FACILITY ENERGY ASSESSMENT

FACILITY ENERGY ASSESSMENT ABC Company Headquarters October 17, 2012 Evansville, Indiana Contact Vectren Energy Delivery 1 N. Main Street Evansville, Indiana 47711 (P) 812-491-1515 (E) manager@vectren.com Prepared by Nexant, Inc. on behalf of Vectren Energy Delivery Contact Nexant, Inc. 1232 Fourier Drive, Suite 125 Madison, Wisconsin 53717 (P) 608-824-1239 (E) engineer@nexant.com

EXECUTIVE SUMMARY COMPREHENSIVE ENERGY ASSESSMENT To help ABC Company reduce energy costs and improve building performance, Vectren Energy Delivery funded a comprehensive energy assessment for ABC Company s Headquarters on 10/1/2012. This effort identified 12 energy-saving opportunities, including upgrades to the refrigeration, compressed air, and lighting systems. The total estimated cost savings is $25,410 in the first year. ENERGY EFFICIENCY: A SMART INVESTMENT By implementing the energy-saving opportunities in this report, you will save an estimated $25,410 or 2.5 percent of the $1,000,000 you currently spend annually on energy. Vectren and Energizing Indiana s energy efficiency programs offer cash incentives to cover 53 percent of the total implementation costs. In total, these opportunities will require a $72,370 investment by ABC Company after $80,960 in incentives provided by Vectren. With a simple payback of 2.8 years, the energy efficiency recommendations in this report offer a low-risk, high-reward investment that outperforms traditional investment choices. In addition to direct returns and immediate cost savings, energy efficiency will help the customer reduce maintenance costs and improve the working environment of the facility. With Vectren, energy efficiency is within reach. All costs and savings are first order estimates. Please see Recommended Energy-Saving Opportunities section on Page 1 for an explanation of estimates and methodology. Investment at a Glance Improve your Bottom Line Cost savings of $25,410 will reduce annual energy costs by 2.5% Big Discount on Efficiency Cash incentives cover 53% of total costs, saving you $80,960 Simple Payback of 2.8 years is a low-risk, high-reward investment. For Every $1 invested in Energy Efficiency, you will save $6 over the lifetime of improvements IMPROVE YOUR BUILDING S PERFORMANCE Production Energy Intensity: kbtu of energy per pound of product produced IMPROVED 1.70 CURRENT 1.74 The Headquarters' current energy performance is approximately 1.74 kbtu per pound of product produced. Implementing the recommendations in this report will increase the building s energy performance and reduce the energy intensity to 1.70 kbtu per pound of product produced. TAKE ACTION Each month, a portion of the energy costs paid by Indiana businesses (like ABC Company) on their utility bills go to support energy efficiency programs. Vectren s business energy efficiency programs, like the comprehensive energy assessment, help you capitalize on your contribution. The programs are outlined in the Energy Efficiency Program Options section of this report and the incentives available to you are outlined in each of the identified opportunities. For complete information on cost-saving opportunities and program next steps: See Recommended Energy-Savings Opportunities on Page 1 for a complete breakdown of implementation costs, cost savings, and incentives for all of the recommended opportunities for the Headquarters. See Energy Efficiency Program Options on Page 4 for next steps, program contact information, and process details. i ABC Company: Headquarters

TABLE OF CONTENTS Executive Summary... i Recommended Energy-Saving Opportunities Summary... 2 Energy Efficiency Program Options... 4 Recommended Energy-Saving Opportunities... 5 Opportunity 1. Reduce Compressed Air System Pressure... 6 Opportunity 2. Increase Holding Freezer Suction Pressure Setpoint... 8 Opportunity 3. Install Vending Machine Controls...10 Opportunity 4. Install No-Loss Condensate Drain Valve on Main Storage Tank...12 Opportunity 5. Install Lighting Occupancy Sensors in Egg Cooler and Office Areas...14 Opportunity 6. Reduce Operation of 15 hp Condenser...16 Opportunity 7. Replace HID Lighting with High-Bay Fluorescent with Occupancy Sensors in Warehouse...18 Opportunity 8. Install Ultra-Premium Efficiency Motors...20 Opportunity 9. Replace HID Lights with LED Lighting in Blast Freezers...22 Opportunity 10. Install VSD on Glycol Distribution Pump...24 Opportunity 11. Replace HID Lights with LED Lighting in Holding Freezers...26 Opportunity 12. Install Electric Defrost in Blast Freezers and Reduce System Head Pressure...28 Other Opportunities...32 Other Opportunity 1. Install Air Knives on Blast Freezer Openings...32 Other Opportunity 2. Optimize Defrost Cycles...32 Other Opportunity 3. Implement Oxygen Trim Controls...33 Energy Use and Benchmarking...34 Energy Benchmarking Results...36 General Facility Information...37 Facility Overview...37 Facility Schedule...37 Future Facility Improvement Plans...38 Building Envelope...38 Energy Systems...39 Product Production Overview...39 Refrigeration System...40 Compressed Air System...43 Steam System...44 Facility Heating and Cooling...44 Lighting...45 Domestic Hot Water Heating...45 Other Loads...45 Abbreviations...46 Project Contacts...47 Savings and Incentives at a Glance...48 1 ABC Company: Headquarters

