Regional Energy Efficiency An example of a consumer products and residential EE program from Michigan, USA

1. Regional Energy Efficiency An example of a consumer products and residential EE program from Michigan, USA MIKEMIKE

2. Introductions MIKEMIKE

3. 3 ICF experience Most experienced firm in USA in energy efficiency program design, management and implementation 17 years as EPA ENERGY STAR contractor Award winning programs Key industry relationships to provide quick start and long-term program success Building the market as an unbiased provider – using Michigan resources and staff to help Michigan’s citizens achieve energy efficiency MIKE Mention national awards ceremony – last weekMIKE Mention national awards ceremony – last week

4. 4 ICF regional EE program clients Duke Energy (OH) Pub Service New Mexico (NM) Colorado Springs Utilities (CO) Fort Collins Utilities (CO) Seattle City Light (WA) Puget Sound Energy (WA) Tacoma Power (WA) Wisconsin Focus on Energy Silicon Valley Power (CA) Southern California Edison National Grid (MA, NH, RI, NY) NSTAR Electric (MA) Unitil (NH, MA) Efficiency Vermont Cape Light Compact (MA) Western Mass Electric Long Island Power (NY) Mass Municipal Utilities Connecticut Municipals Utilities JEA (Jacksonville, FL) New Jersey Utilities MIKE You are not alone, but this is important timing for you This list provides a sampling of others who have gone with this team This team has unmatched expertise We are a low risk option, having implemented so many programs Some of the utilities on this list are far along, others are new to implementing energy efficiency programs Bringing lessons learned There are nuances to every program, but with the ICF Team as your partner, we will work to make sure your programs are optimizedMIKE You are not alone, but this is important timing for you This list provides a sampling of others who have gone with this team This team has unmatched expertise We are a low risk option, having implemented so many programs Some of the utilities on this list are far along, others are new to implementing energy efficiency programs Bringing lessons learned There are nuances to every program, but with the ICF Team as your partner, we will work to make sure your programs are optimized

5. 5 Michigan Consumers Energy Programme Organisation MIKE Bundling offers ability to streamline programs, achieve consistencyMIKE Bundling offers ability to streamline programs, achieve consistency

6. 6 The ICF approach - coordinating specialists Program design Retailer/manufacturer coordination Field services (retailer support) Marketing (POP, store level) Program design Incentive processing Data tracking and reporting Community HVAC trainings Local presence MIKEMIKE

7. Cross Program Functions DAVID PICKLES DAVID PICKLES

8. 8 Combined Approach – Synergies Marketing and Communications: Coordinated marketing and communication to all stakeholders reinforces consistent messaging and program cross-selling. Data Collection and Incentive Processing: Data collection, management, and reporting under one system offers easy access and aggregation of program results. Quality Control and Verification: Programs are held to the same standards, and savings are measured using consistent and transferable approaches. General Program Management and Administration: Integrated program management provides a centralized approach to program design, management, and timelines. DAVID PICKLES – PASS TO TONYDAVID PICKLES – PASS TO TONY

9. 9 Marketing CommunicationsConsumers Needs and Challenges Needs Communications fundamental to program success Messages must be clear Brand consistency critical to credibility, sustainability Coordination is paramount Customer satisfaction underscores effort Challenges Informational, attitudinal barriers persist Levels of awareness and participation propensity vary Reaching all markets demands balance, discipline TONYTONY

