PECO Smart Ideas for Your Business PECO Smart Construction Incentives

Follow This Easy Process: Step 1: Verify your Eligibility a Applicant must verify that the facility is or will be a business customer receiving electricity service from PECO under a non-residential tariff (commercial, industrial, governmental, institutional, non-profit). a All installed equipment must meet or exceed the specifications given in the program application. Step 2: Submit Pre-Approval Application to Reserve Funds a A pre-approval application must be submitted before you purchase equipment or technology to be installed at the facility for which the incentive is being requested. a Incentive funds will be reserved when your pre-approval application is approved. a Complete the Applicant Information form and the Incentive Worksheet for each of the measures that you plan to install. You may submit the application via mail, fax or e-mail. a PECO Smart Construction Incentive funds are reserved based on the project completion date, and satisfying program terms and conditions. a Design Assistance incentives are available for projects achieving at least a 10% efficiency improvement over the ASHRAE 90.1-2007 standard through the Whole Building Performance Approach. Energy modeling is required, and incentive payments are made after construction and after measurement and verification work is completed. Design Assistance incentives are not available for prescriptive or custom projects. Step 3: Install Equipment or Perform Project Work a The equipment installed and/or work performed must meet or exceed the specifications and requirements found on the specifications page and be completed within the program period. Step 4: Submit Final Application a Submit a final application as soon as possible after the project is completed. With the exception of the new buildings a a PECO Smart Ideas for Your Business PECO Smart Construction Incentives Program Application Program is offered from June 1, 2013 to May 31, 2016, or until funds are exhausted Incentive Values and Measures Contained in this Application are valid June 1, 2015 May 31, 2016 Incentive values and measures may be modified or terminated at any time without prior notice THIS APPLICATION DOES NOT APPLY TO ANY SPACE WHERE THE END USE WILL BE RESIDENTIALLY METERED. CONTACT PROGRAM STAFF TO DISCUSS INCENTIVE OPTIONS FOR THESE AREAS. and major renovation whole building projects, this should happen no later than 90 days after project completion (commercial operability) but no later than May 15, 2016. The final application uses the same form as the pre-approval application. Include the following documentation with your final application: customer/contractor information, a signed final application agreement and all required plans, specifications, submittals and invoices. The PECO Smart Ideas program team will review your final application. For some projects, a final inspection will be part of the final review. The program team will send incentive checks four to six weeks after final project approval. If you are viewing this document in Microsoft Excel, please note that each section of the application is accessible through the tabs at the bottom of the Excel window. Email pecosmartideas@kema.com Mail PECO Smart Construction Incentives 4377 County Line Road Chalfont, PA 18914 Fax 1-215-996-3982 If you need assistance, please contact our program hotline 1-888-5-PECO-SAVE (1-888-573-2672) Please visit our website www.peco.com/smartideas Page 1

PECO SMART CONSTRUCTION INCENTIVES APPLICATION OPTIONS PECO Smart Construction Incentives offers three tracks for achieving electric savings for new construction: a Whole Building Performance track to capture interactive equipment savings, a Custom track for non-standard equipment such as compressors, specialty lighting applications, chillers, VSDs/VFDs, HVAC controls, etc., and a Prescriptive track for new lighting, HVAC, and refrigeration and food service equipment. In each case, the baseline energy code is ASHRAE 90.1-2007. Energy savings are calculated as the difference between a baseline energy code and the installed proposed design. Lighting projects must perform at least 5% more efficiently than code requirements to qualify for incentives. Whole Building Performance Track Whole building electric savings energy modeling required (Design Assistance is available for this track only) OR Custom Track KWh savings for non-standard equipment, controls, chillers, and VSDs/VFDs AND/OR Prescriptive Track Upgrades to efficient lighting, HVAC, refrigeration/food service equipment PECO Smart Construction Incentives 4377 County Line Road Chalfont, PA 18914 Phone: 1-888-5-PECO-SAVE (1-888-573-2672) Fax: 1-215-996-3982 pecosmartideas@kema.com www.peco.com/smartideas Page 2

INCENTIVES APPLICATION CHECKLIST DIRECTIONS: There are three separate tracks for receiving PECO Smart Construction Incentives. Please check the appropriate boxes below either for the pre-notification application or for the final application. For pre-notification, please indicate the incentive path your project intends to follow. Owners may wish to solicit the assistance of their design team in filling out this checklist. If you are submitting an application under the Whole Building Performance track, please do not fill out information for the Custom or Prescriptive Tracks. PRE-NOTIFICATION APPLICATION Required Attachments Customer Information Form AND Whole Building Performance Track Whole Building Performance OR Custom Track Custom Project AND/OR Prescriptive Track (Check all that apply) Interior Lighting (Prescriptive) HVAC (Prescriptive) Refrigeration/Food Service (Prescriptive) FINAL APPLICATION Required Attachments Customer Information Form Agreements & Signature Page Copy of Current PECO Bill Whole Building Performance Track Project Narrative Electrical (Lighting) Plans & ComCheck Mechanical Plans Architectural Plans (if applicable) LEED EAc1* Template (if applicable) Energy Model (Exceutable Files & Summary) Certification of kwh Savings OR Custom Track Custom Form Supporting Equipment Performance Data Supporting Energy Savings Calculations AND/OR Prescriptive Track (Check all that apply) Interior Lighting (Prescriptive) HVAC (Prescriptive) Refrigeration/Food Service (Prescriptive) Applicable Plan Sheets Application Date: Expected Start Date: Expected Completion Date: Application Date: Actual Start Date: Final Completion Date: Phone: 1-888-5-PECO-SAVE (1-888-573-2672) Fax: 1-215-996-3982 pecosmartideas@kema.com www.peco.com/smartideas * LEED Energy and Atmosphere Credit 1 PECO Smart Construction Incentives 4377 County Line Road Chalfont, PA 18914 Page 3

