Consumers Energy Business Solutions

1. Consumers Energy Business Solutions Metro Detroit Building Superintendent Association February 22, 2012

2. Today’s Topics • Energy Optimization programs – what are they? • Program summary • 2012 program updates • Energy costs in business • Savings opportunities • How to participate

3. Energy Optimization Programs • Programs were mandated by PA 295 enacted in October 2008 • Utilities are required to reduce energy consumption through energy efficiency measures • Consumers Energy is required to reduce electric use by 1% and natural gas use by .75% in 2012 • Consumers Energy optimization programs offer incentives for upgrading, replacing or maintaining equipment

4. Customer Participation • Consumers Energy has distributed over $40 million to customers since the program began in 2009 • Over 8,000 customers have participated • Customers are from all business segments and are of all sizes

5. 2011 Program Results • Distributed100% of the 2011 $20 million incentive budget • Exceeded electric goal • 180GWh of savings (approx.) • Exceeded gas goal • Over 500,000 MCF of savings

6. Electric Results

7. Gas Results

8. Customer and Project Eligibility • Most Consumers Energy electricity and gas business customers are eligible • Must have a valid natural gas and/or electric account number • The applicant is the firm that purchases the EE measures that are installed at the facility served by the utility • A qualifying facility has at least one meter on an eligible rate schedule • Must meet various program requirements

9. Project Requirements • Projects must involve a facility improvement that results in a permanent reduction in electrical and/or gas energy usage • Projects that are NOT eligible for an incentive include the following: • Fuel switching (e.g., electric to gas or gas to electric) • Changes in operation and/or maintenance practices or simple control modifications not involving capital costs • On-site electricity generation • Projects that involve peak-shifting (and not kWh savings). • Projects involving renewable energy

10. Incentive Caps and Limitations • The amount of incentives a facility or customer can receive is limited • Custom incentives must be ≤50% of the total project cost • Prescriptive incentives must be ≤100% of the total project cost • Measures must be installed for five years or the life of the measure, whichever is less • Large gas customers only >100,000 MCF/yr. usage

11. Typical energy spending

12. Energy Saving Opportunities • Look for quick wins • Lighting • HVAC • Water heating • Plug loads

13. Lighting • Lighting is typically 30% of your bill • Easy to implement & cost effective • CFL’s • T12-T8/T5 replacement • Exit signs • Exterior lighting • Metal halide replacement • Occupancy sensors

14. HVAC • Heating & cooling combine for more than 50% of the energy budget • Still easy to do • Programmable thermostats • Boiler/Furnace/RTU tune-ups • Economizers • Boiler controls/sequencing

15. Water heating • Accounts for 10% of energy use • Harder to find opportunities • Water heaters • Pipe/water heater insulation

16. Plug loads • “Vampire loads” - they are everywhere • Hard to control • Eat away at your energy cost • Individual printers • Computers • Chargers • AC adapters • Vending machines • Copy machines • Space heaters

17. New Measures

18. Electrical measures

19. Lighting: CFL (HID replacement) http://ioannis.virtualcomposer2000.com/spectroscope/collection.html http://withfriendship.com/user/svaruna/metal-halide-lamp.php http://easterdayconstruction.com/2011/04/16/cfls/

20. Lighting: Interior Induction http://ioannis.virtualcomposer2000.com/spectroscope/collection.html http://lonelyconservative.com/wp-content/uploads/2011/01/light-bulb.jpg http://withfriendship.com/user/svaruna/metal-halide-lamp.php http://www.ecvv.com/product/1959438.html http://ioannis.virtualcomposer2000.com/spectroscope/collection.html

21. Lighting: Exterior/ Parking Garage Multi-step Dimming Occupancy Sensors • These exterior lights are controlled to operate at full power and full light output when the space is occupied and at a reduced power level and reduced light output (must reduce at least 50% of full power) when unoccupied • Sensors must be hard-wired to fixtures, and can be a passive-infrared or microwave occupancy sensor

22. Non-Defined Lighting • These measures apply to new lighting fixture change-outs and/or retrofits that do not fall into the prescriptive categories • A separate Non-Defined Lighting measure form is required for each area (office, production, office, etc.) receiving the upgrade

