The Main Street

Energy Efficiency
Partnership
Program
A shovel-ready solution that creates local jobs, improves
profits, and strengthens communities while making homes
and small businesses more energy efficient.

March 2009
www.mainstreetefficiency.org
Steven Meyers 512-796-2242
Introduction & Background

Main Street Energy Efficiency Partnership

Programs

Examples of Past Success

Our Proposal

Q&A
 Introduction

Main Street Energy Efficiency Partnerships build local coalitions to

lower energy costs in small-businesses and homes by installing
efficient technologies and educating all participants.

Our track record …

Since 1996, we have had great success bringing local jobs and low-
cost energy efficiency improvements to nearly 100,000 small
businesses and homes with over 90% participation rates and 99.5%
customer satisfaction rates.

Why we are here today …

Given today’s economic and political climate, we have an
unprecedented opportunity to expand and institutionalize these
programs in 20 additional communities across the country.

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 Program overview

What makes this different than other efficiency programs?

1. Build a coalition with cities, states, utilities, and community organizations
2. Improved business process
3. Streamlined implementation via web-based mobile-computing platform

Who benefits?
Home-owners, small businesses, local contractors, utilities, community
organizations, local and federal government, economy, global ecosystem

Our Proposal
► Implement twenty $50 million Main Street Programs nationally.
► Install energy efficiency in 1,000,000 small businesses and homes, save
$550 million (4,300 GWh) annually, and create 15,700 local green jobs.
► Support program through Federal Stimulus Package matched by state and
local funds

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Our clients are primarily concerned about…

• Energy efficiency costs less than

all other energy resources
• Quickly reduce peak demand
• ECM Database ensures best-
practice implementation
• Customers have a positive
experience with EE Clean Energy
• Reduce GHG

Managing Stimulating
• Dashboards provide Quality Economic
real-time transparency Control Development • America’s Main Street
• QA/QC inspection process becomes more profitable
• High customer satisfaction • Fast deployment
• Professional business process • Maximizes creation of green jobs
• Highly scalable • Promotes social justice
• Low risk
 Main Street Efficiency programs create multiple benefits

1. Save energy
Targeting 1,000,000 small businesses will save over $500 million every year

2. Create green jobs

15 jobs per $1 million of investment and auditors can be trained in two weeks with no prior experience

3. Stimulate the local economy

Small business become more profitable and circulate those dollars locally.

4. High transparency
Technology platform shows measurable results on real-time dashboards

5. Highly scalable
Programs are deployed in new markets in less than 8 weeks and leverage local labor

6. Low Risk
Benefits accrue and capital is spent in small, linear increments to many customers

7. High Customer Satisfaction

Programs continually achieve participation rates over 90% and customer satisfaction of over 99.5%

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 Why energy efficiency?
Energy efficiency both costs less and creates more new jobs than other energy resources.

Comparative Costs of Electricity Generation Jobs Created per Energy Sector

(Dollars per kW of Nameplate Capacity) (Per $1 Million in Output)

$6,000 14

$5,649 12
$5,000
10
$4,000
8

$3,000
6

$2,475 $2,537
$2,000 4

$1,434 2
$1,000
$900 3 3 5 10 10 13
$717 -
$0

Energy Efficiency
Coal
Nuclear

Solar
Oil and Natural Gas

Wind
Efficiency
Energy Efficiency
Coal (IGCC)
Natural Gas

Wind

Nuclear

Solar

Energy
• NOTE: Costs only includes capital costs Source: Political Economy Research Institute (December 2008)
• Source: EIA Assumptions for the Annual Energy outlook 2008, http://www.peri.umass.edu/green_recovery/
Table 38, p. 79.
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 Why target small businesses and homes?
Homes and Small Businesses represent a large market with multiple benefits to diverse stakeholders.

US Electricity Usage • Large portion of energy usage (>50%)

• High impact and visibility within

communities
Industry Homes
32% 35% • Market can be penetrated quickly
(ramp-up in less than 2 months per community)

• When small businesses and homes

Large reduce costs they flow profits back
Small
Businesses Businesses into local communities
16% 17%
• An untapped energy reserve
• Mass-market customers (i.e. homes and small businesses) use over 50% of the nation’s
$344 billion (2007) annual electric spend. • Existing labor force can be easily
• Mass markets represent 74% of 4.3 million commercial buildings
• These customers are often confused by the highly fragmented energy-efficiency trained to address these customers
options and lack the resources to pursue them.
• Sellers of energy-efficiency have neglected this market because of the high transaction
costs relative to the per-customer sales potential.