TERMS AND CONDITIONS PECO Energy Company (PECO) offers incentives for new construction projects under the PECO Smart Construction Incentives Program to encourage and help support cost-effective energy efficiency measures for commercial, industrial, governmental, institutional, and non-profit customers for non-residential facilities. Any and all energy savings or environmental credits generated by the project described in this application will be retained by PECO. Funds are limited and subject to availability. The program may be modified or terminated without prior notice. Program Effective Dates The program is available until May 31, 2016. The current cycle year runs from June 1, 2015, through May 31, 2016 ( Program Year Seven ). PECO Smart Construction Incentives are offered until approved funds are exhausted or until May 15, 2016, whichever comes first. All PECO Smart Construction Incentives projects must be completed and the final applications received no later than May 15, 2016 to be eligible for incentives. Program and Project Eligibility PECO Smart Construction Incentives are available for the common energy efficiency measures listed in the application worksheets. Incentives are available under the PECO Smart Construction Incentives program to non-residential customers within PECO's service territory who pay the Energy Efficiency Charge and receive electricity through PECO s distribution network, regardless of the retail electric supplier. Multi-family projects are also eligible for incentives under the PECO Smart Construction Incentives program and must provide their master meter account information and use the Multi-Family application form. Projects that reduce building energy use as compared to current building code requirements are eligible. Prescriptive measures are energy efficiency measures with pre-determined savings and incentive levels, and are paid on a unit basis. These measures are listed in the Lighting, HVAC, and Refrigeration and Food Service sections. Custom measures include energy efficiency measures not listed on the prescriptive application forms. Custom and Whole Building incentives must be approved by PECO in advance, are determined on a case-by-case basis, and are paid per unit of energy (kwh) saved. Incentives are also offered for new construction and major renovation projects that employ an integrated Whole Building design approach to achieve savings. Whole Building Design savings must be documented through comprehensive energy modeling. All projects are subject to measurement and verification by PECO, its evaluator or the PAPUC statewide program evaluator. The project must provide 100% of the energy benefits as stated in the application for a period of five years. PECO has the right to recover a pro-rated amount of any incentive paid if the customer ceases to be a distribution customer of PECO, or removes the equipment or systems at any time during the five-year period. Incentive Payment Limits Prescriptive and custom incentives cannot exceed 100% of the customer s total costs. Actual contractor labor costs incurred can be considered in the total project cost, while customer internal labor costs cannot. Page 4

TERMS AND CONDITIONS Application Review Process Pre-approval applications are required for all projects. A pre-approval application must be submitted before you purchase equipment or technology to be installed at the facility for which the incentive is being requested. Pre-approval is not a guarantee of program acceptance. Completed applications will be reviewed in the order received. The location or business name on the invoice must be the same as the application information. The incentive is reserved for the project when PECO receives a complete pre-approval application and determines that the project meets the program eligibility requirements. Applicants who submit incomplete applications will be notified of deficiencies upon review of the application, and could lose their place in line in the review process until all requested information is received. Applicants are encouraged to call the program hotline if they have any questions about documentation requirements. PECO will review final applications for eligibility and completeness. With the exception of the new building and major renovation whole building approach, the final application and all required supporting documentation must be received within 90 days of project completion but no later than May 15, 2016 to be eligible for incentives. Project documentation, including product specifications and drawings and equipment performance data is required. The Final Application and all required supporting documentation must be received by May 15, 2016 to be eligible for the current program year s incentives. PECO reserves the right to request additional supporting documentation necessary to ensure measure eligibility and verify that the expected energy savings will occur. Requested information may include, but is not limited to: Proof that the equipment is operational, manufacturer specifications, warranty information, etc. PECO will make a reasonable effort to maintain the confidentiality of customer information except that such information must be provided to the PA PUC and its contractor, as well as PECO s contractor for measurement and evaluation. The installed measures are not eligible for incentives from other PA Act 129 Phase 2 Energy Efficiency Programs. Lighting purchased from a retailer under PECO Smart Lighting Discounts is ineligible for an additional incentive under the PECO Smart Equipment Incentive program. Inspections and/or PUC s Statewide Program Evaluation PECO, its agents, measurement and verification contractor, and/or the PUC statewide program evaluator have the right to audit or inspect all projects to verify compliance with the program rules and verify the accuracy of project documentation. This may include pre-installation and/or post-installation inspections, detailed lighting layout descriptions, metering, data collection, interviews, and utility bill data analyses. The customer must allow access to project documents and the facility where the measures were installed for a period of five years after receipt of incentive payment by PECO. Requirements for Custom Project Electricity Savings Calculation The annual electricity savings must be calculated for custom projects using industry accepted engineering algorithms or simulation models. The applicant must estimate the annual electricity usage of both the base case and proposed equipment based on the projected operation of the facility. The applicant must utilize equipment that would meet the applicable federal and local energy codes as the baseline when calculating the annual energy savings. The applicant must be able to clearly describe the method used to calculate the savings. The applicant must provide all assumptions used in the calculations and document the source for these assumptions. Further information on custom measures can be found in the Policies and Procedures Manual, which can be downloaded from www.peco.com/smartideas. The method and assumptions used by the applicant to calculate the annual savings will be reviewed by PECO. PECO has sole and final determination of the annual energy savings to be used in calculating the incentive amount. PECO also reserves the right to require specific measurement and verification activities including monitoring and to base the incentive payment on the results of these activities. Tax Liability Incentives may be taxable for most taxpayers. If the incentive is more than $600, it will be reported to the IRS and the customer will be provided with an IRS form 1099, unless the customer is exempt. PECO is not responsible for any tax liability that may be imposed on any customer as a result of the payment of program incentives. All customers must supply their Federal Tax Identification number to PECO in order to receive a Program Incentive. Please consult with your tax professional for information on the tax treatment of the incentives. Page 5

