The GD-AIS Energy Management Process

GDAIS has over 70 sites in the United States, encompassing every type of commercial office leasing. Our sites range from multi-year full service leases, to triple net leases of flex-space typically used for more lab intensive requirements. We also have one GDAIS owned site, along with one Government Owned Contractor Operated (GOCO) site.

Energy (primarily in the form of Electricity and Natural Gas) has always been a significant portion of the cost of GD-AIS product out the door. In today’s market, the customer has every right to expect the use of utilities during production to be minimized, consistent with a quality product. This expectation is both from a cost perspective as well as a global environmental perspective. GD-AIS dedication to the use of the most up-to-date systems, equipment and processes allows us to control the use of utilities.

The scope of our energy plan involves each property occupied by GDAIS personnel. We are committed to energy efficiency and conservation by cost effective and efficient practices. The basis of the program is benchmarking of each facility on an on-going basis. Benchmarking allows us to “rank” each of the buildings, showing us where to focus our attention, on those sites where the combination of upgrade potential, utility cost intensity, and rebate availability provides the best returns on engineering time and invested capital.

One of our goals is to reduce energy usage by approximately 10% in 2007 by identification of areas of excessive energy use and recommending changes in operating practices and equipment to reduce electrical energy costs. As we define the energy use, energy use reduction goals are expected to get larger.

However, the cost of permanent improvement, regardless of funding methodology, must have a two year return on investment (ROI) index. This provides the best mix of cost reduction without extended payback periods, which is in line with corporate policy.

During 2007, GD-AIS has allocated approximately $600,000 for energy related programs, expecting a reduction in overall energy costs next year to be on the order of $1,000,000, for an Return on Investment period of well under one year average. Some of the projects underway include:

• Chilled Water Reset
• Combustion Efficiency Testing
• Compressed Air System Efficiency Improvements
• Condenser Water Reset
• EMS System Upgrades/Reprogramming
• Lighting Retrofits
• Electric Motor Replacements
• Optimum Start/Stop Programming
• Outside Air Ventilation System Improvements
• Occupancy Sensors
• Heat Recovery/Exchange Systems
• Steam Plant Maintenance
• Variable Speed Drive Installations