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 Introduction & Background

Main Street Energy Efficiency Partnership

Programs

Examples of Past Success

Our Proposal

Q&A

9
 Collaborate with stakeholders to customize programs
An efficient process, aligning stakeholders and providing clear benefits to customers produces results!
Small Businesses Homes

Customers

Mobile
Computing
Community Platform Local
Organizations Governments

Manufacturing
Local Utilities
& Retailers
Local
Contractors
(HVAC, Lighting, etc.)
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 Implement a unique process that works
 PLAN
 Customized program goals
 Establish responsibilities
among all stakeholders
 Identify target market
 Create marketing plan
 Establish evaluation
metrics
 Select qualified ECMs
 Recruit, hire and train team
 Qualify local contractors
 Leverage past expertise
and knowledge base
 Share relevant data
 Quantify costs and benefits
 Integrate other grants and
programs
 Engage communities
 AUDIT
 Wirelessly dispatch address
lists to audit team
 Automated routes
 PDA-based audit captures
all relevant data (even for
non-program ECMs)
 Print report showing costs
and savings on-site
(supports six languages)
 Sign Work Authorization
and arrange installation
 “One-stop sale”
 Customer relationship
management
 Lead generation
 Customer education
 Share data with wirelessly
with all stakeholders
instantly
 IMPLEMENT  MONITOR
 Pre-qualified local  Centralized real time
contractors trained on reporting with web-based
efficient technologies dashboards
 Bulk negotiated material  Quality Control and
purchases Customer satisfaction
 Web-based work orders follow-up
and follow up  Program performance and
 Automated schedule/route budget analysis
 Warranty/Satisfaction  Best practice database
guarantee  Continual improvement
 Training/Job Creation  Lead generation into
 Improved contractor additional programs (i.e.
efficiency as they operate solar PV or Appliance
at capacity and focus on Recycling)
core activity  Remarket/follow-on with
 Physically inspect 100% of additional ECMs
installations
 Enabled by a web-based mobile computing platform
The mobile computing platform is a critical technology that eliminates barriers to this market.

Energy Audits
Conducted on PDAs
communicate results Data Users
in real-time
Program
Managers

DATABASE
Installation
• Site Data Contractors
• Customer Data
• ECM Data
Energy Auditor
• Program Data
• Best Practice Data
• Cost Data
• Evaluation Data Executives
Web
• CRM Data Applications

Customers

12 12
 Main Street Delivers a Highly Effective Solution
TIME
Traditional Process
 Inefficient paper process  Audit & Analysis
(1-4 weeks)
 High transaction costs
 Long delivery times  Installation
<50% (2-16 weeks)
 Little transparency
 Complex contracting  Inspection
(1-2 weeks)
 Low participation rates
 Lost opportunities  Administration
(2 – 4 weeks)
Low level of verified savings
 Follow-On
(no process)

EnerPath Solution
 Audit & Analysis
 Efficient, digital process (20-90 minutes)
 Reduced costs >90%  Installation
 Faster delivery (1-14 days)
 Instant transparency  Inspection
 High customer satisfaction (1-7 days)
 Simplified contracting  Administration
 High participation rates (None )
 Best practice database  Follow-on to Additional Programs
High level of (30-85% via Lead Generation Tools)

verified savings
 Introduction & Background

Main Street Energy Efficiency Partnership

Programs

Examples of Past Success

Our Proposal

Q&A

14
 Example #1 LADWP Lighting Efficiency Program

Google maps tracks progress Installed efficient lighting systems in 20,000 small
businesses in 9 months with an annual program
budget of ~$20M

Employed over 20 auditors and over 200 local

contractor personnel

Over 300 candidates answered the employment ad

placed in the LA Times and 20 were hired within a
couple weeks.

The utility paid ~$940 per customer.

Social Justice: Managers used Google maps to track

progress and compare results by zip code.