TERMS AND CONDITIONS No Endorsement PECO does not endorse, support or recommend any particular manufacturer, product or system design in promoting this program, and PECO does not guarantee any specific level of energy savings with respect to any product, system design or energy efficiency measure. Warranties PECO DOES NOT WARRANT THE PERFORMANCE OF INSTALLED EQUIPMENT, AND/OR SERVICES RENDERED AS PART OF THIS PROGRAM, EITHER EXPRESSLY OR IMPLICITLY. NO WARRANTIES OR REPRESENTATIONS OF ANY KIND, WHETHER STATUTORY, EXPRESSED,OR IMPLIED, INCLUDING, WITHOUT LIMITATIONS, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE REGARDING EQUIPMENT OR SERVICES PROVIDED BY A MANUFACTURER OR VENDOR. CONTACT YOUR VENDOR/SERVICES PROVIDER FOR DETAILS REGARDING PERFORMANCE AND WARRANTIES. Limitation of Liability By virtue of participating in this program, customers agree to waive any and all claims or damages against PECO, except the receipt of the program incentive, if eligible. Participating Customers agree that PECO s liability, in connection with this program, is limited to paying the program incentive specified. Under no circumstances shall PECO, its representatives, agents or subcontractors, be liable for any lost profits, special, punitive, consequential or incidental damages or for any other damages or claims connected with or resulting from participation in this program. Assignment Customers may assign a portion or all of their program incentive payment to a specified vendor. Customer s Certification Customer certifies that s/he purchased and installed the equipment listed in the application.. Customer agrees that all information is true and that s/he has conformed to all of the program and equipment requirements listed in the application. Termination PECO reserves the right to extend, modify (this includes modification of program incentive levels) or terminate this program without prior or further notice. Acknowledgement I have read, understood and am in compliance with all rules and regulations concerning this incentive program. I certify that all information provided is correct to the best of my knowledge, and I give PECO permission to share my records with the Pennsylvania PUC, and agents, representatives and contractors it selects to manage, coordinate or evaluate the program. Additionally, I hereby authorize PECO to have reasonable access to my property to inspect the installation and performance of the equipment eligible for incentives under the guidelines of the program. Page 6

INCENTIVE APPLICATION Important: Please read the terms and conditions before signing and submitting this application. You must complete all information and provide required additional documentation to avoid processing delays. CUSTOMER INFORMATION APPLICANT PHONE NUMBER NAME AS IT (WILL) APPEAR ON PECO BILL PECO ACCT # (if available) APPLICANT FEDERAL TAXPAYER ID # MAILING ADDRESS CITY STATE ZIP CONTACT PERSON (AUTHORIZED REPRESENTATIVE) EMAIL ADDRESS PHONE NUMBER PROJECT ADDRESS (OR LOCATION IF ADDRESS IS NOT ASSIGNED) CITY STATE ZIP As an eligible customer/future customer, I verify the information is correct and request consideration for participation under this program. APPLICANT SIGNATURE PLEASE PRINT NAME PROJECT INFORMATION Primary Building Type (select one) OFFICE BUILDING INDUSTRIAL/MANUFACTURING RELIGIOUS WORSHIP/CHURCH RETAIL Number of Shifts MULTI-FAMILY (COMMON AREAS) GROCERY WAREHOUSE DAYCARE RESTAURANT STORAGE NURSING HOME LODGING - GUEST ROOMS AUTO RELATED HOSPITAL LODGING - COMMON AREAS DUSK-TO-DAWN/EXTERIOR HEALTH/MEDICAL CLINIC EDUCATION (K-12) PARKING GARAGES OTHER PUBLIC ORDER AND SAFETY EDUCATION (COLLEGE/UNIVERSITY) 24/7 FACILITIES OTHER SQUARE FOOTAGE OF BUILDING(S) AFFECTED BY THIS PROJECT x x x Business Type (select one) Tax Status (as entered on W9) Building Certification/Rating COMMERCIAL/INDUSTRIAL CORPORATION (Inc., PC, Etc.) Version GOVERNMENT/MUNICIPAL TAX EXEMPT LEED SCHOOL INDIVIDUAL ENERGY STAR NON-PROFIT PARTNERSHIP Other (describe) OTHER OTHER (may receive 1099) Describe Other % OF BLDG UNDER RENOVATION: BUILDING AGE: BLDG SYSTEMS UNDER RENOVATION: Renovation Projects Only (Must Include both lighting and HVAC to Qualify as New Construction Project) ADDITIONAL COMMENTS: Page 7

INCENTIVES APPLICATION PROJECT CONTACTS DESIGN TEAM LEAD CONTACT NAME OF CONTACT PERSON TITLE, FIRM APPLICANT FEDERAL TAXPAYER ID # CONTACT PHONE # EXTENSION CONTACT FAX # CONTACT EMAIL ADDRESS MAILING ADDRESS CITY STATE ZIP ARCHITECTURAL CONTACT NAME OF CONTACT PERSON TITLE, FIRM CONTACT PHONE # EXTENSION CONTACT FAX # CONTACT EMAIL ADDRESS MECHANICAL CONTACT NAME OF CONTACT PERSON TITLE, FIRM CONTACT PHONE # EXTENSION CONTACT FAX # CONTACT EMAIL ADDRESS ELECTRICAL CONTACT NAME OF CONTACT PERSON TITLE, FIRM CONTACT PHONE # EXTENSION CONTACT FAX # CONTACT EMAIL ADDRESS NAME OF CONTRACTING COMPANY (IF AVAILABLE) CONTRACTOR INFORMATION NAME OF CONTACT PERSON TITLE, FIRM CONTACT PHONE # EXTENSION CONTACT FAX # CONTACT EMAIL ADDRESS Page 8

