2017 AEP Ohio Business Incentive Programs

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1 2017 AEP Ohio Business Incentive Programs

2 2016 Highlights Thank You! Preliminary numbers show: Annual energy savings achieved Approximately 466 GWh Enough to power 38,833 homes for 10 years* Paid up to an estimated in $42 million in incentives * Numbers assume the average household energy consumption of 12,000 kwh per yr and a 10yr measure life

3

4 New- Central Clearinghouse

5 Emotor Rewind Per hp incentives (100-5,000HP) Increases efficiency and longevity Certified facilities Hannon Electric Canton Electric Motor & Service Zanesville Kentucky Service Company Lexington Shoemaker Industrial Columbus

6 Process Efficiency Process Efficiency (formally custom) $0.07 per kwh saved Most of the projects were process Can t find it on the menu $25K per measure threshold above Pre application required

7 Solution Provider network Increased company awareness listing on AEP Ohio website Enhanced business opportunities Newsletter with first to know specials Case studies and co-branded marketing Identified as a specialist in the energy world

8 Consolidated Outreach We re here to help you sell more projects!

9 Encentivizer tool - pilot AEP Ohio invested in tool for SP s to utilize in the sales process Estimates payback on projects Starting with lighting only Auto fills AEP Ohio application Help sell more projects by providing customer with financial info

10 Opt out Beginning January 1, 2017 certain customers can opt out of the EE/PDR rider 1. The customer receives service above the primary voltage level Or. 2. Customer usage exceeds 45 million kwh of electricity for the preceding calendar year and is a self assessor AEP Ohio took a pro-active approach to the eligible customers Customers cannot participate in any energy efficiency programs while opted out Opt out is 3 years you must give 12 months notice to get back in

11 Largest users can opt out FAQ available EE Report cards available

12 Bid4Efficiency

13 Efficient Products for Business Formally called Prescriptive Program LED screw in lamp incentive $4.50/lamp Energy Star or Design lights LED $0.31 per watt reduced (assuming space is controlled) $0.22 (no controls) $25,000 per measure threshold then default rate or B4E 2017 VRF A/C incentives $20 / ton $10 / ton bonus 2017 VRF HP incentives $25 / ton $10 / ton bonus

14 Self Direct Self Direct (Retroactive) Projects after January 1, 2014 Mercantile customers Customers that use over 700,000 kwh yr. New Construction Self direct LPD calculation changed from $0.35 to $0.30 per watt reduced

15 2017 Advanced Lighting controls Two facility use types Low lumen output fixtures/high fixture density (office, classroom) High lumen output fixtures/low fixture density (warehouse, manufacturing) LED with controls & data retrieval 2017 incentives Low lumen output fixtures/high fixture density (office, classroom) at $0.75/sq. ft. High lumen output fixtures/low fixture density (warehouse, manufacturing) at $0.30/sq. ft.

16 Data Center Program Popular eligible projects include: IT Infrastructure Server virtualization Server refresh Desktop virtualization Storage optimization PC power management Facilities CRAC 1 /CRAH 2 replacements UPS upgrades VFDs Free cooling Airflow Management Data Center Relocation: moving to a colocation site New Construction CRAC Computer Room Air Conditioner CRAH Computer Room Air Handler

17 What is Continuous Energy Improvement Program An innovative approach to achieve low/no cost energy savings Traditional Programs Capital intensive for customers SEM Program Holistic overview of energy savings opportunities One and Done concept Focused on operations and maintenance activities

18 CHP/WER Co-generation strategy involving generation of electricity and useful heat Typical customers: Industrial, Institutional & Healthcare Incentive payment based on measured production of kwh generated Overall system efficiency of 60% or greater Thermal efficiency of 20% or greater Source:Energy.gov

19 2017 New Construction Program ASHRAE code NC applications ASHRAE code NC applications Funding is limited, pre-approval of all projects highly recommended to reserve funding VRF Incentives same as Efficient Products for Business program LPD incentive now $0.30 per Watt reduced

20 2017 Agriculture Program New outreach program for Ag customers Directing outreach efforts at both residentially and commercially metered farm accounts Most commonly, measures will be from the Efficient Products for Business & Residential programs Seeking Solution Providers for this program

21 Customized Financing Solutions for Every Project Works across multiple products: Capital Leases, PACE, Tax Exempt Municipal Financing, Energy Service Agreements And with multiple, vetted, capital providers: To bring you the best financing arrangement for every kind of job, From $1,000 to Multi-million dollar deals

22 Start Now Close more jobs by offering a finance-based payment plan Combining incentives with low interest rates mean many projects will cash flow on day 1 HBC Energy Capital makes financing easy Fill out a finance request: Call: (720) or, Info@hbcenergycapital.com

23 Community Energy Savers Pilot program available again in 2017 Objectives Raise awareness of energy efficiency (EE) and increase participation Bring benefits of EE to more residents and businesses in participating communities Improve customer satisfaction Communities are provided marketing, outreach and technical support Communities work to reach goals and earn financial rewards.

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