MidAmerican Energy 2017 Trade Ally Meeting

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1 MidAmerican Energy 2017 Trade Ally Meeting

2 Agenda 2017 EE Program Performance insight IA Energy Efficiency Plan IL Energy Efficiency Plan 2018 Program Changes Experience the Trade Ally Network Questions Breakout Sessions Insights

3 2017 Energy Efficiency Plan - Savings

4 Program Performance Insight Prescriptive Equipment Rebates - Iowa Residential YTD as of Sept 30, 2017 Res Goal 2017 NonRes YTD as of Sept. 30, 2017 NonRes Goal 2017 Central Air Conditioners 5,246 5,338 1, GSHP ASHP 522 1, Furnaces 7,858 13,199 2,404 1,032 Thermostats 5,298 4,263 N/A N/A Insulation/Infiltration 3,500 4,276 N/A N/A

5 Program Performance Insight (continued) Prescriptive Equipment Rebates - Iowa NonRes YTD as of Sept. 30, 2017 NonRes Goal 2017 NonRes YTD as of Dec. 30, 2016 LED Lighting-Troffers & Retrofit kits 46,675 No goal 75,997 LED Lighting Linear Lamps 255,510 No goal 575,175 LED Lighting all other 142,830 No goal 115, Total Prescriptive LED rebates paid $9.3M $13.2M Cost per kwh $0.18 $0.25

6 Spending in Millions Spending in Millions Spending in Millions 2017 Energy Efficiency Plan - Spending Residential Budget vs Actual Spending Res Budget Res Actual Plan Year Nonresidential Budget vs Actual Spending NR Budget NR Actual Plan Year Total Budget vs Actual Spending Total Budget Total Actual Plan Year

7 Iowa Energy Efficiency Cost Recovery (EECR) rates Electric Natural Gas

8 Residential Annual EECR Impacts For Single Family Home for various consumption levels Electric 10,000kWh 18,000 kwh 36,000 kwh 2017 $67.50 $ $ $59.70 $ $ $48.30 $86.94 $ $47.90 $86.22 $ Natural Gas 1,000 therms 2,000 therms 3,000 therms 2017 $77.66 $ $ $73.15 $ $ $50.18 $ $ $39.08 $78.16 $117.24

9 Nonresidential Annual EECR Impact For a Commercial or Industrial facility for various consumption levels Electric 100,000 kwh 1M kwh 10M kwh 2017 $ $4, $44, $ $3, $31, $ $2, $25, $ $3, $34, Natural Gas 5,000 therms 12,000 therms 24,000 therms 36,000 therms 2017 $ $ $1, $1, $ $ $ $1, $ $ $ $ $ $ $ $948.96

10 GreenAdvantage TM Projection with Wind XII In 2021 with Wind XII and repowering of GE turbines, wind generation is expected to allow MidAmerican Energy Company s customers to claim 100% renewable energy through the GreenAdvantage TM program MidAmerican Energy Company GreenAdvantage TM Renewable Percentage 2014 Actual 27% 2015 Actual 37% 2021 MEC Energy Production with Wind XII and GE Repowering Coal 30.6% Natural Gas 0.8% Nuclear 9.0% 2016 Actual 47% 2017 Plan 55% 2018 Plan 64% 2019 Plan 81% 2020 Plan 99% 2021 Plan 100% Other 3.8% Wind 55.7%

11 Overview of the Iowa Plan Filed November 1, 2017 Plan is designed to offer a range of energy efficiency program options to all gas and electric customers at a reduced cost MidAmerican wants to empower customers to make decisions on how to spend their dollars, as opposed to paying for other customers energy efficiency Spending Targets o o $49.7M electric $21.6M natural gas Approximately $438M in total net economic benefits MidAmerican commits in this plan to managing total plan expenditures each year within the confines of the budgeted plan amounts Cost management may include temporary reduction or suspension of incentives in certain programs as needed in order to appropriately manage customer costs

12 Reduction in Cost Residential Customer Impact Est. bill savings Res Elec 10,000kWh Res Gas 1,000 therms $67.50 $28.50 ($39.00) $77.66 $39.23 ($38.43) This combination residential customer would save $77.43 per year, which is approximately 53% annual savings

13 Reduction in Cost Commercial Customer Impact Non Res - Elec 100,000 kwh Non Res Gas 5,000 therms Est. bill savings $ $ ($158.00) $ $96.20 ($114.90) This combination commercial customer would save $ per year, which is approximately 58% annual savings

