2016 AEP Ohio Solution Provider Kick Off Meetings

Takin’ Care of Business

2015 Highlights and Successes Andy McCabe Manager Business Programs

2015 Highlights – Thank You! • Preliminary numbers show: • Annual energy savings achieved- approximately

575 GWh (business and residential programs)

– Enough to power 47,600 homes for 10 years* • Paid up to an estimated 20 Million in incentives-

business programs

• Numbers assume the average household energy consumption of 12,000 kwh per yr and a 10yr measure life

Add certificate

Are YOU Taking Care of Business?

• Business customers that participate see value and continue to participate

• 2015 marketing and outreach effort to non-participants

• Your competition is using this program

Prescriptive Program

2015 Program Results

110+ GWh savings

$9 Million Incentives

paid

Preliminary results

Custom Program

2015 Program Results

70+ GWh savings

Over $3 Million Incentives paid

Preliminary results

Data Center Program

2015 Program Results

12.3 GWh savings

$850,000 Incentives paid

Preliminary results

Retrocommissioning

2015 Program Results

2015 completed projects - 80% were RCx Lite of mixed facility type

4.8 GWh savings

Over $250K Incentives paid

Preliminary results

Express Install Program

2015 Program Results

11+ GWh savings

$2 million+ Incentives paid 522 Projects

Preliminary results

New Construction

2015 Program Results

30+ GWh savings

Over $2 million Incentives paid

Preliminary results

How else can AEP Ohio help?

• Are you using our Energy Advisors? – We can help you do applications…..

• Do you understand how your customers segment “buy”?

• Do you know how to calculate? Return on investment, net present value, net operating cost

• Are you at the right level and including all the right people?

What is the best part about including incentives in the sales process?

THEY HELP YOU

CLOSE MORE Projects

The Turbo Tax™ of Energy Efficiency

GENERATE PRE-APPROVAL

TRACK SUBMISSIONS

REAL-TIME ESTIMATES

• Pre-Populates AEP Rebate Application

• Reduces Error Rates in Application

• Secure Website to Track Projects

• View Program Updates

• Maximize Incentives

• Customized for Each Solution Provider

Encentivizer™

Consolidated Outreach • More geographical

coverage, 7 FTE to help you with apps

What a Solution Provider gets from our Program • 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

What a Customer gets from the Program

• Cash incentives • Reduced payback periods • Lower net operating cost • Increased asset value of building • Reduced energy use • Lower maintenance costs • Increased employee comfort and productivity

Prescriptive Program 2016 What’s Changed?

LED screw in lamp incentive will be paid at $9/lamp instead of $0.35/watt reduced. PTHP incentive will increase from $30 to $42/ton. PTAC incentive will remain at $30/ton C & I refrigerator recycling incentive suspended for 2016.

T12 Lighting – phased out • T12 to T8

– No incentives available – Must use T8 baseline

• T12 to LED – Can use the prescriptive

application with T8 as the baseline

– We can help determining pre wattage

LED technology is here to stay The most energy-efficient

Illumination source available

Inherently controllable

Dimming actually extends system life

AEP Ohio pays $0.35 per watt reduced

- energy star or DLC technology

Controls are now: Fully integrated into every fixture

Responsive to the environment

Easy-to-use, with intuitive software interfaces

More cost-effective

Custom and Self Direct • Custom

– $0.08 per kWh saved – $25K per measure cap – mostly process

improvement projects

• Self Direct – Projects after January 1,

2013 – Mercantile customers – Customers that use

over 700,000 kWh yr.

