SmartWatt Energy 2012, All Rights Reserved. 300,000 Foot View

Reducing Kilowatts

Establishing an Effective Distribution Center Energy Management Strategy Marcus Wilcox, President

Introduction to Cascade Energy, Inc. Industrial energy efficiency consulting Experts in food processing, pulp & paper, petrochemical, manufacturing, etc. Refrigeration, compressed air, pumping, fans, controls, process upgrades Worked on 700-800 ammonia refrigeration systems Design and run utility efficiency programs serving >100 electric utilities Corporate energy management services for ~350 warehouses Sysco (all DCs) Ben E. Keith (all DCs) SuperValu (all DCs) Americold (all US & Canada PRWs) Kroger Logistics, Others We are like Consumer Reports Don t sell energy-using products No brand or contractor preference Official EM Service Partner for International Association of Refrigerated Warehouses (IARW) Cascade Energy 2012, All Rights Reserved

Executive Quick Start 10 Step Program 1. Discuss energy at executive level 2. Assign an energy champion or manager 3. Implement tracking systems and establish KPIs 4. Set a savings goal 5. Set ROI hurdle for energy projects 6. Leverage utility incentives & tax credits 7. Pursue low and no-cost opportunities 8. Identify, assess and implement capital upgrades 9. Benchmark against other facilities 10. Report progress across organization Cascade Energy 2012, All Rights Reserved

Paths to Reduce Energy Cost 1. Implement Corporate Energy Management Executive Support, Programs & Systems* 2. Pursue Low-Cost O&M Opportunities* Fixing Things Tuning Things Changing Your Ways Commonly called tune-up, commissioning or kaizen blitz 3. Participate in Demand Response* 4. Implement Efficiency into New Construction* 5. Implement Retrofit Capital Projects* 6. Understand & Optimize Utility Rate Schedule *Often eligible for utility training or incentive programs Cascade Energy 2012, All Rights Reserved

Sysco Case Study 100+ food distribution centers (DCs) Freezers, coolers, dock, and dry warehouse space Rolled out program in March, 2006 Announced by corporate management Managed by project engineering group Cascade Energy 2012, All Rights Reserved Aggressive goals: 10% after 1st year 25% after 3rd year Another 5% by 6th year Four-Prong approach 1. Corporate goal and commitment 2. Energy Information Systems 3. Tune-ups at every DC in 18 months 4. Retrofits and high-efficiency new construction

Established Benchmarking System Cubic feet weighted by freezer, cooler/dock, and dry as well as average wet bulb for a normalized Efficiency Factor Near real-time monitoring of all major electric meters Entire company can be benchmarked Rank within company Rank within benchmark group Rank within region This report is seen across company Requires monthly collection of 500+ utility bills Cascade Energy 2012, All Rights Reserved

Summary Energy is one of your largest controllable DC expenses Refrigeration is the primary driver Energy efficiency has excellent ROI Results can be measured and documented You can t improve what you don t measure Your strategy must be comprehensive to have deep and lasting impact Measurement, benchmarking, O&M, retrofit, new constr. Energy efficiency is a critical part of any meaningful sustainability or green initiatives Cascade Energy 2012, All Rights Reserved

Introduction to Who: Turnkey Energy Efficiency Services Firm Americold US Cold Price Chopper Wegman s What : Energy Savings for Large Commercial & Industrial Facilities; Administer Utility-Based Energy Efficiency Programs Where: Headquartered in Albany, NY; 8 offices nationwide SmartWatt Energy 2012, All Rights Reserved Why: Help businesses save energy and money; sustainability

The Right Light Instant On/Off? Lumen Output? Yes Yes Energy Savings? Yes Optical Control? Yes Large Utility Incentives? Low Maintenance? Yes Yes SmartWatt Energy 2012, All Rights Reserved Long Life? Yes

Other Mechanical Upgrades Units to Burn Waste Oil for Heating Ammonia Refrigeration Upgrades Randy Fletcher VP Logistics & Supply Chain Management Boiler Upgrades Door Upgrades SmartWatt Energy 2012, All Rights Reserved

Beneath the Surface Renewables