14 Programs included in Iowa Plan Residential -Residential Equipment -Residential Assessment -Residential New Construction -Residential Load Management -Residential Behavioral Multiple-Sectors -Appliance Recycling -Upstream Retail Lighting -Low-Income -Multifamily and Income-Qualified Housing -Education -Trees Nonresidential -Nonresidential Equipment (including custom equipment) -Commercial Energy Solutions -Industrial Energy Solutions -Commercial New Construction -Nonresidential Load Management

15 Plan Residential Measures not included Measure Appliances No Room Air Conditioner No Ground Source Heat Pumps/Ductless Minisplits No Heat Pump Water Heater No Furnace Fans No Insulation all types No

16 Plan Nonresidential Measures not included Measure VSDs Custom only Motors Custom only GSHP/Ductless Minisplits No Furnace Fans No Water Heaters all types No Commercial Kitchen Equipment Custom only Chillers and Package Terminal Air Conditioners (PTACs) Custom only Destratifaction Fans Custom only Windows No

17 Programs included in Illinois Plan New Illinois Plan will be filed first quarter 2018 Plan will be similar to Iowa s Plan Residential -Residential Equipment -Residential Assessment -Residential Load Management -Residential Behavioral Multiple-Sectors -Appliance Recycling -Upstream Retail Lighting -Low-Income -Multifamily and Income-Qualified Housing -Education Nonresidential -Nonresidential Equipment (including custom equipment) -Commercial Energy Solutions -Industrial Energy Solutions -Commercial New Construction -Nonresidential Load Management

18 Questions?

19 2018 IA/IL Program Changes

20 EEP Plan Year 2018 All Residential and Nonresidential Prescriptive Programs For prescriptive rebates, the rebate payment cannot exceed 50 percent of the install cost (equipment + reasonable contractor labor only) Previously, 70 percent cap. Prescriptive rebate applications, required documentation and invoices must be submitted by Dec. 31, 2018 Previously March 31 or six months from dealer invoice date. All Residential and Nonresidential Assessment Programs For insulation rebates, payment cannot exceed 50 percent of the install cost (equipment and reasonable contractor labor only) Previously, percent cap. All Nonresidential Equipment Custom Projects Incentives based on first year savings and calculated according to improvements made Replacing the 25/25 rule. Electric improvements HVAC $0.12/kWh saved Lighting $0.10/kWh saved Process/other - $0.08/kWh saved Gas improvements $2.00 per therm saved 20

21 EEP Plan Year 2018 HomeCheck Home must be built before 2008 Annual change. HomeCheck on-site energy assessment must be completed by Oct. 1, For the HomeCheck bonus rebate, upgrades must be installed and rebate applications must be submitted by Nov. 30, No insulation rebates in proposed plan. Commercial Energy Solutions Building Optimization Services Total incentive cannot exceed 65 percent of total study and implementation cost Previously, 70 percent cap. Industrial Partners Total incentive cannot exceed 65 percent of eligible project costs Previously, 80 percent cap. Multifamily Assessments Facility must be built before Jan. 1, Annual change.

22 EEP Plan Year 2018 Residential New Homes Documentation of homes completed in 2018 must be submitted by Mar. 1, 2019, if pre-enrolled by Dec. 31, 2018, to be eligible for the rebate. Transitioning to proposed new plan. 22

23 EEP Plan Year 2018 Nonresidential Equipment - Heating and Cooling Air Source Heat Pump o SEER 15 and above $ /ton $500-$800/unit Boiler o AFUE.87 or greater $4-6.50/MBTU $2-$5 MBTU Central Air Conditioning o Small SEER 15 or greater; < 65 MBtuh $50-300/ton $ /unit Ductless Mini Split Heat Pump o SEER 15 and above $ /ton $350-$500/ton Electronically Commutated Furnace Fan Motor $50 $60 Furnace o < 225 MBtuh $300 $700 Packaged Terminal Air Conditioners $35/ton $78/ton 23

24 Nonresidential Equipment Lighting EEP Plan Year 2018 LED Troffer fixtures o 1X4, Lumens 1,500-6,000 $30 $60 o 2X2, Lumens 2,000-5,000 $30 $60 o 2X4, Lumens 3,000-7,500 $30 $60 LED Troffer retrofit kit o 1X4, Lumens 1,500-6,000 $15 $40 o 2X2, Lumens 2,000-5,000 $15 $40 o 2X4, Lumens 3,000-7,500 $15 $40 LED Surface & Hanging Suspended fixtures o Lumens 3,001-30,000 $30 $60 24

