Midwest Energy Efficiency Alliance Change A Light, Change The World 2002 Campaign Summary Report, Results and Lessons Learned April 2, 2003

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1 Midwest Energy Efficiency Alliance Change A Light, Change The World 2002 Campaign Summary Report, Results and Lessons Learned April 2, 2003 Sponsored By:

2 Table of Contents Introduction... 3 Promotion Goals... 3 Promotion Origin... 3 Promotion Sponsors... 4 Contractors... 4 Industry Partners... 5 Promotion Strategy... 5 Promotion Design and Process... 5 Coordination... 5 Target Markets... 6 Product... 6 Distribution... 8 Price... 8 Press Point of Sale Materials Illinois CFL Education Sale Volume Results Energy Savings Financial Analysis Retailer Survey Results Ace Hardware Corporate Feedback Sponsor Feedback Lessons Learned Conclusion Appendix... 21

3 Introduction In the fall of 2002 the Midwest Energy Efficiency Alliance (MEEA) administered the national ENERGY STAR program s Change A Light, Change the World promotion in the Midwest. The program aimed to increase the market share for ENERGY STAR qualified compact fluorescent lamps (CFLs) while educating both consumers and retailers about the benefits of CFLs. The campaign had to overcome various logistical issues, including a national shortage of CFLs. Despite the barriers, the campaign was very successful. MEEA s goal for the promotion was to sell 150,000 ENERGY STAR qualified compact fluorescent lamps (CFLs) in participating areas. A total of 154,528 CFLs were sold without expending the full budget, making the effort more cost-effective than MEEA anticipated. Further, the effort leveraged more than $150,000 in matching funds from the manufacturer partner and involved more than 200 retailers. The 154,000 CFLs sold will yield over 70,000,000 kwh savings over their life. That is enough energy saved to power 7,100 homes for one year and to keep 85,200 tons of C0 2 from being released into the atmosphere. As a direct result of this promotion consumer awareness of the energy saving and environmental benefits of CFLs increased. Further, retailers in States that had not previously participated in an ENERGY STAR promotion now understand the benefits of offering their customers more energy efficient choices, thus laying the groundwork for future promotions. A great deal of the credit for this success goes to the campaign s market partners Ace Hardware Corporation and Westinghouse. Additionally both MEEA and the Wisconsin Energy Conservation Corporations (WECC) who administers the Wisconsin Focus on Energy Program benefited from the joint collaboration and achieved wide-spread results across the region and allowing for further penetration of ENERGY STAR qualified CFLs throughout the Midwest. Promotion Goals The primary goals of the Change a Light Change the World promotion are outlined below: 1. Achieve unit sales of 150,000 CFLs and corresponding energy savings. 2. Raise the level of awareness of the benefits of owning ENERGY STAR labeled products among retailers and consumers. 3. Demonstrate to retailers that investing in the promotion of ENERGY STAR CFLs can be profitable both financially and in terms of public relations. 4. Expand the selection of CFLs on store shelves. 5. Create a new low price point for CFLs in targeted markets. Promotion Origin The Environmental Protection Agency (EPA) introduced the National Change a Light, Change the World fall lighting campaign in The campaign serves as a framework for cooperation between national, regional and local ENERGY STAR partners in delivering a coordinated message to industry and consumers regarding the energy saving benefits of qualified lighting products. This was the second year that MEEA participated in the national Change A Light, Change the World Campaign. MEEA s Program Committee and staff decided it was appropriate to participate in the promotion for a second year for several reasons: First, the promotion is an opportunity to affect the supply and market penetration of ENERGY STAR labeled products in the Midwest region. Product supply and penetration in the Midwest are largely controlled by manufacturers and retailers operating on a national basis, thus MEEA believes coordination at the national level is necessary. Final Report 2/10/03 3

4 Second, because MEEA offered the program in 2001 we were able to build upon the previous year s efforts, taking advantage of the momentum that had been generated in the marketplace. Third, light bulbs are a common household item that consumers purchase frequently so they are a useful platform for raising awareness of ENERGY STAR qualified products among a broad section of the population. Fourth, there is a high potential return on investment in terms of energy savings gained by promoting CFLs. Fifth, the promotion provided MEEA with an opportunity to develop its expertise in coordinating joint efforts with national, regional, and local partners. Promotion Sponsors MEEA received funding from nine sponsors across the region: City of Chicago Commonwealth Edison (Illinois) Illinois Department of Commerce and Community Affairs Xcel Energy (Minnesota) Minnesota Department of Commerce Southern Minnesota Municipal Power Association Ohio Department of Development Kentucky Division of Energy Missouri Department of Natural Resources This funding was used to deliver the promotion to targeted markets including Chicago, Peoria, Bloomington, Springfield, and East St. Louis, Illinois, St. Louis, Missouri, Minneapolis, St Paul, Southern Minnesota, Lexington and Louisville, Kentucky, Dayton, and Columbus, Ohio. See attachment A for a list of participating retailers. MEEA coordinated its efforts with WECC and other regional organizations that were also participating in the Change a Light, Change the World campaign. This cooperation enabled the organizations to increase their leverage with industry partners and benefit from economies of scale in the design and production of promotional materials and advertising. Getting financial commitments, securing approval of the program design, and finalizing contracts with sponsors were some of the first hurdles the promotion faced. These efforts took nearly three months from start to finish. Although promotion planning stared in mid summer providing more time to prepare for the promotion than the previous year, there were still delays in attaining these approvals. Uncertainties surrounding the status of funding delayed preparations for the Change a Light campaign. These delays also inhibited participating retailers ability to properly advertise the event. Many retailers and their advertising groups place advertising three to six months in advance of the event. Having learned about the Change a Light, Change the World campaign less than three months before its scheduled launch, many had not budgeted for advertising. In addition, MEEA s industry partners, Ace Hardware and Westinghouse, did not have enough time to procure a sufficient supply of CFLs by the start of the promotion to fully meet the demand. This contributed to some of the supply and logistical problems experienced during the promotion. Contractors MEEA selected Wisconsin Energy Conservation Corporation (WECC) through a competitive bid to assist in the implementation of the Change a Light, Change the World campaign. Prior to this selection MEEA had already been working with WECC on the campaign design, Coordination with WECC allowed for the campaign to appear seamless to consumers across the Midwest region. WECC demonstrated expertise in negotiating financial and logistical contributions from industry Final Report 2/10/03 4

