Nicor Gas Energy Efficiency Program

1. Nicor Gas Energy Efficiency Program Business Customer Offerings

2. Program Details • Provides rebates for energy efficient equipment and services • Rates 4 or 74 qualify • Current Program runs through May 31 or until funds are exhausted - applications must be submitted by June 30, 2011

3. Business Customer Program Qualification Requirements: • Must purchase and install eligible equipment • Must submit complete applications and necessary documentation within the program’s effective dates • All trade allies can participate Sample Business Customer Segments:

4. Business Customer Program – Domestic Hot Water • End use must be domestic hot water only, space heating and process end uses are not eligible

5. Business Customer Program – Space Heating • End use must be space heating only, domestic hot water and process end uses are not eligible

6. Business Customer Program – Food Service • Rebate only available for replacement of existing equipment in a commercial-use kitchen • Note: Manufacturer product specification sheet is required for this measure

7. Business Customer Program- Boiler Controls • New equipment should retrofit existing boiler systems for non-residential use

8. Business Customer Program - Boiler Tune Up • Boiler Input Capacity >/= 300 MBTUH • Boiler must be at least 2 years old • Must include a copy of the Combustion Test Analyzer documentation • Tune up service must be completed by a Professional Contractor • Can only be claimed once per boiler, per program cycle.

9. Current Promotions • Promotions running February 15 – April 30: • Application Amnesty • Now accepting rebate applications for equipment installed within 120 days (normally 60 days) • Easy App Service • Free service will complete and submit your application for you Visit www.nicorgasrebates.com for details!

10. Boiler burner replacements Boiler controls Heat recovery Stack economizer Custom designed heat recovery Custom Rebate Program For gas-saving projects not addressed by the Business Customer Rebate program - examples: • Air handling units • Space heaters

11. Custom Rebate Program • Commercial Business customers only • Requires program evaluation and pre-approval before an incentive can be offered to the customer • Customer-developed gas-savings calculations per project • Project pre- and post- installation inspection and measurements • Rebates based on $0.75 or $1/therm saved, up to $100,000 or 30% of the incremental project cost

12. What’s coming June 1st?

13. Additional Prescriptive Measures Per filing (subject to change): • Similar measures to existing Program • Condensing unit heaters - $200 • Boilers < 300 MBTUH; All boilers - $400-7,500 • Controls • Programmable thermostat - $25 • Kitchen equipment: • Steamers, ovens, broilers, etc. - $25-1,400

14. Changes to Custom Program Per filing (subject to change): • Program will co-fund the cost of an energy assessment • Increased incentives in years 2 & 3: • $1.25 per therm • Up to $150,000 per site per year

15. Program Contact Information www.nicorgasrebates.com customerservice@nicorgasrebates.com Commercial Business Program: commercial@nicorgasrebates.com John Mansfield jmansfield@rsgrp.com 312-755-9020 x3012

16. Program Introduction

17. Program Transition - Chicagoland • The Chicagoland Small Business Direct Install is currently fully subscribed. • The Chicagoland Multi-Family Direct Install program is nearly subscribed, and will provide rebates for installations through May 31, 2011. • The Chicagoland Prescriptive Rebate, Custom and RetroCommissioning programs will provide rebates for installations through May 31, 2011 see details at www.chicagolandrebates.com • SB 1918 programs apply to C&I measures installed on June 1 or thereafter.

18. Residential Overview: 4 Core Programs (as filed) • Prescriptive – move market for condensing boilers, furnaces

19. Residential Overview: • Multifamily – Direct install, opportunities for Envelope/HVAC retrofits (jointly delivered with ComEd) • 3+ unit buildings • Central and Single HVAC Systems • Great opportunity to offer FREE services to you Multi-Family customer! • Behavior Change – comparative reports, advice to homeowners • Whole House Existing Homes – retrofits for homes, air sealing, insulation, HVAC upgrades

20. C&I Overview: 4 Core Programs • Prescriptive – boiler tune ups, steam trap repair/replacement, boiler reset controls, condensing furnaces / boilers, etc.

21. C&I Overview: 4 Core Programs • Custom – heat recovery, process changes, controls, building envelope, etc. ……requires PRE APPROVAL • Capital investment is required • $1.00/ therm saved in the first year • Simple payback must be one year or greater before the incentive is applied • Measure must NOT qualify for a prescriptive incentive • Small Business –direct install measures combined with mix of prescriptive and custom projects. Intensive assistance on back end to help customer with bids, follow through to implement (jointly delivered with ComEd)

22. Small Business Energy Efficiency Services • New for PY4 • Pilot program had positive results • Who Qualifies? • ComEd 0 – 100 kW Commercial Demand • North Shore / Peoples Gas – SC2 • Individually owned businesses • No corporately managed businesses • Franchisees must make all decisions locally • Owners cannot own more than 10 businesses • Mfg, Retail, Non-profit, Restaurant, Office

23. Interested? • 50-70% of EE Measure cost is paid to the contractor - payment in 30 days • Great filler in-between larger projects, or a niche market • Program generated leads • 877-548-6725

24. C&I Overview: 4 Core Programs • Retro Commissioning – studies to look at facility operation, sequencing, controls and uncover natural gas and electric saving opportunities (jointly delivered with ComEd)

25. Think Progressively! Focus on maximizing incentive program offerings: • These programs can be used for genuine business purposes, make it part of your day-to-day activities • They can help your customers • Help strengthen business relations • Think strategically and creatively

26. “Selling” Incentives • Commoditizes your business to the lowest cost to the customer • Doesn’t create solutions • Make sure it’s what the customer needs • Takes the eyes off the prize • Highlight the benefits of the technology, SERVICE, etc., Incentives come along for the ride. • We still want the sales process in play • Newness of the program • Customer needs to trust you • Do not over promise $, too hard to go back, wait for program confirmation

27. Expectations • Offer energy efficiency as a viable solution to your customers. • Use pre-approved equipment lists on Program sites. • Follow the Program Terms and Conditions. • Quality installations with quality products that deliver true energy savings. • Properly document project with invoices, specification sheets and other supporting material. • Complete applications will speed the payment process. • Customer Signatures!

28. Contacts FRANKLIN ENERGY Aron Jarr, Trade Ally Manager ajarr@franklinenergy.com Phone: 262-284-3838, Cell: 920-838-2997 Marcia Foelker, Trade Ally Liaison mfoelker@franklinenergy.com Phone: 262-786-1287, Cell: 262-470-9033 Glen Maxam, Trade Ally Liaison gmaxam@franklinenergy.com Cell:630-742-4669 Franklin Energy Chicago Office 5450 N. Cumberland – Suite 125 Chicago, IL 60656 Phone: 312-878-0038