Ed White

Vice President of Energy Products, National Grid

BREAKFAST KEYNOTE

SPEAKER

PANEL #1

Conservation & Energy Efficiency Programs

Vincent DeVito Partner, Bowditch & Dewey, LLP

Executive Director, Institute for Energy and Sustainability

MODERATOR

Vincent DeVitovdevito@bowditch.com(617) 757-6518

Thursday, October 7, 2010

Federal and State Renewable Project Incentives Opportunities:

Improving Operationsand Decreasing Costs.

Table: U.S. Total and MA Share

Category US Total MA Share*Clean Energy & Environment 67,552,892,000 482,093,000 Education 109,194,000,000 1,955,453,000 Housing 27,256,000,000 430,324,000 Labor & Workforce Development 15,954,081,000 90,170,000 Public Safety & Security 12,213,091,000 71,790,000 Safety Net 187,682,000,000 3,572,968,000 Technology & Research 55,078,000,000 1,295,048,000 Transportation 53,448,000,000 809,079,000 Other (Accountability) 1,252,500,000 - TOTAL 529,630,564,000 8,706,925,000 Tax Benefits 257,369,435,000 5,294,994,000 *All MA Share amounts are currently being evaluated and are subject to change based upon further analysis by Secretariats and upon additional Federal guidance.

Federal Incentives for Businesses & Institutions

Federal Opportunities 

• Business Energy Investment Tax Credit (ITC) • Energy-Efficient Commercial Buildings Tax

Deduction • Renewable Electricity Production Tax Credit (PTC)• Renewable Energy Production Incentive (REPI)• U.S. Department of Treasury - Renewable Energy

Grants • Tax Credits for Home Energy Improvements   

State Incentives for Businesses & Institutions

State Opportunities

• Alternative Energy Portfolio Standard • Commonwealth Solar Incentive Program  • Commonwealth Wind - Community Scale  • Commonwealth Wind - Commercial Wind • Commonwealth Wind - MicroWind  • Commonwealth Hydro Program  • Energy Efficiency Programs Offered by Mass. Utilities • Mass. Incentives/Policies for Renewables and Efficiency

Renewable Energy Portfolio Standard • RPS Solar Carve-Out 

Green Building: The Efficient Use of Energy

• Energy Use• Green House Gas Emissions• Water Use• Land Use• Construction Materials• Operations and Waste Removal

Energy Efficiency:Carbon Market

• GHG Trading System Protocols • Allocation of Carbon Quantifications• Market Flexibility and Regulatory Uncertainty • State, Regional, and Federal Harmonization• Trading and Tax Consequences• Legal Certainty of an Allowance or Credit

• Title (Property Right or License)• Verification• Retirement

• Insolvency Liability• Financial Services Compliance• Purchase and Sale Agreements

• Contract Negotiations• Enforcement

THIRTY-FIVE MUNICIPALITIES DESIGNATEDGREEN COMMUNITIES AS OF MAY 21, 2010.

Vincent DeVitovdevito@bowditch.com(617) 757-6518

Thursday, October 7, 2010

Synopsis of Renewable Energy and Energy Efficiency Laws, Programs and Policies Enacted and Implemented in Massachusetts: 2008-2010: June 16, 2010

Carolyn Sarno Senior Program Manager for High

Performance Buildings Northeast Energy Efficiency Partnerships

(NEEP)

MASS ENERGY SUMMIT CONSERVATION & ENERGY EFFICIENCY

INTEGRATING THE BENEFITS INTO SUPPLY STRATEGY

CAROLYN SARNO October 7, 2010

• Conservation turns off the light bulb;

• Efficiency uses a better bulb.

Definitions

PROBLEMS FACING BUILDINGS TODAY

Track Utility Bills– Can’t manage what you haven’t measured– Understand how to read the bill– Use for utility procurement and budget forecasting– Typically yields a 10% utility savings

ENERGY MANAGEMENT

Existing buildings don’t come with instructions

OPERATING PLAN

HIGH PERFORMANCE BUILDINGS

Better Investment

We all want this……………………………and not this!