5 partners, recruiting retailers, organizing advertising in local markets, and administering the fulfillment of incentives. Applied Proactive Technologies (APT), MEEA s contractor for the Illinois Lighting Program, began its contract a short time before the start of the Change a Light, Change the World promotion. APT successfully assumed responsibility for providing ongoing in-store support for the promotion in Illinois and coordinating efforts with WECC and MEEA s industry partners. Industry Partners In April of 2003 MEEA and WECC (on behalf of Focus on Energy and Minnesota Power) issued a joint request for proposals to collaborate on the Change a Light, Change the World promotion to manufacturers and retailers. Two proposals were selected through a competitive evaluation process. Initially, MEEA planned on partnering with two retail cooperatives and their suppliers: TruServ (True Value Hardware) Corporation with GE as its supplier, and Ace Hardware Corporation with Westinghouse as its supplier. In July, MEEA learned that TruServ had reversed its decision to participate in the promotion, choosing instead to take advantage of a promotion offered to them exclusively by Westinghouse making the CFLs free to customers after a mail-in rebate. Given the short notice supplied by TruServ and the enthusiasm that the Ace retailers were showing regarding participation it was decided to work only with Ace Hardware with Westinghouse as its supplier. MEEA and WECC also agreed that if the unit sales goal was not achieved through the in-store promotion, WECC would coordinate CFL education sales to help supplement the store sales (CFL education sales are described below). Promotion Strategy In order to achieve a sustainable increase in the penetration of ENERGY STAR qualified CFLs in targeted markets, a promotion must work to expand both supply and demand. To accomplish this MEEA chose to employ a combination of pushing and pulling strategies for the Change a Light, Change the World campaign. To facilitate supply (market pull): Program resources were leveraged to gain financial and logistical support from CFL manufacturers and retailers, vesting their interest in the success of the promotion. These partnerships allowed MEEA to influence the product and price offered through the promotion. In addition, MEEA gained Ace Hardware Corporation and Westinghouse s endorsement of campaign, which aided in the recruitment of independent Ace Hardware retailers. Further, it was necessary to work with these allies to ensure a sufficient supply of CFLs to accommodate the promotion plan. To affect demand (push): Demand was stimulated through the use of a $3 instant rebate coupled with a low price point and consumer education on the benefits of CFLs through radio and print advertising as well as point of sale materials. Promotion Design and Process Coordination A top down communication strategy was utilized to leverage existing manufacturer and retailer infrastructure and communication channels in the coordination of the Change a Light, Change the World promotion. This approach utilized existing communication channels, increasing the promotion s effectiveness while holding down costs. Manufacturer and retailer buy-in is key to the success of any retail-based promotion initiated by a third party. To ensure buy-in, MEEA worked closely with the manufacturer (Westinghouse) to design a promotion that would appeal to Ace Hardware Corporation and the retailer members of the Ace Hardware cooperative. Working with Westinghouse, a trusted supplier to Ace Hardware, lent credibility to MEEA and its ability to execute the promotion plan in a shorter than usual timeframe. Final Report 2/10/03 5