EQUIPMENT CATEGORIES COMPREHENSIVE ENERGY ASSESSMENT RECOMMENDED ENERGY-SAVING OPPORTUNITIES SUMMARY Based on the comprehensive energy assessment competed at Headquarters on October 1, 2012, we advise implementing the following cost-effective, energy-saving opportunities to maximize your savings. Recommended opportunities are those that are feasible at your facility and cost-effective. Within each of the cost categories below, the opportunities with the highest return on investment are presented first. All costs and savings are first-order estimates. Please see the Recommended Energy-Saving Opportunities Summary section for full details and assumptions for each opportunity. Lighting Plug Load Mechanical Equipment LOW COST OPPORTUNITIES (CAPITAL COST LESS THAN $1,000) Opportunity 1. Reduce Compressed Air System Pressure Annual Savings: $340 Cost: $0 Simple Payback: Immediate Reduce the compressed air system pressure setpoint from 110 psig to 100 psig to reduce compressor energy use. Opportunity 2. Increase Holding Freezer Suction Pressure Setpoint Opportunity 3. Install Vending Machine Controls Opportunity 4. Install No-Loss Condensate Drain Valve on Main Storage Tank Opportunity 5. Install Lighting Occupancy Sensors in Egg Cooler and Office Areas Subtotal: Low Cost Opportunities Annual Savings: $2,600 Cost: $0 Simple Payback: Immediate Annual Savings: $70 Cost after Incentive: $160 Simple Payback: 2.3 years Annual Savings: $780 Cost: $500 Simple Payback: 0.6 years Annual Savings: $120 Cost after Incentive: $410 Simple Payback: 3.4 years Annual Savings: $3,910 Cost after Incentive: $1,070 Simple Payback: 0.3 years Increase the suction pressure setpoint in the holding freezers to 12 psig to reduce required compressor energy. Install sensor-activated vending machine power controls to reduce energy use without compromising products. Install no-loss condensate drain valves to eliminate compressed air loss when condensate is drained from the system. Install occupancy sensors to reduce light fixture operation when spaces are unoccupied. 2 ABC Company: Headquarters

CAPITAL INVESTMENT OPPORTUNITIES (CAPITAL COST GREATER THAN $1,000) Opportunity 6. Reduce Operation of 15 hp Condenser Opportunity 7. Replace HID Lighting with High-Bay Fluorescent with Occupancy Sensors in Warehouse Opportunity 8. Install Ultra-Premium Efficiency Motors Annual Savings: $1,500 Cost: $1,000 Simple Payback: 0.7 years Annual Savings: $1,100 Cost after Incentive: $3,000 Simple Payback: 2.7 years Annual Savings: $1,200 Cost after Incentive: $2,900 Simple Payback: 2.4 years Reduce operation of 15 hp condenser to optimize facility condenser fan energy. Replace inefficient high intensity discharge (HID) lighting with equivalent light ouput T8 fluorescent lighting with occupancy sensors. Replace existing motors with NEMA ultra-premium efficiency motors. Opportunity 9. Replace HID Lights with LED Lighting in Blast Freezers Opportunity 10. Install VSD on Glycol Distribution Pump Opportunity 11. Replace HID Lights with LED Lighting in Holding Freezers Annual Savings: $1,200 Cost after Incentive: $4,600 Simple Payback: 3.8 years Annual Savings: $1,300 Cost after Incentive: $7,800 Simple Payback: 6.0 years Annual Savings: $3,200 Cost after Incentive: $10,000 Simple Payback: 3.1 years Replace inefficient high intensity discharge (HID) lighting with equivalent light output LED lighting. Install VSD on glycol distribution pump serving blast freezers 2, 3, 4, and 5. Replace inefficient high intensity discharge (HID) lighting with equivalent light output LED lighting. Opportunity 12. Install Electric Defrost in Blast Freezers and Reduce System Head Pressure Annual Savings: $12,000 Cost after Incentive: $42,000 Simple Payback: 3.5 years Install electric defrost coils in blast freezer evaporators and reset minimum head pressure to 100 psig. Subtotal: Capital Investment Opportunities Annual Savings: $21,500 Cost after Incentive: $71,300 Simple Payback: 3.3 years Total: All Recommended Opportunities Annual Savings: $25,410 Cost After Incentives: $72,370 Simple Payback: 2.8 years 3 ABC Company: Headquarters

ENERGY EFFICIENCY PROGRAM OPTIONS WORKING TOGETHER FOR ENERGY EFFICIENCY Vectren is committed to serving your energy needs. The comprehensive energy assessment for Headquarters is one of the ways that Vectren is working to help Headquarters manage its energy use and costs. This comprehensive energy assessment report based on the energy assessment conducted on 10/1/2012 is intended to provide clear documentation of the cost-effective opportunities to save energy at Headquarters. TAKE ADVANTAGE OF CASH INCENTIVES In addition to providing funding towards this comprehensive energy assessment, Vectren also provides cash incentives to assist you in reaching your energy efficiency goals. There are several energy efficiency programs to meet diverse customer needs: Energizing Indiana. Energizing Indiana is a united effort by the Indiana Office of Utility Consumer Counselor (OUCC), participating utilities, and consumer organizations to offer comprehensive energy efficiency programs that bring savings to communities across the state. Energizing Indiana offers the Commercial and Industrial (C&I) Prescriptive Rebate Program help facility managers and building owners achieve long-term, cost-effective energy savings. A prescriptive rebate structure provides your business or organization with rebates based on the installation of energy efficiency equipment and system improvements. Upgrades can include Lighting, Variable Frequency Drives (VFDs), HVAC, and efficient ENERGY STAR commercial kitchen appliances. More information at energizingindiana.com. Business Custom Program. This program offered by Vectren complements the Energizing Indiana programs and is designed to help business customers make smart, energy efficient decisions that reduce energy consumption and operating costs. It offers incentives of up to $100,000 for qualified electric-saving projects. Services include third-party technical and financial assistance for qualifying equipment not covered under the Energizing Indiana program. A WINNING STRATEGY ABC Company is committed to becoming more energy efficient throughout its organization. This commitment has been demonstrated at Headquarters through energy efficient upgrades such as installing a DDC system, upgrading warehouse and office lighting, and adding roof insulation. The opportunities presented in this report offer additional cost-effective ways to continue to build upon the successes of these past efforts. Nexant suggests the following strategy and goals: Enroll in the rebate program to qualify for the enhanced incentives and technical support as described above. Achieve $3,910 in electric energy cost savings by implementing low cost opportunities by the end of 2012. Achieve $21,500 in electric cost savings by implementing capital investment opportunities in the next three budgeted years. Begin tracking energy performance by benchmarking building energy use to product production rates. 4 ABC Company: Headquarters

