to ramp down at customer sites SIEMENS

13. “Behind The Scenes” SIEMENS

14. Aggregate Performance SIEMENS

15. ILM Technology Features & Benefits Unique Technology Features Benefits • New source for incentives • Intelligent automation • Reduced energy expenses • Earn LEED points • Improved Corporate Social • Responsibility (CSR) • Carbon negative power • generation • 100% automated response • No manual measures • No on-site personnel needed to implement response measures • Capacity on-demand • Internet based • “Light Touch” – loads are shed gradually and dynamically, according to customer priorities SIEMENS

16. What about Customer Satisfaction? No Risk Intelligent Response • Response based on real-time site conditions • During an event, site conditions are monitored continuously in short intervals • Measures are based on customer defined parameters • “Light Touch” avoids customer fatigue from event frequency • Some utilities provide incentives available for controls upgrades • Aggregation means no risk for program participants • Site always maintains override or opt-out options • Site conditions re-assessed every minute during an event SIEMENS

17. Comparison of ILM to Traditional DR Traditional DR ILM ™ Manual Demand Response Semi-Automated Demand Response Fully Automated Demand Response Siemens Intelligent Load Management • Labor-intensive • Manually turn off • or change set • points on each • asset node • No human interaction • External Communication signal • Overrides of nodes or systems are possible Description • Pre-programmed response is initiated by a person • Person uses centralized control system • Logic that sits at a layer above Fully Automated Demand Response system • Override of node or • systems are possible • Continuous management of load • Unreliable • Process dependent on human interaction and ability to make changes at a given point in time • Unreliable • Process dependent on human interaction and ability to make changes at a given point in time • Verifiable • Diversified, redundant • and managed • Load balanced across multiple sites / enterprise Reliability of Capacity • Verifiable • Overriding nodes hard to project / plan Speed • Very slow • Possibly slow • Fast • Fast, 2 minutes or less • Efficient, loads are managed and reliable which reduces the discounting of capacity • or price Pricing Efficiency • Poor, capacity not reliable • Poor, capacity not • reliable • Moderate, reliability is questionable or is • discounted due to • possible overrides SIEMENS