March 22 & 23, 2006 Salt Lake City Utah

1. Utah Geological SurveyGround Source Heat Pumps &Geothermal Direct Use Workshop Energy FinAnswer & FinAnswer Express Programs Trig Soleim – Project Manager March 22 & 23, 2006 Salt Lake City Utah

2. Today • Energy Resources – where are those kWhs? - “IRP” • New ownership on the horizon • Energy FinAnswer Program • FinAnswer Express Program • Self-Direction Program

3. Why Energy Efficiency? • To Utah Power, energy efficiency is a resource • Just like a generating plant (savings need to be there) • Utah Power has goals/targets for acquiring energy efficiency – part of a ten-year least-cost resource plan • Traders, schedulers, originators, analysts and economists (and DSM) working together to keep the lights on • In addition, energy efficiency programs • Benefit customers’ bottom line - help local businesses in Utah Power’s communities remain competitive • Have positive customer service impacts for Utah Power • Are part of a sustainable energy portfolio

4. How Much Do We Need – The “IRP” • IRP is an Integrated Resource Plan • Planning model – how much new generation, how much DSM, etc. • 10 year plan highlights: • The least-cost, risk-adjusted approach proposed in a diverse portfolio of resources includes renewables, thermal baseload peaking units, and large quantities of DSM: • 2600 MW of baseload capacity • 1400 MW of renewables (not counted towards capacity requirements) • 1200 MW of peaking capacity • 1200 MW of shaped resource contracts • Up to 450 MWa of DSM and 117 MW of direct load control

5. New Ownership • Pending sale to Mid American Energy Holding Company (MEHC) • Mid-American Energy (the utility) has robust suite of DSM programs for all customer sectors • Many of the same program types, prescriptive incentives, custom/ comprehensive, new construction focus, load management, etc. • Know the MEHC counterparts, exchange information. Continue the process, meet, exchange more specific information, collaborate on best practices, etc. • Both are local utilities with solid local DSM plans and results!

6. Overview Of New Enhancements • Recommissioning • Designed to optimize building energy use • Designed to complement existing incentive programs • Load Lightener • Lighting load controller • Free installation

7. Energy FinAnswer • Targets customers interested in comprehensive new construction or retrofit projects • Utah Power pays for energy engineering services • Identify energy efficiency options with high likelihood of implementation • Vendor neutral, investment-grade, independent assessment • Measure incentives based on energy savings and customer costs • Sign incentive agreement before signing purchase orders • Commissioning required for some measures • Most measures that save energy qualify – lighting limited to 50% of savings

8. Energy FinAnswer - Commercial Baseline • Pre-set baseline for commercial new construction/major renovation • Pre-set baseline = current energy code • Code version dictated by building permit application date • Beat code by 10% on a whole building electric basis to qualify for incentives • Incentives based on savings and costs compared to baseline (code) • Major renovations – code applicability? Consultants tells us if code applies • Industrial (code doesn’t apply) remains the same. • Baseline checklist + plans determine the baseline • No 10% for industrial

9. Energy FinAnswer – Design Team Honorarium • Design team honorariums for early involvement - designed to increase new construction activity • Honorarium of $1,500 - one honorarium per project • Requirements for honorarium payment • For project where we don’t already have a signed Letter of Intent. Get our Letter of Intent signed • Apply before completion of schematic design • New construction or major renovation project • Applicant has contract with owner for design services –paid even if not built • See handout

10. FinAnswer Express – New Construction • For lighting • Beat code by 10% to qualify for new construction incentives • Lighting Power Density (LPD) for all areas of facility covered by code • Certain measures not eligible for new const: LED exit signs, regular T-8s, de-lamping, screw in CFLs • Consultant determines if code compliance required • For motors and HVAC

11. FinAnswer Express Lighting - New Measures • New prescriptive category/incentive • Premium T-8s • Lamps with initial lumens ≥ 3100 or wattage ≤ 30 • electronic ballasts with BF ≤ 0.8. • Integral (with fixture) occupancy sensors • Enhanced category/incentive for • Metal halide • T5 & T-8 high bay