RECOMMENDED ENERGY-SAVING OPPORTUNITIES CRITERIA FOR RECOMMENDATIONS The recommended energy-saving opportunities are organized into the three categories listed below. Within each category, the opportunities with the highest return on investment are presented first. Low-Cost Opportunities (capital cost less than $1,000) Capital Investment Opportunities (capital cost greater than $1,000) Detailed Study Opportunities (in-depth investigation of potential energy efficiency opportunities) Energy-saving opportunities were recommended because they: Reduce electricity and/or natural gas use Meet a cost-effectiveness threshold of at least less than a 17 year simple payback before incentive. Appear feasible at your facility Energy-saving opportunities that were identified but did not meet the criteria for recommendation are listed in the Other Opportunities. ASSUMPTIONS AND CALCULATIONS For each opportunity, we present first-order estimates of energy savings, project costs, and potential incentives. Lifetime savings estimates are based on net present value of energy savings over the estimated useful life of the opportunities. These first-order estimates should not be used to justify capital investment without further consideration; rather, they are provided as a guide for selecting energy-saving opportunities for further review. The opportunities, savings estimates, cost estimates, and incentives estimates are based on the best information available at the time of the assessment including: Observations made by Nexant during our on-site energy assessment Information provided by ABC Company Energy-use history provided by Vectren DETERMINATION OF INCENTIVES The final incentives paid by Vectren will depend on: Energy Efficiency Program: Incentives detailed below are those available through the Business Custom and Energizing Indiana programs. All Business Custom incentives require preapproval prior to installation. Recommended opportunities in this report are not automatically preapproved for incentives. Final Scope and Cost: The key inputs and assumptions used for calculating energy savings and incentive amounts are documented in the Key Inputs and Assumptions Tables included with each opportunity description in this report. If an opportunity is selected for implementation, any of these values may be refined and could impact the incentive amount. Eligibility Requirements: All projects must meet eligibility and cost-effectiveness guidelines before they can be approved for Vectren incentives. 5 ABC Company: Headquarters

Opportunity 1. Reduce Compressed Air System Pressure OVERVIEW Reduce the compressed air system pressure setpoint from 110 psig to 100 psig to reduce compressor energy use. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $340 Simple Payback Immediate Electrical Savings 14,000 kwh Estimated Project Cost No Cost Demand Reduction 0 kw Vectren Incentive - $0 Natural Gas Savings 0 therms Cost No Cost CURRENT CONDITIONS The compressed air system operates during production hours at approximately 110 psig. The compressed air system is typically in operation Monday through Saturday and off on Sunday when the building is unoccupied. RECOMMENDATION Reducing the supply pressure of the compressed air reduces compressor energy consumption. As a general rule of thumb, each 1 psi decrease in discharge pressure decreases system operating cost by 0.5 percent. It is recommended that the pressure be decreased to 100 psig to realize a 5 percent savings in compressed air system energy consumption. Any change should be completed in small increments of a few psig every couple of days, followed by checking the process to ensure there are no production problems at the reduced pressure. If a single end-user of compressed air does not perform adequately at lower pressure, the single end-user should be inspected to determine the cause and the device could be replaced with a device that operates at a lower pressure, or unnecessary pressure losses in pipes or other components can be identified and repaired. Incentives may be available for expenditures required to implement this measure. IMPLEMENTATION DETAILS This project would be best implemented by facility maintenance staff adjusting the pressure in small increments to ensure there are no unexpected consequences. IMPACT ON OPERATIONS The maximum air pressure requirement of any tool in the facility is approximately 90 psi. The recommended pressure of 100 psi should provide sufficient air to the plant if the distribution piping is properly sized. 6 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 1. Reduce Compressed Air System Pressure Reduce the compressed air system pressure setpoint from 110 psig to 100 psig to reduce compressor energy use. COST CRITERIA Full Project Cost $0 No cost measure Are Gas Incentives Available? N/A No gas savings for this measure Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 10 Industry accepted average lifetime of proposed opportunity Considered Cost $0 Cost used to determine incentive LOCATION Compressor Location Main compressor near Engine Room 2 Compressor Name/Description Manufacturer Model Type - Control Main Compressor Ingersoll Rand SSR EP50 Screw - Inlet Modulation SPECIFICATIONS Nominal Compressor hp 50 CAGI Rated Flow (CFM) 208 CAGI Compressor Shaft bhp 59 Pressure at Rated Flow (psig) 125 CAGI Motor Efficiency 94% CAGI VFD Efficiency (if applicable) No VFD Motor Load Factor 118% Package Input Power (kw) 44 CAGI System Storage (gallons) 750 System Pressure 110 Compressor Operating Hours 7488 Peak Demand Operation Operates On-peak Compressor % Capacity 80% Assume compressor operates at approximately 80% year-round % Power Reduction per 2 psig Pressure Redeuction 1% Industry accepted energy saving metric SETPOINTS Current System Pressure Setpoint (psig) 110 Maximum Required Pressure at Facility (psig) 90 Most air tools operate at 90 psig or less Proposed System Pressure Setpoint (psig) 100 CONTROL STRATEGY Control type Compressor Setpoint OPERATING SCHEDULES Open Close Weekdays 0 24 Saturday 0 24 Sunday 0 0 Assume compressor is off on Sunday OTHER N/A 7 ABC Company: Headquarters

