,. INITIATIVES FOR- , INDUSTRIAL CUSTOMERS

Get up to 100 per cent funding on your next energy efficiency upgrade.

If you're like many of BC Hydro's industrial customers. you've already started to makesmart energy management a part of how you do business every day.

Along the way. you may have found that budgets for energy efficiency upgrades arenot always easy to come by-no matter how much money the upgrades will save,That's where Power Smart's Project Incentives come in,

The idea couldn't be simpler, If you're considering a qualifying upgrade. we offer fundingfor as much as 100 per cent of your project costs. It's a comprehensive incentive thatcovers the totaL cost of your project. including equipment. design. instaLLation. disposaL.and taxes. Of course. that's over and above your ongoing savings on energy and otheroperating costs.

IS THIS INITIATIVE FOR YOU?This incentive is for aLLBe Hydro industriaL transmission customers (Rate Schedule 1823)who use more than $50.000 of eLectricity annually. Some project guidelines apply:

• Your project must be a hard-wired facility upgrade with an expected Lifespan of fiveyears or more.

• Projects shouLd have a projected savings of at Least300 megawatt hours annually.(Youare welcome to bundLesmaLLerprojects to meet the minimum.)

• Your project invoLvesa technology that has aLready been successfully impLementedwithin BC and that is measurabLe and verifiabLe.

• Your site must be operationaL for a minimum of six months prior to application.

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UPGRADE TO SAVEFirst you save with majorIncentives. Then you save foryears to come on your energyand operating costs.

UPGRADE TO PERFORMAn efficient system is ahigh-performance system.That means better qualityproducts and improvedcustomer satisfaction.

UPGRADE TO LEADYour progressive approach toenergy won't go unnoticed byyourcustomers and business peers.

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HERE.S WHAT WE OFFERDepending on the size and financiaL performance of your upgrade project, up to 100 percent of your costs may be covered, and there's no maximum incentive. That means you'llstart enjoying your energy savings right away, with Little or no payback period.

• Projects costing $1 million or Lessare eLigibLefor incentives up to 100 per cent.Those costing more than $1 million are eligibLe for incentives up to 75 per cent.

• Your maximum incentive is caLcuLatedbased on the amount of eLectricity that yourproject wiLLsave over its projected lifetime, at a base rate of $45/MWh.

• To ensure cash flow, we wiLLpay up to 90 per cent of the incentive during theimpLementation process, with the rest paid after verification of energy savings.

• ELigibLecosts include detaiLed engineering design, equipment acquisition,equipment instaLLation, in-house Labour,project management, disposaL, and taxes,

SAMPLE PROJECTLet's say that you are pLanning a system upgrade that wiLLcost $850,000 and save3,000 MWh per year for 10 years,

Before IncentiveWithout any project incentives, this project wouLd pay for itseLf in Lessthan nine years.

Project costsProjected annuaL savingsPayback period

$850,000$98,130'8.7 years

Incentive CaLcuLationThe avaiLabLeincentive is caLcuLatedbased on the projected eLectricity savings of theupgrade over its entire 1a years lifespan.

$30.9/MWh" x 3,000 MWh/yr x 1a years = $927,000 maximum incentive(incentive rate) x (annual savingsl x (lifespan)

This is capped at 100 per cent of the project costs-in this case, $850,000.

After IncentiveWith a project incentive of $850,000, the up-front capitaL costs and payback period willbe compLetely eliminated. Of course, this project will also continue to save on energycosts for 10years.

FinaL project costsPayback periodLifespan eLectricity savingsTotal project savings

$0o years$981.300'$1,831.300

'Based on 3,OOOMWhper year for 10 years at a typical rate savings of $32.71/MWh. Rate is for example onlyand does not factor in taxes or net present value INPVJ... The base incentive rate is $45/MWh. Factoring in the net present value (NPVI for a project with a 10 yearpersistence gives us a rate of $30.9/MWh.

rl~~~1~mil~UtHmRemember that our tieredeonservation Rate is alsodesigned to handsomely rewardsmart energy management,as an alternative to our ProjectIncentives. Together. they provideyou with two distinct choices forproject funding:

• The Project Incentivesprovide near-term capitalfor customers concernedprimarily with projectbudgets. This is on top ofyour Long-term energysavings.

• The Conservation Rateoffers significantLy boostedLong-term savings on yourelectricity bill for as long asthe project continues tosave energy.

Every customer is unique.Wewill be happy work with youto select the best choice for yourproject.

GET STARTEDContact your Key Account Manageror talk to BC Hydro eustomer Care.

60t. t.53 61.00Lower Mainland1 866 453 6400 elsewhere In Bebchydro.com/industrialIndustnal@bchydro.com

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