Welcome to the 2013 Trade Ally Kickoff Meeting. Agenda 2013-2014 Rate Change in Iowa New Energy Efficiency Plan New Trade Ally Portal 2013 Plan/Program.

Welcome to the 2013Trade Ally Kickoff Meeting

Agenda

• 2013-2014 Rate Change in Iowa

• New Energy Efficiency Plan

• New Trade Ally Portal

• 2013 Plan/Program Changes

• Questions

• Break-Out Sessions

MidAmerican Energy

• 16 years of rate stability• Average rate: 6 cents/kWh• Average rate: 40% below national average for

investor-owned utilities• Revenue sharing with customers in place since 2001;

returned a value of more than $306 million• 1,877 MW of wind added during rate stability• Approved energy efficiency programs are in place

2012-2013 Rate Plan Update

• Filed for increase in February 2012− $38.7 million in 2012 and $76 million in 2013 collected through a rider− Began collecting interim rates in March 2012− Revenue increase needed for environmental equipment costs and

increase in the cost of producing energy− Rider no longer in effect after 2013

• Settlement achieved with Office of Consumer Advocate and large industrial customers

• Final Iowa Utilities Board order issued October 8, 2012

• Deferred a general rate increase until 2014

Iowa Electric 2014 Rate Plans

Cost Drivers for Rate Increase:

•Rider from 2012-2013 rate filing ends by Dec. 31, 2013; future method for recovery of these costs needs to be determined

•MidAmerican Energy took a conservative approach and requested a smaller increase than it supported in the 2012-2013 rate filing

•2012 costs adjusted for known and measurable changes will be used as the basis to revise base rates for all business-related expenses, such as labor; benefits; generation and delivery operation and maintenance costs; and investments in generation and distribution, including Walter Scott, Jr. Energy Center Unit 4, Greater Des Moines Energy Center and all wind generation projects

Iowa Electric 2014 Rate Plans

Cost Drivers for Rate Increase:

•2011 compared to 1995, the year of MidAmerican Energy’s last base electric rate increase 16 years ago:

− Increase in net investment in new generation: $3.4 billion (332% increase)

− Increase in other net infrastructure investment: $1.1 billion (106.4% increase)

− Increase in Iowa operations and maintenance expenses: $309.6 million (57.2% increase)

•Significant upcoming costs− Environmental investment beyond 2012: $480 million− Coal transportation cost increase in 2013: $30 million

Iowa Electric 2014 Rate Plans

2014 Rate Case Thoughts•Adjustment clauses are possible for energy and transmission expenses•Individual customer increase will be available once information has been determined•Pursuing a series of smaller rate increases over a period of years addressed in one rate case•Continuation of revenue sharing is preferred•Multiple cost allocation methods and rate designs will be included in the filing

− Define how costs are allocated among customer classes (industrial, commercial and residential) and how costs are recovered from customers

• Rate equalization/cost of service plan will be included in the filing− Differences exist in rates between north, east and south pricing zones− Within pricing zones, some rates differ significantly from cost of service− Plan to recommend a period of time to bring rates to cost of service across

all pricing zones, resulting in reasonable steps

Iowa Electric 2014 Rate Plans

2014 Rate Case Timing

•Meet with customers – October 2012 through May 2013•Send customer notice – April 2013•File rate case May 1, 2013•Interim rates could go into effect Aug. 1, 2013

− Adjustment clauses in 2012-2013 case would terminate when interim rates begin

•Final rates effective April 1, 2014•Adjustment to rates due to rate equalization will be implemented as ordered by the Iowa Utilities Board

MidAmerican Energy Has Low Electric Rates and Plans to Remain Competitive

MidAmerican Energy Has Low Electric Rates and Plans to Remain Competitive

Most Effective Offset to Rate Changes

EnergyAdvantage® Programs

•Industrial•Commercial•Residential

New Energy Efficiency Plan

•Development of new five-year plan underway

− No new plan details to share with you at this time

•Proposed plan will be filed with Iowa Utilities Board on February 1, 2013− Once through the regulatory process and approved, new plan will be

effective April 1, 2014− Additional education and training sessions related to the new plan

will be held starting in August 2013

•Last collaborative meeting scheduled for December 5, 2012, at 9:30 a.m., Embassy Suites in Des Moines

− Additional suggestions may be directed to product managers

New Trade Ally Portal

• One-stop spot where customers can:− Find a qualifying trade ally− Understand program offers− Review program requirements− Contact trade allies or the program administrator via phone or email

• Will enhance Trade Ally Central− Framework under development− Multiple phases to the upgrade

o Consolidated Trade Ally informationo Performance reporting and contact managemento Event managemento Online application & rebate processo Incentive calculators

• Register at the Trade Ally Central website

SAVE Training

Register for an HVAC SAVE class in 2012 and earn your certification, CEUs and become eligible for additional qualifying utility incentive programs and rebates.