FINAL APPLICATION AGREEMENT FINANCIAL INCENTIVES MAY HAVE TAX IMPACTS; PAYMENTS MAY BE RECORDED ON FORM 1099. PAYMENT OF THE DESIGN INCENTIVE TO THE DESIGN TEAM IS AT THE DISCRETION OF THE PECO ACCOUNT HOLDER. COMPLETION NOTICE AND FINAL INCENTIVE REQUEST - OWNER BY SIGNING AND SUBMITTING THIS FINAL APPLICATION, I VERIFY THAT ALL CONSTRUCTION HAS BEEN COMPLETED AND A CERTIFICATE OF OCCUPANCY HAS BEEN ISSUED. SIGNED APPLICATIONS RECEIVED BY FAX OR EMAIL WILL BE TREATED THE SAME AS ORIGINAL APPLICATIONS RECEIVED BY MAIL. NAME OF APPLICANT'S BUSINESS APPLICATION NUMBER (FROM RESERVATION LETTER) TOTAL INCENTIVES REQUESTED CHECK MAILING ADDRESS CITY STATE ZIP PRINT NAME/TITLE DATE ACTUAL COMPLETION DATE FEDERAL TAXPAYER ID # CUSTOMER SIGNATURE (PECO CUSTOMER) TOTAL PROJECT COST COMPLETION NOTICE AND FINAL INCENTIVE REQUEST - DESIGN INCENTIVE DESIGN INCENTIVE RECIPIENT SIGNATURE PRINT NAME/TITLE DATE FEDERAL TAXPAYER ID # TOTAL INCENTIVES REQUESTED CHECK MAILING ADDRESS CITY STATE ZIP PAYMENT RELEASE AUTHORIZATION TO THIRD PARTY Complete this section ONLY if incentive payment is to be paid to an entity other than the PECO account holder listed on the Applicant Information page. I am authorizing the payment of the incentive to the third party named below and I understand that I will not be receiving the incentive payment from PECO. I also understand that my release of the payment to a third party does not exempt me from the program requirements outlined in the measure specifications and Terms & Conditions. Authorized by: APPLICANT SIGNATURE (PECO CUSTOMER) PRINT NAME/TITLE DATE Check should be made payable to: PAYEE: COMPANY/INDIVIDUAL NAME MAILING ADDRESS CITY STATE ZIP CONTACT PHONE NUMBER FEDERAL TAXPAYER ID # TAX STATUS Corporation (Inc., PC, Etc.), Tax Exempt, Individual, Other (May receive 1099) Page 9

FINAL APPLICATION AGREEMENT As an eligible PECO non-residential customer, I certify that work was completed on this project on or after June 1, 2015. The energy efficiency measures are for use in my non-residential facility and not for resale. Project documentation, including product specification sheets, drawings, and copies of dated invoices for the purchase and installation of the measures, is attached. I have attached any other documentation requirements as detailed in the Policy and Procedures Manual found at www.peco.com/smartideas, or requested of me by the program team. I understand that the location or business name on the invoice must be consistent with the application information. I agree to verification by the utility or its representatives of both sales transactions and equipment installation. I certify that the information on this application is true and correct, and that the Taxpayer ID Number and tax status are accurate. I understand that incentives over $600 may be reported to the IRS unless appropriate exemption documentation is provided to PECO. I agree that if: (1) I do not install the related product(s) identified in my application, or (2) I remove the related product(s) identified in my application before a period of five years or the end of the product life, whichever is less, then I shall refund a prorated amount of incentive funds to PECO based on the actual period of time in which the related product(s) were installed and operating (or the full amount if the product was never installed). Any measure that I have installed in my facility must provide 100% of the energy benefits as stated in this application for a period of five years, or for the life of the product, whichever is less. I understand that this is necessary to assure that the project s related energy benefits will be achieved. I understand that the program may be modified or terminated without prior notice. I understand that final applications and all required documentation must be received by the PECO Smart Construction Incentives program within 90 days of project completion but no later than May 15, 2016 and that all equipment must be purchased and installed prior to submitting the final application. I understand that this project must involve a facility improvement that results in improved energy efficiency and/or a permanent reduction in energy usage. I also understand that all materials removed, including lamps and PCB ballasts, must be permanently taken out of service and disposed of in accordance with all laws, including local codes and ordinances. I understand it is my responsibility to be aware of any applicable codes or ordinances, and that information about hazardous waste disposal can be found at: www.epa.gov/epawaste/hazard/index.htm. I understand that PECO and its representatives have the right to ask for additional information at any time, and that the PECO Smart Construction Incentives program will make the final determination of incentive levels for this project. I understand that PECO does not guarantee the energy savings and does not make any warranties associated with the measures eligible for incentives under this program, and further, that PECO has no obligations regarding and does not endorse or guarantee any claims, promises, work, or equipment made, performed, or furnished by any contractors or equipment vendors that sell or install any energy efficiency measures. I understand that in the event the application was pre-approved and funds were reserved based upon the application, such preapproval or reservation, including the specific dollar amount of reservation, did not represent a guarantee that such funds would be paid. Payment of incen-tives is based upon the final application. I understand the program terms and conditions, as well as the availability of funds. I have read and accept the PECO Smart Construction Incentives Terms and Conditions as they appear in this application. Page 10

