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The particular option selected for each ECM was based on a number of related issues including: ECM cost, ECM <br />savings, cost of Measurement and Verification and the ability to accurately determine whole building operations. The <br />water cost savings from irrigation system upgrades and the energy cost savings from the city-wide street lighting <br />system upgrades are stipulated and agreed by the Purchaser and are met upon the completed installation of these <br />retrofit projects. <br />The baseline and the post -installation energy use depend on various system and external factors, such as energy <br />demand, operating hours, weather conditions, motor loading, energy rates, and occupancy. Development of the <br />baseline, post FEM consumption, cost avoidances and simple payback for each FEM covered by this M&V plan <br />includes: <br />➢ Stipulated Values — These values are important in the overall calculations for energy consumption, financial <br />calculations, and operating conditions. Climatec LLC and Purchaser have agreed to these values for <br />purposes of establishing savings. <br />➢ Developed/Measured Values — These are the values determined by spot or short-term measurement. <br />Values are determined based on a sound engineering approach to variable determination. Both values used <br />for baseline consumption and values to be measured/determined as parts of the post FEM implementation <br />are detailed. <br />➢ Assumptions — Some values that are assumed in order to calculate energy use are necessary in certain <br />circumstances. <br />➢ Calculations — The necessary calculations for baseline energy and demand usage, the calculation of the <br />energy and demand components with implementation of the FEM, the calculation of costs, and annual <br />savings are the primary tool for assessing the estimated and actual savings of any FEM. <br />➢ Instrumentation — The type and specifications, if applicable, for any instrumentation used for <br />developed/measured values is provided to ensure appropriate meters and measurement equipment is used <br />for specified applications. <br />➢ Pre Retrofit Measurements — Each FEM may have a section detailing the measurements required prior to <br />the retrofit. These measurements are used to establish the baseline or adjustments required to establish an <br />accurate baseline. <br />➢ Post Retrofit Measurements — Each FEM may have a section that details the measurements required if any <br />after the retrofit is completed. This section is utilized to detail the type of measurements required for <br />verification of the energy savings calculations. <br />➢ Adjustments — Each FEM may have a section for adjustments. This section includes possible adjustments <br />to the actual Energy Audit Report and energy information, appropriate adjustments to the M&V plan, and <br />adjustments to any savings guarantee. This section is utilized to anticipate changes necessary due to field <br />conditions and provide an appropriate response in the verification of actual energy and cost avoidances. <br />➢ Commissioning — Each FEM may have a section regarding the commissioning process. This provides the <br />detail for how the savings will be verified upon project completion, and the type of inspection that will be <br />completed, and the billing method for verified savings. This section is utilized to provide a standard <br />approach for each FEM upon project completion. <br />Climatec LLC will follow the agreed-upon M&V protocols for the measurement period and will prepare post- <br />installation reports with supporting documentation for the Purchaser. The cost of M&V is included in the project <br />cash flow requirements. <br />Attachment A <br />*CLIMATEC' Page 7 of 13 <br />MFRGING BUIL-OING4 & TFC.HNQL_LK!v <br />