6 Westinghouse s expertise in retail marketing was used to design the point-of-sale materials. Westinghouse enlisted the expertise of its distributor, Comprehensive Marketing, to coordinate the process for retailers to order product and to distribute it to regional Ace Hardware distribution centers and individual retailers. Once implementation of the program was underway, Comprehensive Marketing coordinated communication between the manufacturer and Ace Hardware, and worked with individual retailers to resolve issues with the supply and shipping of product. Ace Hardware retailers organize themselves into regional advertising cooperatives designed to share the cost of advertising in their respective markets. Moving down the distribution chain, MEEA then coordinated the recruitment of individual retailers and placement of advertising with these groups and then handled the day-to-day communications with individual stores. This top down strategy proved effective in quickly gaining buy-in from the stakeholders. Further, it addressed all of the channels necessary to coordinate the efficient distribution of product, promotional materials, and information to participants. Because this was the first time these groups worked together there was some skepticism among the various partners at the onset. For example, both Westinghouse and Ace Hardware discounted the initial forecast of unit sales as overly optimistic and did not warehouse enough bulbs to meet demand. The success of the promotion built significant credibility with the industry partners. Target Markets Funding constraints required MEEA to narrow the scope of the Change a Light, Change the World promotion to specific targeted markets within each sponsor s service territory. Target markets were selected based on a number of considerations: sponsor preferences, Ace Hardware Corporation s preferences, the size and composition of local Ace Hardware advertising cooperatives and their volume potential, and the availability and cost of advertising. Project sponsors largely preferred the promotions be run in communities near their base of operation so they would have an opportunity to evaluate its effectiveness. Ace Hardware would only agree to support MEEA s strategy of working through the advertising cooperatives if the opportunity was extended equally to every member of the group in each targeted market. Advertising cooperatives were chosen based on the size of the group and volume potential as part of the strategy to control the volume of instant rebate claims. Finally, the cost of advertising in targeted markets relative to the volume potential was considered. In short, an attempt was made to balance these factors to choose markets where it could deliver the promotion effectively within budget. Estimating the effect of varying levels of consumer awareness and the effectiveness of different advertising cooperatives in different markets proved very difficult. Overall, the results produced by the in-store promotion in each market were in the ballpark with original estimates. Exceptions were Ohio, where the in-store promotion results came in below the forecast; and Minnesota and Illinois, where the forecasts were exceeded. Product The product strategy for the Change a Light, Change the World campaign was to simplify the distribution of product, rebate claim procedures, and the consumer purchasing decision, while offering maximum value. To accomplish this, the following selection criteria were developed: Limit the number of ENERGY STAR qualified CFLs from a single manufacturer. Select CFLs that are equivalent in light output to at least a 60 watt incandescent light bulb (to address the common consumer objection that CFLs are not as bright as incandescent bulbs). Choose CFLs that could be offered to consumers for less than $2 per bulb after the $3 instant rebate, while remaining profitable for retailers. Final Report 2/10/03 6

7 To meet these criteria, MEEA and its partners decided to promote a two-pack of Westinghouse 15w Mini Twist CFLs. The mini twist CFLs are nearly as small as standard incandescent light bulbs and at 15 watts they are equivalent in light output to a 60 watt incandescent light bulb. Better yet, the CFLs chosen were rated for a longer life than most of the ENERGY STAR qualified bulbs on the market at 10,000 hours of operation. Bundling two bulbs into a single package served to compel customers to purchase at least two bulbs while helping to keep costs low. Limiting the selection to one model of bulb greatly simplified distribution, instant rebate claim procedures, and the customers buying decision. Overall, the two-pack of mini CFLs was an excellent value for the consumer and clear fit with MEEA s criteria. At the time the decision was made Westinghouse felt it had adequate time to supply enough product to meet demand, this later proved not to be the case. Supply Issues As highlighted previously, Westinghouse and Ace Hardware had discounted the sales forecast as overly optimistic. Although they had assured MEEA there was plenty of product available for the promotion plan, it became clear two weeks prior to the launch of the event that Ace Hardware had, in fact, procured less than half of the quantity of CFLs needed to fill participating retailers orders. A number of steps were taken to try and rectify the problem: First, Westinghouse agreed to substitute various other models of it s ENERGY STAR qualified CFLs for the two-packs at the same per unit price. Second, because the Wisconsin program was not committed to using just one manufacturer brand, WECC made arrangements to divert a quantity of two-packs earmarked for the Focus on Energy and Minnesota Power promotions to retailers participating in MEEA s event. Because of program design differences, these two programs had the ability to more easily substitute other products for the two-packs. Third, Ace Hardware Corporation negotiated an agreement in which Westinghouse purchased a quantity of CFLs from General Electric, a competitor, for use as substitutes for the Westinghouse two-packs. One week prior to the start of the promotion, Ace Hardware informed MEEA that it was still unable to secure enough substitute product to meet demand and planned to cut the initial orders placed by retailers across the region by 10% to 20% depending on the quantity ordered. Their plan was to ship the balance of the product to stores one week into the promotion when they expected a shipment of the two-packs from China. Unfortunately, the arrival of this shipment coincided with a lockout of longshoremen on the west coast of the United States, which delayed the arrival of the two-packs until after the promotion had ended. At this point WECC was able to make further arrangements that allowed for more of the Westinghouse CFLs earmarked for retailers participating in the Focus on Energy and Minnesota Power promotions to be diverted to retailers in MEEA s targeted markets, while arranging for substitute products from General Electric, Greenlite, Feit Electric, and Maxlite to be shipped instead, solving the supply problem and ensuring that all participants throughout the Midwest had enough product on hand for the promotion. The supply problems that plagued the promotion were the result of a lack of confidence on the part of Ace Hardware and Westinghouse in MEEA s unit sales forecast stemming from a lack of experience running promotions focused on CFLs. The experience had the positive effect of demonstrating to Ace Hardware and Westinghouse the huge potential for sales should they invest in the promotion of ENERGY STAR labeled CFLs in the future. In fact, word has spread to other manufacturers and retailers who are now actively pursuing partnerships with MEEA. We believe the success of the promotion will impact the market for CFLs nationwide. Final Report 2/10/03 7