INTERIOR LIGHTING WORKSHEET DIRECTIONS: Incentives are offered only for controls that are not required by ASHRAE 90.1 2007. Fill out the total interior lighting wattage controlled by qualifying occupancy sensors, central lighting controls, or daylight sensors. The incentives are based on the number of watts controlled by each type of control equipment. Incentives are available for interior lighting where the lighting power density is lower than the code-minimum power by at least 5%. To receive incentives for lighting, please complete the PA Act 129 TRM Appendix E form for interior lighting and provide the report and lighting plans with this application. The "Space-by-Space" or "Building Area" method can used to calculate the LPD for the purposes of the incentive. A U.S. Department of Energy COMcheck worksheet must be submitted as back-up documentation. In the spaces below, please enter the occupied square footage of the building, the total allowed watts, and the total proposed watts. The incentive is based on the difference between the ASHRAE 90.1-2007 allowed wattage and the installed wattage. Lighting plans (showing layout, quantities, and fixture types), lighting equipment schedule, architectural floor plans, PA Act 129 TRM Appendix E form, and a COMcheck report for interior lighting MUST be attached. Click here for a link to COMcheck software. Click here for a link to PA TRM Appendix E Interior Controls Equipment Type Incentive per W Total Watts Controlled (Watts) Incentive Calculated Occupancy Controls Total Lighting Controls Incentives: $0.20 Interior Lighting - Lighting Power Density Space-by-Space Approach Building Type Occupied Area (Sq Ft) Total Allowed Watts (Watts) Example: Sally's Retail Sales 100,000 150,000 Total Proposed Watts (Watts) Incentive per kw Total Incentive 113,533 $300.00 $10,940.10 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 Total Interior Lighting Power Density Incentive: $0.00 LIGHTING PLANS, SCHEDULES, PA TRM APPENDIX C, AND COMCHECK REPORT OR EQUIVALENT MUST BE ATTACHED Page 11

LIGHTING SPECIFICATION Lighting Power Density Approach Under the Lighting Power Density Approach, the lighting power installed is compared with the lighting power allowed by code. Incentives are available for systems where the installed lighting power is lower than the code-allowed power by at least 5%. Savings are based on the Lighting Power Density (LPD) calculated on a watts per square foot basis. Incentives will be paid only on the area of the building where the lighting installation is complete and is ready for occupancy. If a portion of a building is not built-out such that the lighting in an area is not complete and ready for occupancy, then that portion is not eligible for an incentive. Baseline lighting power density is based on ASHRAE 90.1-2007. Either the "Space-by-Space" or "Building Area" method may be used to calculate the LPD for the purposes of the incentive. The incentive for the lighting performance based approach is $300 per kw reduction in connected load below the ASHRAE 90.1-2007 standard. The minimum lighting power density used to calculate the incentive shall be no lower than 50% of the ASHRAE 90.1-2007 value. Required Documentation: PECO Smart Construction Incentives Interior Lighting Form PA Act 129 TRM Appendix E Lighting Form COMcheck Interior Lighting Report or equivalent analysis demonstrating space-by-space or building area calculations. Reflected ceiling plans and electrical plan sheets showing lighting fixture layout Lighting fixture schedule sheet including fixture counts Fixture submittal or specification sheets showing model number and rated fixture wattage Architectural floor plans displaying floor area affected by proposed lighting installation Lighting Controls That Exceed Code Requirements Interior Occupancy Sensors Incentives are offered for occupancy-based controls in areas where they are not required by code. Passive infrared, ultrasonic detectors and fixture-integrated sensors or sensors with a combination sensor are eligible. All sensors must be hard-wired and control interior lighting fixtures. The incentive is per Watt controlled. An inventory of the controlled fixtures and their wattage must be provided for each sensor with the Final Application. Daylight Dimming System Incentives are offered for daylight sensor controls in spaces with suitable available ambient light for at least part of the day. Light may be through skylights, clerestories, windows or light tubes. The controls can be on/off, stepped or continuous dimming. The on/off controller should turn off artificial lighting when the interior illuminance meets the desired indoor lighting level. The stepped controller generally dims the artificial lighting 50% when the interior illuminance levels reach 50% of the desired lighting levels. Continuous or dimming controllers dim artificial lighting proportionally to the available ambient light. All types of daylight sensor controls are required to be commissioned in order to ensure proper sensor calibration and energy savings. Incentives are per Watt controlled. Lighting control options cannot be "double counted". Required Documentation: Cut sheets or submittals of lighting control systems Reflected ceiling plans or schedule showing which fixtures are controlled by lighting controls. Page 12

LIGHTING SPECIFICATION Lighting Power Density Code Requirements - Space by Space Method Common Space Type 223 Office-Enclosed Office-Open Plan Conference/Meeting/Multipurpose Classroom/Lecture/Training For Penitentiary Lobby For Hotel For Performing Arts Theater For Motion Picture Theater Audience/Seating Area For Gymnasium For Exercise Center For Convention Center For Penitentiary For Religious Buildings For Sports Arena For Performing Arts Theater For Motion Picture Theater For Transportation Atrium First Three Floors Atrium Each Additional Floor LPD (W/ft2) Common Space Type 223 LPD (W/ft2) 1.1 Lounge/Recreation 1.2 1.1 For Hospital 0.8 1.3 Dining Area 0.9 1.4 For Penitentiary 1.3 1.3 For Hotel 1.3 1.3 For Motel 1.2 1.1 For Bar Lounge/Leisure Dining 1.4 3.3 For Family Dining 2.1 1.1 Food Preparation 1.2 0.9 Laboratory 1.4 0.4 Restrooms 0.9 0.3 Dressing/Locker/Fitting Room 0.6 0.7 Corridor/Transition 0.5 0.7 For Hospital 1.0 1.7 For Manufacturing Facility 0.5 0.4 Stairs Active 0.6 2.6 Active Storage 0.8 1.2 For Hospital 0.9 0.5 Inactive Storage 0.3 0.6 For Museum 0.8 0.2 Electrical/Mechanical Workshop Sales Area 1.5 1.9 1.7 223 In cases where both a common space type and a building specific type are listed the building specific space type shall apply. Page 13

