ComEd Smart Ideas for Your Business®

“A Look Ahead”

Steve Baab, Manager Business Programs

January 20, 2015

Webinar Objectives

Provide Trade Allies forward looking program

guidance

Explain rationale behind past program changes

and initiatives

Signal future changes for upcoming program

years

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Agenda

PY7 Update

Historical Overview

Trade Ally Quality

Marketing Strategy

Technology

• Lighting / Control technology

• Impact of evolving lighting trends

• Need to achieve deeper lighting savings

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PY7 Update, PY8 Outlook

PY7 program activity is strong

• Depleted funding in:

• SBES

• BILD

PY8

• Budget increases

• Incentive applications in early March

• Incentive levels to remain the same

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Historical Overview

Launch

One Size Fits All

Growth Maturation

Widget Based

Utility Channels

Mass Markets

System Based Market Based

Segment by Size

Leverage Trade Allies

Targeted Marketing

Segment by Industry

Operational Marketing / Awareness Pipeline Management

One on One Marketing

Rely on Trade Allies

Brochures Awareness Ads Targeting Specific Customers

Waitlist Bonuses Customer Solutions

Sustainable Results

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Historical Overview

Launch

One Size Fits All

Growth Maturation

Widget Based

Utility Channels

Mass Markets

System Based Market Based

Segment by Size

Leverage Trade Allies

Targeted Marketing

Segment by Industry

Operational Marketing / Awareness Pipeline Management

One on One Marketing

Rely on Trade Allies

Brochures Awareness Ads Targeting Specific Customers

Waitlist Bonuses Customer Solutions

Sustainable Results

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Three Strategic Drivers

Trade Ally Quality

Customer Assessments

Technology

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Trade Ally Quality: Our Expectations

Trade Allies:

• Be Smart Ideas program ambassadors

• Talk about energy efficiency benefits with customers

• Provide excellent customer service, including completing and submitting customer incentive applications

Trade Ally Quality: Continuous Improvement

ComEd is committed to the network’s continuous

improvement

A participant monthly survey provides program

and Trade Ally customer experience feedback:

• Professionalism

• Smart Ideas program knowledge

• Smart Ideas paperwork assistance

• Project completion timeliness

• Problem resolution ability

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Trade Ally Quality: Continuous Improvement

The Performance Reward Program rewards

high-performing Trade Allies with bonuses

• Customers reported higher satisfaction and

a more positive experience working with

Trade Allies enrolled in the PRP

Enhanced project inspection process ensures

project quality

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Trade Ally Quality: Continuous Improvement

Portfolio and program-specific training keeps

Trade Allies up-to-date on Smart Ideas incentives

and services

Database tracks key performance indicators;

Trade Allies in need of improvement are coached

The Trade Ally Disciplinary Process removes

Trade Allies who do not meet program standards

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Marketing Strategy

Past tactics had varying degrees of success:

• Print ads, radio, digital, direct mail, email

• Events

• Bonus incentives

Current marketing strategy:

• Segmentation

• Targeting individual companies

• Assessments

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Types of Assessments

Several options / types of assessments:

Small Biz Energy Assessment

Smart Ideas Opportunity Assessment

Optimization

• Retro-commissioning

• Industrial systems

Technical Assistance Services

• Healthcare

• Data centers

• Labs

• Large industrial (foods)

Small Businesses

Free

Large Businesses

Modest Co-pay

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Energy Assessments

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ComEd.com/BizAssessment

Free to the customer – no

obligation

Approximate 2-hour on-site evaluation

performed by ComEd engineer

Identifies energy efficiency

opportunities and available Smart

Ideas incentives

Estimates energy savings and simple

paybacks

Minimum Eligibility:

Commercial or Industrial customer

taking ComEd delivery service

Energy demand > 100 kW

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Energy Assessments

Over the last 3 years:

1,600 C&I customer assessments identified:

• 560 GWh in energy savings

• $170 million estimated in available projects

• $45 million in incentives

Assessment effectiveness:

• 35% of assessed customers submitted a Smart

Ideas program application for incentives

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Energy Assessments

Trade Allies Benefits

Assessment engineers encourage customers to

work with Trade Allies

Assessments provide customers with a list of

potential projects – ask to see the assessment

Request an assessment for your customer to find

potential project opportunities:

• Email: SmartIdeasBiz@ComEd.com

• Online: www.ComEd.com/BizAssessment

• Call: 855-433-2700

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Technology

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Technology Evolves, Program Changes

2008

Simple on / off controls

2009-2014 2015+

One for One replacements

CFLs

Motors

Watts reduced Enhanced Layouts

Occupancy Sensors

Specialty CFLs

VSDs / Drives

GUI Intelligent Controls

T12 retrofits T8/T5 High Bay Retrofits

T8/T5 Fixtures

EMS - Drives

Dimmable LEDs

Pulse Start HID RW LED Fixtures

Rooftops Chillers EMS / Optimization

Technology

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LED is gaining market share over older technologies

• DOE estimates that LED will be 48% of product sales by

2020

• DLC list now has 70,000 products

The Future of Advanced Lighting?

Lighting Controls Market to Triple by 2020

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Technology Adoption

Compared to other parts of the country, many business

customers in the ComEd service territory still have

older lighting technology

Program designed

for:

• Early Adopters

• Early Majority

• Portion of the

Late Majority

Solutions for

Laggards

Innovation Adoption Lifecycle

2.5% 13.5% 34% 34% 16%

Innovators

Early Adopters

Early Majority

Late Majority

Laggards

Source: Roger’s Diffusion of Innovation

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Technology Leap Frog

Program evaluation limits savings from “laggards”

• Code compliance

• Only option available

May need to “leap frog” EE technology options

Incandescent CFLs LEDs

T12s HP T8/T5 New Fixtures,

LEDs

Advanced Lighting

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Maximize Potential

Savings through Complete System

Approach

Control Systems Now

Offer Unprecedented User Flexibility

LED Technology is

Inherently Controllable

Lighting System

Performance Documentable

Savings are Quantifiable

and Justifiable Multiple Control

Strategies Capable in

One System

Delivers Deeper Energy

Savings

Luminaire Efficiency

Offers Potential to Reduce

Fixture Count

Potential Energy Savings

Advanced Lighting Systems

Better

66% reduction in energy

2 x 4 LED Troffer (50W)

Typical One For One Retrofit

(No Controls)

From 14,500W to 5000W

• 9,500 Watt Reduction

• 38,000 kWh Reduction

• $2,850 Savings per Year*

Best

88% reduction in energy

LED Advanced Lighting Project

(15% Fixture Reduction w/

Controls)

From 14,500W to 4,250W

• 10,250 Watt Reduction

• 41,000 kWh Reduction (w/o

Controls)

• 51,200 kWh Reduction (w/

Controls)*

• $3,840 Savings per Year**

Existing Lighting System

2 X 4, 4 Lamp T12 Troffer (145W)

*Estimate of 60% Incremental Energy Savings with Controls

**Based on Energy Cost of $.075/kWh

Good

42% reduction in energy

3 lamp T8 (85W)

Typical One For One Retrofit

(No Controls)

From 14,500W to 8500W

• 6,000 Watt Reduction

• 24,000 kWh Reduction

• $1,800 Savings per Year*

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Questions?

Call us: 855-433-2700

SmartIdeasBiz@ComEd.com

ComEd.com/BizAssessment

ComEd.com/BizIncentives

• Program information

• Application Forms

DCEO information

• IllinoisEnergy.org