10. 10 Marketing CommunicationsApproach TONY Deliver a solid understanding and prioritization of each initiative’s audiences and markets; Generate on-target messages that resonate with Consumers Energy’s stakeholders; Result in marketing plans for each initiative that are strategic and coordinated; Derive the maximum benefit from available resources; and Guide on-time/on-budget campaign execution. A SWOT (strengths, weaknesses, opportunities, threats) analysis to illustrate the current market situation Measurable communications objectives Prioritized list of target audiences and their key motivators and barriers Key messages per target audience Outreach strategies and associated tactics, with timeline and milestones Coordination points with other initiatives Performance metrics/feedback mechanisms TONY Deliver a solid understanding and prioritization of each initiative’s audiences and markets; Generate on-target messages that resonate with Consumers Energy’s stakeholders; Result in marketing plans for each initiative that are strategic and coordinated; Derive the maximum benefit from available resources; and Guide on-time/on-budget campaign execution. A SWOT (strengths, weaknesses, opportunities, threats) analysis to illustrate the current market situation Measurable communications objectives Prioritized list of target audiences and their key motivators and barriers Key messages per target audience Outreach strategies and associated tactics, with timeline and milestones Coordination points with other initiatives Performance metrics/feedback mechanisms

11. 11 Marketing CommunicationsSample Work TONYTONY

12. 12 Incentive Processing, QC, and Reporting Tailored a proven conservation tracking IT system to support Consumers Energy’s programs Performance tracking and reporting against conservation goals Flexibility and security to handshake the data with Consumers Energy’s EO tracking system Manual and automatic QC checks Applicant must be verified as a customer of Consumers Energy Eligibility of product, measure or contractor is verified Product was purchased or measure installed during the eligible time period Confirmation that the appropriate incentive amount has been processed for payment to the customer JEFFJEFF

13. 13 Conservation Tracking System A proven conservation tracking system with Incentive processing & payment issuance Rapid time to launch due to configuration, not development or heavy customization Tailored configuration built upon similar programs Online incentive/rebate forms (if needed) Flexible interfaces to support EO tracking system data and document interface needs Automated and on-demand budget and savings dashboards and reporting JEFF – PASS TO DAVID PICKLESJEFF – PASS TO DAVID PICKLES

14. ENERGY STAR Lighting and Appliances Program FRANKFRANK

15. 15 ENERGY STAR Lighting and Appliances Implementation Approach Designed to reach all Consumers Energy customers – regardless of socioeconomic status and geography Sustained presence in the marketplace that connected Consumers Energy with both local and national retailers… and their customers Broad portfolio communication platform introduced via retail point of sale materials and in-store promotions Common look and feel allows customers to see the linkage among different program elements Trained sales staff can inform and reinforce the value of the Consumers Energy programs – providing unbiased, third party validation National programs and seasonal ENERGY STAR promotions (Change the World / Refrigerator Recycling) can be leveraged at retailers on the local level FRANK FRANK

16. 16 ENERGY STAR Lighting and Appliances Retailers FRANK FRANK

17. 17 ENERGY STAR Lighting and Appliances Retailers and Field Representatives 3,260 retailers that participate in the program Strategy includes lighting and appliances – national and local retailers across all retail channels 6 Field Representatives = approximately 500-600 participating retailers 4 to 6 week site visit rotation creates persistence and facilitate building strong relationships FRANK FRANK

18. 18 ENERGY STAR Lighting and Appliances A well defined process for retailers and manufacturers to participate in the program Daily monitoring and communication to address problems before they occur Monitor sales data submissions for timeliness and proper format to ensure retailer/manufacturers are reimbursed ASAP Constant tracking of product sales – ensure goals and budget are within anticipated targets FRANK – PASS TO TONY SILVA FRANK – PASS TO TONY SILVA

