$808 million Emerson s. 9,066 number of Engineering & 32%... new products as percent of. 1,646 new patents earned in 2012

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Emerson At-A-Glance US $24.4 Billion in Sales Headquarters in St. Louis, Missouri USA NYSE: EMR Diversified global manufacturer and technology provider Approximately 135,000 employees worldwide Manufacturing and/or sales presence in more than 150 countries 235 manufacturing locations around the world No. 120 on 2012 FORTUNE 500 list of America s largest corporations Founded in 1890 2

Emerson Invests in New Technology Development to Meet Customer Needs $808 million Emerson s investment in Engineering & Development during 2012 9,066 number of Engineering & Development personnel worldwide 32%... new products as percent of Emerson sales in 2012 1,646 new patents earned in 2012 by Emerson employees globally 3

A Global Manufacturing and Technology Company Process Management Network Power Climate Technologies Industrial Automation Appliance & Tools 4

Emerson Climate Technologies: Creating Comfort & Peace of Mind Environmental Responsibility Industry-leading climate control technologies, services and integrated solutions that help deliver indoor comfort, energy efficiency, and food safety for homeowners and businesses Residential Heating & Air Conditioning Commercial Heating & Air Conditioning Commercial & Industrial Refrigeration Electronic Services & Solutions Technologies that deliver indoor comfort and reduce energy costs High-quality, reliable and energy efficient HVAC solutions for every type of work space Proven refrigeration solutions to protect and safeguard food and the environment Facility design, commissioning and energy management, including 24/7 energy monitoring 5

Largest Energy Loads in the Home Thermostats Gas Furnace Air Conditioner / Heat Pump Water Heater Gas Valve Furnace Controls AC & HP Controls Compressors Gas Valve Temp Control 6

Home Energy Management Products 7

Ensuring Interoperability & Optimizing Choice 8

Case Study - Emerson Water Heater Switch Emerson Was Awarded A $1.6M ARRA Grant To Design A Retrofittable Load Control Switch Specifically Designed For Use With Electric Water Heaters 9

Case Study Design Goals Water Heater Switch Significantly Reduced Installation Time/Cost Versus Universal Load Controls No Impact to Water Heater Agency Listing (UL) or Warranty Modular Radio Design, Support CEA-2045 Inputs for Sensors 10

Case Study Habersham Pilot Results Collaboration of 5 Companies Comparison of Installation Times Average Installation Time Reduced by 65% (36 minutes) Wall Mounted LCS Installation Function Minimum Maximum Average Median Std. Dev. Unwire WH 3 Min. 9 Min. 5.7 Min. 6 Min. 2.3 Min. Mount LCS 13 Min. 90 Min. 29.4 Min. 21 Min. 25.1 Min. Wire LCS 14 Min. 32 Min. 20.1 Min. 18 Min. 6.2 Min. Total Time 37 Min 129 Min 55.2 Min. 47 Min. 30.3 Min. Water Heater Mounted Installation Function Minimum Maximum Average Median Std. Dev. Unwire WH 3 Min. 10 Min. 6.1 Min. 5.5 Min. 2.6 Min. Mount LCS 5 Min. 8 Min. 6.9 Min. 7 Min. 1.1 Min. Wire LCS 5 Min. 8 Min. 6.4 Min. 6 Min. 1.2 Min. Total Time 16 Min 25 Min. 19.4 Min 18.5 Min. 3.3 Min. Source: Bellbrook Energy, LLC. Emerson Confidential 11

Patent Pending Design 12

Emerson s WHS Is Ideal For Frequency Regulation / Ancillary Services Charge all water heaters to the maximum (user defined) temperature set point when generation is abundant Turn off all water heaters when demand exceeds generation Fairly consistent average delta of 8.9 degrees applying this simple offset will provide a good approximation of actual tank temperature 13 Source: Siemens AG Emerson s easy to install T&P valve temperature sensor allows your DRMS to monitor the water temperature of each tank If any tank should fall below 110ºF 115 when demand exceeds generation, you 110 can allow those units to intermittently 105 charge (maintaining 110ºF) to prevent customer dissatisfaction 100 140 135 130 125 120 Test Data Showing Relationship of Emerson s T&P Valve Temperature Sensor and Internal Tank Temperature Sensor Internal Tank Sensor T&P Valve Sensor 0 1 2 3 3 4 5 6 7 8 8 9 10 11 12 13 13 14 15 16 17 18 18 19 20 21 22 23 23

Thank you! For Additional Info Please Visit Our Booth www.emersonclimate.com/utility Ivan Kustec Ivan.kustec@emerson.com 314-553-3153 14