Opportunity 2. Increase Holding Freezer Suction Pressure Setpoint OVERVIEW Increase the suction pressure setpoint in the holding freezers to 12 psig to reduce required compressor energy. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $2,600 Simple Payback Immediate Electrical Savings 75,000 kwh Estimated Project Cost No Cost Demand Reduction 9 kw Vectren Incentive - $0 Natural Gas Savings 0 therms Cost No Cost CURRENT CONDITIONS The holding freezers are maintained at a space temperature of approximately -10 F year-round to store finished goods prior to shipping. Booster compressors C-1 and C-4 operate at 3.6 psig (-20 F) suction pressure to maintain space temperatures. Based on the provided refrigeration trend data, refrigeration loads fluctuate between 50 and 60 tons based on fluctuations in production and outside air temperature. RECOMMENDATION The holding freezer suction pressure setpoint of 3.6 psig (-20 F) should be increased to 12 psig (-5 F) to reduce compressor energy use. As a general rule of thumb, compressor energy decreases 1.8 percent for every 1 F increase in suction temperature. The recommended increase in suction temperature of 15 F will result in system energy savings of 27 percent. The change in suction pressure setpoint should be implemented with care to ensure product temperatures are maintained at a reasonable temperature. Based on conversations with facility staff, the critical product being stored in the holding freezers is cheese filled product that requires colder temperatures to ensure complete freezing. Suction pressure increases should be made in small increments while ensuring product quality is maintained. IMPLEMENTATION DETAILS This project would be best implemented by facility maintenance staff adjusting the suction pressure in small increments to ensure there are no unexpected consequences. IMPACT ON OPERATIONS Increasing the suction temperature will result in a proportional increase in the holding freezer space temperature. The existing space temperature of -10 F will be increased to 5 F. Based on conversations with facility personnel, 5 F should be sufficient for frozen product storage. 8 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 2. Increase Holding Freezer Suction Pressure Setpoint Increase the suction pressure setpoint in the holding freezers to 12 psig to reduce required compressor energy. COST CRITERIA Full Project Cost $0 No cost measure Are Gas Incentives Available? N/A No gas savings for this measure Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 20 Industry accepted average lifetime of proposed opportunity Considered Cost $0 Cost used to determine incentive LOCATION Refrigerated Space Type Holding Freezers Holding Freezer Booster Compressor Inventory Horsepower Estimated Load Factor Efficiency Rated Tons C-1 25 80% 96% 29 C-4 40 80% 93% 43 SPECIFICATIONS Occupied Hours: Estimated cooling load varies linearly with outside air temperature as follows: Production Hours 56 tons of cooling load at 95 F and higher 56 tons of cooling load at 45 F and lower Unoccupied Hours: Estimated cooling load varies linearly with outside air temperature as follows: Non-Production Hours 50 tons of cooling load at 95 F and higher 50 tons of cooling load at 45 F and lower Cooling Tower Approach Temperature (F) 15 Estimate % savings for each F increase in suction temperature 1.8% Industrial Refrigeration Energy Efficiency Guidebook SETPOINTS Current Suction Temperature (F) -20 Proposed: Minimum Condensing Temperature (F) -5 Assume suction temp can increase to -5 F (12 psig) CONTROL STRATEGY Reset C-1 and C-4 compressor suction pressure setpoint to 12 psig (-5 F ) OPERATING SCHEDULES Open Close Weekdays 0 24 Saturday 0 24 Sunday 0 24 OTHER Weather Station Location (TMY3) Weather Bins ( F) Des Moines 5 9 ABC Company: Headquarters

Opportunity 3. Install Vending Machine Controls OVERVIEW Install sensor-activated vending machine power controls to reduce energy use without compromising products. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $70 Simple Payback 2.3 years Electrical Savings 2,800 kwh Estimated Project Cost $440 Demand Reduction 0 kw Vectren Incentive - $280 Natural Gas Savings 0 therms Cost After Incentive $160 CURRENT CONDITIONS Two (2) beverage machines and one (1) snack machine operate continuously, regardless of customer use, resulting in excessive lighting and compressor energy consumption. RECOMMENDATION These machines could be retrofit with a vending machine controller to reduce energy consumption. The vending machine control utilizes a passive infrared sensor to detect people in the area of the vending machine. The controller will power down the vending machine when the surrounding area is unoccupied and will automatically power up the unit when the area is occupied. For refrigerated beverages, the controller will also cycle the compressor on to maintain cold beverage temperatures. It should be noted that vending machine controls cannot be used on vending machines with perishable food products, such as machines containing sandwiches. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff. The steps would be as follows: The vending machine company should be consulted for approval of the project and equipment recommendation and selection. The plug-in controller can be easily installed by facility maintenance staff on any vending machine once a suitable model is purchased. IMPACT ON OPERATIONS None 10 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 3. Install Vending Machine Controls Install sensor-activated vending machine power controls to reduce energy use without compromising products. COST CRITERIA Full Project Cost $440 Are Gas Incentives Available? N/A No gas savings for this measure Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 5 Industry accepted average lifetime of proposed opportunity Considered Cost $440 Cost used to determine incentive LOCATION Vending Machine Location Breakroom SPECIFICATIONS Quantity of Beverage Machines 2 Quantity of Snack Machines 1 SETPOINTS N/A CONTROL STRATEGY Existing Operation Proposed Operation Continuous Modulate Based on Occupancy OPERATING SCHEDULES Office Schedule 5 days/week OTHER N/A 11 ABC Company: Headquarters