IMPACT
• Real-time Web-based tools show results (e.g. percent of participating homes) by
zip code. This allows program managers to track real-time progress, ensures a • Saved over 72,000 MWh per year
more fair distribution of program resources, and creates competition among
neighborhoods.
(equivalent to ~7,200 homes of CO2)
• Saved 19 MW
• Levelized cost of ~4¢/kWh
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 #2 Palm Desert, California “Set to Save” Program

Goal: Reduce energy usage city-wide by 30% by 2012

• Our Energy Partners: Southern California Edison,

Southern California Gas, The Energy Coalition, and the
City of Palm Desert
• Community Partners: Chamber of Commerce, Schools,
Senior Centers, and homeowner associations
• Impact through 2008:
– 3,200 homes annually save 1,954 kWh per customer
– 800 small businesses annually save 12,600 kWh per
customer
– Schools introduced the program to students who in turn
encouraged participation in their communities

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 Website provides transparency and real-time results

Shovel-ready solutions that creates local

jobs, improves profits, and strengthens
communities while making homes and
small businesses more energy efficient.

TOTAL ENERGY SAVED ($)

700
ABOUT US 600 $5,235,215
500
PROGRAMS 400
300
PARTNERS 200
100
RESOURCES 0
RESULTS GREEN JOBS CREATED

1/11/2009
1/13/2009
1/15/2009
1/17/2009
1/19/2009
1/21/2009
1/23/2009
1/1/2009
1/3/2009
1/5/2009
1/7/2009
1/9/2009
800

CONTACT
700
600 2,138 Jobs
500
400
300
200
100
0
TONS OF CARBON SAVED

1/11/2009
1/13/2009
1/15/2009
1/17/2009
1/19/2009
1/21/2009
1/23/2009
1/1/2009
1/3/2009
1/5/2009
1/7/2009
1/9/2009
800
Start Saving Money Today! 700
600
4,321,239 Tons
Click on the map or enter a zip code or 500
400
city to find a program in your community 300
200
100
0

1/11/2009
1/13/2009
1/15/2009
1/17/2009
1/19/2009
1/21/2009
1/23/2009
1/1/2009
1/3/2009
1/5/2009
1/7/2009
1/9/2009
| About | Programs | Partners | Resources | Results | Contact | © 2009 MainStreetEfficiency.org
 Oh… by the way… customers love it!

LADWP Small Business Direct Install Program • Customers have a very positive
Customer Satisfaction Survey Results (CSS)
Contractor: Energy Controls & Concepts
Date Prepared: October 20, 2008
experience with energy efficiency and
Total Customers Installed
Cutomer Attempts to Attain Customer Satisfaction Survey Results
10,251
8,611
want to do more
Total CSS Unknown Status (Contacts Not Reachable) 3,310
Total Customers Contacted for Customer Satisfaction Survey - (# Survey Sampling) 5,301 51.7%

• Customer satisfaction reports

# Question Answer Count Percent

1) Were you Satisfied with the Performance of our Energy Services Representative? Very Satisfied 4,803 90.6% continually show >99% very satisfied
Satisfied 472 8.9% 99.5%
Not Satisfied 27 0.5%

2) Did you Notice an Improvement to the Lighting / Lighting Quality in your Business? Yes
No
5,132
169
96.8%
3.2% • 97% of customers said the quality of
3) Was the Installation Performed to Your Satisfaction? Very Satisfied
Satisfied
Not Satisfied
4,707
548
47
88.8%
10.3%
0.9%
99.1% their lighting improved after
4) How would you Rate the Installers Performance? Very Good
Good
4,812
421
90.8%
7.9% 98.7%
installation
Fair 42 0.8%
Poor 27 0.5%

5) Were you Satisfied with Time it Took to Complete the Work? Yes
No
5,245
57
98.9%
1.1%
• 99% of customers were satisfied with
6) Would You Participate in Similar Programs? Yes
No
5,195
107
98.0%
2.0%
their contractors
7) Would you Recommend this Program to Another Business? Yes 5,262 99.3%
No 39 0.7%

