PGE Commercial HVAC Quality Maintenance Program

1. PG&E Commercial HVAC Quality Maintenance Program San Mateo Energy Watch Partners Meeting

2. Contents Program Overview Customer Eligibility Customer & Contractor Benefits Unit Eligibility Incentives & Incentive Structure Contact Information Questions

3. Past vs. Present Past: RCA & DTS (discontinued) Sufficient. One-time visit. No specialization required. Present: Quality Maintenance Efficient & Prescriptive Ongoing customer relationship. Repairs can be identified and planned for by the customer, increasing uptake. Informed by ANSI and ASHRAE. Based on ACCA 180 Standard

4. Program Overview Program designed primarily toward market transformation revolving around HVAC service agreements for eligible customers. Program replaces the following PG&E HVAC Programs: Duct Test & Seal (DTS) and Refrigerant Charge & Airflow (RCA). HVAC Contractors are intended to be the primary Program Sales Force and are incented to do so. Targets a wide variety of commercial installations.

5. Overview (cont’d.) Quality Maintenance Designed to revitalize poor conditioned units. Focused on market transformation. Incentives designed to scale with size of units. Requires 3 year QM maintenance contract commitment. Suitable for small to medium, as well as large customers wanting premium service and savings. Spend adequate time on this slide. Make sure to note that, as opposed to RCA & DTS, AirCare Plus is not being discontinued.Spend adequate time on this slide. Make sure to note that, as opposed to RCA & DTS, AirCare Plus is not being discontinued.

6. Customer Eligibility Requirements PG&E electric customer with commercial rate QM HVAC Service Agreement Requirement Customer must sign a 3 year PG&E QM HVAC Service Agreement. Units must be maintained during the 3 year period. If building tenants or owners change, the new tenants/owners are eligible for prorated incentives based on the duration of the remaining eligibility period.

7. Low-Cost Approach to QM Customer receives incentive designed to help cover additional cost of a qualifying, 3-year QM Service Agreement. Contractor receives incentives designed to help cover Quality Maintenance (QM) EE tasks and baseline repairs. Future Premium measures will enhance energy savings potential.

8. Customer Financial Benefits Incentives paid directly to the customer to reduce or eliminate the costs of increased quality maintenance service. Examples: Customers who switch from a “service only when needed” plan to the Program can save up to $500/year/unit* in operating, service and repair costs. Customers who operate with a “regular check-based” plan could save up to $260/year/unit*. Fewer unit failures threatening business income. *Values reflect national average based on a 10-ton unit. Need to insert additional information around energy savings: Expand upon: “Energy savings, which are determined by such factors as unit capacity, presence of an economizer, climate zone, and building type.” Need to insert additional information around energy savings: Expand upon: “Energy savings, which are determined by such factors as unit capacity, presence of an economizer, climate zone, and building type.”

9. Customer Operational Benefits Contractor will list repairs that may be needed to aid in planning critical repairs to consider. Regular reports for the Customer showing saved energy, energy and emergency repair costs, greenhouse gas reduction, etc. All units operating at optimal efficiency at all times. Decreased “emergency” outages and repairs. Decreased energy consumption. Increased unit life. Increased indoor comfort.

10. Contractor Benefits Receives up to $2,355 incentive per unit when initial EE tasks are performed. Receives increased HVAC service agreement fees per utility program. Develops or converts annual agreements into three year agreements. Builds customer loyalty and retention rates. Becomes known as being able to provide the high quality level of service. Increases company’s environmental leadership.

11. Unit Eligibility Requirments Qualifying Units Unit(s) have not been participated AirCare Plus within the past 3 years. Type: Rooftop Packaged Units and Split Systems. Size: 3 tons or greater. Not Qualified Chilled/hot water fed units. Heat pump units Variable speed compressor units. Size: Less than 3 tons. Units serviced by AirCare Plus within the past 3 years.

12. Incentive Structure - Customer 3-Year QM Service Agreement Incentive is based on incremental cost between QM standard over typical service. Service Agreement is transferrable to other Program-qualified contractors. Benefits: Engages customers in the long-term relationship with contractors. Provides sufficient time for QM benefits to be demonstrated. Installments provide leverage to discourage deferred maintenance. Transferability protects the Customer and Program. Incentives Payments 20% upon signing End of year 1: 25% End of year 2: 35% End of year 3: 20% All units must be maintained for the full 3 years to receive the full incentive amount.

13. Incentives Paid to the Contractor for Baseline QM Tune-up Work

14. Program Contact Information PG&E Commercial HVAC Quality Maintenance Program PO Box 4999 Foster City, CA 94404 888-265-0057 info@www.commercialhvacqm.com www.commercialhvacqm.com PG&E Program Manager Ryan Halsey (415) 973-0806

15. Questions