LIGHTING SPECIFICATION Lighting Power Density Code Requirements - Space by Space Method Building Specific Space Types Gymnasium/Exercise Center Playing Area Exercise Area Courthouse/Police Station/Penitentiary Courtroom Confinement Cells Judges Chambers Fire Stations Fire Station Engine Room Sleeping Quarters Post Office-Sorting Area Convention Center-Exhibit Space Library Card File and Cataloging Stacks Reading Area Hospital Emergency Recovery Nurse Station Exam/Treatment Pharmacy Patient Room Operating Room Nursery Medical Supply Physical Therapy Radiology Laundry Washing LPD (W/ft2) Building Specific Space Types LPD (W/ft2) Automotive Service/Repair 0.7 1.4 Manufacturing 0.9 Low (<25 ft Floor to Ceiling Height) High (>25 ft Floor to Ceiling Height) 1.2 1.7 1.9 Detailed Manufacturing 2.1 0.9 Equipment Room 1.2 1.3 Control Room Hotel/Motel Guest Rooms 0.5 1.1 0.8 Dormitory Living Quarters 1.1 0.3 1.2 Museum General Exhibition 1.0 1.3 Restoration Bank/Office Banking Activity Area 1.7 1.5 1.1 1.7 Religious Buildings Worship Pulpit, Choir 2.4 1.2 Fellowship Hall 0.9 Retail 2.7 Sales Area [For accent lighting, see 9.3.1.2.1(c)] 1.7 0.8 Mall Concourse 1.7 1.0 1.5 Sports Arena Ring Sports Area 2.7 1.2 Court Sports Area 2.3 0.7 Indoor Playing Field Area 1.4 2.2 0.6 Warehouse Fine Material Storage 1.4 1.4 Medium/Bulky Material Storage 0.9 0.9 Parking Garage Garage Area 0.2 0.4 0.6 Transportation Airport Concourse 0.6 Air/Train/Bus Baggage Area 1.0 Terminal Ticket Counter 1.5 Page 14

LIGHTING SPECIFICATION Lighting Power Density Code Requirements - Building Area Method Building Area Type 221 Automotive facility Convention center Courthouse Dining: bar lounge/leisure Dining: cafeteria/fast food Dining: family Dormitory Exercise center Gymnasium Health-care clinic Hospital Hotel Library Manufacturing facility Motel Motion picture theater LPD (W/ft2) Building Area Type LPD (W/ft2) 0.9 Multifamily 0.7 1.2 Museum 1.1 1.2 Office 1 1.3 Parking garage 0.3 1.4 Penitentiary 1 1.6 Performing arts theater 1.6 1 Police/fire station 1 1 Post office 1.1 1.1 Religious building 1.3 1 Retail 1.5 1.2 School/university 1.2 1 Sports arena 1.1 1.3 Town hall 1.1 1.3 Transportation 1 1 Warehouse 0.8 1.2 Workshop 1.4 221 In cases where both a common space type and a building specific type are listed the building specific space type shall apply. Page 15

LED LIGHTING SPECIFICATIONS The integral lamp or fixture must appear on the Energy Star Qualified Products List or the Design Lights Consortium Qualified Products List.* Energy Star Qualified Fixture Product List: http://www.energystar.gov/ Energy Star Qualified Integral LED lamps: http://www.energystar.gov/ Design Lights Qualified Product List: http://www.designlights.org/ All linear LED tubes that use an integrated driver operated directly through line voltage (bypassing an external electronic ballast or LED Driver), also referred to as "Type B" TLEDs, will not qualify for an incentive. This is due to the wide variety of installation characteristics of these types of lamps and the inherent potential safety concerns of being powered directly from the line voltage. Linear LED Eligibility Requirements: Must be listed on the Design LightsTM Consortium (DLC) Qualified Products List Lamps must have an integrated driver and be driven through electronic T8 fluorescent ballast OR Lamps must be driven via external LED driver Page 16

HVAC INCENTIVES WORKSHEET HVAC Incentive Equipment Type and Capacity Cooling Qualifying Efficiency Heating Qualifying Efficiency Measure Code (per cooling ton) Air-Source Air Conditioners H01 < 5.5 tons (< 65,000 Btu/h) 15 SEER N/A $60.00 H02 5.5 and < 11.25 tons 12.5 IEER ( 65,000 Btu/h and < 135,000 Btu/h) N/A $30.00 H03 11.25 and < 20 tons 12.3 IEER ( 135,000 Btu/h and < 240,000 Btu/h) N/A $30.00 H04 20 and < 63.33 tons 11.1 IEER / 10.6 IPLV (IPLV for units with ( 240,000 Btu/h and < 760,000 Btu/h) capacity-modulation only) N/A $30.00 H05 63.33 tons ( 760,000 Btu/h) 10.3 IEER / 10.3 IPLV (IPLV for units with capacity-modulation only) N/A $30.00 Air-Source Heat Pumps H06 < 5.41 tons 14.3 SEER 8.7 HSPF $45.00 H07 5.41 tons and < 11.25 tons 12.3 IEER 3.3 COP $30.00 H08 11.25 tons and < 20.00 tons 11.7 IEER 3.2 COP $30.00 H09 20.00 tons 10.5 IEER / 10.1 IPLV (IPLV for units with capacity-modulation only) 3.2 COP $30.00 Water-Source Heat Pumps H10 < 1.42 tons, Air-Source Heat Pump 12.3 EER Base Case 4.6 COP $30.00 H11 < 1.42 tons, All Other Base Cases 12.3 EER 4.6 COP $30.00 H12 1.42 tons and < 5.41 tons, Air-Source 13.2 EER Heat Pump Base Case 4.6 COP $30.00 H13 1.42 tons and < 5.41 tons, All Other 13.2 EER Base Cases 4.6 COP $30.00 Packaged Terminal Systems (New Construction) H14 PTAC (cooling) 13.75 - (0.213 x Cap / 1000) EER N/A $30.00 H15 PTHP 13.53 - (0.213 x Cap / 1000) EER 3.2 - (0.026 x Cap / 1000) COP $30.00 Ductless Mini-Split Heat Pump H16 <5.4 tons 17.0 SEER/13.0 EER 8.8 HSPF $30.00 HVAC Measure Code Make and Model Quantity (A) Cooling Capacity (Tons) (B) Cooling Efficiency Heating Capacity (Tons) Heating Efficiency Incentive (A x B x Incentive per cooling ton) Total HVAC Incentives: HVAC Measure Code Measure Quantity Incentive per Unit Hotel Guest Room Occupancy Sensor H17 Unit $30.00 (Electric Resistance Heat/AC) Total Other HVAC Incentives: Other HVAC Measures Incentive Unit Incentive Page 17