Opportunity 4. Install No-Loss Condensate Drain Valve on Main Storage Tank OVERVIEW Install no-loss condensate drain valves to eliminate compressed air loss when condensate is drained from the system. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $780 Simple Payback 0.6 years Electrical Savings 22,000 kwh Estimated Project Cost $500 Demand Reduction 0 kw Vectren Incentive - $0 Natural Gas Savings 0 therms Cost $500 CURRENT CONDITIONS The main storage tank located east of Engine Room 2 is continuously purging compressed air to remove condensate that accumulates in the tank. During the walk-through assessment, the half inch purge line was equipped with a butterfly valve that was 50 percent open. RECOMMENDATION Purging air to remove condensate wastes compressed air and puts an unnecessary demand on the compressors. Nexant recommends installing a no-loss condensate drain valves on the main storage tank. No-loss drain valves expel condensate with no loss of compressed air, eliminating the compressed air purging load on the system and reducing air compressor energy consumption. Based on observations and a spot measurement of the air velocity leaving the valve, air is leaving the tank at a rate of approximately 50 CFM. This accounts for a significant portion of the rated capacity of the Ingersoll Rand SSR EP50 compressor. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff or mechanical contractor. The steps would be as follows: The contractor should be consulted for assistance in equipment recommendation and selection. The contractor will provide a quote for the upgrade and a specific scope of work, including specifications for the equipment selected. If multiple bids are requested, determine the most appropriate and proceed with installation. IMPACT ON OPERATIONS None 12 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 4. Install No-Loss Condensate Drain Valve on Main Storage Tank Install no-loss condensate drain valves to eliminate compressed air loss when condensate is drained from the system. COST CRITERIA Full Project Cost $500 Are Gas Incentives Available? N/A No gas savings for this measure Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 15 Industry accepted average lifetime of proposed opportunity Considered Cost $500 Cost used to determine incentive LOCATION See table below for specific drain locations. SPECIFICATIONS Existing Condensate Drains: Location Storage Tank* Type Continuous Quantity 1 Time Between Valve Cycling (seconds) 0 Valve Open Time (seconds) - Flow through Open Drain (CFM) 50 *Storage tank had 50% open valve discharging air through a 1/2" opening at 110 psig Compressor Name/Description Manufacturer Model Type - Control Main IR SSR EP50 Screw - Inlet Modulation Nominal Compressor hp 50 CAGI SETPOINTS Rated Flow (CFM) Compressor Shaft bhp Pressure at Rated Flow (psig) Motor Efficiency VFD Efficiency (if applicable) Motor Load Factor Package Input Power (kw) System Storage (gallons) System Pressure 208 59 125 94% No VFD 118% 44 750 110 CAGI CAGI CAGI CAGI Observed CONTROL STRATEGY Existing Drain Valves No-Loss Drain Valves Timer Drain Level Control OPERATING SCHEDULES Compressed Air System Pressurized Hours 7,488 Assume system is off on Sunday to be conservative OTHER N/A 13 ABC Company: Headquarters

Opportunity 5. Install Lighting Occupancy Sensors in Egg Cooler and Office Areas OVERVIEW Install occupancy sensors to reduce light fixture operation when spaces are unoccupied. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $120 Simple Payback 3.4 years Electrical Savings 4,900 kwh Estimated Project Cost $890 Demand Reduction 0 kw Vectren Incentive - $480 Natural Gas Savings 0 therms Cost After Incentive $410 CURRENT CONDITIONS All lights in the facility are currently manually controlled by wall mounted switches. RECOMMENDATION The Egg Cooler and several areas in the main office could benefit from the installation of occupancy sensor controls, which reduce energy consumption by turning lights off when the areas are unoccupied. Occupancy sensors use infrared and/or ultrasonic motion sensing technology to turn lighting fixtures on or off based on the sensed presence or absence of an occupant in the space. Areas where occupancy sensors should be installed include private offices, conference rooms, storage areas, restrooms, and break rooms. The most common occupancy sensor installation simply replaces the existing light switch. However, some rooms may require a ceiling mounted sensor for reliable operation, which may increase the installed cost. Also, rooms with three-way switches may require slightly more expensive sensors to work properly. The estimates for this opportunity are based on observations made during the walk-through. IMPLEMENTATION DETAILS This project would be best implemented through qualified facility maintenance staff or a local lighting contractor. The steps would be as follows: The contractor should be consulted for assistance in equipment recommendation and selection. The contractor will provide a quote for the upgrade and a specific scope of work, including specifications for the equipment selected. If multiple bids are requested, determine the most appropriate and proceed with installation. IMPACT ON OPERATIONS None 14 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 5. Install Lighting Occupancy Sensors in Egg Cooler and Office Areas Install occupancy sensors to reduce light fixture operation when spaces are unoccupied. ELECTIVE CRITERIA Full Project Cost $890 Are Gas Incentives Available? N/A Is equipment currently functional? Equipment Age (years) Estimated Useful Life of Current Equipment (years) Yes N/A N/A No gas savings for this measure Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 8 Industry accepted average lifetime of occupancy sensors Considered Cost $887 Cost used to determine incentive LOCATION See table below proposed locations of impacted lights SPECIFICATIONS See table below for fixture type and quantity SETPOINTS N/A CONTROL STRATEGY Lights are currently controlled by Switches OPERATING SCHEDULES OTHER See table below for assumed lighting hours for each location N/A Baseline Proposed Occupancy Sensor Location Fixture Type No. Fixtures Annual Hours Watts/ Fixture Fixture Type No. Fixtures Annual Hours Watts/ Fixture Quantity Recommended Type Diligent about turning off lights? Egg Coolers 2-Lamp 4' T8 NLO 1 4,992 16 hrs/day, 6 days/week 58 2-Lamp 4' T8 NLO 1 2,496 58 Egg Coolers 2-Lamp 8' T8 NLO 2 4,992 16 hrs/day, 6 days/week 110 2-Lamp 8' T8 NLO 2 2,496 110 1 Egg Coolers 150 W MH with Magnetic Ballast 1 4,992 16 hrs/day, 6 days/week 183 75 W LED - Illumitex Corona 1 2,496 75 Wall Mount Passive IR N/A Label Area 2-Lamp 8' T8 NLO 2 3,120 10 hrs/day, 6 days/week 110 2-Lamp 8' T8 NLO 2 624 110 1 Wall Mount Passive IR N/A Old Hayssen Room 2-Lamp 8' T8 NLO 3 7,488 24 hrs/day, 6 days/week 110 2-Lamp 8' T8 NLO 3 208 110 1 Wall Mount Passive IR N/A Office Restrooms 3-Lamp 4' T8 NLO 2 2,340 9 hrs/day, 5 days/week 85 3-Lamp 4' T8 NLO 2 1,310 85 2 Wall Mount Passive IR N/A 15 ABC Company: Headquarters