$100,000

Additional Resources

• Department of Energy O & M Best Practices http://www1.eere.energy.gov/femp/program/operations_maintenance.html

• DSIRE – Database of State Incentives: http://www.dsireusa.org/• Energy Star: http://www.energystar.gov/• Energy Smart Schools Guide to O & M

http://www1.eere.energy.gov/buildings/energysmartschools/o-and-m_guide.html

EPA LBE Guide http://www.epa.gov/cleanenergy/documents/epa_lbe.pdf

• Facilities Operating Plan http://www.vtvsa.org/files/Facility%20Operating%20Plan%20Template%20Version%201.0.doc

Solutions Center• http://www1.eere.energy.gov/wip/solutioncenter/default.html• Northeast Energy Efficiency Partnerships: www.neep.org• Your local utility & energy efficiency program providers

RESOURCES

Rick Mitchell Vice President

Sustainnovation Consulting

What is sustainability and why is it important for business?

Triple Bottom Line Strategy

•Reduced operating costs

•Increased productivity•Reduced environmental

impacts•Empowered employees•Improved

communications w/ shareholders and media

PROFITResource

Optimization

PLANETMinimize

Impact

PEOPLE Employee, Management,

Shareholder and Community Involvement

GROWTHBenefits:

Can You Guess What the Following Represents?

Year 2010 = &293,829,000

Year 2011 = $431,251,000

Year 2012 = $546,821,000

TOTAL: $1,271,901.000

Approved Energy Efficiency Spending by Investor Owned Electric & Gas Utilities in MA in Commercial and Industrial Sectors

Sustainnovation ConsultingMatching Sustainability with Profit

www.meridianassoc.com978-299-0447 X240

Cynthia Arcate President & CEO

Power Options, Inc.

2010 Massachusetts Energy Summit Conservation & Energy Efficiency

Integrating the Benefits into Supply Strategy

October 7, 2010

Cynthia Arcate, President & CEO

PowerOptionsLeveraging the power of non-profits

Energy Savings are Not All the Same

• Kw v. kWhs• Peak v. Non-peak• Impact on ICAP tags and customer profiles• Usage reflected in price• Basic service v. competitive supply

Contract Terms Affect Price

• Different pricing options: Fixed all-in Capacity pass through Wholesale energy market

• Change in Use: Bandwidth Notice Penalties

PANEL #2

Going Green —Innovative Energy Savings Projects

MODERATOR

Peter StantonPublisher

Worcester Business Journal

Jana E. Dengler CFM,FMA, SMA Director of Facilities and Security

Institute of Contemporary Art

Sustainable Facilities Management Initiativesat the Institute of Contemporary Art Boston

Jana E Dengler CFM, RPA, FMA, SMADirector of Facilities and Security

The MissionThe Institute of Contemporary Art strives to share the pleasures of reflection, inspiration, provocation,and imagination that contemporary art offers through public access to art, artists, and the creative process.

(ICA, n.d.)

The ICA Boston is the oldest

Institute of Contemporary Art

in the United States,

established in 1936.

2006 – new life,

new location,

state of the ART facility

New Building

Operating costs are higher than design estimations by 35%

Unit costs of utilities are increasing

Operational cost of HVACr utilities 37 % higher than similar institutions

What was new at construction?

Daylight harvestingLow voltage lighting

With LCD control

Motion sensor water usage

Sustainable Initiatives

Partnering with Power OptionsPartnership with Lutron 3M UV film Partnership with

Siemens ControlsOperational

What was realized14% saving with conscious procurement

5% savings with lighting sensors

12% saving with

operational initiatives

Questions

Sean Anderson Assistant Vice President, Facilities and Director of Corporate Green Initiatives

MassMutual Financial Group

MassMutual Financial GroupSustainability Program

From ideas to actions…

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Introduction

Sean F. AndersonAssistant Vice President – Facility OperationsDirector of Corporate Green Initiatives

About MassMutualFounded in 1851, MassMutual Financial Group is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, MA. MassMutual's affiliates include Babson Capital, OppenheimerFunds, Baring Asset Management, First Mercantile Trust and Cornerstone Real Estate Advisers.

