SmartBuilding Advantage® | Healthcare

Becoming energy efficient is good.Using efficiency to improve your income statement’s vitals is better.

energyto improve

income

Mission critical assets.Whether it’s a new wide-bore MRI to ease patients’ anxiety or expanding a PACS to improve collaboration, investing in the best technology and equipment are critical to fulfilling your healthcare facility’s mission. Such investments increase productivity and efficiency, and add quality—everything you need to compete for patients’ trust while at the same time favoring net profit margin.

Or is it everything?

The very systems that keep all that important equipment up and running—power, HVAC and other asset-enabling systems—have lacked planning and investment in many healthcare organizations. Even though these assets might not seem as urgent as acquiring the latest in radiology equipment, they are just as important because they directly impact patient satisfaction, efficiency and costs—even patient safety.

SmartBuilding Advantage®:holistic thinking makes for asound investment decision.By exploring your facility with a whole-building approach to monitoring and managing your power use, SmartBuilding Advantage will change your outlook on investing in the energy efficiency of your healthcare facility. We leverage our popular customer assessment and Smart $aver® incentive programs in order to help you cut costs and maximize your net profit margin.

As an energy conservation program, the whole-building approach is key to successful investment and project completion. We have compiled a team of experienced vendors that bring a technology- and brand- neutral perspective to the analysis, planning, engineering and economic modeling of your project. This is sound DNA for your decision making process, ensuring your energy plan is as comprehensive as possible.

Better still, the opportunity to defray the cost of implementing energy conservation measures by using our Smart $aver efficiency

incentives makes for an attractive ROI in the short term and positive contributions to the bottom line in the long term.

52%

18%

Where does the energy go?

HVAC and Lighting account for an average of 70% of energy

consumption in healthcare facilities.

(2003 EIA Commercial Building Energy Consumption Survey)

HVAC

Lighting

Water Heating

Cooking &Refrigeration

Computers &Office Equipment

Other

52% =

18% =

16% =

3% =

2% =

9% =

Energy powers business.Energy efficiency powers profitable business.We are helping our customers leverage energy efficiency and realize the enormous benefits it promises. So important is efficiency, in fact, that we now call it the “Fifth Fuel,” joining coal, gas, nuclear and renewables as vital components of the United States’ energy infrastructure. Energy efficiency has long been important for controlling costs. Now, energy efficiency, once associated primarily with emissions, has emerged as a strong factor for financial health as well. We recognize this and are helping our healthcare customers fine-tune their energy management plan to maximize the benefits that energy efficiency can provide.

Why would an energy supplier be advocating efficiency?

Fair question, and the simple answer is that we must. The increasing cost of energy production, combined with shrinking resources, has compelled us to look to the Fifth Fuel for our own long-term viability. Rather than face the extraordinary cost of building a nuclear power plant to create more supply, it is more responsible for our customers and shareholders to invest in ways to optimize the energy supply already within our production scope. Like all businesses, an energy company has to be on a sustainable path.

We’re in the business of energy optimization, not just energy supply.

Many of our customers recognize that we are now as much an energy optimizer as we are a provider. This is good news as we are able to utilize valuable and proprietary assets and information to show that energy efficiency is truly an asset in our customers’ balance sheets.

Generating renewable energy isa great idea. But for ROI, energy efficiency comes first.In recent years, much attention has been given to renewable forms of power such as solar, wind and geothermal. A cost/benefit analysis, however, reveals a significant financial advantage in implementing energy conservation measures over renewable power-producing assets. To sum up, your payback period is far shorter. Below is a simple comparison, based on a goal of a 75 percent reduction in energy spend:

Replacing a 100-watt incandescent light bulb with a 25-watt compact fluorescent can yield a payback as quickly as 13 days. Because the upfront cost of an investment in wind power is much more significant, the same reduction in energy spend would take approximately 9 years to achieve. Wind also costs about $38 per ton of CO2 offset, whereas the bulb swap saves about $159 per ton of CO2 offset.

Wind power generation

Delamp overlit areas

Swap incandescent w/CFL

Seal building envelope

Occupancy sensors

Swap T12 fluorescent w/T8

ENERGY STAR™ refrigerator

Daylight harvesting controls

0 1 2 3 4 5 6 7 8 9

Estimated payback (years)

(Tom Marsik, Assistant Professor of Sustainable Energy, University of Alaska Fairbanks, Economics of Energy Efficiency vs. Renewable Energy, 2010.)

As long as the roof’s not leaking and windows aren’t broken, no one tends to think about inefficient systems infrastructure. Sporadic planning and weak investment have led to systems which are a tangled patchwork of brands and technologies never designed to work together. While everyone can agree that holistic planning is theoretically smart, there are usually too many data sources, opinions, technologies, stakeholder objectives and budget challenges to arrive at a cohesive, clear energy management plan.

Enter SmartBuilding Advantage. Finally there is a planning process that makes sense of everything. By leveraging our experience, data, expertise and strong vendor network, an institution can make efficiency a reality through proper planning: holistically, accurately, unbiased and with a clear financial benefit. And in today’s budget climate, it’s the plans with financial clarity that get traction.

Ad hoc systems versus SmartBuilding Advantage®.

