Executive VP of Programs and Development Brian Castelli traveled to Mexico City to present at EXPO INCYTAM 2008, where he offered energy efficiency solutions for Latin American cities burdened by the effects of pollution and global climate change.

1. Why Energy Efficiency Matters Brian T. Castelli Executive Vice President Programs & Development INCYTAM 2008 Mexico City, DF November 19, 2008

6. MUNICIPAL EE Internationally Watergy • Efficiency in bulk supply and end use • Our largest municipal program Building EE - building local capacity in… • energy codes • e nergy audits • monitoring techniques Street Lighting • Simple & cost-effective Transportation • Survey of effective approaches for APEC • Includes succinct summaries of ~50 examples

8. U.S. Energy Situation: Energy Use Continues to Rise

9. Growing Gap between Energy Supply and Demand

10. Climate Change !

12. Past Successes – But Much More is Needed Source: Art Rosenfeld, CEC

13. Energy Efficiency is Already Our FIRST Energy Resource

14. Huge EE Potential Remains 40% Energy Efficiency Adapted from McKinsey Analysis

15. Globally, EE is One Possible Means to Contain Demand

16. And the U.S. Can Clearly Do Better! Per Capita Electricity Consumption - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 1960 1965 1970 1975 1980 1985 1990 1995 2000 KWh US CA Western Europe

26. Codes: Helping to Cut Global Energy Demand Growth Better Building Codes are part of the solution to cutting global energy demand growth from 2.2% to 0.7% Source: McKinsey Global Institute

32. Why Do More? Answering the Climate Challenge

34. Watergy on the Border Alliance Watergy program now spans entire border: • Baja California (Tijuana) • Sonora (Guyamas) [still in discussion stage] • Chihuahua (Hidalgo de Parral) • Coahuila (Monclova-Frontera) • Nuevo Leon (Monterrey) • Tamaulipas (Matamoros, Tampico)

35. WHAT IS WATERGY? A Quick Snapshot Watergy makes the best use of two valuable, limited resources: water & energy WHY IS THIS IMPORTANT?  Every liter of water that passes through a system has a significant energy cost .  Water sector efficiency leaves more funds for crucial and often underfunded public services .  In Mexico, the water supplied that is lost : 1/3 AND IT’S COST EFFECTIVE…  Rapid Payback : generally from a few months to 3 years  Huge Savings : at least 20% in energy costs; much higher possible  Makes the most of existing infrastructure ; reduces the need for new

36. T he Most Cost-Effective Interventions  Pumps  Leak Management  Automated Controls  Metering & Monitoring

38. A Look at Two Projects

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