12. FinAnswer Express – High Efficient Motors • Adjust incentive levels • Efficiency levels aligned for consistency with new NEMA Premium™ Incentives: $45 for 1 HP to $630 for 200 HP • Custom incentives for larger than 200HP or explosion proof configurations • New incentive delivery mechanism • Participating dealers will provide $ credit on customer invoices • $ credit available only from participating dealers – dealer agreement required – list of dealers available on web site

13. FinAnswer Express – High Efficient HVAC • Adjust package unit incentives upward slightly - $50/ton • Meet both EER + IPLV or EER + COP (or HSPF) • Using ARI data for ratings and capacity • Heat pumps - pay for cooling capacity only • Premium motors and VFDs in package units – no additional incentives if required to meet EER and/or IPLV • Add prescriptive incentives for evaporative cooling • New incentive delivery mechanism • Incentives via post purchase application

14. Recommissioning • Features • Designed to optimize building energy use • Free analysis • Identify low cost measures • Customer commitment to spend up to $10,000 • O & M measures with payback 1 year or less • Eligibility • 300 kW demand and >75,000 sq. ft. • Have energy management system • No major expansions or retrofits planned • Commitment of staff to be involved in process

15. Recommissioning • Examples • Re-set discharge air temp, static pressure re-set • Improved economizer operation • Chiller control & sequencing • Leak repair in compressed air systems • Re-set control points in refrigeration systems • Administration • Nexus – who presently coordinates other UP&L programs • Recommissioning Service Provider – performs study • RSP may perform measurement & verification

16. Load Lightener • Lighting Load Controller • Eligibility - 70 kW of lighting - 16 hours/day operation • Reduces lighting circuit voltage • “EnergySaver” unit - free installation – no maintenance • UP&L can reduce load demand up to 25% during summer afternoon peaks – max. 4 hours day • “EnergySaver” reduces kWh 3% year-round = $$ savings • Lighting not reduced below customer approved levels • Extended life for lamps and ballasts

17. Load Lightener • Administration • Program Administrator - Electric City • Conducts site survey • Obtains customer acceptance – light levels • Obtains signed agreement – terms & conditions • Installs & commissions unit • Electric City owns “EnergySaver” unit • 10 year ‘hosting’ commitment (or may purchase unit) • 1000 installations in North America

18. LEED And Energy FinAnswer • Share common goal • Energy & atmosphere – 17 Points possible • Energy study & commissioning – 11 Points possible • “LEED Certified” Rating – 26 Points required • “LEED Platinum” – 52 Points required

19. Self-Direction Credit Program • Customer chooses path – FinAnswer or SD • Eligibility - 1000 kW or 5 mill. kWh – can aggregate • 3% “Customer Efficiency Services Charge” • Use 80% of eligible project costs as offset • Customer responsible for engineering • See handout - program manuals and forms available on web site • Consistent baselines, engineering and standards between all programs • Simple payback 1-5 years (alternative requirements if > 5 years)

20. Which Program? • FinAnswer Express • Customers considering equipment upgrades only • For projects or customers who don’t need energy engineering services from Utah Power • Energy FinAnswer • Comprehensive projects • Energy engineering and commissioning guidelines necessary due to project complexity • Self-Direction Credit - large customers can compare incentive programs • Do you need energy engineering services? • Will an incentive or a bill credit work better? • Goal is to support best option for customer

21. Contact Information • To receive program updates • Give your card to me • Email me at: trig.soleim@pacificorp.com • Call me at (503) 813-5109 • Who to call regarding Utah Power energy efficiency incentive programs • Trig Soleim, 503-813-5109, trig.soleim@pacificorp.com • Who to call re the Self-Direction Credit program • Matt Gibbs, 1-888-682-1234, selfdirection@utahpower.net

22. Wrap - up • Utah Power is long term player • Big goals combined with commitment and money make us great customer for you! • We’re continuing our partner approach to delivery, but the bar is going up! More results, faster, more diverse, more cost effective, more innovative! • Continuous improvement is key behavior • Thanks for your time !!!!!