Trade Ally Central

Please visit Trade Ally Central at:

www.midamericanenergy.com/iowa_tradeallies

2013

Program Changes

Major 2013 Changes

• Maximum incentive for any program is 70% of installed materials and reasonable labor

• Pre-approval is required for all Custom projects – exceptions occurred in the past but no longer

Nonresidential

Program Changes

Nonresidential Equipment

Changes to incentives and qualifying equipment for the following programs:

•Commercial Kitchen Equipment•Money for Motors & Variable-Speed Drives •Nonresidential HVAC•Nonresidential Lighting•Nonresidential Building Shell (Iowa only)

Refer to handout for list of changes. Additional information is available at the Money for Motors and Variable-Speed Drives breakout session or

Nonresidential Programs table.

Money for Motors

• Program ends December 31, 2013

• Recycling fee is paid to motor distributors – end-use customer is ineligible for recycling fee

• If old motor is not sent to distributor, motor shaft must be cut off and 3x3” section of the motor frame removed

• Customer must hold old rendered inoperable motor on-site until post-verification completed by MidAmerican Energy

Additional information is available at the Money for Motors and Variable-Speed Drives breakout session.

Variable Speed Drives

• New brochure – separate from the Motors brochure and website

• Requirements to participate include:− New installation or failed unit with bypass capability (fans, pumps or blowers only)

− 3,000 annual operating hours

− Must control process with a variable load, not just adjustable, process must be automatically controlled

• Ineligible to participate if:− Replacing working drive

− Single-phase VSD or used for soft-starting only

− Spare inventory

− Where Code requires a VSD to be installed

Additional information is available at the Money for Motors and Variable-Speed Drives breakout session.

Nonresidential Lighting

• T-8 fluorescent lamps must be 800 series to qualify for an incentive; 700 series no longer qualifies

• New in 2013:− 25 & 28 watt T-8 lamps replacing existing T-12 systems with magnetic

ballasts − 25 & 28 watt T-8 lamps replacing existing T-8 lamps − Linear LED lamps replacing existing fluorescent lighting − LED fixtures <100 watt HID equivalent− LED lamps for recessed cans, spot and track lighting − LED A-19 lamp − Wall or ceiling-mounted occupancy sensors, controlling ≤ 400 watts − Fixture-mounted occupancy sensors, controlling ≥ 100 watts

Refer to handout for list of changes. Additional information is available at the Nonresidential Lighting breakout session or Nonresidential Programs table.

Multifamily Housing

Direct installs must be completed in the majority of units to receive the enhanced lighting and insulation incentives.

Refer to handout for list of changes. Additional information is

available at the Nonresidential Programs table.

Nonresidential Custom Systems

• Many lighting measures were moved to the prescriptive Nonresidential Equipment program

• Pre-approval is required for all custom projects

Refer to handout for list of changes. Additional information is available at the Nonresidential Programs table.

BusinessCheck

Direct installs must be completed prior to receiving the

enhanced lighting and insulation incentives.

Refer to handout for list of changes. Additional information is

available at the Nonresidential Programs table.

Other Nonresidential Program Changes

• Nonresidential Energy Analysis

− Detailed study total reimbursement cap of $25,000

− Detailed studies limited to those proven cost-effective

• Commercial New Construction

− Online application available

− Net Energy Optimizer solution for smaller buildings (5,000 – 15,000 sq. ft.)

Refer to handout for list of changes. Additional information is

available at the Nonresidential Programs table.

Residential

Program Changes

Residential New Homes

• ABOP System SAVE requirement is 70 or greater

• Advanced BOP available in Iowa

Pre-enrollment is required for ABOP and ENERGY STAR homes to allow MidAmerican Energy to provide in-field mentoring and quality assurance on program homes.

Refer to handout for list of changes. Additional information is available at the Residential New Construction breakout

session.

Residential Equipment Program Changes

New in 2013:

•Water-to-water ground-source heat pumps

•Window air conditioner must be ENERGY STAR-rated

Refer to handout for list of changes. Additional information is

available at the Residential Programs table or SAVE breakout session.

• Benefit to contractors: clear marketing advantage with SAVE installations• Customers deserve quality installation of high-efficiency HVAC equipment

– Demanding comfort and recognition of savings from the purchase of higher efficiency equipment

• Two day SAVE training includes fundamentals and advanced training • SAVE software fees: $100 per month, information available at tables• Training costs: after discounts and scholarship, tech pays $275

– However, $375 MEEA training grant funds depleting and scholarship will be ending early 2013; MidAmerican Energy will continue to offer $375 tuition reimbursement in 2013

• SAVE training results:o Over 550 individuals certified in Iowao 27 participating contractorso Over 500 HVAC jobs currently in progress in CommonCents software in Iowao Over 1,000 installation incentives processed by MidAmerican Energyo Developed brochure contractors can use to promote SAVE installations to customers

• 2014: only SAVE installations receive HVAC rebate!

Additional information is available at the SAVE breakout session.

SAVE Training – System Adjustment & Verified Efficiency

Questions?

Breakout Sessions

Please stop by one of the following breakout sessions for more information:

•Money for Motors and Variable-Speed Drives Programs•The System Adjustment & Verified Efficiency Program (SAVE)•The Residential New Construction Program•Commercial Lighting – Where is LED Technology today?