Mayor Touts Job Creation Initiative

EVANSVILLE, IN – Mayor Lloyd Winnecke announces his response to today’s Indiana Utility Regulatory
Commission (IURC) decision on the Smart City initiative by unveiling his new program, Positive Progress
for a Smart City. The Positive Progress for a Smart City initiative, which is expected to create more than
170 jobs and support local business development in Evansville, is an evolution of the previous
administration’s initiative.

Positive Progress refocuses the project to maximize economic development opportunities, while
investing in our city’s energy, water, network infrastructure, and operational improvements for the
Evansville Water and Sewer Utilities (EWSU).

“I think it is imperative that the city move forward with this initiative to replace aging infrastructure and
automate EWSU water meters to ensure equity in billing by more accurately measuring the amount of
water used by utility customers,” Mayor Winnecke said. “The initiative will not only improve the
accuracy of water meters, but more than 90 percent of the dollars spent on this project will stay in the
community in terms of materials and labor needed to complete the work.”

Local contractors and engineering firms, including minority- and women-owned businesses, will be used
to perform the installation and upgrades featured in the initiative. The program was developed in
collaboration with Johnson Controls, a global leader in energy efficiency and employer of more than
1,200 Indiana residents.

Investing in Infrastructure:

A state-of-the-art Automated Meter Reading (AMR) system replacing water meters citywide
that are more than 5-years-old will enable EWSU to streamline operations as well as bill and
collect for actual usage, eliminating the need for outdated, inaccurate, manually-read meters.

“For residents, the new automated meters will provide our customers with a way to better
understand and measure your home’s water use, eliminate estimated readings, and provide
more accurate billing,” said Allen Mounts, director, EWSU.

Creating Economic Development Opportunities:

The creation of a fiber optic network will support the EWSU’s AMR system and future needs for
other voice and data applications. The enhanced fiber optic ring will also be a new economic
development tool in the City’s efforts to attract new or expanding businesses that may desire
connectivity.

“Connectivity is critical in today’s economy and as our region is in the bottom tier for broadband
coverage and speed, this initiative will propel us straight to the top,” stated Greg Wathen,
President and CEO of the Economic Development Coalition of Southwest Indiana. “Only a
handful of cities are currently participating in a program comparable to this; and, as far as future
businesses become interested in our region, it’s a definite game changer.”

Cleaning-up our Waste Water Treatment System:
A new FOG (fats, oils and grease) program will collect fats, oils and grease materials, currently
put into the landfill, and use them to create 500 kilowatts (KW) of green methane that will be
used to power EWSU facilities.

The Positive Progress for a Smart City initiative differs from former Mayor Jonathan Weinzapfel’s Smart
City program in that the wireless municipal network portion of the original program has been removed,
while the city explores the community’s connectivity needs. The decision coincides with similar feedback
the IURC released at its biweekly conference earlier today. The IURC chose not to approve financing of
the original contract signed in December of 2011.

“Now is the perfect time to support a new approach that focuses on job creation and economic
development as we address the City’s and EWSU’s infrastructure needs. That’s something we can all
agree on,” said Mayor Winnecke. “I anticipated the IURC’s concern regarding wireless services as part of
the original contract, and our changes are a result of positive negotiations with Johnson Controls. This
administration is committed to assessing the community’s need and developing the right solution to
address it.”

Pending a review and final approval from the IURC on this new initiative, the contract will be financed
and guaranteed through the performance contracting model. With performance contracting, savings
and increased revenue will pay for the project over the term of the contract. If the savings are not

realized, Johnson Controls pays the difference between the value of the measured and verified
consumption and the guaranteed consumption under the contract.

The administration intends to make a full presentation to the Evansville City Council in the near future to
continue the dialogue on this important opportunity for the City of Evansville.