8 Distribution Coordinating the distribution of product was left to the expertise of Ace Hardware Corporation and Westinghouse s distributor, Comprehensive Marketing. The initial plan called for the two-packs of Westinghouse bulbs to be warehoused in and shipped to stores from Ace Hardware s regional distribution centers throughout the Midwest. This would allow for the efficient distribution of initial orders and reorders within a few days of placement. When it became necessary to provide substitutes for the two-packs, which the Ace Hardware cooperative did not stock in its warehouses, Comprehensive Marketing coordinated drop shipments from Westinghouse s distribution centers throughout the country. Depending on the size of the order retailers occasionally received multiple shipments from different distribution centers. Resorting to drop shipments created delays in the delivery of product. Not being adequately prepared to take on the additional responsibility, Comprehensive Marketing struggled to keep retailers informed of the status of their orders and experienced logistical problems leading to incomplete orders. Price The 2-packs of Westinghouse CFLs, which normally retail for $9.99, were offered during the Change a Light, Change the World promotion for $0.99 after a $6 instant rebate ($3 per bulb). MEEA and WECC staff had lengthy discussions on what the end-price to the consumer should be. In the 2001 campaign, the end-price after the instant rebate was $4.99 and we had determined that this price was not low enough to have met our goal. Given that there is minimal awareness on ENERGY STAR and low electric rates in the Midwest, we felt that a very low price point would be needed to reach our 2002 goals. Ace Hardware was able to leverage MEEA s resources and the volume potential of the promotion to negotiate a special wholesale price from Westinghouse of less than $5 per two-pack. Ace Hardware also agreed to reduce the customary handling fee it adds to all merchandise in order to keep the final cost to its retailers as low as possible. As a result, Ace Hardware retailers were able to purchase the two-packs from the Ace Hardware cooperative for $5.03 each. Ace set the suggested retail price for the promotion at $6.99 before the instant rebate, allowing retailers a profit margin of $1.96 per bulb, an attractive proposition. MEEA negotiated a separate contract with Westinghouse (Attachment B) to cooperatively fund a $6 instant rebate, which further reduced the retail price paid by consumers to $0.99 per two-pack. MEEA contributed $4 and Westinghouse contributed $2 to fund the instant rebate. Prior to the promotion many Ace Hardware retailers sold so few CFLs that they were forced to charge a premium in order to account for the cost of the shelf space the bulbs occupied. The promotion succeeded in demonstrating to a majority of retailers that CFLs can be sold more profitably in more volume at a lower price. Further, it set a new low price point for CFLs in targeted markets, which retailers are likely to continue to pursue in the future. Finally, the two-pack of CFLs was an exceptional value for consumers at $0.99, providing them with an incentive to try ENERGY STAR labeled CFLs. Retailer Recruitment The recruitment of local retailers in targeted markets across a broad geographic region and on a limited budget was accomplished by working through advertising cooperatives. As mentioned previously, Ace Hardware retailers organize themselves into regional advertising cooperatives for the purpose of sharing in the cost of common advertising. In this way, they benefit from economies of scale, pooling their funds to purchase more prominent advertising than they would be able to buy individually. Working through these groups provided MEEA the same opportunity to benefit from these economies, allowing them to negotiate agreements to share in the cost of common advertising with cooperative members. Because these groups choose promotions and place advertising on behalf of the entire group, participation in the promotion was mandatory for all members in the event a majority chose to participate. The promotion was pitched to each advertising group at their monthly Final Report 2/10/03 8