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Key Elements of MassMutual’s Sustainability Program

Conservation Efficient Lighting Systems Low Flow Plumbing Fixtures Energy Star-rated MEP systems

Sustainable Operations LEED for Existing Buildings Energy Star Partner

Renewable Technologies Solar – photovoltaic, thermal and passive Green Roof – white and “live” materials Wind – turbine

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Conservation/Sustainable Operations Project Examples

Since 2006, MassMutual has spent over $900,000 to save $350,000 (average 1.5 year payback per project):

Energy Audits/Temperature Re-adjustments Small cost for balancing and auditing Shutdown inactive mechanical systems, re-evaluated operations Project cost: $15,000 and Savings: $15,000 Simple Payback: 1 years

Water Efficiency Upgrade Replaced over 400 fixtures and saved approximately 5,000,000 gallons of water Project cost: $475,000 and Savings: $32,000 Simple Payback: 14 years (30 year life)

Lighting Upgrades Removed over 500 T-12 fluorescent fixtures Replaced with 300 T-8s and T-5s Saved approximately 138,000 kW-hrs Project cost: $75,000 (excluding utility incentives) and Savings: $20,000 Simple Payback: 3.75 years (20 year life)

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Renewable Technologies Project

The $2.4 million project includes:

43,000 square feet of white PVC membrane ($650k) R-value of 30 System reduces air conditioning costs by 22%

528 panel solar photovoltaic system ($850k) Generates 111 kW Produces 130,000 kWh per year MA Clean Energy Center Grant: $118,000 (<5% project cost) Simple Payback: 6.5 years (20 year life)

96 panel thermal solar system ($500k panels and $250k support steel) Provides 50% of the campus hot water needs 3,000 gallons of storage 4,800 gallons per day at 195°F Simple payback: 12 years (30+ year life)

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Lessons Learned

C-Suite Support Required Grassroots or Top-Down Approaches Work Obtain Qualified Consultants/Installers Innovative Contracts

GMP Pay for performance

Positive PR Significant Upside potential Minimal downside risks

Projects Typically Lead to ROI and Reduced OpEx

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MassMutual State Street Campus

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MassMutual – Main Building

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MassMutual – Proposed Green Roof Area (1981 roof)

61

Artist Rendering

62

MassMutual State Street Campus

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Final Thought

Start Small or Start Big… Just Start!

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© 2010 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

Frank Carlson President & General Manager

Carlson Orchards

Edward R. Terceiro, Jr. Resident Engineer

Mount Wachusett Community College

Advancing Carbon Neutrality on Advancing Carbon Neutrality on Campus Campus

Mount Wachusett Community CollegeMount Wachusett Community College

Massachusetts Energy Summit 2010Massachusetts Energy Summit 2010

October 7, 2010October 7, 2010

Focus of PresentationFocus of Presentation There is no one clear cut solution to carbon

neutrality – every business or institution presents its own challenges and possibilities.

How do you balance operational considerations with your approach to carbon neutrality i.e. demand side management?

What are some of the funding options available?

Critical IssuesCritical Issues

The rising and disproportionate costs of energy in the Northeast

The Nation’s continued dependence on foreign oil & its impact on national security

The obligation to address the need for increased energy production in consort with environmental protection

MWCC ProjectsMWCC Projects

Biomass Conversion Biomass Gasification – Combine Heat &

Power Photovoltaics – 100KW Solar Thermal –Domestic Hot Water Energy Conservation Measures (ECMs) Geothermal (Veteran’s Rehabilitation Center) Plug in Hybrid Wind Turbines

Biomass ConversionBiomass ConversionAverage Annual Savings 2002-2009Average Annual Savings 2002-2009

Electricity: 4,046,874 (KWh)

( 45.97% reduction, enough to serve approximately 1200 residential all-electric customers per year)

Water: 2,222,222 gals ( 52.52% reduction)

CO2 reduction: 24%

Biomass ConversionBiomass ConversionCumulative Savings 2002-2009Cumulative Savings 2002-2009

Total kWh saved: 34,550,739 KWh

Total Water Saved: 17,777,776 gals

Total Dollars Saved: $3,829,434

Environmental ImpactEnvironmental Impact The energy savings accomplished by this

project provide a significant environmental and health benefit from the reduction of air pollutants and greenhouse gas emissions. For example, we have reduced CO2 emissions by 14,890 tons, NOx by 24.2 tons, and SOx by 64 tons.

This reductions would be equivalent to planting 4,079 acres of trees and removing 2,601 automobiles from the roads.

Wind TurbinesWind Turbines

MWCC was been awarded $3,000,000 from the U.S. Department of Energy ( Energy and Water Development Appropriation Bill) to install two 1.65 MW wind turbines and to work with surrounding communities to develop implementation strategies for the installation of turbines across the state’s northern tier.