19. 19 Marketing Communications Strategy Objective: Motivate residential customers to purchase high efficiency lighting products and appliances Audience: Residential customers purchasing light bulbs, fixtures, clothes washers, dehumidifiers and room air conditioners through retail sales channels Messages: The time is right to buy energy-efficient light bulbs and replace your old dehumidifiers, room air conditioners, or clothes washers. Consumers Energy is giving you money to put toward ENERGY STAR appliances. Act now to get a great deal and start saving money on your monthly energy bills TONY – PASS TO RICHARD Web Site Content Development. Develop Web content to educate consumers about incentives and rebates, participating retailers and CFL recycling locations, and energy efficiency tips. Cooperative Advertising. Develop a coop advertising campaign in conjunction with Consumers Energy’s in-house advertising agency and provide retailers with sample creative. Earned Media. Develop Milestone Press Releases and Media Center on Consumers Energy’s Web site. Point of Purchase Materials. Including: fact cards, easel displays, chip boards, posters, banners, window clings, etc. TONY – PASS TO RICHARD Web Site Content Development. Develop Web content to educate consumers about incentives and rebates, participating retailers and CFL recycling locations, and energy efficiency tips. Cooperative Advertising. Develop a coop advertising campaign in conjunction with Consumers Energy’s in-house advertising agency and provide retailers with sample creative. Earned Media. Develop Milestone Press Releases and Media Center on Consumers Energy’s Web site. Point of Purchase Materials. Including: fact cards, easel displays, chip boards, posters, banners, window clings, etc.

20. HVAC and Water Heating Program RICHARDRICHARD

21. 21 Key Factors for Implementation Program success requires the ability to impact the HVAC market actors ICF’s understanding of industry dynamics Our national and regional HVAC program experience Key factors for successful implementation “Push” strategy to actively engage the HVAC industry Engage distributors as Program Allies - leverage ICF’s existing HVAC distributor relationships Engage HVAC contractors as “Preferred” Program Partners Contractor training and ongoing account management Consumer “pull” strategy to educate and stimulate demand for qualifying products RICHARDRICHARD

22. 22 Challenges and Motivators Challenges Contractor resistance to paperwork Consumers aren’t informed or educated Timing of program implementation Motivators Distributors: market share, product mix, profit, relationships Contractors: product mix, increased sales/profits Consumers: price, energy savings, comfort RICHARDRICHARD

23. 23 Implementation Approach Summary of Implementation Approach Finalize Program design Contractor participation roles Finalize all details Reach out to Distributors Immediately capitalize on existing ICF relationships Provide updates as Program details are finalized Recruit Contractors Deliver recruiting presentations Secure initial commitments as Program Partners RICHARDRICHARD

24. 24 Implementation Approach Deliver contractor training Adds Program value to contractors Training will evolve over the life of the Program Perform ongoing QA/QC Provide ongoing account management for contractors Continue to build industry commitment to the Program Contractors will embrace Program support Recruit retail allies in coordination with Lighting and Appliances Program Develop effective consumer marketing and ongoing outreach RICHARD – PASS TO TONYRICHARD – PASS TO TONY

25. 25 Marketing Communications Strategy Objective: Motivate residential consumers to install high efficiency HVAC equipment and water heaters Audience: All Consumers Energy residential customers Message: Consumers Energy is giving you money to replace your old heating and cooling equipment and water heater with new, high efficiency models. Call your contractor today to learn how you can take advantage of this offer and start saving on your monthly energy bills. TONY – PASS TO CHIARA Website Content Development including: overview of high efficiency equipment benefits and cost fast facts, rebate applications, qualifying equipment list, upcoming events, etc. Advertising. Development and placement of print advertisements in local publications including print ads and online ads Earned Media including: Milestone Press Releases, press availability letter, and media center on Consumers Energy’s web site. Events. Participation in home shows, Annual Michigan Energy Conference, and other trade ally events. Bill Insert/Direct Email. Produce a bill insert listing the program benefits, key messages, and direction to Consumers Energy Web site and hotline for program details and rebate forms. TONY – PASS TO CHIARA Website Content Development including: overview of high efficiency equipment benefits and cost fast facts, rebate applications, qualifying equipment list, upcoming events, etc. Advertising. Development and placement of print advertisements in local publications including print ads and online ads Earned Media including: Milestone Press Releases, press availability letter, and media center on Consumers Energy’s web site. Events. Participation in home shows, Annual Michigan Energy Conference, and other trade ally events. Bill Insert/Direct Email. Produce a bill insert listing the program benefits, key messages, and direction to Consumers Energy Web site and hotline for program details and rebate forms.

