AHCA SEMINAR/FHEA TRADE SHOW Improving Standby Generator Reliability. September 22, PowerSecure. All rights reserved.

What You Will Learn About Standby Power Reliability Gain understanding of the science behind the data Threats to the healthcare facility power system Most common failure points Mitigating risk Building a true Reliability Growth Management Model 2 2013 PowerSecure. All rights reserved.

PowerSecure: Basis of Expertise 1500 MWs of DG in Operation for Standby Power & Utility Peak Load Management Installed at Mission Critical Facilities, Including Numerous Hospitals in Florida and Hospitals Across 28 States Turnkey, Life-Cycle, 24/7 Continuously - Monitored Gives Us a Very Unique Perspective of Reliability Systems Range from 500kW to 20MWs at One Site 3 2013 PowerSecure. All rights reserved.

PowerSecure: Basis of Expertise 40-500 Hours of Annual Operation per Site; Average is Approximately 120 Hours Across the 1500MWs of Capacity Our Interactive Distributed Generation Systems Operated For Over 100,000 Standby & Peak Load Management & Standby Power Events Applying the science of probabilistic risk assessment to critical power systems since 1997 Clients include data centers, hospitals, nuclear power, oil & gas 4 2013 PowerSecure. All rights reserved.

DG LESSONS LEARNED Must have a Reliability Growth Management Model to Significantly Improve Reliability Utility Interconnection Improves the Reliability of Standby Power Systems Run-Up Synchronization Enables Hospitals to Reduce Probability of Standby Power Failure by 90% or More Reliability Benefits by Testing Standby Generation with Load Management 5 2013 PowerSecure. All rights reserved.

Generator Reliability Data Many sources of data available - Nuclear plant studies - FAA - IEEE papers and IEEE 3006.8 - Military - Data Centers - PowerSecure operations Failures vary in time and cause - 0 ½ Hour starting systems, controls, sensors - ½ - 14 hours support systems - 14-24 hours Engine and Generator 6 2013 PowerSecure. All rights reserved.

Reliability Growth Improvement Custom Installations Create Custom Problems Keep Score: - Failures and Mistakes Documented/Reported or History is Repeated - Record every success and every failure Keep separate records for tests versus actual demands Test like you run, run like you test - Most testing schedules and methods have not been systematically engineered, reviewed, and revised 10 2013 PowerSecure. All rights reserved.

ENGINEERING/DESIGN Standardized Designs from Equipment Fabrica8on Thru Construc8on Documents Engine Generation MANUFACTURING Main Switchgear Emergency Switchgear Interconnection Integration Enclosures Housings Sub Systems CONSTRUCTION Same Project Managers/Crews Using Standardized Methodology To Install Standardized Equipment Reliability Growth Management COMPLETED INITIAL PROJECT 24/7/365 Service Bureau Reliability Growth Management Feedback Loop Feedback Loop Monitors all Key Parameters, Components, Sub Systems and Every System Opera:on 11 2013 PowerSecure. All rights reserved.

PowerSecure DR/PLM Performance in 2013: 1,886,170 Minutes; 30,920 Engine Hours 9,620 Individual Events 9,444 Successful Operations 176 Failed Operations 75 Failed to Start 101 Running Failure 12 2013 PowerSecure. All rights reserved. 98.3% Best in Industry Reliability

Benefits of Utility Interconnection & Parallel Operation for Peak Load Management Standby System Operates a Limited, but Significant, Number of Hours per Year While Utility is Available Results in Detection of System Problems without Disruption to the Hospital Utility Peak Load Management Programs can have Significant Financial and Environmental Benefits 15 2013 PowerSecure. All rights reserved.

Benefits of Utility Interconnection & Parallel Operation for Peak Load Management Avoids the Need for Invasive Load Bank Testing Enables Improved Testing Procedures Improves Accreditation Compliance A Nuclear Power Industry study determined that a Traditional One Hour Generator Test has No Correlation with Actual System Performance in Required Standby Event 16 2013 PowerSecure. All rights reserved.

DG/LM runs are standby tests Gradual Loading Reduces Stresses on Machines Hours-Long Runs Better Simulate Regional Emergency Conditions New Clean EPA Interim Tier 4 Bi-Fuel Generation can Stretch Diesel Reserves in Emergencies 18 2013 PowerSecure. All rights reserved.

Benefits of Utility Interconnection & Parallel Operation for Peak Load Management Financial Benefits - FPL $7.89/kW-Month - TECO $4.75/kW Month - Seminole Coops Average $7/kW Month 19 2013 PowerSecure. All rights reserved.

10-second rule Requirement to start and load generators in 10 seconds limits health care standby power options Set in regulatory concrete not supported by needs or performance-based analysis New EPA Standards are making this requirement harder to achieve 21 2013 PowerSecure. All rights reserved.

After Sandy, October 2012 The fact that the NYU hospital is dark but Goldman Sachs is welllit is everything that's wrong with this country. Ken Shadford (@kenshadford) Hospital power failures endanger life and health and should not be tolerated -Steve Fairfax 22 2013 PowerSecure. All rights reserved.

10-second rule effects Difficult to start and synchronize large generator arrays in 10 seconds Corporate data centers, social media, financial institutions routinely employ N+1 to N+3 generator redundancy. Some use 2N generators or 2(N+1) arrays Social media has more reliable standby power than most healthcare facilities 23 2013 PowerSecure. All rights reserved.

Run-Up Synchronization Demonstrated at healthcare facilities One example: York Hospital, 12 machines (7.5MWs) total standby capacity started and loaded in 8.5 seconds N+3 redundancy can reduce probability of standby power failure by 90% or more Health care facilities can exceed 20 th -century regulations with 21 st -century power reliability 24 2013 PowerSecure. All rights reserved.

Summary Embrace the Use of Standby Power Systems for Utility DR/PLM for Top 40-400 Hours of Utility Peak Demand per Year Consider Utility Load Management Programs to: (1) Improve Reliability of your Standby Power, (2) while Generating Revenues and Attractive IRR and (3) Protecting the Environment 25 2013 PowerSecure. All rights reserved.

Summary Run-Up Synchronization for Quantum Leap in Emergency Power Reliability N+3 Run-Up Sync for >99.8% Standby Power Reliability Most Importantly, A Commitment to Continuous Reliability Growth is Necessary to Provide Highest Standby System Reliability 26 2013 PowerSecure. All rights reserved.