9 meeting as an opportunity for them to perform a valuable service for their community while building a profitable market for CFLs. Retailers were provided with an outline of the promotion and an order form provided by Ace Hardware (Attachments C & D). MEEA worked to leverage cooperative advertising dollars to close the deal with each of the groups targeted. This system for recruitment proved highly effective, allowing MEEA to play upon the group dynamic to quickly recruit retailers in each target market without incurring the costs associated with visiting retailers individually. It also met Ace Hardware Corporation s requirement that the promotion be offered to all retailers equally in each market. The drawback to this system proved to be a lack of uniformity in the cohesiveness and effectiveness of the groups, making it difficult to gauge their volume potential in the absence of past experience. Please see attachment A for a complete list of participating retailers. Product Ordering Ace Hardware s electrical department buyer and Westinghouse s distributor, Comprehensive Marketing, designed a system for retailers to order product. Insufficient time was available for Ace Hardware to utilize its standard system for soliciting orders from retailers, which requires a lead-time of at least three months. A special order form (Attachment D) was created that included instructions for retailers on faxing or electronically placing these special orders with Comprehensive Marketing. The order forms were distributed at advertising group meetings and via a broadcast fax to all participants. Comprehensive Marketing was responsible for following up with retailers who had signed up for the promotion but who did not order by an August 31 deadline, but failed to contact them all. The order form suggested quantities based on the size of the retailers market. This improvised system worked adequately. Advertising The Change a Light, Change the World advertising strategy was formulated to leverage the public relations value of the promotion and cooperative advertising dollars to gain retailer support for both the placement and cost of advertising. By sharing the cost of advertising with retailers MEEA accomplished its goal of stretching the program budget while vesting retailers in the success of the promotion. MEEA worked to negotiate 25%-50% matching contributions toward the cost of advertising with each of the Ace Hardware advertising cooperatives. A budget was set for advertising in each target market based on the cost of advertising, quality of media, and unit sales potential. Each Ace Hardware advertising group used its knowledge of local market conditions and media to customize an advertising plan that maximized the exposure purchased with advertising funds. Media included newspaper, radio, and placement in Ace Hardware circulars (Attachment E - samples). The most efficient means of advertising the promotion in every market was through Ace Hardware circulars. Ace Hardware advertising groups pool their funds to purchase and distribute these circulars in newspapers and via direct mail. All of the advertising groups purchase the circulars from either Ace Hardware Corporate or Atlantic Press, a private advertising firm. MEEA worked with both companies to design an ad in each circular, which was customized with local sponsor information. The economies of scale achieved by making a bulk purchase of advertising in cooperation with the advertising groups allowed the largest possible number of consumers to be touched with the available funds. MEEA required print advertising to include the Change a Light, Change the World ENERGY STAR logo, sponsor logos, price after instant rebate, and language stating who the instant rebate was sponsored by. MEEA mandated that radio advertising mention Change a Light, Change the World, include language stating who the instant rebate was sponsored by, and price after instant rebate. It was further recommended retailers communicate the following feature/benefit information in advertising: Final Report 2/10/03 9

10 Use 75% less energy than incandescent light bulbs Last up to ten times longer Fit in many of the same applications Are just as bright The Change a Light, Change the World logo and theme served to tie the local promotion to other regional and national campaigns. Including sponsor logos and language added credibility to the offering while maximizing the public relations value realized by sponsors. Incorporating feature/benefit information worked to communicate the key selling points for the idea of switching from incandescent light bulbs to CFLs. The economies achieved by matching dollars with advertising groups allowed us to stretch the budget and maximize each targeted community s exposure to the Change a Light, Change the World campaign. It proved a highly effective strategy. Bill Stuffer In support of the campaign, Commonwealth Edison included an article in its monthly newsletter promoting the instant rebate offer at Ace Hardware stores in the Chicago area. The wide distribution of this newsletter helped boost demand in the Chicago area beyond all other markets. Unfortunately, it was impossible for Commonwealth Edison to prevent customers from receiving the newsletter in their bill after MEEA was forced to withdraw the instant rebate offer due to over subscription in this market (see the section on volume below) and supplies were exhausted. In hindsight, a disclaimer should have been included in the bill stuffer, stating that the offer was good only while supplies last. The utility fielded numerous complaints from customers who were not able to take advantage of the offer. Ace Hardware, WECC and MEEA fielded an equal number of complaints. Those customers who demanded an opportunity to participate in the promotion received a $10 gift certificate from Ace Hardware. Press In order to take advantage of the community service aspect of the campaign, press releases were distributed in targeted markets outlining the promotions and the benefits it offered consumers. A Chicago marketing firm, Marketing Support Inc, donated its services and issued a press release (attachment F) to major media outlets, outlining the broader Midwest regional Change a Light, Change the World campaign. MEEA, followed up with a press release to local media in targeted markets, which was customized with local retailers and sponsors. Although the media that picked up on the releases was not tracked, issuing a press release is always a cost effective means of generating credible free advertising. Final Report 2/10/03 10

11 Point of Sale Materials During MEEA s 2001 Change a Light, Change the World promotion, one of the significant difficulties encountered was to ensure that retailers received the point-of-sale materials (POS) and displayed them during the promotion. For the 2002 promotion, in the absence of sufficient funding to support representatives visiting each store, MEEA worked with Westinghouse to develop a system for delivering the POS materials with the products, thus ensuring the retailers actually received the materials. Figure 1 The manufacturer was responsible for the design, production, and distribution of point of sale materials for promotion. This promotion in a box contained all of the tools needed by a retailer to run a successful promotion including: instructions, consumer instant rebate claim forms, a fulfillment receipt for retailers, a CFL fact sheet, banners, a 19" header sign that attached to a bulk stack of CFL cases (See figures1 through 3). The header board and banner displayed the logos of all of MEEA s sponsors. A poster (figure 4) was mailed to stores separately and was customized with the primary sponsor s logos in each market. Figure 2 Figure 3 11

