What is energy efficient lighting? Game Plan Get lit with National Grid and Gexpro National Grid Energy Expo – April 2011 Gexpro Company Confidential 1 Gexpro Upstate NY Locations Syracuse Office Buffalo Office National Grid Energy Expo – April 2011 Albany Office Gexpro Company Confidential 2 Why Consider a Energy Project? • Rising utility cost • Slow economy drives need for operational improvements • Consumer and market influences • Product technology improvements • Energy Independence & Security Act (12/2007) • National Grid incentives National electricity cost up 27% And rising… National Grid Energy Expo – April 2011 Gexpro Company Confidential 3 Operational Costs Target “Leaky” Operational Processes Net Profit Operational $$ $ $ Transportation Quality Issues Excess Inventory $ $ Material Cost Increases Excessive Downtime $ Facility Maintenance $ Energy Cost Employee Retention & Training What levers can you pull to stop the leaks? National Grid Energy Expo – April 2011 Gexpro Company Confidential 4 Gexpro Energy Solutions End User Auditing And Proposals Established ESCO Partner Network Energy Tools And Training Project Management / Execution Operational Improvements Financial Analysis/Impact Drive Sustainability And Efficiency Global Focus Lighting and Control Solutions National Grid Energy Expo – April 2011 Team of LEED/Energy Star Accredited Professionals Execution Approach: • Focus regionally and by utility cost • Offer solutions by customer segment and product group • Align Energy Contractors based on project scope and strengths • Turn-key solutions with single point of contact Motor and Industrial Solutions Solar Solutions Gexpro Company Confidential 5 Where to Focus? • Visible and immediate impact • High payback / ROI • Largest portion of energy consumption Commercial Entertainment & Gaming Retail 20% - 90% Savings National Grid Energy Expo – April 2011 Industrial Gexpro Company Confidential 6 Lighting Case Study: Large Industrial Facility – Schenectady NY Run Hours: 24 hrs / 7 days a week / 365 days a year - 8760 hours Energy Cost: 0.093 per KW/hr Demand Cost: 5.79 per KW Existing: quantity 840 400-watt HPS…465 watts Replacement – qty 840 4-lamp T5 Fixtures…234 watts per fixture Project cost: $399,000 National Grid incentive (50% of project cost): $199,500 Customers total out of pocket : $199,500 $171,562.41 yearly savings with 1.2 year payback Guaranteed (fixed) annuity returning 86% Removing 228 cars from the road Reducing 2.6 million lbs of CO2 emissions Avoiding burning 1.2 million lbs.of coal Equivalent to planting 328 acres of forest National Grid Energy Expo – April 2011 Gexpro Company Confidential 7 National Grid Energy Expo – April 2011 Gexpro Company Confidential 8 David Puccia’s Annuity Rate Sheet Fixed Annuity Rate Sheet (as of 3/18/2011) Rate sheets 6 Year Rate Guarantee Rates 3.05% a) 2.55% years 1-5 b) 3.10% years 1-7 c) 3.30% years 1-10 Horizon Select 10 year term is not avail in: TX a) Under $100k: 2.65%*** $100k to $249,999: 3.25%*** $250k or more: 3.45%*** Bailout Rate: 2.05%*** b) Under $100k: 2.45%*** $100k to $249,999: 2.85%*** $250k or more: 3.00%*** Bailout Rate: 1.95%*** National Grid Energy Expo – April 2011 Gexpro Company Confidential 9 Lighting Annuities for Your P&L Center Commercial / Retail Replacing 4 lamp T12, .12kwh, 4380 56% Return Replacing 90 Watt Halogen .12kwh, 4380 48% Return Replacing 90 Watt Halogen .12kwh, 4380 144% Return Installing occupancy / motion sensors Control Systems National Grid Energy Expo – April 2011 Replacing 4 lamp T8, .12kwh, 4380 35% Return F I X E D 80% - 50% Return Gexpro Company Confidential 10 Lighting Annuities for Your P&L Center Industrial 50%-90% Return 40%-70% Return 60% - 90% Return 100% Guaranteed National Grid Energy Expo – April 2011 Gexpro Company Confidential 11 Lighting Annuities for Your P&L Center Outdoor 20% - 40 % Return 20% - 40 % Return National Grid Energy Expo – April 2011 Gexpro Company Confidential 12 David J. Puccia Energy Solution Specialist Gexpro Phone: (315) 438-3100, ext 3117 Mobile: (315) 345-1861 Fax: (315) 438-3113 National Grid Energy Expo – April 2011 Gexpro Company Confidential 13