Energy Conservation & Rebate Opportunities

1. Energy Conservation& Rebate Opportunities Barb Jerhoff Minnesota Chief Engineer’s Guild Quarterly Meeting June 16, 2009

2. Minnesota conservation programs • Active environmental community • Legislatively mandated • Strong PUC support

3. How does it work? • Minn. Dept. of Commerce requirements • 2% of electric revenue • 0.5% of gas revenue • Shows on bill - part of “Resource Adjustment” • DOC approves efficiency programs; we administer them • Justify spending with documented energy savings

4. Environmental impacts • Reduce emissions • Pollution prevention • Avoid new power plants • 8 mid-size gas combined cycle (approximately 250 MW each) since 1990

5. Types of programs • Studies • Prescriptive / fixed rebates • Custom rebates • Segment Offering • Rates, discounts and other options

6. Cooling Efficiency Commercial Real Estate Efficiency Compressed Air Efficiency Custom Efficiency Data Center Efficiency Efficiency Proposal Electric Rate Savings Energy Analysis Energy Design Assistance Efficiency Controls Lighting Efficiency Motor Efficiency Process Efficiency Recommissioning Saver’s Switch Electric programs

7. Natural gas programs • Boiler Efficiency • Furnace Efficiency • Commercial Real Estate Efficiency • Custom Efficiency • Efficiency Proposal • Energy Analysis • Energy Design Assistance • Efficiency Controls • Natural Gas Rate Savings • Process Efficiency • Recommissioning

8. Studies • Identify and qualify improvements • Quantify expected results

9. Energy Analysis • Online Assessment • A FREE tool to help you analyze your facility and identify savings • Onsite Assessment • Engineer comes onsite to analyze actual building conditions and indentifies potential savings • Cost to customer is $200 - $300 based on square footage ENERGY STAR Benchmarking • Xcel Energy uses your building information to determine the ENERGY STAR score for FREE • Engineering Assistance Studies • In depth engineering study on a major system or process • Xcel Energy will fund up to 50% of the study cost not to exceed $15,000

10. Recommissioning • Tune up existing building systems and controls rather than replacing them • Optimize HVAC operations • Fine-tune time of day schedules • Improve indoor air quality • Reduce equipment wear and tear • Many measures are low/no cost with paybacks less than one year • Potential savings of 5 to 20 percent

11. Recommissioning • Studies • Up to 50% of the study cost, not to exceed $15,000 • Preapproval is required • Implementation • Up to 50% of the project cost • $200/kW or “implied kW” (kWh/8760) • $2/MCF for Xcel Energy natural gas customers

12. Data Center Efficiency • The Data Center Efficiency program is designed to assist Xcel Energy customers with data center efficiency improvements through study funding and rebates. • Customers participate in our two-step program to realize energy savings and earn rebates. Data Center Study • Efficiency study provides up to 50 percent funding, not to exceed $15,000 (special consideration for extremely large projects)

13. Data Center Efficiency Eligibility: • Any size data center • Changes to existing • Adding new to existing site • New construction projects >50,000 sq. ft. analyzed under EDA How to Participate: • Two parts – study & implementation • Part 1: Study • Preapproval application with proposal • Xcel Energy reviews to determine potential study funding, notifies customer • up to 50% of cost; up to $15,000 • Study provider completes study and submits final for approval • We review and offer packaged rebates upon approval

14. Data Center Efficiency • Already completed a study? • Apply for Fast Track Study option • Previously completed study • Study review by Xcel Energy • No study funding Part 2: Implementation rebates • Customer selects package of improvements • Up to $300 per kW saved • Customer implements package, submits for rebate • Bundled rebates • Combine short and long payback projects

15. Lighting Redesign Studies & Rebates • Study • By Lighting Certified (LC) professional or lighting professional with demonstrable design experience • Determine proper lighting levels • For overlit or mislit space • Funding up to 50% of study cost; max of $15,000 • Implementation rebates • Up to $400 per kW saved

16. Lighting Efficiency • Prescriptive Rebates • Fixed dollar incentives for installing energy efficient equipment • Retrofit rebates for existing facilities of any size • One-to-one equipment change outs • Helps offset the cost of replacing current lighting with more-efficient equipment • New construction rebates for new facilities or major renovations • Rebates available when you choose lighting options that are more efficient than the standard

17. Cooling • Rebate main system components • Prescriptive rebates • Fixed rebates for purchasing common energy efficient equipment • Rebate changes effective June 1st • Rebates available on a $/ton basis • Incremental efficiency bonus • Custom rebates • Unique equipment that does not fall under our prescriptive program • VAVs and cooling towers reviewed through Custom