26. Low Income Weatherization CHIARACHIARA

27. 27 Background and Challenges National economic crisis exacerbated the energy cost burden for low income families Low income households pay the largest portion of their earnings for utility services comparatively With other critical priorities, home energy improvements take a back seat Restrictions on existing weatherization funding and networks WAP and LIHEAP funds are typically limited and have restrictions constraining the assistance local agencies can provide Networks are constrained in serving rural areas and multi-family rental units Unprecedented changes in low income weatherization sector WAP and LIHEAP funding have doubled for next two years Surge of stimulus money, but temporary and will not sustain low income programs CHIARACHIARA

28. 28 Implementation Approach CHIARACHIARA

29. 29 Marketing Communications Strategy Objective: To raise awareness of the initiative throughout the low income community Audience: Eligible low-income customers (those at or below 200 percent of the poverty line), with a special emphasis on senior citizens, apartment dwellers, mobile home owners, and rural areas Message: Consumers Energy Low Income Weatherization initiative is providing tools and information to customers to increase the efficiency and comfort of their homes TONY – PASS TO FRANKLIN ENERGY Materials Development. Develop program postcards/flyer with toll-free number, program brochure with tear-out application, reporting form, customer testimonials, quarterly newsletter Web site Enhancements and Outreach. Develop engaging, easy-to-read program content and an online application for the Consumers Web site and action agency web linksTONY – PASS TO FRANKLIN ENERGY Materials Development. Develop program postcards/flyer with toll-free number, program brochure with tear-out application, reporting form, customer testimonials, quarterly newsletter Web site Enhancements and Outreach. Develop engaging, easy-to-read program content and an online application for the Consumers Web site and action agency web links

30. Multifamily Direct Install FRANKLINFRANKLIN

31. 31 Implementation Approach Bundle Services – Maximize Opportunities Direct installation Standard measures Custom measures—optional/possible stimulus funding Direct Installation Market through contractors, associations, owner groups Audit teams to quantify direct install and other needs Effectively dispatch and complete direct installs Standard Measures and Custom Measures Recruit contractors (key to success) Follow up on audits to create interest Drive projects to contracts to build relationship Be responsive to contractor leads FRANKLINFRANKLIN

32. 32 Positioning to Address Barriers and Challenges Principal/Agent Barrier Addressed by design—bundled services/incentives Services for owners and tenants Transaction Costs: Customer Expertise and Time Limits No cost direct install and audits Turnkey retrofit projects with local contractors Program Sustainability Experience pulling contractors into new markets Build local contractor capacity and knowledge FRANKLINFRANKLIN

33. 33 Multifamily Experience Franklin Energy Current Multifamily Projects Running 3 programs (2 including direct installation) Completed over 30,000 direct installs in 2008 (more in 2009) ICF Multifamily Current Projects BGE multifamily direct install program San Francisco Energy Watch multifamily direct install program NSTAR multifamily program Southern California Edison multifamily program Management/Staff Dedicated multifamily teams/experienced multifamily managers Experienced in managing inventory, scheduling, application processing, etc. Providing hand-held computerized audits 35 people dedicated to multifamily / 12 field crews FRANKLINFRANKLIN

34. 34 ICF approach Develop local infrastructure, talent and jobs in the region “Build the market, don’t BE the market” ICF Quick Start team for startup, training, and workload peaks Local staff deliver 90% of program services Local contractors deliver 100% of standard and custom measures Market Positioning Sole business is energy efficiency program delivery Large multifamily practice Build trust with trade allies FRANKLIN – PASS TO TONY SILVAFRANKLIN – PASS TO TONY SILVA