25 EEP Plan Year 2018 Nonresidential Equipment - Lighting (continued) LED Refrigerated Case Lighting 5- and 6-foot doors $45 $75 LED Replacement for Pin-Based CFL Lamps $5 New in 2018 LED Traffic lights eliminated $0 $25-$50 Nonresidential Equipment Variable Speed Drives Rebates are available for VSDs controlling 1 to 75 $60 per HP of $40 horsepower motors driving fans or centrifugal pumps motor driven for process applications. 25

26 EEP Plan Year 2018 Residential Heating, Cooling and Water Heating Air-Source Heat Pumps : o SEER 15 and above $150-$350/ton $550-$800 o No HSPF incentive Central Air Conditioning and Ductless Minisplit AC o SEER 15 and above $50-$300/ton $350-$750 o Rebate applications for CAC installed after Oct. 1, 2018 but not SAVE tested before Dec. 31, 2018 can be submitted up to Sept. 30, 2019, if pre-enrolled by Dec. 31, However, it will receive the 2019 rebate. Ductless Minisplit Air Source Heat Pumps o SEER 15 and above $150 - $350/ton $500-$800 o No HSPF incentive Furnaces $300 $700 Furnace Fans $50 $60 26

27 Year End 2017 Requirements - Nonresidential To qualify for 2017 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, 2017 Actual payment for the above invoice must be made prior to Feb. 1, 2018 Proof of payment from customer to contractor must be submitted with application if received after Feb. 1, 2018 o Proof of payment includes: credit card receipt/statement, canceled check, money order receipt, wire transfer documentation or AIA documentation for new construction Installation must be completed and rebate application submitted within six months of the equipment invoice date

28 Year End 2018 Requirements - Nonresidential To qualify for 2018 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, Installation must be completed and rebate application submitted within six months of the equipment invoice date or by Dec. 31, 2018, whichever comes first. Rebate applications for equipment purchased in 2018 postmarked after Dec. 31, 2018 will not be eligible for any rebates.

29 Year End 2018 Requirements - Residential To qualify for Central Air Conditioners and ASHPs 2018 rebates: Installed and invoiced prior to Dec. 31, 2018 and tested in 2018 o Rebate applications must be submitted by Dec. 31, 2018 to qualify for a 2018 rebate Installed and invoiced on or after Oct. 1, 2018 but not tested until 2019 o Rebate applications will be accepted through a postmark date of Sept. 30, 2019 to allow for SAVE testing, however, will receive 2019 rebate Must also be pre-enrolled by Dec. 31, 2018 to qualify

30 South Dakota Plan

31 South Dakota Residential Programs Program Measure Description Measure Qualification * Rebate Amount Appliance Recycling Program Appliance Recycling Refrigerator and Freezer Units must be working to qualify for a rebate (unit must operate $50/unit and cool). Rebates Residential Equipment Air Source Heat Pump Must be SAVE certified 65 MBtuh AHRI Certified $150/ton for SEER, $200/ton for SEER, $350/ton for 17 SEER and above Residential Equipment Central Air Conditioner Must be SAVE certified 65 MBtuh AHRI Certified Residential Equipment Central Air Conditioner Incentive to contractors completing successful SAVE quality installation testing. $50/ton for 15 to 15.9 SEER, $100/ton for SEER, $300/ton for 17 SEER and above $60/successful SAVE test

32 South Dakota Residential Programs (continued) Program Measure Description Measure Qualification * Rebate Amount Residential Equipment Natural Gas Furnace <225 MBtuh 0.95 AFUE and above AHRI Certified $300/unit Residential Equipment Furnace Fan CEE air handling ratio <0.02 $50/unit Fan must be installed on new qualifying furnace with AFUE 95 or above; < 225 MBtuh AHRI Certified Residential Equipment Smart Thermostats Must be ENERGY STAR certified $100 per unit not to exceed 50% of the smart thermostat purchase price, excluding taxes, shipping and installation charges. Additional $25 rebate if professionally installed.

