SnoPUD is developing an Energy Savings Purchasing Program that would invest in comprehensive energy efficiency projects for commercial customers. This would allow customers to upgrade facilities with no upfront capital costs, as the projects would pay for themselves through utility bill savings over 10 years. A third party would provide financing and guarantee savings. The goal is for customer's annual payments from savings to be equal to or less than their current utility costs. This program aims to help customers maximize energy efficiency by removing barriers like upfront costs.

1. EARLY MARKET TEST
Energy Savings
Purchasing Program
Snohomish County
Public Utilities District
PROGRAM OVERVIEW
SnoPUD is in final development of an
Energy Savings Purchasing Program. This
is a utility-based program that invests in
comprehensive energy efficiency capital
improvement projects on behalf of the
building owner by reinvesting wasteful
utility consumption.
This is a NO COST obligation that is designed to fully
pay for itself in 10 years based on realized savings
that are assessed on the utility bill. There is a financial
guarantee on savings. The goal is annual payments
based on these savings are targeting operating
budget neutral to positive. Historically, the need for
upfront capital investments and limitations around
incentivizing all aspects of energy savings measures
has hindered customers from reaching their full
energy savings potential. This program is designed
to remove those roadblocks and allow SnoPUD
customers to reach their highest efficiency.
This is an Energy Savings Purchasing Program that
has the potential to fundamentally change how
SnoPUD procures efficiency; aka wasted production.
It is fair to say, SnoPUD is covering all the cost for
their commercial customer to be efficient.
SEATTLE EVERETT BELLEVUE TACOMA
PORTLAND EUGENE BEND
macmiller.com 1-800-962-5979
We make buildings work better.

2. POTENTIAL SCOPES OF WORK
Alternative approach to resolving
capital expenditures needs
Capture incentives on end-of-life equipment
replacements
Incentivize replacement of HVAC control systems
Capture incentives on resolving deferred
maintenance issues
Leverage continuous commissioning building
analytic software for real time performance
management
Improvements to building envelope
Implement advanced load based control to
maximize efficiency of control system and
extend life of equipment
Perform air and water balancing on HVAC
equipment with added benefit of improving
building comfort
Replace outdated lighting with LED technology
for overall lower operating costs and extended
life expectancy
The finance company will receive monthly payments from
SnoPUD based on a documented rate for the realized KWH
savings and from the customer based on a percentage of
the realized energy savings. MacDonald-Miller will provide
a financial guarantee to make all parties whole for any
shortfalls in the realized energy savings. This financial
reconciliation, “true-up”, will be performed annually.
Performance reporting will be published monthly and
available through a customer WEB Portal.
SNOHOMISH PUD | George Pohndorf | Direct: 425.783.8022 | grpohndorf@snopud.com
MACDONALD-MILLER | D’Wayne Kendrick | Direct: 206.768.4024 | dwayne.kendrick@macmiller.com
PROGRAM
CONTACTS
macmiller.com 1-800-962-5979
Highlights
Zero upfront capital investment needed
Goal is to be cash flow neutral in first month
Savings are financially guaranteed
Inclusion of non-energy savings scope
Inclusion of scope that’s historically not able or too
difficult to be incentivized
Program payments are classified as an operational
expense within utility bill rather than capital expenditure
Incentives are based on actual monthly savings over a
10-year period
Energy Services Agreement
Multi-year agreement that defines the
facility improvements and associated annual
savings. This is a three-party agreement, which
will GUARANTEE the minimum energy savings
as well as provide a comfort GUARANTEE based
on historical comfort call logs.
Energy Savings
Purchasing Agreement
Contract between SnoPUD and
the finance company, who is
obligated to deliver established
savings and project financing.
Customer/Facilities
MacDonald-Miller
Facility Solutions
Finance Company
Snohomish PUD
ENERGY SERVICES
AGREEMENT
SAVED
Loan Payment
(% is variable)
Incentive
Wasted Production
(amount incentivized)
Payment for
Services
DEVELOPMENT PROCESS
NOW 45-90 DAYS 30 DAYS 10 YEARS
STEP 1: Execute
project development &
engineering agreement
3-9 MONTHS
STEP 2: Review
investment grade
report findings
STEP 3: Enter
into a energy
services contract
STEP 4A: Implement
& commission energy
conservation project(s)
STEP 4B: Gain
customer and
utility acceptance
STEP 2: Actively
manage results
PROGRAM
DESIGN PROGRAM OVERVIEW
SnoPUD is in final development of an
Energy Savings Purchasing Program. This
is a utility-based program that invests in
comprehensive energy efficiency capital
improvement projects on behalf of the
building owner by reinvesting wasteful
utility consumption.
This is a NO COST obligation that is designed to fully
pay for itself in 10 years based on realized savings
that are assessed on the utility bill. There is a financial
guarantee on savings. The goal is annual payments
based on these savings are targeting operating
budget neutral to positive. Historically, the need for
upfront capital investments and limitations around
incentivizing all aspects of energy savings measures
has hindered customers from reaching their full
energy savings potential. This program is designed
to remove those roadblocks and allow SnoPUD
customers to reach their highest efficiency.
This is an Energy Savings Purchasing Program that
has the potential to fundamentally change how
SnoPUD procures efficiency; aka wasted production.
It is fair to say, SnoPUD is covering all the cost for
their commercial customer to be efficient.

