Energy Conservation & Performance Contracting

1. Energy Conservation & Performance Contracting Dos Palos – Oro Loma Joint Unified School District November 19, 2009 Justin Surratt Energy Solutions – Buildings Business Justin.Surratt@buildings.schneider-electric.com 916.425.9586

2. Agenda • Schneider Electric: Who we are… • Performance Contracting • Preliminary Energy Audit Results • Suggested Energy Conservation Measures • Investment Grade Audit and Risk Evaluation • Questions/Comments

3. Schneider Electric: Who we are… • Key Markets for Our Company • Our Buildings Business Division Works Primarily in the K-12 Market • Energy Solutions Provider • We provide Facility and Energy Conservation solutions that maximize building performance but most importantly, maximizing the school district’s return on investment • Performance Contracting Specialization • Utilize Energy Savings Dollars, as a result of the project, to offset the cost of the facility improvements

4. History with District & Current Central Valley Customers • History with Dos Palos – Oro Loma Joint Unified School District • History with CASBO - Central Section • Delhi Unified School District • Completed Investment Grade Audit Development • Construction Vote: December 2009 • Clovis Unified School District • Exploration and Discovery Phase

5. Performance Contracting Utilities $ Annual Bill

6. Performance Contracting Utilities $ Annual Bill Improvements “CM at Risk” plus… + Design + Energy Focus + Energy Savings Guarantee

7. Performance Contracting Utilities $ Annual Bill Improvements Third party funding -Secured against Savings -Paid on Schedule of Values Up-Front Cost

8. Performance Contracting Utilities $ New Bill $Historical Guarantee: $Diff.= $Payment $Savings >= Payment Improvements Guarantee PC Review Up-Front Cost

9. Performance Contracting: What? Solar (PV) Major Mechanical Lighting Building Envelope Water Cons. Power Systems Energy Management

10. Performance Contracting: What?

11. Performance Contracting • The goal of PC is to implement a project that will be offset by the energy savings as a result of the project Example: $100,0000 Annual Energy Savings x 15 Years = $1,500,000 Break-Even Facility Project Opportunity

12. Performance Contracting: How? Stage 1: Determine if PC is right for you Stage 2: Develop Project: Investment Grade Audit Stage 3: Implementation, measurement and verification

13. Step 1: Determine if PC is right for you • Feasibility Assessment • Completed: November 2008 • Reported to Tim Zearley • Workshop • Completed: March 2009 • Reported to “Energy Committee” • Board Member Joe Castillo • Board Member Dewayne Weagel • Dr. Brian Walker • Tim Zearley • Select DPOLJUSD Maintenance Staff

14. Step 1: Determine if PC is right for you • Preliminary Energy Audit • Completed: July 2009 • Reported to “Energy Committee” • Next Steps: • Investment Grade Audit – TBD • Construction & Implementation • Measurement and Verification of Performance

15. Building Savings Impact Oro Loma 4% Marks ES 10% Dos Palos ES 12% Dos Palos HS 59% Bryant MS 15% Preliminary Energy Audit Results • $92,865 Savings Opportunities (15% Savings) Baseline Annual Utility Cost: $606,197 Potential Annual Energy Savings: $92,865 Savings Percentage: 15.3%

16. Annual Energy Cost Dos Palos-Oro Loma USD $300,000 $267,698 $250,000 $226,499 $200,000 $150,000 $98,113 $97,883 $100,000 $86,078 $84,701 $75,272 $67,230 $60,820 $55,233 $50,000 $0 Dos Palos High Bryant Middle Dos Palos Oro Loma Marks Elementary School School Elementary School School Baseline Proposed Total Energy Cost/Savings by Site

17. Annual Energy Cost ($/sf) Dos Palos-Oro Loma USD $2.50 $1.99 $2.00 $1.94 $1.88 $1.81 $1.73 $1.61 $1.59 $1.59 $1.58 $1.50 $1.50 $1.00 $0.50 $0.00 Dos Palos High Bryant Middle School Dos Palos Oro Loma Marks Elementary School Elementary School School Baseline Proposed Total Energy Cost/Savings per sq. ft.