23. Mechanical measures

24. HVAC: Enthalpy Wheel Energy Recovery Units • Volume flow rate into space must be between 1,000-cfm to 50,000-cfm http://www.rdmag.com/Lab-Design-News/Articles/2011/02/Sustainability-Retrofitting-Labs-To-Reduce-Energy-Consumption/

25. HVAC: Fixed Plate Air-to-Air Energy Recovery Units • Volume flow rate must be between 1,000-cfm to 50,000-cfm

26. HVAC: Boiler Stack Economizer • Space heating or process • Incentive is based on boiler’s input rating, and by the achieved exhaust flue temp decrease at full

27. HVAC: Destratification Fans • Heated spaces ≥ 5,000 square feet • Floor-to-ceiling distance of at least 20 feet. • The minimum temperature differential must be at least 15°F (i.e., 68°F at thermostat, 83°F at ceiling height) http://www.ec-securehost.com/positiveenergyconservationprod./VENTILATION.html http://cudametrosales.com/big_ass_fans

28. HVAC: Constant Volume, Hot Deck/ Cold Deck AHU to VAV AHU

29. HVAC: Constant Volume AHU to VAV AHU • VFDs must be installed on all system fans and VAV boxes with reheat must be added to a minimum of four zones. • Controls must be added or modified for the new VAV operating conditions and all zone sensors must be upgrade to digital.

30. HVAC: Critical Zone Supply Air Reset Control Strategy

31. HVAC: Air-side Economizer Mode on Existing HVAC Equipment • At a minimum, new damper actuators and controls must be installed to the existing system and calibration http://ingramswaterandair.com/hvac-direct-commercial-package-accessories-horizontal-economizer-cpccpg-p-726.html?cvsfa=1207&cvsfe=2&cvsfhu=373236

32. Controls: Hydronic HVAC Pump Control • For controlling hydronic heating, condenser water pump and chilled water pump system • Pumping systems currently operating with operable time clocks or outside air sensor controls/lockouts do not qualify for this incentive • The minimum qualifying area is 10,000 sq. ft. of conditioned space

33. Controls: Occupancy Sensor for Toilet Room Exhaust • Sensor to turn-on exhaust fan only during occupied periods • The toilet room exhaust cannot be automatically controlled with either: BAS schedule, HVAC night setback or linked with existing lighting controls. Also manual timers not eligible

34. High Efficiency Domestic Water Heater • For domestic water heating (DWH) systems upgraded to a medium-high eff (minimum of 84%) or to a high eff (minimum of 90%) • The DWH must consist of at least one boiler with a separate hot water storage tank(s) • Only boilers greater than 75,000 BTU/hr. qualify for this incentive

35. Window Reduction • This incentive is for reducing window area by installing an insulated window to existing buildings • Window insulation must be installed in a space which uses natural gas-fired space heating • New window assembly must be greater than or equal to R-11 • The maximum incentive available for this measure is $10,000 per facility

36. Special Programs

37. New Construction • Incentives available for design and construction of energy efficient buildings • Energy efficiency is easier to design in than to add later • Three tiered structure • The more efficient the building the higher the potential incentive • Incentives for design team and owner

38. New construction incentive

39. Smart Buildings • Focuses on creating energy saving Facilities Improvement Measures • Usually HVAC and controls  • Low/no cost implementation • EBCx process benefits • 5-15% annual energy savings • Documentation and methods to sustain improved operation. • Best candidates would possess: • Central building automation system with direct digital controls • 80,000 sq ft or larger • Energy usage HVAC driven • Defined current facility requirements for operation and 1-2 years of coincident energy records without major change in operation or equipment. • No short term planned major system improvements or replacements • Must commit to spending $5,000 on measures identified in the IQ test

40. Smart Building Incentive • Facility IQ test is step 1 • Energy Consumption • System Responsiveness • Robustness • Central Plant Efficiency • Maintenance Level • Customers who complete the IQ test and have potential for savings may participate in additional existing building commissioning incentives • Work with qualifying energy consultant to develop and implement building systems optimization plan

41. Questions?

42. Thank You! Contact Us • E-mail: ConsumersEnergyBusinessSolutions@kema.com • Web: www.consumersenergy.com • Application available at:www.consumersenergy.com/eeprograms • Phone: (877) 607-0737 • Fax: (877) 607-0738