18. New energy-efficient boiler systems Hot water boilers (condensing & non-condensing) Steam boilers (high or low pressure) Efficiency improvements to existing systems Outdoor air reset controls Modulating burner controls ( 5:1 turndown) O2 trim controls Stack dampers Maintenance measures that boost efficiency Tune-ups (every other year) Steam trap repair/replacement Co-funded studies to identify, analyze and prioritize Heating System Optimization (system wide or component specific) Energy Analysis options Recommissioning Boiler Efficiency Rebates

19. Boiler Efficiency Rebate Types • Prescriptive • New boilers  10 million BTUH used for heating or combination heating & domestic water heating • Add-ons or maintenance for any-sized boiler used for heating or combo purposes • Custom Efficiency boiler rebates • New boilers >10 million BTUH regardless of use • Efficiency measures for any process boiler • Requires preapproval prior to purchase & installation • See efficiency requirements and rebate amounts at xcelenergy.com/BoilerEfficiency

20. Custom Efficiency Program Rebates for energy-saving projects or process changes that are not covered by our prescriptive equipment programs. • Rebates are up to $200 per kW saved and $2 per MCF saved. • Pre-approval is required prior to equipment purchase.

21. Custom Efficiency - examples • Controls – CO2 based ventilation, energy recovery • Cooling – control valves, free cooling • Equipment – Ammonia refrigeration, humidification, elevator modernization, transformers • Lighting – LED display signs, daylighting, non one-for-one lighting retrofits • Motors – 500+ HP motors, 200+ HP VFD, VFDs on non-fan or pump applications

22. Efficiency Controls rebates • Energy Management Systems (EMS) and Automated Building Controls • Control Lighting, Heating, Cooling, Ventilation, etc. • Add new system to building • Add control points to existing system • Microprocessor-based controlling • Model-based analysis • Rebate: up to $200/kW saved and up to $400 per kW saved for lighting measures • Easy to participate • EMS preapproval application • Random verifications

23. Efficiency Controls – lightingGood for system-or micro processor-based controls • Benefits • Greater kW savings potential • Constant load • High operating hours • Actual kW (vs. implied) • Reduced cooling load on HVAC systems • Higher rebates ($400/kW vs. $200/kW)

24. Business New Construction – Energy Design Assistance • Free design assistance plus incentives on installed measures • $300 per kW • $4 per MCF • New buildings, additions or major renovations over 50,000 square feet • Design Team reimbursement from $8,000 • Xcel Energy does contract directly with specific energy modeling firms • Two program options offered depending on energy goals and design stage • Basic • Enhanced

25. Business New Construction – Energy Design Assistance • “Basic” Track • Timing: Schematic or Early Design Development • Energy Savings Requirement: 5% energy demand savings reduction • Services: Energy modeling, review of CDs, site verification & monitoring of select strategies • “Enhanced” Track • Timing: Pre-design or Early Schematic Design • Energy Savings Requirement: 16% energy demand savings reduction • Services: “Basic” services, plus early modeling/massing, potential daylighting analysis and support for Energy and Atmosphere Credit one for LEED certification or support for other green certifications where applicable

26. Business New Construction – Energy Efficient Buildings • Minimum Project Size: Any size building may apply, but is intended for buildings below 50,000 square feet • Timing: Any time into construction, but are encouraged to apply before completion of construction documents • Rebates: Vary depending on equipment purchased • Services: On site verification to review installed measures

27. Rates, Discounts & Other Options • Rates • Billing/payment options • WindSourceSM

28. Electric Rate Savings • Savings up to 60% on Demand Charges • Reduce your demand at our request during peak demand periods to a predetermined level • Must have a controllable load of at least 50 kW to participate • See savings year ‘round • Help reduce the amount of electricity our customers need at critical times

29. Saver’s Switch • More than 13,000 MN businesses participating • Sign up now to begin saving this summer • Single and dual stage central air conditioners • Credit of $5 per ton of enrolled air conditioning June through September • Remote-controlled switch for each unit • Cycle off and on for short periods on peak demand days • No out-of-pocket cost; guaranteed savings

30. Gas Rate Savings • Savings around 25% over firm rates • Switch over to back up fuel during curtailment periods • Must be willing to go off system within one hour of notification • Helps reduce gas consumption during system peak times

31. Billing/Payment Options • Electronic Data Interchange (EDI) • Electronic Funds Transfer (EFT) • Online Account Management

32. WindSource • Voluntary wind energy program • Sold in 100 kWh blocks • Price is $3.53 per block • Receive fuel cost credit for all WindSource energy • Minimum three year commitment

33. Questions? Barb Jerhoff 651-229-5565 barb.jerhoff@xcelenergy.com