8) Do you have LADWP Service at your Home? Yes

No
4,190
1,111
79.0%
21.0%
• 85% of business customers said they
9) Will you Make Energy Efficiency Improvements at your Home? Yes
No
4,520
781
85.3%
14.7%
would make energy improvements in
10) Please Rate Overall Program Performance. Excellent
Very Good
4,755
494
89.7%
9.3% 99.0%
their home (positive spillover)
Average 44 0.8%
Poor 8 0.2%

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Program staff requirements for $50 million/year

Program
Manager
Off Site

Customer Technical
Sales Manager Project Manager Quality Control
Service Support

Lead Auditor Project Managers Inspectors CS Reps

(X5) (X5) (X10) (X8)

10 Auditors ~400-500 Local

(ESR) Contractors

X 5 = 50 ESR

• Using the PDA energy-audit tool, Auditors can identify ~$1 million of energy-
efficiency upgrades per year
• One Energy Auditor is supported by 10 contractor personnel who install efficient
upgrades
• This program office can be recruited, hired, and trained in one to two months in a
new community.
 Program staff requirements for $50 million/year
Total Program Capital $ 50,000,000 (input)

Salary FTEs Salary PROGRAM METRICS

Management (unburdened) Program
Program Manager $ 90,000 1.0 $ 90,000
• Local employees hired
Capital Per Customer $
Admin Asst. $ 33,280 2.0 $ 66,560 withinNumber
the community
of Customers 5
3.0 $ 156,560 5% Annual Savings/Customer (kWh)
Sales/Auditing
• These are typical
Customer Rate
Sales Manager $ 70,000 1.0 $ 70,000 (unburdened) annual($) $
Annual Savings/Customer
Lead Auditor $ 43,200 5.0 $ 216,000 salaries for similar
Cost/Annual kWh Saved $
Auditor / ESR $ 33,000 50.0 $ 1,650,000 Program Savings
programs (kWh/year) in 208,33
implemented
56.0 $ 1,936,000 62% Program Savings ($) $ 25,00
California
Project Management Discount Rate
Lead Project Manager $ 80,000 1.0 $ 80,000 Average Measure Life
Project Manager $ 60,000 5.0 $ 300,000 Levelized Cost/kWh $
6.0 $ 380,000 12%
Quality Control
Quality Control Mgr $ 60,000 1.0 $ 60,000 EMPLOYMENT METRICS
Inspectors $ 32,000 10.0 $ 320,000 Additional Contractor Labor
11.0 $ 380,000 12% Total Labor (PM + Contractors)
Customer Service Total Capital Per Job $ 8
Customer Service Mgr. $ 45,000 1.0 $ 45,000 Total Jobs/million$
Customer Service Rep $ 30,000 8.0 $ 240,000 Jobs Induced from "Savings"
9.0 $ 285,000 9% Total Jobs (PM + Cont. + Savings)

PROGRAM MANAGEMENT 85.0 $ 3,137,560 100% TOTAL JOBS PER MILLION $

 Program are customized per customer needs
Below are examples of two possible programs, each with a $50 million budget. The Energy Conservation Measures (ECMs) are
customized for each community based on specific program goals. In all cases, auditors use PDAs to collect data for all ECMs which
allows the program to expand and capture increased energy savings from additional measures that can be phased into the programs.
This allows the program to move quickly while maximizing the energy savings while meeting the program’s budget. Our programs also
collaborate with water, gas, and electric utilities to leverage the cost of a single audit to identify all conservation measures.

Base ECMs
$50 Million • Program cost per customer $ 1,000
PROGRAM • Annual Energy Savings (@12¢/kWh) $ 500 /yr
• Cost per annual kWh savings
A • Levelized cost per kWh
24¢
5.0¢/kWh
50,000
• Annual Carbon Reduction 125,000 mtCe
Customers • Peak Load Reduction 52 MW

$50 Million
Incremental ECMs
• Program cost per customer $ 3,500
PROGRAM • Annual Energy Savings (@12¢/kWh) $ 1,200 /yr
B • Cost per annual kWh savings 35¢
• Levelized cost per kWh 7.2¢/kWh
14,286
• Annual Carbon Reduction 86,000 mtCe
Customers • Peak Load Reduction 36 MW
Programs are customized per community needs
Program A and Program B may include different energy technologies or different markets.

