Cost-Effective Energy Efficiency

1. Cost-Effective Energy Efficiency Joni Livingston Energy Services Manager Missouri River Energy Services Saving energy. Saving money.

2. Missouri River Energy Services • Joint Action Agency • 60 Member Utilities • Minnesota Iowa • North Dakota South Dakota • 48 Members Participating in Bright Energy SolutionsSM • Two states (MN and IA) require utilities to offer energy efficiency programs

3. Joint Action Concept • Join together to accomplish more than each utility could do individually • Gain economies of scale • Program development • Branding and marketing efforts • Tracking software • Take advantage of joint opportunities • Share expertise • Regional trade allies

4. Efficiency As A Resource • Wholesale Power Perspective – options • Purchase energy on open market • Volatile, uncertain pricing • Typically higher prices than base resources • Build new power plants • Purchase resource from customers through energy efficiency • Joint Action Involvement – natural fit

5. Cost-Effective Resource • Primary reason for offering Bright Energy Solutions • LEAST-COST RESOURCE!

6. Comparison of Resource Costs Note: This represents the cost of installed capacity only, without energy costs.

7. Joint Action Opportunities • Program Development • Consistent program offering/incentives • Consistent program guidelines • Uniform application forms and processing • Branding and Marketing • Electronic newsletters Bill stuffers • Social media PSAs • Letters to editor Website www.brightenergysolutions.com

8. Joint Website

9. MRES Support for Efficiency • MRES pays all incentives • Purchase of a resource • Provides staffing support • Money invested in manpower rather than in bricks & mortar power plants • Provides technical support/training • On-staff and 3rd party expertise • Webinars • Provides tracking/reporting support • Software solution for tracking

10. Cost-Saving Strategies • Trade Ally engagement • Contractors • Retailers • Distributors • Participation by others • Employees/boards • Schools/students • Community groups • Church groups • Contests

11. 2008 Menu of Bright Energy Solutions Programs • Customer Cash Incentive Programs • Lighting Retrofit Program • Lighting in New Construction (limited types of lighting) • Cooling/Chiller Program • Motors/Pumps/VFD Program • Custom Program

12. 2009 Menu of Bright Energy Solutions Programs • New Commercial & Industrial Programs for 2009: • Food Service Program • Specialty Measures Program • Targeted Energy Audits- Schools • C & I New Construction

13. 2009 Menu of Bright Energy Solutions Programs • Bright Energy Solutions grew in 2009 to include residential programs: • Energy Star Products • Residential HVAC • Lighting Program (CFLs) • Appliance Turn-in Program • Energy Star New Construction Program

14. Results Thus Far • 2008 Results: • 39 Participating Members • 151 Project Applications • $485,041 Incentives Paid to Customers • 1,575.72 kW Demand Saved • 6,237,775 kWh Energy Saved • 2009 Results through September 30th: • 48 Participating Members • 510 Project Applications • $842,000 Incentives Paid to Customers • $680,000 in Program Admin Costs • 2,842 kW Demand Saved ($535/kW) • 12,617,451 kWh Energy Saved (.0118/kWh)

15. It’s Money in Your Pocket. Joni Livingston Energy Services Manager Missouri River Energy Services Sioux Falls, SD Phone: 605-338-4042 E-mail: jonil@mrenergy.com www.brightenergysolutions.com