35. 35 Marketing Communications Strategy Objective: Encourage multifamily building owners to join the program Audience: Multifamily building owners and property management companies Message: Call today for free energy efficiency packages for all of your units and incentives for energy efficiency upgrades in your common areas. Availability is limited! TONY – PASS TO DAVID PICKLES Targeted media outreach. Provide program information for newsletters to trade associations and trade media such as: The Exchange, Directions and The Maintenance Pager, and The Driving Force. Direct outreach to multifamily building owners and property management companies through the use of direct mail, phone calls, and Consumers Energy community relations staff Materials development and Direct Mail including educational brochures to building owners and landlords, flyers for tenants, and direct mail to property management companies and building owners Outreach to Metro Area Associations such as the Institute for Real Estate Management and BOMA chapters Web site Enhancements and Outreach. Develop engaging and informative content about the Multifamily Program and online application to add to the Consumers Energy Web site TONY – PASS TO DAVID PICKLES Targeted media outreach. Provide program information for newsletters to trade associations and trade media such as: The Exchange, Directions and The Maintenance Pager, and The Driving Force. Direct outreach to multifamily building owners and property management companies through the use of direct mail, phone calls, and Consumers Energy community relations staff Materials development and Direct Mail including educational brochures to building owners and landlords, flyers for tenants, and direct mail to property management companies and building owners Outreach to Metro Area Associations such as the Institute for Real Estate Management and BOMA chapters Web site Enhancements and Outreach. Develop engaging and informative content about the Multifamily Program and online application to add to the Consumers Energy Web site

36. New Home Construction DAVID PICKLESDAVID PICKLES

37. 37 Implementation Approach ICF’s core approach is cooperation among market actors Critical to engage all market actors to create a sense of ownership in the program ICF uses a push - pull approach Push – builders to build ENERGY STAR Homes through comprehensive support Pull – create consumer demand for ENERGY STAR Homes through various marketing means DAVID PICKLES DAVID PICKLES

38. 38 Background and Challenges ENERGY STAR is one of the most recognizable brands in the nation Residential New Construction market is down dramatically due to economy Many initiatives being implemented locally and nationally to stimulate the new homes market, including an $8,000 home buyer credit DAVID PICKLES DAVID PICKLES

39. 39 Opportunities ENERGY STAR New Homes program provides opportunities for local homebuilders and associated trades to get back to work The value of ENERGY STAR is to identify the difference between a code built home Independently tested and inspected High level of quality assurance High level of customer satisfaction with ENERGY STAR DAVID PICKLES – PASS TO TONYDAVID PICKLES – PASS TO TONY

40. 40 Marketing Communications Strategy Objective: Encourage home builders to build ENERGY STAR Homes Audience: New home builders that seldom or never have built ENERGY STAR Homes; new home buyers in Michigan Message: For builders: ENERGY STAR is a highly visible and recognized differentiator For consumers: Homes that meet ENERGY STAR guidelines are typically 20-30% more efficient than standard homes, saving you money, and making your home more comfortable TONY – PASS TO DAVID MEISEGEIER Home Builder Outreach Attend Home Builder Association Meetings / Events: Michigan Association of Home Builders, Northwest Michigan Association of Homebuilders, Great Lakes Green 2009, Green Living Conference 2009 Kickoff Meetings to gather homebuilders together Individual Phone Calls to engage builders in one-on-one interactions to discuss how ENERGY STAR can benefit their business Home Buyer Outreach REALTOR® Outreach to Michigan Association of REALTORS® (MAR), to share information about the benefits of ENERGY STAR Homes Web Site Enhancements and Outreach. Develop engaging, easy-to-read content about ENERGY STAR Homes to include on the Consumers Web site Yard Signs, Model Home Flags, Rebate/Incentive Sheets, Postcards, & Flyers TONY – PASS TO DAVID MEISEGEIER Home Builder Outreach Attend Home Builder Association Meetings / Events: Michigan Association of Home Builders, Northwest Michigan Association of Homebuilders, Great Lakes Green 2009, Green Living Conference 2009 Kickoff Meetings to gather homebuilders together Individual Phone Calls to engage builders in one-on-one interactions to discuss how ENERGY STAR can benefit their business Home Buyer Outreach REALTOR® Outreach to Michigan Association of REALTORS® (MAR), to share information about the benefits of ENERGY STAR Homes Web Site Enhancements and Outreach. Develop engaging, easy-to-read content about ENERGY STAR Homes to include on the Consumers Web site Yard Signs, Model Home Flags, Rebate/Incentive Sheets, Postcards, & Flyers