Wind Turbine FactsWind Turbine Facts

Total Project Cost: $9,003,425Annual Est. Production: 4,977,422 KWhTotal Annual Savings: $965,620Percent of College Demand : 97%Percent of Output Returned to Grid:

30%

Funding OptionsFunding Options

U.S Department of Energy Mass Technology Collaborative & Renewable

Energy Trust Funds Utility Rebates Clean Renewable Energy Bonds (CREBs) Renewable Energy Credits Clean Energy Investment Program - General

Obligation Bonds Performance Contracting

Climate CommitmentClimate Commitment “By addressing the College’s responsibility to

minimize its own contributions to global warming and by emphasizing the importance of making the transition to a low carbon, sustainable economy, the College has defined a new mission for the school; one that creates educational and professional opportunities for students, supports the professional development of faculty and staff while also encouraging a sustainable quality of life for residents in our service delivery area.”

For Additional InformationFor Additional Information

Ed Terceiro, Resident Engineer, Mount Wachusett Community College (978-630-9103)

eterceiro@mwcc.mass.edu

PANEL #3

Inside the Grid

MODERATOR

Christina DavisEditor

Worcester Business Journal

Robert Laurita Manager Market Design

ISO New England

Robert Sheridan Director of Distribution Planning

National Grid

Peter W. Brown, Esq. Brown, Olson & Gould, P.C.

Co-ChairNECA Power Markets Committee

Robert Laurita

Responsibilities include: The design and development of market

rules governing the New England wholesale electricity market.

Actively involved in the design and administration of the ISO’s demand response programs and market designs that integrate demand-side resources into the wholesale electricity markets, such as the Forward Capacity Market

About ISO New England

2010 ISO New England Inc.

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• Private, not-for-profit corporation created in 1997 to oversee New England’s restructured wholesale electric power system

• Independent of companies doing business in the market

• Regulated by the Federal Energy Regulatory Commission (FERC)

• Operate the Power System

• Minute-to-minute reliable operation of region’s generation and transmission system

• Administer the Wholesale Electric Markets • Oversee region’s wholesale marketplace

for energy, capacity and reserve supplies• Conduct Power System Planning

• Ensure reliable and efficient power system to meet current and future power needs

• Approximately 460 employees. Located in Western Massachusetts

New England’s Electric Power Grid at a Glance• 6.5 million households and

businesses; population 14 million • More than 350 generators • Over 8,000 miles of high-voltage

transmission lines • 13 interconnections to electricity

systems in New York and Canada • More than 31,000 megawatts (MW)

of total supply • More than 2,300 megawatts of

demand resources• All-time peak demand of 28,130

megawatts, set on August 2, 2006 • Over 400 participants in the market • $5.4 billion annual total energy

market value (2009)

Robert Sheridan

• Robert Sheridan has been with National Grid and its predecessor organizations for 23 years.

• As director of distribution and planning he is responsible for the planning of capital infrastructure throughout New England and Upstate New York.

Peter Brown

Partner at Brown Olson and Gould in New Hampshire

Member of the Power Markets Committee of NECA

Practice is concentrated in energy law, with a considerable part of that practice involving wholesale electric power markets in the United States as regulated by the Federal Energy Regulatory Commission.  

About NECA

The Northeast Energy and Commerce Association (NECA) is New England’s oldest and most broadly-based, non-profit trade association serving the competitive electric power industry. Founded in 1985, NECA’s purpose is to facilitate an open forum among all electric power stakeholders to foster the development and maturation of competitive power markets.

About NECA

NECA promotes environmentally sound, reliable and cost-effective wholesale and retail markets for the production and delivery of electric power supply, as well as competing energy services and resource alternatives, including conservation, innovative demand-side and power delivery technologies, renewable energy and distributed generation.

Are we ready for renewable energy?

What about the electric car?

What is Smart Grid?

What can businesses do?

Audience Q&A

Resources

ISO-New England www.iso-ne.com

NECA www.necanews.org

National Grid www.nationalgridus.com

U.S. Energy Information Administration www.eia.doe.gov

Ian A. Bowles Massachusetts Secretary of

Energy & Environmental Affairs

LUNCHEON KEYNOTE SPEAKER