HVAC SPECIFICATIONS All equipment, units or parts that are discarded as a result of this program must be disposed of properly by the Applicant. HVAC Measure Code H01 - H09 H10 - H13 H14 - H15 H16 H17 Specification Air-Source Air Conditioners Air-Source Heat Pumps New unitary air conditioning units or air source heat pumps that meet or exceed the qualifying cooling efficiency shown in the HVAC Incentives Worksheet are eligible for an incentive. They can be either split systems or single package units. The efficiency of split systems is based on an ARI reference number. All packaged and split system cooling equipment must meet Air Conditioning and Refrigeration Institute (ARI) standards (210/240, 320 or 340/360), be UL listed, use a minimum ozone-depleting refrigerant (e.g., HCFC or HFC). All required efficiencies are based on the Consortium for Energy Efficiency (CEE) high-efficiency commercial air conditioning and heat pump specifications (www.cee1.org). A manufacturer s specification sheet indicating the system efficiency must accompany the application. Disposal of the existing unit must comply with local codes and ordinances. Water-Source Heat Pumps The system consists of multiple units connected to a closed-loop hydronic system with continuous water circulation. The installed water source heat pump must be rated in accordance with the most recent version of ARI 320-98. A manufacturer s specification sheet indicating the system capacity and efficiency for cooling and heating must accompany the application. Disposal of the existing unit must comply with local codes and ordinances. Package Terminal Systems (New Construction) Package terminal air conditioners and heat pumps are through-the-wall, self contained units that are 2 tons (24,000 Btu/h) or less. All EER values must be rated at 95 F outdoor dry-bulb temperature. Ductless Mini-Split Heat Pump <5.4 Tons Incentives are offered for Ductless Mini-Split Heat Pump <5.4 Tons with SEER rating greater than or equal to 17.0 and EER greater than or equal to 13.0 and HSPF greater than or equal to 8.8. Hotel Guest Room Occupancy Sensor (Electric Resistance Heat/AC) Incentives are offered for occupancy-based controls that control electric air conditioning, air source heat pumps, and / or electric heating units for individual hotel rooms. Systems with non-electric heat are not eligible. Sensors must be controlled by automatic occupancy detectors or a key-card system, and the default setting for controlled units differ by at least 5 degrees (or shut the unit fan and heating or cooling off completely) from the operating set point during unoccupied periods. The control system may also be tied into other electric loads, such as lighting and plug loads to shut them off when occupancy is not sensed. The incentive is per HVAC unit controlled, not per sensor, for multi-room suites. Replacement or upgrades of existing occupancy-based controls are not eligible as a prescriptive incentive. Page 18

REFRIGERATION/FOOD SERVICE INCENTIVES WORKSHEET Ref Measure Incentive/ Measure Incentive Unit Quantity Code Unit R01 Anti-Sweat Heater Controls Linear Foot $15.00 R14 ENERGY STAR Glass Door Freezer Unit $200.00 R15 ENERGY STAR Solid Door Freezer Unit $100.00 Total Refrigeration Incentives: Refrigeration Measures Incentive Food Service & Other Measures Food/Other Measure Code Measure Incentive Unit Quantity Incentive/ Unit F01 Beverage Machine Controls Unit $60.00 F02 Snack Machine Controls Unit $30.00 F03 ENERGY STAR Refrigerated Beverage Vending Machines Unit $50.00 Total Food Service & Other Incentives: Incentive Page 19

REFRIGERATION/MISCELLANEOUS SPECIFICATIONS Measure Code R01 R14 - R15 Specification Anti-Sweat Heater Controls Incentives are offered for devices that sense the relative humidity in the air outside of the display case and cycles or turns off the glass door (if applicable) and frame anti-sweat heaters when the ambient dewpoint is below a preset setpoint. Technologies that can turn off anti-sweat heaters based on sensing condensation (on the inner glass pane) also qualify. Incentive is based on the horizontal linear footage of the case. ENERGY STAR Solid Door Freezer ENERGY STAR Glass Door Freezer Incentives are offered for replacement of existing self-contained, open display freezers with freezers that are ENERGY STAR listed. Only units with built-in refrigeration systems are qualified. Units with remote refrigeration systems or units do not qualify. Customers must provide proof that the appliance meets the CEE or ENERGY STAR efficiency specifications using ASHRAE Standard 72-2005 (38 F ± 2 F). Incentive is per freezer. Table 6. Efficiency Standards for ENERGY STAR Qualified Commercial Glass Door Freezers (kwh per day) 1 Product Volume, cubic feet Freezer (kwh/day) 0 < V < 15 0.607V + 0.893 15 V < 30 0.733V 1.000 30 V < 50 0.250V + 13.500 50 V 0.450V + 3.500 Table 7: ENERGY STAR Qualified Commercial Solid Door Freezers (kwh per day) 2 Product Volume, cubic feet Freezer (kwh/day) 0 < V < 15 0.250V + 1.250 15 V < 30 0.400V 1.000 30 V < 50 0.163V + 6.125 50 V 0.158V + 6.333 1 www.energystar.gov, Note: V = Internal volume in ft 3 2 www.energystar.gov, Note: V = Internal volume in ft 3 Measure Code F01 - F02 F03 Specification Beverage Machine Controls Snack Machine Controls Incentives are offered for refrigerated vending machines that contain non-perishable bottled and canned beverages. Controller for both types of systems must include a passive infrared occupancy sensor to turn off fluorescent lights and other energized machine systems when the surrounding area is unoccupied for 15 minutes or longer. For the refrigerated machines, the control logic may include periodic power up at 2-hour intervals or longer to maintain product temperature and provide compressor protection. ENERGY STAR Refrigerated Beverage Vending Machines Incentives are offered for ENERGY STAR beverage vending machines. Qualifying machines can be found at: http://www.energystar.gov/ia/products/prod_lists/vending_machines_prod_list.pdf. Page 20