41. Existing Home Retrofit DAVID MEISEGEIERDAVID MEISEGEIER

42. 42 Program Challenges Existing homes Next frontier for energy efficiency Tough nut to crack Local economic climate Challenges Opportunities: homeowners and contractors Dynamic landscape Consistency within MI market Evolving national standards Possible federal tax credits DAVID MEISEGEIER Current economic climate: Negative: Most comprehensive jobs cost several thousands of dollars. Falling home prices and inability to tap into equity/lines-of-credit make it difficult to finance. Positive: However, people are now expecting to stay in their homes for a longer period of time, so may be more motivated to address problems. Also, may be more interested in lowering monthly bills due to budget constraints. Contractors may be more motivated to expand into new areas, and may have lower costs (both labor and materials) associated with doing the work. New sources of funding for education and training may assist with building cntractor infrastructure Diversity of approaches: HERS, BPI, ratings, quick check-ups vs. complete diagnostic testing, no clear approach Contractor Infrastructure: Comprehensive approach needs to be implemented by people who have a comprehensive understanding of house-as-a-system (in addition to sales techniques, knowledge of complicated incentive structures, etc.). Not enough contractors who understand this approach. Other state actors Even if Consumers know exactly what approach it wants, PSC, Consumers Energy, and other state (or national) actors can create market confusion (both for customers and contractors). BPI, RESNET, EPA, DOE are all struggling with how to approach the existing home marketplace. DAVID MEISEGEIER Current economic climate: Negative: Most comprehensive jobs cost several thousands of dollars. Falling home prices and inability to tap into equity/lines-of-credit make it difficult to finance. Positive: However, people are now expecting to stay in their homes for a longer period of time, so may be more motivated to address problems. Also, may be more interested in lowering monthly bills due to budget constraints. Contractors may be more motivated to expand into new areas, and may have lower costs (both labor and materials) associated with doing the work. New sources of funding for education and training may assist with building cntractor infrastructure Diversity of approaches: HERS, BPI, ratings, quick check-ups vs. complete diagnostic testing, no clear approach Contractor Infrastructure: Comprehensive approach needs to be implemented by people who have a comprehensive understanding of house-as-a-system (in addition to sales techniques, knowledge of complicated incentive structures, etc.). Not enough contractors who understand this approach. Other state actors Even if Consumers know exactly what approach it wants, PSC, Consumers Energy, and other state (or national) actors can create market confusion (both for customers and contractors). BPI, RESNET, EPA, DOE are all struggling with how to approach the existing home marketplace.

