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2009 SDG&E Energy Efficiency Program Incentives

What qualifies for SDG&E Energy Efficiency Program Incentives?

• SDG&E provides Energy Efficiency Program incentives for quantifiable and calculated energy reductions. Energy reductions are measured in reduced kilowatt hours (kWh) per year.

• What elements of a Virtualization Project would result in energy reduction and qualify for Energy Efficiency Incentives?

• Consolidation and physical removal of existing equipment, being replaced with less or more energy efficient equipment, by no later than December 31, 2009.

• Examples: Reduced quantity of, Servers, Storage Area Network (SAN), Disk drives, Tape drives, desktop personal computer consolidation to thin clients etc.

3. 2009 SDG&E Energy Efficiency Programs SDG&EElectric Service Territory Who Qualifies for SDG&E energy Efficiency Incentives? Businesses with anSDG&E electricor gas account 4.

• 2009 SDG&E Energy Efficiency Program Incentives

• What are the applicable SDG&E Energy Efficiency Programs and their Incentive Rates?

• Incentives formulas may vary by Energy Efficiency Program are paid on a cents per kilowatt per hour (kWh) basis.

Standard Performance Contract (SPC)

• Energy-efficiency measures with documented savings pays 9 Cents per kWh/yr energy savings. ( Visitwww.sdge.com/spcfor program details)

Energy Efficiency Savings Bid Program (EE Bid)

• Offers customers and project sponsors the opportunity to receive larger incentives for projects that produce energy savings of at least 500,000 kWh . Pays 8-10 cent per kWh/yr in documented energy savings.(Visitwww.sdge.com/bidfor program details)

5. Standard Performance Contract (SPC) Eligibility

Who?

Businesses with anSDG&E electricor gas account

What?

Retrofit projects that deliver kWh or therms savings

How Incentives are paid

• Calculated on pre-determined energy savings

• Measured on actual measured energy savings

Measures must exceed federal and state standards

6. Virtualization Project Incentives Getting Started

What supporting documentation will SDG&E require

and at what point should I apply for Program Incentives?

Existing audit inventory of potential Servers to be removed from facility

Existing Make

Existing Model

Existing Power Consumption

Proposed Quantity of Virtualized Servers

New Make

New Model

New server power consumption

Contact SDG&E, submit completed Program Application documents with supporting documentation requesting Pre-inspection prior to equipment order or start of project..

7. Standard Performance Contract Incentives

Incentives on calculated or measured savings pay as follows:

• Lighting - $0.05/kWh

• Air conditioning and refrigeration - $0.15/kWh

• Motors and other equipment (Server Virtualization etc). -$0.09/kWh

• Gas equipment - $1.00/therm

• $100/kW for qualifying retrofit projects.

8. Standard Performance Contract Process

How to Apply

Complete and submit a SPC application

• Downloaded from:

• www.sdge.com/business/bus_energy_efficiency.shtml ,or

• Request a CD-ROM

SDG&E must inspect the site prior to the start of the project

Incentive Limits

Incentives may not exceed 50% of the measure cost.

Incentive caps:

• Customer Site - $350,000

9. Energy Savings Bid - Whos Eligible?

Businesses with an SDG&E electric or gas account

Project(s) must save aminimumof500,000 kilowatt-hours (kWh) annually or 25,000 therms annually

• all measures must be retrofits or replacements of existing, operating equipment

• pre-inspections are required before work begins

Aggregation of measuresand/or project sites is acceptable

10. Energy Savings Bid - Incentives

Provideshigher incentive ratesthan theCalifornia statewide Incentive/Rebate Programs

Incentives may qualify for 100% of measure costs

There are no limitations on the maximum incentive amount paid to individual customers or project sponsors

All savings and incentives are based on measured, actual savings as approved by SDG&E

11. Energy Savings Bid How to Apply

Participationis easyanduser-friendly.There are only two application forms and two simplified spreadsheets --- available atwww.sdge.com/business/bid.shtml

Measurement & Verification (M&V) is required.M&V can be performed by:

• SDG&Esindependent third-party contractor, or

• customer/project sponsor

Wecanhelp with the paperwork

12. SDG&E Rebate Programs Express Efficiency Small BusinessSuper Saver kWh Requirements 100 kW and aboveBelow 100 kWTherm Requirements 4,166 therms and above Below 4,166 therms Applications Measures must be purchased and installed between 1/1/09 and 12/31/09 unless otherwise stated Measures must be purchased and installed between 1/1/09 and 12/31/09 unless otherwise stated Rebate Limit $350,000 per account, per fuel, per year None Examples Generally: Larger casual dining restaurants, institutional facilities Generally: Quick serve and smaller casual dining restaurants 13. SDG&E Express Rebate Programs

Network Power Management Software Rebate

Software must be installed that automatically controls the power settings of networked Desk Top personal computers (PC) at the server level.

The software must be capable of managing power consumption for each individual PC.

In addition, the software must be capable of reporting energy saving results. When submitting a rebate application, customers must provide:

• Copy of the software license agreement,

• A report directly from the Network Energy Management software that verifies the number of PCs that are being controlled by the system.

• A list of license numbers serving the system.

• Computer laptops are noteligible .

• Rebate $15.00/controlled PC

14. Commercial Services

On-Bill Financing (OBF)

OBF offers zero percent financing on specific energy efficiency measures.

• • Works in conjunction with select SDG&E rebate and incentive programs (such as SBSS)

• • The monthly payments are billed to your SDG&E energy bill

Loan amount is a minimum of $5,000, up to a maximum loan amount of $100,000

• • Loans are per meter, per customer

For more information:

www.sdge.com/OBF

800.644.6133

[email_address]

15. On Bill Financing Criteria

SDG&Es0%financing option is available for qualified customers who have:

A qualified rate:commercial, industrial, agricultural

Qualified for SBSS, Express, TEC, Bid, SPC

A project cost of $5,000 - $100,000 or $250,000 for taxpayerfunded customers

Good credit standing with SDG&E

• Active account for at least two years

• No disconnect notices in the last twelve months and no deposit on SDG&E account

5 year or less payback on total project or 10 years for taxpayer- funded customers

16. On Bill Financing Step by Step STEP 1: Reserve program funds by calling the EIC (rebate programs only) Request OBF application or download fromwww.sdge.com /0BF Fax: 1-866-476-0357 STEP 2: SDG&E pre-inspects site and determines project savings/paybackOBF contacts contractor/customer on project financing approval STEP 3: Customer signs SDG&E loan agreement Contractor performs installation and submits final invoice and rebate/incentive paperwork STEP 4: SDG&E performs post inspection Rebate/incentive and project checks issued to customer or contractor STEP 5: Loan installment amount appears on customer scheduled bill CONTACT INFORMATION: EIC-800-644-6133 E-MAIL : [email_address] 17. Commercial & Industrial Services

SDG&E Account Executives

SDG&E Anti-Trust Rules & Regulations require SDG&E Employees to be neutral in regards to contractors, vendors and equipment manufacturers.

SDG&E Account Executives role is to catalyze proactive energy efficiency decisions though concepts meetings and assist in energy efficiency incentive or rebate application

Energy Efficiency equipment, contractor selection, and ultimate energy efficiency strategies are the decision of the end use customer.

18. Contact Us Contact RGM Consulting Rod Matthews 858-518-9964 [email_address] 19.