Energy Solutions In A Complex Environment

1. Energy Solutions In A Complex Environment Energy Efficiency Workshop Radisson Hotel Jim Stapleton May 15, 2009

2. JS Top 20 for the Week of May 11th

3. The Game Plan • Analyze The Opponent • Create A Winning Strategy • Capitalize on Strengths • Fill The Gaps • Be Ready To Make Changes • Execute The Plan • Be A Winner

4. JS Top 20 20 Pointers Not To Be Overlooked in Managing Energy Costs In Your Business

5. JS Top 20 20. How do you start and stop your equipment? How often? 19. There’s no free lunch, efficiency versus operating costs versus load factor. 18. Internal metering, does it exist? Calculating energy use.

6. JS Top 20 17. Step down transformers – Don’t let them drive up your energy costs! Oversized buildings can be killers. 16. Sensitive equipment and protection. 15. Be cautious of used equipment purchases/ equipment longevity. 14. Low bid purchases, not always the best decision.

7. JS Top 20 13. Motor rightsizing – it’s easy, down-size when appropriate. 12. Equipment controls – a must to control building systems. 11. Know thy tenant, and realistically calculate their energy bill. 10. Energy costs and the real estate lease – they seldom come together.

8. JS Top 20 9. Your business versus your building envelope, it makes a huge difference. 8. Little changes make a difference – let’s look at the office PC. 7. Keep an eye on supply costs -- they’re on your bill. 6. Know where your rate class thresholds are. It makes a huge difference. 5. Understand how we meter and bill for demand.

9. JS Top 20 4. Make operational and productivity changes that reduce your demand. 3. Redundant Systems – worse than a last second loss. 2. Watts / Square Foot Ratio -- Where do you stack up? Versus the competition? …And…the No. 1 pick for managing your energy costs is…

10. JS Top 20 1. Review your energy profile twice a year.

11. Buildings: Energy and Environment • Use 1/3 of the Nation’s primary energy(This becomes over 50% when taking intoaccount the energy use of the infrastructure needed to support buildings.) • Use 2/3 of the Nation’s gas and electricity and 1/3 greenhouse gas emissions

12. Efficiency - 1st Line of Defense for Controllable Cost • Lower gas and electric operating costs help sustain operations • Improved building performance for higher productivity • Cash incentives reduce construction cost • Added value enhances investment

13. Plan Overview – Energy Efficiency Portfolio Standard Drives Opportunity • National Grid strongly supports actions to expand the State’s energy efficiency efforts. Our petition represents an integrated plan to advance the achievement of the State’s critical 15 x 15 goals. • We will offer a suite of integrated electric and gas programs for residential and commercial and industrial customers that supplement and complement the work of state and local agencies, utilities and particularly NYSERDA: • Proposed budget of $219 million for the three year Plan period ($179 million for electric; $40 million for gas). • Current recovery of projected costs, lost revenues and incentives through the SBC. • Projected lifetime savings are 4.4 million MWh (electric) and 8.5 million MMBtu (gas) and $321 million in net benefits.

14. Budget and Goal Allocation - Electric Electric Program Energy Savings Goals and Projected Net Benefits

15. Planning Builds on Mature Programs, Strategies and Delivery – Commercial and Industrial • Large Business Program • Energy Initiative - Retrofit • Targets integrated gas and electric energy efficient opportunities for existing buildings and equipment • Replaces inefficient equipment or systems Reduces owners operating costs Technical Solutions Prime Platform Commissioning – Quality Assurance • Incentives up to 50% with buy down to one year • Prescriptive Approach pick & choose measures • Lighting • HVAC • Motors • VFD • Air Compressors • Required eligibility requirementsavailable on all applications Custom Approach for unique situationsProjects must pass Benefit/Costto determine eligibility forincentives

16. 50% Municipal Initiative – Leverage Cities and Towns Interest in Environmental and Energy Cost Reductions