43. 43 ICF is a Leader in the Existing Homes Market ICF understands homeowner motivators ICF understands contractor needs ICF is engaged with all approaches to improving existing homes ICF is a Market Leader DAVID MEISEGEIER ICF understands homeowners: ICF staff include former contractor who have sold comprehensive services to customers. Customers are motivated by a variety of factors beyond energy savings (i.e., indoor air quality, comfort, carbon footprint, durability), and both marketing efforts and sales training for contractors have to address these motivation factors. ICF delivers sales training for contractors nationwide as part of its support for the EPA and DOE Home Performance with ENERGY STAR program. As the economic climate changes, ICF understands how to address homeowners concerns and overcome the barriers to program participation. ICF is engaged with a variety of approaches: ICF is not only familiar with, but has actively supported a variety of approaches for improving existing homes, including using HERS scores, BPI protocols, implementing clipboard audits, supporting online audits, and developing software tools to evaluate a home’s performance. ICF has staff that are certified HERS raters and BPI Building and Shell Analysts. ICF is a BPI affiliate for Michigan. ICF have the experience to work with Consumers program managers to identify the best approach and/or tactics for each Level of audit. ICF understands contractor needs: ICF has supported and implemented a number of utility existing home retrofit programs, in Texas, Maryland, Ohio, New York, and elsewhere. We understand that contractors need a broad range of support, from sales training, business training, building science mentoring and technical assistance (well beyond being certified), and marketing. Through its experiences and through its support of the national ENERGY STAR programs, ICF has captured many of the lessons learned about what works and what doesn’t, and will bring that experience to Consumers. ICF as a market leader As a respected market leader, ICF can facilitate discussions between its clients and other stakeholder. ICF has been instrumental in the Maryland marketplace, where the PSC, State Energy Office, and 4 utilities have been struggling with creating a unified approach to addressing the existing home marketplace while still maintaining programmatic autonomy. DAVID MEISEGEIER ICF understands homeowners: ICF staff include former contractor who have sold comprehensive services to customers. Customers are motivated by a variety of factors beyond energy savings (i.e., indoor air quality, comfort, carbon footprint, durability), and both marketing efforts and sales training for contractors have to address these motivation factors. ICF delivers sales training for contractors nationwide as part of its support for the EPA and DOE Home Performance with ENERGY STAR program. As the economic climate changes, ICF understands how to address homeowners concerns and overcome the barriers to program participation. ICF is engaged with a variety of approaches: ICF is not only familiar with, but has actively supported a variety of approaches for improving existing homes, including using HERS scores, BPI protocols, implementing clipboard audits, supporting online audits, and developing software tools to evaluate a home’s performance. ICF has staff that are certified HERS raters and BPI Building and Shell Analysts. ICF is a BPI affiliate for Michigan. ICF have the experience to work with Consumers program managers to identify the best approach and/or tactics for each Level of audit. ICF understands contractor needs: ICF has supported and implemented a number of utility existing home retrofit programs, in Texas, Maryland, Ohio, New York, and elsewhere. We understand that contractors need a broad range of support, from sales training, business training, building science mentoring and technical assistance (well beyond being certified), and marketing. Through its experiences and through its support of the national ENERGY STAR programs, ICF has captured many of the lessons learned about what works and what doesn’t, and will bring that experience to Consumers. ICF as a market leader As a respected market leader, ICF can facilitate discussions between its clients and other stakeholder. ICF has been instrumental in the Maryland marketplace, where the PSC, State Energy Office, and 4 utilities have been struggling with creating a unified approach to addressing the existing home marketplace while still maintaining programmatic autonomy.

44. 44 Recommendations DAVID MEISEGEIER – PASS TO TONY DAVID MEISEGEIER – PASS TO TONY

45. 45 Marketing Communications Strategy Objective: Encourage homeowners to analyze their energy use and implement efficiency improvements Audience: Residential customers of above-average income in single-family homes and duplexes Message: A small investment in energy efficiency can result in significant cost savings and improved comfort TONY – PASS TO DAVID PICKLES Web Site Outreach. ICF will conduct outreach to do-it-yourself Web sites and magazines to encourage them to add a link to their Web sites outreach to home performance contractors and remodelers to request that they add a web link to the Online Energy Analysis web site Web Site Enhancements. ICF will develop engaging, user-friendly content about the Home Walk-through Energy Analysis, as well as an online application, to add to the Consumers Web site Materials Development. Postcards/flyer with basic program details and the toll-free number; Brochure/leave-behind about the program, with a tear-out application; Testimonials that share true stories of customers Media Outreach including: Milestone Press Releases, Desk-Side Interviews, Press Availability Letter, and Consumers Energy web site Media Center Leverage Home Performance with ENERGY STAR channels TONY – PASS TO DAVID PICKLES Web Site Outreach. ICF will conduct outreach to do-it-yourself Web sites and magazines to encourage them to add a link to their Web sites outreach to home performance contractors and remodelers to request that they add a web link to the Online Energy Analysis web site Web Site Enhancements. ICF will develop engaging, user-friendly content about the Home Walk-through Energy Analysis, as well as an online application, to add to the Consumers Web site Materials Development. Postcards/flyer with basic program details and the toll-free number; Brochure/leave-behind about the program, with a tear-out application; Testimonials that share true stories of customers Media Outreach including: Milestone Press Releases, Desk-Side Interviews, Press Availability Letter, and Consumers Energy web site Media Center Leverage Home Performance with ENERGY STAR channels