Opportunity 6. Reduce Operation of 15 hp Condenser OVERVIEW Reduce operation of 15 hp condenser to optimize facility condenser fan and pump energy. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $1,500 Simple Payback 0.7 years Electrical Savings 42,000 kwh Estimated Project Cost $1,000 Demand Reduction 0 kw Vectren Incentive - $0 Natural Gas Savings 0 therms Cost $1,000 CURRENT CONDITIONS A total of three induced draft evaporative condensers reject heat from the refrigeration system. Condensers EC-1 and EC-2 are located east of Engine Room 2 and are each equipped with one 50 hp fan with VFD speed control. Condenser EC-3 is located on the roof and is equipped with one 15 hp fan with start/stop fan control. The relatively small EC-3 is base loaded and operates year-round. EC-1 and EC-2 operate together at similar part-load conditions to meet a majority of the production refrigeration loads; however, at times EC-3 is able to meet all of the refrigeration loads during non-production, cold weather times. RECOMMENDATION Nexant recommends operating Condenser EC-3 during warmer outside air temperatures when the additional heat rejection capacity is required and disabling the condenser during cold or moderate outside air temperatures. Condensers EC-1 and EC-2 should operate as the base load condensers to take advantage of the exponential decrease in part load operating power that result with the VFD operation. An analysis of condenser loads is necessary to accurately estimate the switchover point when the net energy required to operate EC-1 and EC-2 is greater than the energy required to operate all condensers. Minimum cooling loads should be considered to ensure VFD speeds do not drop below the minimum speed required for proper VFD operation and motor cooling. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff. The steps would be as follows: Condensers EC-1 and EC-2 should be established as the lead condensers in the existing refrigeration control system. Condenser EC-3 should be established as the lag condenser and only enabled when more heat rejection is required to maintain system head pressure setpoints. IMPACT ON OPERATIONS In addition to saving energy, VFDs will provide a more consistent head pressure compared to the start/stop operation of Condenser EC-3. Load patterns should be analyzed to ensure Condenser EC-3 will not cycle on and off frequently at higher production loads with the new control strategy. 16 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 6. Reduce Operation of 15 hp Condenser Reduce operation of 15 hp condenser to optimize facility condenser fan energy. COST CRITERIA Full Project Cost $1,000 Assume 10 hrs of programming and commissioning Are Gas Incentives Available? N/A No gas savings for this measure Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Industry accepted average lifetime of current equipment Expected Life of Opportunity (years) 20 Industry accepted average lifetime of proposed opportunity Considered Cost $1,000 Cost used to determine incentive LOCATION Evaporator Condenser Fans SPECIFICATIONS Evaporative Condenser Fan Inventory Horsepower Estimated Load Factor Efficiency MBH Base EC-1 50 80% 94.5% 12,613 EC-2 50 80% 94.5% 12,613 EC-3 15 80% 92.4% 3,784 Pump Summary Horsepower Estimated Load Factor Efficiency EC-3 Condensing Water Pump 7.5 80% 91.7% 4 VFD Efficiency 95% Occupied Hours: Estimated cooling load varies linearly with outside air temperature as follows: Production Hours 385 tons of cooling load at 95 F and higher 385 tons of cooling load at 45 F and lower SETPOINTS Unoccupied Hours: Estimated cooling load varies linearly with outside air temperature as follows: Non-Production Hours 56 tons of cooling load at 95 F and higher 56 tons of cooling load at 45 F and lower Cooling Tower Approach Temperature (F) 13 Estimate Minimum Condensing Temperature (F) 81 Based on existing pressure setpoint of about 140 psig Existing Control Strategy for EC-3 EC-3 operates as the base load condenser year-round. CONTROL STRATEGY Proposed Control Strategy for EC-3 EC-3 should only operate as the base load condenser when required to meet refrigeration loads or when the net fan energy is less when operating. OPERATING SCHEDULES Open Close Weekdays 0 24 Saturday 0 0 / 24 Operate on Saturdays 6 months/year Sunday 0 / 20 24 Open all day 6 months/year, open at 10PM otherwise OTHER Weather Station Location (TMY3) Weather Bins ( F) 5 DES MOINES 17 ABC Company: Headquarters

Opportunity 7. Replace HID Lighting with High-Bay Fluorescent with Occupancy Sensors in Warehouse OVERVIEW Replace inefficient high intensity discharge (HID) lighting with equivalent light output T8 fluorescent lighting with occupancy sensors. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $1,100 Simple Payback 2.7 years Electrical Savings 36,000 kwh Estimated Project Cost $7,400 Demand Reduction 3 kw Vectren Incentive - $4,400 Natural Gas Savings 0 therms Cost After Incentive $3,000 CURRENT CONDITIONS The warehouse is lighted with thirty-four (34) 360 W metal halide high-bay fixtures. The fixtures remain on continuously, resulting in 8,760 hours of annual operation. RECOMMENDATION The metal halide fixtures could be replaced with thirty-four (34) 6-lamp high-bay T8 fluorescent fixtures with fixture mounted occupancy sensors. The replacement high-bay fluorescent fixtures use approximately 50 percent of the energy while providing a similar amount of light as the existing fixtures. In addition, fluorescent lighting does not have the slow warm-up time or high decrease in light output over the lamp life that is characteristic of HID lighting. Each fixture should be equipped with an occupancy sensor to reduce light fixture operation when the warehouse is unoccupied. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff or mechanical contractor. The steps would be as follows: The contractor should be consulted for assistance in equipment recommendation and selection. The contractor will provide a quote for the upgrade and a specific scope of work, including specifications for the equipment selected. If multiple bids are requested, determine the most appropriate and proceed with installation. IMPACT ON OPERATIONS A lighting project of this magnitude may need to be installed in separate phases. The installation of the project should be completed during a non-production period to minimize impacts on production schedules. 18 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 7. Replace HID Lighting with High-Bay Fluorescent with Occupancy Sensors in Warehouse Replace inefficient high intensity discharge (HID) lighting with equivalent light ouput T8 fluorescent lighting with occupancy sensors. ELECTIVE CRITERIA Full Project Cost $7,400 Are Gas Incentives Available? N/A Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Expected Life of Opportunity (years) 11 Considered Cost $7,350 No gas savings for this measure Industry accepted average lifetime of current equipment Industry accepted average lifetime of proposed opportunity Cost used to determine incentive LOCATION SPECIFICATIONS SETPOINTS See table below proposed locations of impacted lights See table below for fixture type and quantity N/A CONTROL STRATEGY Lights are currently controlled by Switches OPERATING SCHEDULES OTHER See table below for assumed lighting hours for each location N/A Baseline Proposed Occupancy Sensor Location Fixture Type No. Fixtures Annual Hours Watts/ Fixture Fixture Type No. Fixtures Annual Hours Watts/ Fixture Quantity Recommended Type Diligent about turning off lights? Dry Goods Warehouse 360 W MH High-Bay 14 8,760 24/7, 365 days/yr 408 6-Lamp 4' T8 High-Bay 14 4,380 226 14 Fixture Mounted No 19 ABC Company: Headquarters

