On December 17, 2009, the New Jersey Board of Public Utilities approved the following change to the Prescriptive Lighting component of the NJ SmartStart Buildings Program which will be effective February 13, 2010.

Retrofit of T-12 to T-8 for 3 & 4 lamp fixtures:

• 2009 Incentive: 3-4 lamps - $20
• 2010 Incentive: 1-4 lamps - $15

This only affects the 3 and 4 lamps fixtures. There is no change to the incentive for 1 and 2 lamp fixtures.

Customers have until 5:00 pm on February 12, 2010 to submit a complete application package under the 2009 program incentive levels. A properly completed application package includes an application completed and signed by the customer, a W9 form for the Payee, 12 months of electric utility bills including any third party supplier invoices, and equipment manufacturer specifications documents. This information must be submitted before equipment is installed.

Summary of 2010 Program Changes

A number of changes have recently been approved for the NJ SmartStart Buildings Program. These changes are reflected in the 2010 Application Forms and summarized below:

1) Custom Measures will provide performance incentives of $0.16/kWh and $1.60/therm of first year savings, or a buy down to a one year payback, based on estimated savings. A minimum annual savings of 75,000 kWh or 1,500 therms and an IRR of at least 10% will be required. Custom Measures changes will be effective February 1, 2010.

2) Efficiency requirements for Electric Chillers, Ground Source Heat Pumps and Unitary HVAC systems must comply with ASHRAE 90.1-2004.

3) Occupancy controlled thermostats for hospitality or institutional facilities, previously covered as a Custom Measure, are now eligible for an incentive of $75 per thermostat through the Electric Unitary HVAC application.

4) The incentive for Geothermal, or Ground Source Heat Pumps, has increased from $370 per ton to $450 per ton for 16 EER and above equipment, $600 per ton for EER 18 and above and $750 per ton for EER 20 and above.

5) The standard for Gas Furnaces has increased from 90% AFUE to 92%.

6) A $300 incentive per tankless water heater has been added to the Gas Water Heating application

7) Fractional (less than 1 HP) electronic commutated motors (ECM), previously covered as a Custom Measure, are now eligible for $40 per ECM for replacement of existing shaded-pole motors in refrigerated/freezer cases as part of the Premium Motors application.

8) Under the Prescriptive Lighting application, T-5 and T-8 lamps with electronic ballasts replacing T-12 lamps will be eligible for $15 per fixture for T-12 to T-8/T-5 (1-4 lamp) retrofit and $10 per fixture for T-8 to reduced wattage T-8 (28W/25W 4')(1-4 lamp) retrofit. This requires a lamp and ballast replacement. In addition, induction lighting fixtures, previously covered as a Custom Measure, are now included as part of Prescriptive Lighting. For retrofits, there is an incentive of $50 per HID (100 W and above) fixture retrofitted with induction lamp, power coupler and generator. Replacement units must use 30% less wattage per fixture than existing HID systems. For replacements, the incentive is $70 per new HID (100 W and above) fixture. The Prescriptive Lighting Application has also been updated to provide incentives for LED refrigerated/freezer case lighting. The incentive is $42 for 5' fixtures and $65 for 6' fixtures replacing fluorescent lighting in medium or low temperature display cases. Technical requirements are listed on the application.

9) The Lighting Controls application has been changed to reflect a change to day lighting dimmers. For office applications only, the incentive has increased to $50 per fluorescent fixture controlled.

10) The Multiple Measures Bonus has increased to 15% and it will be available if the multiple measures include lighting and lighting controls.