12 The point of sale kits used during the 2002 Change a Light promotion worked to address some of the issues that arose during the 2001 promotion. The majority of retailers who were shipped the twopacks of Westinghouse CFLS from the Ace Hardware warehouse received the POS kits along with their bulbs. Those that received drop shipments of substitute bulbs, however, were not always shipped a POS kit with the product. It seems a miscommunication between Westinghouse and Comprehensive Marketing at the start of the promotion resulted in a situation where both believed the other had shipped the materials when in fact they had not. Once this problem was uncovered, WECC contacted each participating retailer to verify they had received the POS kit. At the same time WECC and APT uncovered instances of retailers who had received the box of POS materials, but misplaced it. Those retailers that had not been shipped a kit or lost it were sent a replacement via mail. In the absence of adequate funding for field representatives to visit individual stores and ensure the POS materials are used, WECC believes that packaging POS materials into a prebuilt display or shipper has potential to overcome the challenge of getting them posted. Figure 4 Retailer Education MEEA ensured that an experienced field representative provided in-store training on instant rebate procedures and product knowledge to key retailers in targeted markets. The field representative used both the promotion outline and the ENERGY STAR lighting fact sheet (figure 3 above) to conduct these trainings. Illinois CFL Education Sale Along with the Ace Hardware store event a CFL Education sale was held in Chicago at the James R. Thompson Center. The Education sale was designed to educate consumers on the benefits of CFL and on the benefits of looking for the ENERGY STAR label on products, and to help drum up PR for the Change a Light promotion. Prior to the sale posters were placed around the Thompson center. See Figure 5. E- mails alerting Thompson center employees to the sales were sent out as was a press release announcing the sale. The story was picked up by WPN news Chicago and ran on both the 5:00 and 10:00 shows. Besides representatives from the City of Chicago, Louise the Lighting bug, a mascot for Commonwealth Edison was present. Five thousand CFLs were sold during the one-day event. Figure 5 Volume The most difficult challenge facing the implementation of the Change a Light, Change the World campaign was controlling the volume of CFLs sold in order to stay within budget. One of MEEA s 12

13 primary objectives was to balance the marketing mix in such a way as to maximize the market penetration of CFLs in targeted markets. While advertising and administrative costs could be capped, there was no way to develop a system for limiting the number of CFLs rebated in each market to a specific number of units. MEEA initially proposed limiting the number of two-packs that each group of retailers would be allowed to purchase. This proved impractical, as Ace Hardware s global automated order tracking and distribution system was not capable of restricting shipments to groups of retailers. Ace Hardware did have the capability to limit shipments to individual retailers, but only on a national basis. This strategy was also deemed unworkable for two reasons. First, Ace Hardware did not want to place restrictions on retailers nationwide in order to accommodate a regional promotion. Second, based on the previous 2001 experience, it was anticipated that a minority of retailers would sell the majority of the CFLs. Limiting the number of bulbs that higher volume retailers would be allowed to order would constrain MEEA s ability to efficiently attain unit sales goals, as a majority of retailers would not reach the averaged cap. This would increase the amount of under subscription, requiring MEEA to invest additional dollars into promoting follow-up events, instead of maximizing the value of the initial advertising. In addition, there was not enough information available on the market conditions in targeted areas to estimate a cap that would maximize the efficiency of the promotion without a significant margin for error. Based on the results of MEEA s 2001 campaign and Ace Hardware s experience marketing CFLs, both parties believed over subscription was unlikely. Believing the risk of over subscription to be minimal and the margin for error in estimating the proposed cap on orders to be as risky, an alternative system that focused on targeting specific groups of retailers, forecasting the number of units sold and tracking them through shipping data provided by Ace Hardware was devised. Using the results from the 2001 campaign and looking at the volume generated by instant rebate promotions tested by WECC in Wisconsin, a forecast was developed, estimating the average unit sales per retailer. This forecast took into account the duration of the promotion and a four two-pack (8 bulb) limit per customer. In addition, the population density and available media in targeted markets were considered. Markets were then targeted with advertising groups consisting of the right number of retailers to allow for approximately a twenty percent margin for error. Based on the initial forecast the risk of over subscription seemed to be less of a worry than capping orders and risking serious under subscription. MEEA accepted this risk knowing that there was the possibility of having to pull the promotion early in the event demand outstripped forecasts (which later proved to be the case in several markets), and made arrangements with Ace Hardware to receive regular reports on the number of CFLs ordered by retailers. At the end of the second week in October it became clear based on the number of CFLs ordered by retailers that the danger of over subscription existed in the Minnesota, Illinois, and Kentucky markets. On October 17 th a fax was issued to retailers and a message posted on an Ace Hardware electronic message board asking retailers in these states not to order additional product (Attachment G). They were, however, allowed to sell through the previously ordered product, ensuring no one felt they were stuck with product. Unfortunately, in the confusion of trying to arrange drop shipments to address the aforementioned supply problems, Comprehensive Marketing was unable to provide sales reports to MEEA on a timely basis. By the time that the danger of over subscription became apparent, more CFLs had been delivered to some areas than MEEA had been aware of. Because of this, instant rebate claims had already exceeded goals in the Minnesota, Illinois, and Kentucky markets. Despite these areas of over subscription the system used was the best choice for the 2002 promotion. Ace Hardware, having recognized the true potential of the Change a Light, Change the World promotion has since indicated it would be willing to invest in creating a system to limit shipments to specific groups of retailers for future promotions. In addition, MEEA will be able to use this experience to convince other partners to do the same. Limiting the number of bulbs available to advertising groups is likely the best means to prevent over subscription. 13

