Be a leader. Use less energy. Use smart energy.

1. Be a leader. Use less energy. Use smart energy. Greening Your Business and Improving the Bottom Line – Implementing Energy Efficiency Improvements through Performance Contracting Sustainability in Local Government May 4th, 2011

2. Commodity Prices Water Contaminants Challenging Global Economy GHG Emissions Water Scarcity Climate Change “Perfect Storm” Your Concerns Energy Prices Increasing + Water Rates Increasing Demand for “Green” Economic Uncertainty and Leadership Changes Value Proposition Water Conservation Energy Efficiency Renewable Energy Asset Renewal or Replacement Your Benefits SAVE Money SAVE Resources Sustainable, Green Environment

3. Start with “Sustainability” Sustainability doesn’t require sacrifice; it requires a new frame of mind

4. The Challenge --- “Do More with Less” • During the recession we see and experience a variety of behaviors: • Survival - just hang on – it’ll get better, hunker down. • Difficult to be upbeat. • Do the best with the resources we have (people, budget dollars, and tools) Opportunity to do things differently. • Where do we start? • What should we focus on first? • How do we prioritize? • Who’s in? • What’s the goal? • Where do we get the money? FASTER BETTER CHEAPER (Time) (Quality) ($$$)

5. What % of your operating budget is consumed by your total utility costs? $$$ Thousands and Thousands GOAL – Write a smaller check to We Energies and ……. use the savings to pay for your prioritized energy efficiency improvement measures.

6. Energy Performance Contracting • Reduce energy usage • Reduce water usage • Reduce operating and maintenance costs • Reduce emissions • Reduce waste In short, Performance Contracting is a procurement tool that allows you to leverage the savings you get from making building improvements in order to pay for the improvements. WI Statute 66.0133 Qualified Provider + Savings Pay for Improvements + Guarantee with M&V Services How does it work?

7. Improvements such as: Customer Discussion to Identify Goals: energy efficiency, emissions reduction, operational savings, water savings, etc. What’s Possible? Preliminary audit/Site visit Does it make technical and financial sense? Customer commitment Detailed audit Sophisticated analysis tools used to gather data and develop customized solution $ Cost Energy Performance Contract with Savings Guarantee Lighting, water, HVAC, renewable energy, building upgrades, wireless, meters/controls Reduce Ops Budget Lower Water Use Lower Utility Use Reduce Waste Reduce Emissions Reduce Maintenance Meet Customer Goals

8. Performance Contracting - Steps Advertise RFQ 30 days Preliminary Analysis Detailed Analysis Performance Planning Implementation 30 days 30-60 days 60-90 days 3-6 months ongoing • Accurately • Assess: • Cost savings • Energy savings • Meet payback • requirements • Project • Development • Agreement • Sign Contract • Memorandum of • Understanding • Evaluate potential • Analyze: • Existing • conditions • Future plans • Needs • Determine • feasibility • Execute work • Timely manner • Around your • schedule • To achieve results • Assure results by: • Measuring • Validating • Quantifying

9. Details to Understand about the Process • Know your specific procurement requirements. Talk with your corporation counsel to get direct guidance on steps to follow. • Engage a qualified energy service company to jointly review existing facilities/infrastructure and operating practices. Make your priorities known. • Savings come in the form of: • Energy Reductions (utilities - electricity, natural gas, steam) • Reduced Operating Expenses (e.g. materials used to repair/maintain equipment, contractors paid to make repairs, etc.) • Avoided Capital Costs (budgeted future capital costs)

10. Details to Understand about the Process • Measurement and Verification Services are required to support the guarantee by providing documentation on actual savings achieved compared to what was promised (reduced utility consumption). • Know the approval process and key decision makers that will be involved (political, financial, technical, & personal). • Contact Focus on Energy “early” so qualifying improvement measures receive appropriate grants/incentives.

11. Path to Sustainability Economic Benefits + Environmental Impacts + Social Responsibility • Economic Benefits • Energy savings • Water savings • Operations & Maintenance (O&M) savings • Improved occupant productivity • Environmental Stewardship • Greenhouse Gas reduction • Lower water and fossil fuel consumption • Social Responsibility • Job creation • Local MBE participation • Economic development • Community education and public awareness