18. Suggested Energy Conservation Measures • District-wide Lighting Modernization • Satisfies Facility Master Plan • EPAct 2005 Compliance • Comprehensive Energy Management System (EMS) • Future State Energy Mandate Compliance (e.g. AB32) • Heating Ventilation and Air Conditioning (HVAC) Upgrades • Satisfies Facility Master Plan

19. Lighting Modernization • Classrooms and Workspaces • T12 Fixtures  T8 • Federal Mandates require phasing out of T12 Magnetic Lighting Ballasts by 2010 (EPAct 2005) • The energy efficiency AND light quality will be improved as a result of these upgrades. • Gym Lighting Upgrades • Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures will allow for instant ON/OFF control while reducing electricity demand. • Exterior Lighting Upgrades • Campus Security Enhancement

20. Lighting Modernization • Opportunity • Retrofitting the T12 lamps to T8 lamps and electronic ballast will save energy while maintaining proper light levels. Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures will allow for instant ON/OFF control while reducing electricity demand. • Occupancy sensors can be installed in some areas where occupancy varies to reduce operation when spaces are unoccupied. • Benefits • Installation of the new lighting systems and controls will reduce the electrical demand and energy use. The light quality will be improved as a result of these upgrades.

21. Energy Management System • Opportunity • A district-wide Energy Management System (EMS) upgrade will provide tighter control of schedules and setpoints for HVAC equipment. • Benefits • An EMS provides significant energy savings by running equipment only when it is needed while providing comfort for the occupants in the facilities. • Relevant Considerations • Expansion and modernization of existing Alerton EMS. Also note that no controls exist at Dos Palos High School, which is an opportunity for excellent operational and energy savings.

22. HVAC Upgrades • Opportunity • Replacing units that have reached the end of their economic useful life with new, high efficiency units will decrease electricity and gas use and provide better temperature control. • Benefits • Capital Cost Avoidance strategies • Operational Savings can be realized as soon as possible • Opportunity to choose brand/type of equipment • Planning for best operating system structure

23. Performance Contracting: How? Stage 1: Determine if PC is right for you Stage 2: Develop Project: Investment Grade Audit Stage 3: Implementation, measurement and verification

24. Next Step: Investment Grade Audit Schneider Electric will provide Customer with the following: • A list of energy conservation measures planned for each facility; • A description of how the energy conservation measures would interact with the existing equipment in the facilities; • Financial analysis; • Guaranteed energy services contract for the facilities; • Utility analysis; • Project pricing for a turnkey installation

25. Investment Grade Audit Investment Grade Audit Agreement 10¢ / square foot Owner pays if Schneider Electric hits target, but Owner decides to back out. Otherwise, costs rolled into project financing. Preliminary Audit defines the target savings.

26. Investment Grade Audit • Proposed Cost: • $33,317 • If project is selected following IGA: • No up-front cost; Cost is rolled into Construction Contract • If no project is selected following IGA: • the district would be responsible for the IGA cost Proposed School Board Vote on IGA December 17, 2009

27. Cost of Doing Nothing… • Lost Savings in Energy Consumption • $92,865/year x 15 years = $1,392,975 • Lost Facility Improvements (Capital Avoidance) • Break-Even Project Opportunity: $1,392,975 • Total Opportunity Cost of NOT leveraging energy savings for facility improvements…. • Lost Energy Savings + Lost Facility Improvements = $2,785,950

28. Financial Risk Evaluation • District Risk • Cost of Investment Grade Audit (note no up-front cost if project moves forward to construction) • $33,317 • Opportunity Cost = Guaranteed Opportunity Lost • Cost of Doing Nothing (Lost Energy Savings + Lost Improvements) • $2,785,950

29. Financial Risk Evaluation $33,317 Potential Loss (IGA Cost if NO Project is Selected) vs. $2,785,950 Guaranteed Opportunity Lost

30. Investment Grade Audit Proposed School Board Vote on IGA December 17, 2009

31. Questions/Comments? Justin Surratt Justin.Surratt@buildings.schneider-electric.com 916.425.9586 Tim Zearley Chief Business Officer Dos Palos – Oro Loma Joint Unified School District