VFD SPECIFICATIONS (Apply as Custom Measure) Measure Code Specification Variable Speed Drives - 'Custom' Applications: V10 VFDs which are required by code are not eligible for incentives. VFDs or equivalent power reduction equipment are required in most HVAC applications by IECC 2009 (ASHRAE 90.1.2007). Please confirm that proposed VFDs are not required by code. A brief explanation regarding each VFD and its code application should be provided. All VFD s used in conjunction with a process or HVAC application will be paid using the custom analysis. Redundant or back-up units do not qualify. The VFD must control motor speed automatically in response to pressure, flow, temperature, or other variable signal. VFDs installed as soft start without automatic, manual, closed loop speed control do not qualify. Page 21

CUSTOM INCENTIVES WORKSHEET Please attach supporting documentation as described in the Policies and Procedures Manual. Prior to submitting application, please contact the SmartIdeas program staff. Incentives ($)/kwh $0.08 $0.10 Custom Lighting Custom HVAC, Refrigeration, Motors and Drives, Other Energy Conservation Measure (ECM) 1 System Description ECM Category*: Baseline Design kwh Savings ECM Cost** $/kwh Estimated Incentive Annual Oper. Hrs Energy Conservation Measure (ECM) 2 System Description ECM Category*: Baseline Design kwh Savings ECM Cost** $/kwh Estimated Incentive Annual Oper. Hrs Energy Conservation Measure (ECM) 3 System Description ECM Category*: Baseline Design kwh Savings ECM Cost** $/kwh Estimated Incentive Annual Oper. Hrs Energy Conservation Measure (ECM) 4 ECM Category*: Baseline System Description Design kwh Savings ECM Cost** $/kwh Estimated Incentive Annual Oper. Hrs Total Custom ECM Incentives***: * Energy Conservation Measure (ECM) Category is either Lighting, HVAC, Refrigeration, Motors and Drives, or Other ** ECM Cost is the cost to achieve the energy saving benefits. This does not include other costs associated with the project, if any. *** Total Custom Incentives may not exceed 100% of the ECM Cost. Page 22

CUSTOM PROJECTS SPECIFICATIONS Instructions for Energy Savings Calculations for Custom Projects Custom projects must involve measures that result in a reduction in electric energy use (kwh) or a permanent load reduction (kw). Electricity savings may result from either efficiency improvements or fuel switching. Custom Incentives are based on the first year Energy (kwh) savings. Projects involving measures covered by the prescriptive incentive portion of the program are not eligible for a custom incentive. Custom applications must be accompanied by detailed engineering calculations that document the annual total and on-peak energy savings. The following serve as guidelines for the minimum required documentation. Equipment Information Submittals A list of the present and proposed equipment and components to be installed, including manufacturer s catalog/model number Manufacturer s specification sheets showing capacities and performance for all major components Energy Savings Calculations Provide calculations documenting the predicted energy consumption of the existing (or baseline) and proposed system using appropriate analytical tools and clearly stated assumptions. Calculations may be performed by hand, but spreadsheet analysis or more rigorous modeling is preferred. All analysis should be provided in electronic format. All assumptions such as operating hours, existing and proposed equipment operational details must be presented. Engineering algorithms and procedures from recognized technical organizations such as ASHRAE, SMACNA, ANSI, etc. must be used. Use rated performance factors tested under accepted procedures specified by recognized rating agencies such as AHRI, ANSI, ASTM, etc. Provide an explanation when equipment performance rating conditions vary from standard conditions. In support of the calculations, extensive documentation must be provided that provides the basis for the savings estimates. The documentation must provide information on the equipment operating schedule, daily and seasonal load profile, and baseline AND energy efficient equipment performance at the operating loads. Typical documentation for custom projects often includes: Engineering or architectural drawings and equipment schedule sheets Component specification sheets that include part load efficiency or performance factors Spreadsheet calculations or input/output files and results from system modeling or other engineering analysis using accepted engineering algorithms and practices Log sheets, trend logs from a building management system, or other operating documentation that are often necessary to document operating hours and equipment loading, and used as a basis for the calculations (in some cases, short term monitoring may be required to document the load profile) Control sequence of operations that are necessary where controls play a part in the savings equation Additional documentation, other than that described in the application, may be required for program participation. Larger projects may also require pre- and post-project sub metering, or monitoring of loads and/or power input as part of another measurement and verification activity to demonstrate the actual energy savings that are realized. Baseline for Custom Analysis Where equipment is replaced prior to the end of its rated service life in order to achieve energy savings, the existing equipment performance may be used as the baseline in the energy savings calculations. Where equipment is replaced due to failure or for other reasons (such as obsolescence or a need for more capacity), the baseline performance used in the savings calculation should be either the minimum performance that would be required by code for that equipment type and application (where a code applies) or the performance of the equipment that would have been selected as the customer's "standard practice" when a code does not apply. Baseline or Existing System Summary Include make, model number, name plate information (such as operating voltage and rated full load amps), rated capacity, quantities, equipment condition and age, facility operating hours, equipment operating schedule, and load curves. If needed, attach separate sheets. All decisions regarding incentives for custom projects are in the sole discretion of PECO. Page 23