3. POTENTIAL SCOPES OF WORK
Alternative approach to resolving
capital expenditures needs
Capture incentives on end-of-life equipment
replacements
Incentivize replacement of HVAC control systems
Capture incentives on resolving deferred
maintenance issues
Leverage continuous commissioning building
analytic software for real time performance
management
Improvements to building envelope
Implement advanced load based control to
maximize efficiency of control system and
extend life of equipment
Perform air and water balancing on HVAC
equipment with added benefit of improving
building comfort
Replace outdated lighting with LED technology
for overall lower operating costs and extended
life expectancy
The finance company will receive monthly payments from
SnoPUD based on a documented rate for the realized KWH
savings and from the customer based on a percentage of
the realized energy savings. MacDonald-Miller will provide
a financial guarantee to make all parties whole for any
shortfalls in the realized energy savings. This financial
reconciliation, “true-up”, will be performed annually.
Performance reporting will be published monthly and
available through a customer WEB Portal.
SNOHOMISH PUD | George Pohndorf | Direct: 425.783.8022 | grpohndorf@snopud.com
MACDONALD-MILLER | D’Wayne Kendrick | Direct: 206.768.4024 | dwayne.kendrick@macmiller.com
PROGRAM
CONTACTS
macmiller.com 1-800-962-5979
Highlights
Zero upfront capital investment needed
Goal is to be cash flow neutral in first month
Savings are financially guaranteed
Inclusion of non-energy savings scope
Inclusion of scope that’s historically not able or too
difficult to be incentivized
Program payments are classified as an operational
expense within utility bill rather than capital expenditure
Incentives are based on actual monthly savings over a
10-year period
Energy Services Agreement
Multi-year agreement that defines the
facility improvements and associated annual
savings. This is a three-party agreement, which
will GUARANTEE the minimum energy savings
as well as provide a comfort GUARANTEE based
on historical comfort call logs.
Energy Savings
Purchasing Agreement
Contract between SnoPUD and
the finance company, who is
obligated to deliver established
savings and project financing.
Customer/Facilities
MacDonald-Miller
Facility Solutions
Finance Company
Snohomish PUD
ENERGY SERVICES
AGREEMENT
SAVED
Loan Payment
(% is variable)
Incentive
Wasted Production
(amount incentivized)
Payment for
Services
DEVELOPMENT PROCESS
NOW 45-90 DAYS 30 DAYS 10 YEARS
STEP 1: Execute
project development &
engineering agreement
3-9 MONTHS
STEP 2: Review
investment grade
report findings
STEP 3: Enter
into a energy
services contract
STEP 4A: Implement
& commission energy
conservation project(s)
STEP 4B: Gain
customer and
utility acceptance
STEP 2: Actively
manage results
PROGRAM
DESIGN

4. EARLY MARKET TEST
Energy Savings
Purchasing Program
Snohomish County
Public Utilities District
PROGRAM OVERVIEW
SnoPUD is in final development of an
Energy Savings Purchasing Program. This
is a utility-based program that invests in
comprehensive energy efficiency capital
improvement projects on behalf of the
building owner by reinvesting wasteful
utility consumption.
This is a NO COST obligation that is designed to fully
pay for itself in 10 years based on realized savings
that are assessed on the utility bill. There is a financial
guarantee on savings. The goal is annual payments
based on these savings are targeting operating
budget neutral to positive. Historically, the need for
upfront capital investments and limitations around
incentivizing all aspects of energy savings measures
has hindered customers from reaching their full
energy savings potential. This program is designed
to remove those roadblocks and allow SnoPUD
customers to reach their highest efficiency.
This is an Energy Savings Purchasing Program that
has the potential to fundamentally change how
SnoPUD procures efficiency; aka wasted production.
It is fair to say, SnoPUD is covering all the cost for
their commercial customer to be efficient.
SEATTLE EVERETT BELLEVUE TACOMA
PORTLAND EUGENE BEND
macmiller.com 1-800-962-5979
We make buildings work better.