Opportunity 8. Install Ultra-Premium Efficiency Motors OVERVIEW Replace existing motors with NEMA ultra-premium efficiency motors. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $1,200 Simple Payback 2.4 years Electrical Savings 35,000 kwh Estimated Project Cost $7,700 Demand Reduction 4 kw Vectren Incentive - $4,800 Natural Gas Savings 0 therms Cost After Incentive $2,900 CURRENT CONDITIONS During the walkthrough, motor nameplate information was recorded for a sample of 21 motors ranging in size from 3 hp to 350 hp. The operating hours and estimated load factors for each motor were used to calculate the expected energy savings for replacing the motors with ultra-premium efficiency motors. RECOMMENDATION Three motors were identified for which the savings would justify early replacement with ultra-premium efficiency motors. The motors identified are as follows: Table 1: Suggested Motors for Early Replacement Motor Name / Location HP Nameplate Efficiency Ultra- Premium Efficiency Annual Hours Compressor C3 100 91.7% 95.4% 8,760 Compressor C6 40 89.5% 94.5% 6,570 Cooling Tower Sump Pump 7.5 85.5% 92.4% 8,760 Nexant suggests reviewing the assumptions made for this analysis regarding motor loading and run time hours prior to making a purchase decision, as the assumptions will impact the project payback. Measuring the operating line current of the motors may provide a better indication of motor load. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff or a mechanical contractor. The steps would be as follows: The assumptions used to calculate energy savings should be verified by measuring the operating amps of each motor and analyzing the operating hours of each motor. The contractor should be consulted for assistance in equipment recommendation and selection. The contractor will provide a quote for the upgrade and a specific scope of work, including specifications for the equipment selected. If multiple bids are requested, determine the most appropriate and proceed with installation. IMPACT ON OPERATIONS The installation of the project should be completed during a non-production period to minimize impacts on production schedules. 20 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE 8. Install Ultra-Premium Efficiency OPPORTUNITY Motors Replace existing motors with NEMA ultra-premium efficiency motors. COST CRITERIA Full Project Cost $7,700 Are Gas Incentives Available? N/A Is equipment currently functional? Yes Equipment Age (years) N/A Estimate Useful Life of Equipment (years) 15 Expected life of Opportunity 15 Considered Cost $7,700 No gas savings for this measure Industry accepted average lifetime of current equipment Number of years for which saving are expected Cost used to determine incentive LOCATION See Table Below SPECIFICATIONS See Table Below SETPOINTS CONTROL STRATEGY OPERATING SCHEDULES OTHER N/A See Table Below See Table Below N/A Nameplate Information and Operating Conditions Motor Name/Location Enclosure Size (HP) Speed (RPM) Speed Control Avg Motor Load, all hrs Annual Hours Nameplate Efficiency (%) C-1: Holding Freezers C-3: High Side Loads C-4: Holding Freezers C-5: High Side Loads C-6: Blast Freezer 3 & 4 C-7: High Side Loads C-8: Blast Freezer 3 & 4 C-9: High Side Loads C-10: Blast Freezer 3 & 4 C-11: High Side Loads C-12: Blast Freezers 2,5,6 C-13: High Side Loads C-14: Blast Freezers 2,5,6 Cooling Tower Sump Pump Glycol Distribution Pump - Line 1 Glycol Distribution Pump - Blast Freezer 4 Glycol Distribution Pump - Blast Freezer 2, 3, 4, 5 Glycol Distribution Pump - Blast Freezer 6 Boiler Condensate Pump #1 Boiler Condensate Pump #2 Boiler Condensate Pump #3 ODP 25 1800 Constant 80% 8,760 95.6% ODP 100 1800 Constant 80% 8,760 91.7% ODP 40 1800 Constant 80% 8,760 93.0% ODP 100 1800 Constant 80% 6,570 95.4% ODP 40 1200 Constant 80% 6,570 89.5% ODP 150 1200 Constant 80% 6,570 95.0% ODP 40 1800 Constant 80% 6,570 94.1% ODP 150 1200 Constant 80% 6,570 94.5% ODP 100 1800 Constant 80% 6,570 94.1% ODP 300 1200 Constant 80% 6,570 95.0% ODP 200 3600 Constant 80% 6,570 95.0% ODP 350 3600 Constant 80% 7,614 90.0% ODP 300 3600 Constant 80% 7,614 95.0% TEFC 7.5 1800 Constant 80% 8,760 N/A TEFC 15 1800 Constant 80% 6,000 90.2% TEFC 7.5 1800 Constant 80% 6,000 85.5% TEFC 15 1800 Constant 80% 8,760 92.0% TEFC 20 1800 Constant 80% 8,760 92.0% TEFC 3 1800 Constant 80% 5,840 83.5% TEFC 3 1800 Constant 80% 5,840 83.5% TEFC 3 1800 Constant 80% 5,840 83.5% 21 ABC Company: Headquarters