14 While most areas either met or exceeded program goals two areas were under subscribed. Missouri and Ohio did not achieve their projected sales of CFLs. This under subscription can be attributed to two primary factors. The first was lack of retailer support for the program. Retailers who participated in these areas showed less enthusiasm for the promotion from the start and many did not believe that they would be able to sell the projected number of CFLs. Because of this, the retailers did not place big enough orders up front. These small initial orders in turn lead to the second factor that caused under subscription. Once the retailers realized that the promotion was successful, they were unable to get more products because of the availability issues and the longshoremen s lockout as described above. MEEA believes that the experience gained by retailers in these areas as a result of the 2002 promotion will carry over into

15 Results Energy Savings The total CFLs sold for the Ace Hardware promotion was 154,528 in Illinois, Missouri, Minnesota, Kentucky and Ohio. This translates to an average energy lifetime savings of 71,389,626 kwh. The chart below summarizes the number of CFLs sold and participating stores by state: Illinois Missouri Kentucky Ohio Minnesota Total # Participating Retailers # CFLs -Target 80,000 6,400 9,000 25,000 31, ,900 # CFLs - Sold 86,749 2,744 9,827 6,234 48, ,528 Annual kwh savings 5,725, , , ,444 3,232,284 10,198,848 Lifetime kwh savings 40,078,038 1,267,728 4,540,074 2,880,108 22,625,988 71,391,936 Lifetime kwh savings 40,078,038 1,267,728 4,540,074 2,880,108 22,625,988 71,391,936 Lifetime CO 2 savings 87,000,000 2,850,000 9,900,000 6,400,000 49,500, ,650,000 Lifetime NO X savings 227,500 7,300 25,800 16, , ,500 Lifetime SO 2 savings 439,300 13,900 49,800 31, , ,600 Financial Analysis The table on the next page shows the financial analysis from the Change A Light campaign. We estimated that Ace and Westinghouse contributed a total of $200,000 to the campaign and the $430,000 sponsor contribution was the total amount spent by all 8 sponsors. We assumed a 7-year life of the CFL (3.91 hours/day, 365 days per year, 10,000 hour life of the CFLs) and that all 154,528 CFLs sold were immediately used and not saved for a later date. 15

16 Basic Financial Analysis for CAL 2002 Life of CFL CFL Annual Year '1' Cost Cost of Energy MEEA Sponsor $ Leveraged System Savings (kwh)* Of Energy Escalator Contribution from other sponsors 7 10,198, % $430,000 $200,000 Cost of the Net Present Value Benefit- Cost Discount Rate Average Value of Simple Program of Energy Saved Ratio Energy Saved Payback Period (Years) $630,000 $5,255, % $893, Present Value of Benefits Yr kwh Ave. Cost Value of PV Benefits Saved $/kwh Energy (Energy Saved) $0 $ ,198, $866,902 $829, ,198, $875,571 $801, ,198, $884,327 $774, ,198, $893,170 $748, ,198, $902,102 $723, ,198, $911,123 $699, ,198, $920,234 $676, $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ $0 $ ,391,936 $6,253,429 $5,255,023 16

17 Retailer Survey Results Fifty-five of the participating Ace Hardware stores were selected at random and asked to participate in a post-promotion survey. Out of the 55 Ace Hardware stores called, 35 responded to the survey, for a response rate of 64 %. Please see Attachment H for a copy of the Ace Hardware Retailer survey. Point of Sale (POS) Materials The survey asked the store manager which of the POS materials were used and to rate the helpfulness of each POS piece on a scale of one to five, with 1 being not very helpful and 5 being extremely helpful. The most helpful pieces were the Coupons and the Change a Light header, which was included in the box with the product. The least helpful piece was the CFL fact sheet, although its helpfulness rating was almost 1.5 points higher than the fact sheet used in POS Materials Used # of Respondents (35 total) Helpfulness Rating Coupons Change a Light header Posters Coupon redemption instruction sheet CFL fact sheet Advertising Store managers were asked how their customers heard about the Change A Light, Change the World promotion (multiple choices were allowed.) # of respondents who Advertising Used indicated this choice Circular 22 63% % of respondents who indicated this choice Utility bill stuffer 9 35% In store display 8 23% Radio 7 20% Newspaper 5 14% Word of mouth 5 14% Television 2 6% CFL Knowledge The survey asked whether the store s customers had any previous knowledge, were somewhat knowledgeable, or if they were very knowledgeable about CFLs. It also asked what level of awareness the store staff had regarding CFLs prior to the sales and then what their knowledge level was at the conclusion of the sale. CFL Knowledge Not at all Somewhat Very Customer Salesperson prior to the sale Salesperson after the sale