33 South Dakota Nonresidential Programs Program Measure Description Measure Qualification * Rebate Amount Nonresidential Equipment Lighting LED Exterior Fixtures Lumens 10,000 - >30,000 Rebate $50-$150/fixture Nonresidential Equipment Lighting LED Linear Ambient Fixture Lumens 3,000 Rebate $30/fixture Nonresidential Equipment Lighting Nonresidential Equipment Lighting Nonresidential Equipment Lighting LED Linear Replacement Lamps LED Troffers LED Troffers Retrofit Kits LED Linear Lamp Type A and Dual Mode Type A/B, 4' LED Linear Lamp Type B and Dual Mode Type A/B, 4 LED Linear Lamp Type C, 4 LED 2X4 fixture LED 2X2 fixture LED 1X4 fixture Lumens 3,000 6,000 LED 2X4 fixture LED 2X2 fixture LED 1X4 fixture Lumens 3,000 6,000 Rebate $5/lamp Rebate $30/fixture Rebate $15/fixture

34 South Dakota Nonresidential Programs (continued) Program Measure Description Measure Qualification * Rebate Amount Nonresidential Custom Projects Equipment Incentives based on first year savings and calculated according to improvements made. Electric Lighting improvements only $0.15/kWh saved All Gas improvements $1.50/therm saved Nonresidential Equipment - HVAC Nonresidential Equipment - HVAC Nonresidential Equipment - HVAC Nonresidential Equipment - HVAC Nonresidential Equipment VSD Central Air Conditioner Small < 65 MBtuh $50/ton for SEER, $100/ton for SEER, $300/ton for 17 SEER and above Central Air Conditioner Large MBtuh $20/ton for EER $37.50/ton for EER $50/ton for EER 13 and above Natural Gas Furnace <225 MBtuh $300/unit 0.95 AFUE and above Natural Gas Boiler <300 MBtuh $4/MBTU for AFUE, $5/MBTU for AFUE, $6.50/MBTU for.95 AFUE and above Variable Speed Drives 1-75 horsepower motors driving fans or $60/HP of motor driven centrifugal pumps for process applications.

35 South Dakota Plan General Terms and Conditions Highlights All Residential and Nonresidential Prescriptive Program Rebates Rebate payment cannot exceed 50 percent of the install cost (equipment and reasonable contractor labor only). All Residential and Nonresidential Prescriptive Program Rebates All rebate applications, required documentation and invoices must be submitted within 90 days of dealer invoice for the equipment/material purchased. SAVE testing now required for residential central air conditioner and air source heat pump installations. Rebate applications for central air conditioners installed after Oct. 1, 2018 but not SAVE tested before Dec. 31, 2018 can be submitted up to Sept. 30, 2019, if preenrolled by Dec. 31. However, will receive the 2019 rebate.

36 Questions? 36

37 Trade Ally Partner Network

38 Trade Ally Partner Network Impacts Over 192,000 trade ally-installed projects completed in the last 18 months 38

39 Trade Ally Partner Network Access to Trade Ally Ambassadors Access to the Trade Ally Portal Inclusion on the Trade Ally Partner Search Tool E-Newsletter distributed to nearly 3,000 trade allies Coming in 2018 online application submittal

40 Online Application Submittal

41 Online Application Submittal

42 Online Application Submittal

43 Online Application Submittal

44 Online Application Submittal

45 Online Submittal Forms Online applications scheduled for launch in 2018 are Res HVAC and NR lighting Training will begin in 1 st Quarter of 2018 Goal is to have all Trade Ally Partners trained by the end of 2 nd Qtr 2018 if you choose to participate As we continue to develop online applications, communication will be shared.

46 Recognition Program for our Trade Allies Trade Allies Delivering the Highest Participation Lighting HVAC Insulation Ft. Dodge Wittrock Electric Bianchi H&C C&D Home Improvement Sioux City Council Bluffs Thompson Electric Co. Echo Electric Supply Kalins Indoor Comfort Lynn Furnace H&C Klein Insulation Heartland Foam Insealators Des Moines Bulbguy Lighting Wyckoff H&C L and L Home Solutions Waterloo Efficient Technologies Gubbels Plumbing H&C Midwest Foam & Insulation Cedar Rapids Sitler s Supplies Kelly Heating & AC Bergo Insulation Quad Cities Tri-City Electric JL Brady Co. CSI Insulation

47 Insights for Success Session Topics: o How can HVAC system rebates benefit your customers? o Leveraging lighting rebates for electric customers o Measures of opportunity for 2018

48 Questions?

49 MidAmerican EnergyAdvantage Trade Ally Network