Opportunity 9. Replace HID Lights with LED Lighting in Blast Freezers OVERVIEW Replace inefficient high intensity discharge (HID) lighting with equivalent light output LED lighting. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $1,200 Simple Payback 3.8 years Electrical Savings 36,000 kwh Estimated Project Cost $9,400 Demand Reduction 4 kw Vectren Incentive - $4,800 Natural Gas Savings 0 therms Cost After Incentive $4,600 CURRENT CONDITIONS Each blast freezer is currently lighted with three 150 W metal halide fixtures. The light fixtures remain on continuously due to the cold operating temperatures in the freezers and the associated re-strike times if the fixtures are turned off. The blast freezers are occupied as needed throughout the day to monitor frost accumulation and the overall condition of the freezer. RECOMMENDATION Nexant recommends replacing the metal halide fixtures with LED fixtures on a one-for-one basis. The replacement LED fixtures use approximately 40 percent of the energy while providing a similar amount of light as the existing fixtures. In addition, LED lighting does not have the slow warm-up time or high decrease in light output over the lamp life that is characteristic of HID lighting. The reduced restrike time will allow the fixtures to operate as needed, reducing the fixture operating hours by 75 percent. LED light fixtures are able to save energy over existing HID lighting by distributing the light emitted from the illumination source more efficiently than a typical lamp and reflector light fixture. It is important to note that the lighting environment created by an LED fixture will be much more uniform and the minimum light levels between fixtures may increase. However; it is possible that the overall average and maximum light levels in the blast freezers could decrease. In addition to the lighting energy reduction, the reduced heat load in each blast freezer will reduce the cooling load on the refrigeration system. The resulting load in reduction will result in a reduction in compressor operating power and additional energy savings. IMPLEMENTATION DETAILS This project would be best implemented by qualified facility maintenance staff or a lighting contractor. The steps would be as follows: The contractor should be consulted for assistance in equipment recommendation and selection. The contractor will provide a quote for the upgrade and a specific scope of work, including specifications for the equipment selected. If multiple bids are requested, determine the most appropriate and proceed with installation. IMPACT ON OPERATIONS LED lamps have a longer life and will require less maintenance than HID lamps. The installation of the project should be completed during a non-production period to minimize impacts on production schedules. 22 ABC Company: Headquarters

KEY INPUTS AND ASSUMPTIONS TABLE OPPORTUNITY 9. Replace HID Lights with LED Lighting in Blast Freezers Replace inefficient high intensity discharge (HID) lighting with equivalent light output LED lighting. ELECTIVE CRITERIA Full Project Cost $9,400 Are Gas Incentives Available? N/A Is equipment currently functional? Yes Equipment Age (years) N/A Estimated Useful Life of Current Equipment (years) N/A Expected Life of Opportunity (years) 34 Considered Cost $9,396 No gas savings for this measure Industry accepted average lifetime of current equipment Assumes 75,000 hour LED life Cost used to determine incentive LOCATION SPECIFICATIONS SETPOINTS See table below proposed locations of impacted lights See table below for fixture type and quantity N/A CONTROL STRATEGY Lights are currently controlled by Switches OPERATING SCHEDULES OTHER See table below for assumed lighting hours for each location N/A Baseline Proposed Location Fixture Type No. Fixtures Annual Hours Watts/ Fixture Fixture Type No. Fixtures Annual Hours Watts/ Fixture Blast Freezers 150 W MH with Magnetic Ballast 18 8,760 24/7, 365 days/yr 183 75 W LED - Illumitex Corona 18 2,190 75 23 ABC Company: Headquarters

Opportunity 10. Install VSD on Glycol Distribution Pump OVERVIEW Install VSD on glycol distribution pump serving Blast Freezers 2, 3, 4, and 5. ENERGY SAVINGS ECONOMIC SUMMARY Annual Cost Savings $1,300 Simple Payback 6.0 years Electrical Savings 49,000 kwh Estimated Project Cost $13,000 Demand Reduction 0 kw Vectren Incentive - $5,200 Natural Gas Savings 0 therms Cost After Incentive $7,800 CURRENT CONDITIONS The glycol distribution pump serving Blast Freezers 2, 3, 4, and 5 operates continuously throughout the year to provide glycol to the glycol/water heat exchangers at each production line. The glycol cools the water loop that is used to precool the product before it enters the blast freezers. Blast Freezers 2, 3, 4, and 5 are rarely required to operate simultaneously and glycol is bypassed around the heat exchanger whenever a production line is not operating. RECOMMENDATION Nexant recommends isolating each production line glycol loop with an actuated control valve and installing a VFD on the distribution pump. The VFD speed should be controlled based on the number of production lines in operation at any given time. Any three-way valves will need to be replaced with twoway valves or modified to operate as two-way valves by capping or isolating the bypass loop. IMPLEMENTATION DETAILS Installing VFDs requires a mechanical/controls contractor and a testing, adjusting, and balancing (TAB) contractor. A simplified list of implementation steps is shown below. Install a VFD on the distribution pump. Install actuated control valves on each glycol loop to isolate the production line when it is not in operation. Determine (by either calculating or measuring) the necessary flow rate for each production line. Add control points to the BAS and control wiring for communications to/from the BAS as necessary. Add BAS programming to modulate the speed of the glycol distribution pumps to maintain the necessary flow rates based on production requirements. IMPACT ON OPERATIONS In addition to saving energy, VFDs may decrease wear on the pump motors by providing soft starts. The installation of the project should be completed during a non-production period to minimize impacts on production schedules. 24 ABC Company: Headquarters