2016 New Construction Program

Incentive availability through: • Early Design meeting • Whole Building energy modeling path • Design team incentive • Customer incentive • My Solutions path – Retail & Office • Prescriptive/Custom path

2016 Retrocommissioning Program • Current program model is well received • 2016 project pipeline is essentially full

already! • Speak with the folks at the RCx table

today if you have projects to add to the waiting list for 2016 program year

• Submit projects for 2017 waiting list

2016 Bid4efficiency Program • Online reverse auction providing energy efficiency incentives for AEP Ohio Customers and Solution Providers

• Over $6 million in incentives awarded (October 2015 for 2016 projects)

• Over 40 participants- winners posted on website

• Customers and Solution Providers can “lock in” incentives for 2016 projects above and beyond the $25K cap

Efficient Financing Pilot AEP Ohio’s Efficient Financing pilot will continue in 2016! A great borrowing option for customers in our Prescriptive and Custom programs. New in 2016: • WECC/EFS will manage the pilot for R/C/I to assist Solution

Providers and Customers with the process • Solution Providers will receive additional information/training in 2016

on process details • Working with multiple lending institutions including national and local Continuing in 2016: • AEP Ohio Incentive payment may be applied to pay down the loan • Flexible loan terms • No application fee

• Pilot program available again in 2015 • 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.

Community Energy Savers

Residential Programs

• Efficient Lighting • Appliance Rebate • In-Home Energy Program • On-Line Energy Assessment • e3smart℠ • EfficiencyCrafted ® Homes

QUESTIONS

AEP Ohio – The Changing Landscape for Energy Efficiency MANAGER EE/PDR PROGRAMS

Jon Williams

Overview • AEP Ohio is a distribution utility serving 1.5 million

electric customers with 200,000 commercial and industrial customers.

• Energy Efficiency/Peak Demand Reduction (EE/PDR) Portfolio is highly cost effective generating over 3 times the value for customers compared to the cost.

• Customer satisfaction is over 90% for most programs. • Offer a wide variety of residential, commercial and

industrial programs. • 2015 Business programs spending app. $30 million.

History of Ohio Law • SB 221 passed in 2008 - Established energy efficiency,

renewable and advanced energy mandates or standards for all investor owned utilities.

• SB 315 passed in 2012 – Among other changes, allowed combined heat and power and waste energy recovery to count toward energy efficiency goals.

• SB 310 passed in 2014 – Significant changes to SB 221. Established a 2 yr “freeze” while a legislative committee studies the mandates in 2015.

• SB 310 Energy Mandates Study Committee Report in 2015.

SB 310 Mandates Study Committee Recommendations

• Extend the SB310 Freeze Indefinitely. • Provide an Expedited Process at the PUCO for the

Review of New Utility Plans for Energy Efficiency. • Investigate and Ensure Maximum Credit for All of Ohio’s

Energy Initiatives • Switch from Energy Mandates to Energy Incentives • Declare that the General Assembly Retains Statutory

Authority with Respect to Energy Policy and Dispatch Protocols

Ohio Landscape for EE/PDR • Electric bill impacts remain a key concern for some parties. • Support is mixed for EE. • Utilities may be able to offer voluntary EE/PDR plans if

mandates are removed. • Some large stakeholders opposed to the mandates. • Uncertainty over the Clean Power Plan (federally

mandated carbon reductions) and the role of EE in Ohio. • AEP Ohio supports continuing cost effective EE/PDR Plans

as long as customer satisfaction remains high and the business model remains in place.

I am Jon Williams Manager AEP Ohio EE/PDR Programs.

We are here to help you take care of business!

jfwilliams@aep.com

2015 Recognition & Awards Jon Williams Andy McCabe Tracie Campbell

2015 Top Performers kWh Savings paid

ENERGY MANAGEMENT SOLUTIONS INC GREENE LIFE CORP AIR TECHNOLOGIES, INC JOHNSON CONTROLS INC. STATE ELECTRIC SUPPLY CO

.

2015 Top Performers Quantity of Projects

STATE ELECTRIC SUPPLY

ECOVA, INC.

THE LOEB ELECTRIC COMPANY

2015 Outstanding Region Performers

Region • Canton- • Chillicothe- • Columbus East- • Athens- • Western- • Columbus- • Steubenville-

Performers Buckeye Energy Solutions Team, LLC Earthwell Energy Solutions ADF Energy State Electric Supply Kahle Electric Spectrum LED Solutions Tri-State Supply

2015 Cleanest Applications

Limbach Company APO Pumps and Compressors

2016 AEP Ohio Solution Provider Kick Off Meetings

Takin’ Care of Business