Program A Program B
Total program budget $50,000,000 $50,000,000
Number of Customer 50,000 14,286
Program Cost/Customer $1,000 $3,500
Annual Energy Savings (@14¢/kWh) $500 / year $1,200 / year
Cost per annual kWh saved 24 ¢ 35 ¢

Levelized Cost per kWh 5.0 ¢ 7.2 ¢

Annual Carbon Reduction 125,000 mtCe 85,681mtCe
Peak Load Reduction 52 MW 36MW
Direct Local Jobs Created 586 586

Jobs per $1 million 17.6 15.7

(including jobs from reinvestment of energy savings)
 Energy Efficiency creates green jobs quickly

• Standardized and scalable processes combined with the mobile

technologies enable new programs to mobilize in less than 2
months.
• Current workforce is capable of learning and performing these
Job creation jobs.
Implementing a $50 • Successful programs have trained workers with no previous
million program in 20 energy-related experience.
communities creates • Energy auditors can be trained on PDA audit-tools in less than
(total of $1 billion program) two weeks with no prior energy-related experience.
• 11,700 direct jobs
• Since PDA’s include digital cameras and cell phones, energy
• 4,000 jobs from auditors can phone an “energy specialist” at headquarters
reinvested energy when auditors see unfamiliar energy equipment.
savings
• More than 4x job creation than nuclear (and faster and
• 15.7 jobs per $1 million cheaper)
(does not include “indirect” jobs)
• Federal Stimulus Package proposes programs with 6 – 16 jobs
per $1 million

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 Benefits of real-time web-based tracking
Program managers identified high costs, added new technologies, and met their goals.

Southern California Edison 2005 Summer Initiative Program

2,000,000 $0.40
$0.31

$0.30

$0.30
1,750,000 $0.35
$0.30

$0.30

$0.30

$0.29
Program Cost Goal

$0.27

$0.27

$0.26

$0.25
1,500,000 $0.30

$0.25

$0.24

$/Annual-kWh-Saved
$0.24

$0.24

$0.24
Annual kWh Saved

1,250,000 $0.25
Additional measures introduced
1,000,000 $0.20

750,000 $0.15

500,000 $0.10
Annual kWh Saved
250,000 Running Total $/Annual-kWh-Saved $0.05

0 $0.00
5/16

5/23

5/30

6/06

6/13

6/20

6/27

7/04

7/11

7/18

7/25

8/01

8/08

8/15

8/22

8/29
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Introduction & Background

Main Street Energy Efficiency Partnership

Programs

Examples of Past Success

Our Proposal

Q&A
 A Main Street Efficiency Program “In-a-Box”

1. Build a local coalition with utility, city, state, and community

organizations to improve efficiency in 10,000 – 50,000 small
businesses (corresponding to roughly $10 - $50 million of total program
costs)
2. Implement the “Main Street Efficiency Process” to customize a
best-in-class program for each community
3. Support program though state, city, and utility resources leveraging
both stimulus funds and utility funds
4. Roll-out program in 6-8 weeks
5. Show real-time results on web-based dashboards
– Make small businesses more profitable by quickly reducing their energy costs
– Reduce energy usage and C02 emissions
– Reduce peak electric load
– Create local green jobs

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 Main Street Efficiency’s Broader Mission

Build coalitions with utilities, cities, states, and community

organizations or improve efficiency in 1,000,000 small businesses
(2.5B ft2)
Support the total cost of $1 billion (twenty $50M programs by 2012)
– $500 million from federal stimulus funds
– $500 million matched from local utilities and state energy funds

Target Results
– Annual savings of $550M Dollars ($550/year per customer @ 13¢/kWh)
– Annual savings of 4.26B kWh (4,260 kWh/year per customer)
– Annual savings of 2.65 Million Metric Tons of CO2 (~400,000 homes equiv.)
– Reduce electric demand by 1,000 Megawatts (roughly 4 average power
plants or 1 nuclear plant)

Create 15,700 local, green jobs

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 Help bring a Main Street Program to your community!

Stephen Guthrie Steven Meyers

EnerPath Rational Energy
www.enerpath.com www.rationalenergy.net
(909) 792-4396 (512) 796-2242

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