46. Residential Pilots DAVID PICKLESDAVID PICKLES

47. 47 The Opportunity Comprehensive portfolio of programs identified by Consumers Need to identify additional savings opportunities under three Main Areas Efficient Products Comprehensive Homes Community, Education and Behavior Modification Develop program to identify, evaluate and implement into the mainstream efficiency offerings to supplement savings potential from mainstream programs DAVID PICKLESDAVID PICKLES

48. 48 3 Quick-start Pilots for 2009 Positive Energy Behavior Modification Reports Zero Energy Challenge Deep Energy Retrofit Micro Combined Heat and Power Technology Demonstration DAVID PICKLESDAVID PICKLES

49. 49 Implementation Approach Development of Residential Pilots Council comprised of ICF and appropriate Consumers personnel Codification of Pilots Program framework for identification, implementation, evaluation of future pilots (role of council) Implement new pilots through developed framework in 2010 and 2011 DAVID PICKLES – PASS TO TONY Quick Start Pilots can achieve 2009 savings goals in lieu of shortened delivery timeframe Deep bench of consultants with experience implementing similar programs Identified pilot projects ready to implement Technology partners with ties to Michigan economy Direct ties to EPA on new technology identification and specification DAVID PICKLES – PASS TO TONY Quick Start Pilots can achieve 2009 savings goals in lieu of shortened delivery timeframe Deep bench of consultants with experience implementing similar programs Identified pilot projects ready to implement Technology partners with ties to Michigan economy Direct ties to EPA on new technology identification and specification

50. 50 Marketing Communications Strategy Case Study Development: Develop case studies highlighting pilot successes for use in media outreach, recruitment, and marketing efforts for the following year Media Outreach: Conduct outreach to up to 30 publications across the State, provide them with pilot program details, timelines, and program Web site address Contractor Outreach: Conduct outreach to contractors to request their participation in the Freewatt Pilot. Participating contractors will be highlighted on the Consumers Energy Website and included in the case studies Builder Outreach: ICF will identify builders for participation in the Zero Energy Challenge through our outreach efforts for the New Homes Program initiative Website Enhancement and Outreach: Develop and update content and an online application form to add to Consumers Energy’s Website TONY – PASS TO DAVID PICKLESTONY – PASS TO DAVID PICKLES

51. Performance Goals and Budget DAVID PICKLESDAVID PICKLES

52. 52 Achieving Consumers’ Goals Within Budget Bundled approach enables more cost effective savings Maximize lighting savings 3 year savings >$2.4 million; >162,600 MWh; and >26,900 MCF DAVID PICKLES DAVID PICKLES

53. 53 Achieving Consumers’ Goals Within Budget DAVID PICKLES – PASS TO MIKE DAVID PICKLES – PASS TO MIKE

54. 54 Achieving Consumers’ Goals Within BudgetCombined Bundles DAVID PICKLES – PASS TO MIKE DAVID PICKLES – PASS TO MIKE

55. 55 Why did Michigan choose ICF? Unparalleled knowledge base and relationships contributing to program design and implementation Those relationships translate to an effective Quick Start program and ensure long-term success Demonstrated ability to “bundle” programs to maximize budget dollars and leverage ally relationships We deliver award winning results We are committed to developing the local infrastructure in Michigan to ramp up and sustain this program MIKEMIKE

56. Alexei Sankovskiasankovski@icfi.com MIKEMIKE