Duke Energy focused on our needs, our operations and made the engineering fit our systems. They kept our people happy with the energy results and we save money.”

— Matthew Sonoski Engineering and Maintenance Supervisor, Presbyterian Hospital Matthews

“

Stage 1 Stage 2 Stage 3

Stage 1: Assess

• Gatherdataonfacility,equipmentandenergyusage• Establishbaselinemetrics• Conductaninitialon-siteassessment• Examineobtaineddata• Definepotentialmeasuresandestimatecost• Moveintoaninvestment-gradeassessment,ifwarranted• Furthertestexistingsystems• Conductinterviewstobuildadeepunderstandingofoperations• Off-sitedatamodeling• Exploreoverallprojecteconomics

Stage 2: Evaluate

• Presentfindings,opportunitiesandpotentialcosts• Buildthebusinesscaseforimplementation• Reviewoptionalfutureservices• DiscusspotentialfundingsuchasSmart$aver® incentives• AssistyouwiththeSmart$aver application

Stage 3: Implement

• Provideoversightofimplementation• Confirmimplementationiscompleted• IssuepaymentofSmart$aver incentive• Additionalperformanceverificationandmaintenanceof efficiency measures may be provided as a separate service

SmartBuilding Advantage®

gives a strategic energy management plan traction.It’s amazing how projects can actually get moving and get done when there is a clear blueprint and financial picture, one based on sound data and solid planning. Here’s the process our vendors follow to make your goals a reality:

Long-term benefit to net profit margin.As energy needs grow over time, the greater the potential

cost of maintaining your current system. And the greater the present value of SmartBuilding Advantage.Assess Evaluate Implement

Our vendors will conduct a series of ASHRAE-certified inspections and disclose all findings in a detailed report and discussion of potential

energy conservation measures.

While energy conservation measures are implemented, they will help you prepare

your Smart $aver application to help offset the cost of

improvements.

Once our vendor confirms that all efficiency measures

are completed we will issue payment of your Smart $aver incentive.

Prescriptive Incentives We want saving energy to be financially and environmentally rewarding. Smart $aver Prescriptive Incentives help offset upfront costs of qualifying high-efficiency equipment, shortening payback time and increasing energy savings. The categories for incentives include:

Lighting

Lighting creates a pleasant, productive work environment—and is a big part of a power bill. That’s why high-efficiency lighting systems are worth every penny. You’ll lower your operating costs while maintaining adequate lighting levels. New efficient technologies provide direct or indirect lighting and use up to 30 percent less energy than fluorescent equipment, meaning energy savings and significantly lower costs.

HVAC

Temperature plays an important role in providing a comfortable environment for employees and customers. High-efficiency HVAC equipment not only creates a pleasant and productive atmosphere, but can also provide energy savings of up to 15 to 20 percent.

Chiller/Thermal Storage

Cooling your facility can have a serious impact on the bottom line. By installing or retrofitting with high-efficiency chillers and thermal storage technologies, you can significantly reduce your summer energy costs.

Variable Frequency Drive

A variable frequency drive is one of the most effective ways for businesses to reduce energy consumption. With our incentives the return on investment is even more appealing.

Pump

Pumps can account for 75 percent or more of energy use, so investing in high-efficiency pumps can significantly lower your energy costs. Incentives are available for both process pumping and HVAC.

Food Service

Investing in high-efficiency food service equipment can also help cut energy costs by 10 to 30 percent, as well as improve food quality, boost productivity and be environmentally-friendly—all worthwhile goals.

You may already be familiar with Smart $aver Prescriptive Incentives, which apply to standard efficiency upgrades such as replacing incandescent bulbs with CFLs (see summary opposite page). Custom Incentives build on those by rewarding large facilities for conservation measures such as automation systems, air system upgrades or implementation of other unique efficiency technologies that work to maximize efficiency. The bottom line: Custom Incentives help offset program costs and speed payback to get you on track for maximized efficiency and maximized profit as soon as possible.

Smart $aver® Custom Incentives help drive SmartBuilding Advantage®’s ROI.

Contact your Duke Energy account manager for more information or visit www.SmartBuildingAdvantage.com.

SmartBuilding Advantage® Benefits

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SmartBuilding Advantage addresses technology, operational, conservation and financial objectives together, arriving at a plan that promises maximum investment potential in terms of both short-term payback and long-term contribution to the bottom line.

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Whole-building approachOur vendor will approach your facility

holistically to foster integrated, seamless solutions which will maximize energy conservation efforts and

continue to provide value long into the future.

Shared investmentWe cover 50 percent of the assessment costs,

making the decision to initiate this program easier.

cost-reduction incentivesAs a participant in this program, our Smart $aver®

incentives are available to help you offset thecost of implementation.

Unbiased expertsOur vendor network is focused on successful outcomes and are not beholden to any single

technology or brand solution.

total pictureAs your energy partner, we can access and analyze your historical data against industry

standards to provide our vendors with the information to give you the most comprehensive

assessment and proposal possible.

No obligationShould you find that SmartBuilding Advantage

isn’t right for your organization, you may exit at any time with your only financial commitment being

50 percent of the assessment cost.