17. Natural Gas Commercial Energy Efficiency Programs and Services

18. Electric Small Business Program

19. Small Business Program: Description • Eligible customers <= 100 kW • “Mom&Pops”: Pizza shops, convenience stores, barbershops • Government: cities, towns, state and federal facilities less than 100 kW (schools, libraries, town halls) • Strip Malls and Chain Stores: Facilities where the individual customers in the building are less than 100 kW even if mastered meter • University buildings • “Customer just signs the contract”: Program is a direct install, turnkey program designed to overcome barriers to participation for smaller customers; • No cost, no obligation audit provides project proposal • National Grid contributes 70% Customer = 30%. • On bill financing where customers can choose 12 or 24 monthly installments, interest free or one time payment with 15% discount • Installation and materials provided through National Grid Small Business vendor • Recycling of fluorescent lamps and ballasts at no cost to customer • Focuses on most common end uses • Lighting: T8 re-lamp/re-ballast and new fixtures, occupancy sensors, LED exit signs & CFLs • Refrigeration: Reach-in/Walk-in controls, high efficiency motors, heater door controls Questions/Leads: Kathy George 781-907-1576 or email

20. Small Business Program: Delivery Structure • Business partners selected through competitive bid process provide the majority of program roles and responsibilities, enabling large scale implementation at aggressive labor and material prices. • Lighting Labor Vendors: Primary responsible for program delivery including marketing, audits, data entry in to InDemand, customer presentation, ordering materials, scheduling electricians. Assigned based on geographic region and provided annual spending and savings budgets with opportunity to earn performance incentives for meeting spending and savings budgets. • Lighting Material Vendor: Provides lighting equipment such as lamps, ballasts, fixtures and occupancy sensors. Typically one for entire state. • Refrigeration Vendor: Specialized end use that focuses on walk-in and reach-in coolers such as found in convenience stores, wine/beer distributors, and other small business with refrigeration systems. Approximately 10% of the total budget and typically one for the entire state. • Recycling Vendor: Picks up fluorescent lamps and ballasts from customer facilities. • National Grid Program Manager and Evaluation staff

21. Small Business Program: Upstate New York • Budget: $60 million NGRID project budget over three years representing $85.7 million to $80.5 million in total projects. $3.6 million $7.5 million $4.5 million $7 million Dollar amounts are 2009 estimated project budgets based on SC2/2D kWh.

22. Progress to Date • Program Vendors • “Bridge” Lighting Vendor started mailings/audits in Capital region. • Use bridge vendor until RFP process is completed, expected May/June timeframe. • Provides experience with existing equipment and labor costs • Demonstrate commitment to 15% by 2015; comply with PSC April 1 start date • Lighting Labor Vendor: • RFP this week – NY-companies responding to RFI • Refrigeration and Farms: same RFI/RFP process in late 2009.

23. Existing Facility Services:Design-Technical-Financial-Educational

24. Electric Residential Programs • Proposed Electric Programs • Residential High Efficiency Central Air Conditioning • Enhanced Home Sealing Incentives • Residential ENERGY STAR Products and Recycling Program • Residential Low Income Program • Residential Internet Audit Program and E-Commerce Sales • New Construction Program • Residential Building Practices and Demonstration Program • EnergyWise Program

25. Collaboration with NYSERDA and Joint Utilities • Working with NYSERDA- Existing Buildings • Coordinate Customer Contacts • Develop Common Incentive Structure • Share Technical Assistance Firms • Create Uniformity in Eligibility Where Possible • New Construction Opportunities for Customers • How do you get new or renovated buildings to exceed minimum code? • How do you meet owners demands for better buildings, built at a reasonable cost, that also create value? _____________________________________ • Advanced Buildings™- Transform New Built Environment to High Performance • Advanced Buildings seminars ______________________________________ • Support Role of Commercial Building Codes and Adoption of higher standards

26. Conclusion • National Grid is committed to achieving 15 x 15 objectivesin NY • Proposed energy efficiency program efforts • will contribute to the state’s climate change mitigation efforts • will help customers manage energy costs • Expected customer benefits are real and substantial • National Grid has a proven track record delivering energy efficiency gas and electric efficiency programs.