18 Promotion Success Finally, the survey asks if the promotion was beneficial to the store and if the store manager would consider participating in a similar promotion in the future. Most respondents, 31 out of 35, indicated that the promotion was beneficial to the store. Thirty-four of the 35 also indicated that they would consider participating again. Beneficial to my store 89% Would participate again 97% Ace Hardware Corporate Feedback Ace Hardware Corporate provided the following feedback on the promotion: Providing Ace Hardware with at least six months lead-time to procure product, solicit orders from retailers, and place advertising is essential. Ace Hardware prefers to ask retailers for orders up front so it can forecast the number of units it needs to purchase in advance of any promotion. Again, six months in advance notice is needed. Finding mechanisms for avoiding over subscription are necessary. Ace does not want to have to pull a promotion in midstream ever again. Ace received a number of complaints from customers who received a bill stuffer from Commonwealth Edison after the promotion was pulled. Ace would like to know how an offer will be promoted before an event starts. Advertising should be proportionate to available supply/incentives dollars and include language stating that the offer is valid while supplies last. Ace would like a commitment in writing from any program sponsor stating the maximum number of units it will rebate and any other terms of the promotion in advance. Retailer buy in is key to program success. Ace found the use of program representatives to provide information and training for its retailers highly effective. Ace found the instant rebate strategy highly effective in generating sales. Ace was pleased with the positive press some of its retailers received as a result of their participation in the promotion. Ace would like the opportunity to participate in future promotions. Sponsor Feedback MEEA asked each sponsor to provide feedback on the promotion. Below is a compilation of their response: MEEA's working with the manufacturer has been instrumental in the effective implementation of this promotion with the use of the manufacturer's expertise in retail marketing, the use of it's distributor and the manufacturer's contribution of $2 to fund the instant rebate with MEEA's $4 contribution added to the promotion success. One model CFL bulb made it a very simple buying decision for the consumer along with the attractive consumer rebate was a win-win situation for both parties. By promoting the one model CFL bulb you were instrumental in alleviating confusion for the consumer but also streamlining the process more efficiently for the participating 206 retailers and the manufacturer. The Ace Hardware regional advertising cooperatives which pool their regional advertising resources together was also added bonus to the promotion which gave MEEA the matching contributions from each cooperative for the cost of advertising. 18

19 MEEA demonstrated through this promotion that ENEGY STAR labeled products can generate huge sales for manufacturers in the future. Demonstrating the sales potential of Energy Star products to Westinghouse through this promotion could have a big impact for future partnerships with other manufacturers nationwide. This is a huge market breakthrough for MEEA. This National effort complimented out existing program and we benefited from the leverage activity. MEEA was able to utilize the lessons learned from Change A Light 2001 and was able to meet our organization s lighting goals. Lessons Learned Providing the manufacturer with enough lead-time is essential. While there was enough time to recruit and set up the retailers, develop and deliver the POS and do some individual trainings with key stores, the manufacture indicated that they needed more lead time to ensure that enough product is available in the marketplace and the retailers indicated that they need more lead time to place advertising. The price-point was too low. In most cases, the end price to the consumer was less than the cost of an incandescent light bulb. Additionally, charging a slightly higher price after the rebate and lowering the number of CFLs per customer from 8 CFLs, we can hopefully avoid oversubscription. Finding mechanisms for avoiding over subscription are necessary. While a successful promotion is the ultimate goal limited financial resources make it necessary to develop systems for either stopping or limiting the promotion so as to avoid any danger of over subscription. Given the momentum this promotion has gained in the Midwest setting up these controls will become increasingly necessary. Besides these stops, it is important to include disclaimers on all promotional pieces that state the promotion is only good while supplies last. Retailer buy in is key to program success. Areas where the retailers had previous experience with the promotion or areas with actively involved advertising groups had far more success than those areas without active advertising groups or previous experience. If the retailer is not engaged in the program then they will not have successful results. Finding ways to better engage those retailers who are less enthusiastic about he promotion will be key to increasing participation in those areas that faced under subscription, perhaps through additional funding allowing for more intensive use of field representatives in. Working through Ad groups maximizes program resources. Working through ad groups allowed for the opportunity to meet with larger groups of retailers at the same time, limiting the need for individual store visits and trainings. It also facilitated very cost-effective advertising strategies and ensured buy in for the promotion from the entire group. Providing training and/or education to the retailers is essential. Retailers who participated in the 2002 Change a Light promotion received more training than did the stores that participated in This training was clearly one of the main catalysts for the promotions success. Retailers who were less educated on the benefits of CFLs sold far fewer bulbs than did those retailers who were aware of the products and saw value in the promotion of ENERGY STAR qualified CFLs. Support from lighting manufacturers was key to the program success. With out the support of the manufacturer, delivering this promotion would have been exceedingly difficult. The manufacturer was able to facilitate the delivery of the promotional materials, ordering of product and was able to help MEEA track and control (to some extent) volume. Delivering 19

20 this promotion through the manufacturer allowed for a program uniformity that would not have been possible without their support. Conclusion The 2002 Change A Light, Change the World promotion was a tremendous success. MEEA secured funding from nine sponsors across five states. Additionally the promotion leveraged over $150,000 in matching rebate dollars from the manufacturer, not including advertising and point of sale support. Two hundred and six retailers participated in the promotion and 8 different Ace regional ad groups ran the promotion on the front page of their monthly circulars. The two biggest difficulties the program faced speak more to the success of the overall program design than to program flaws. First, many retailers were so excited about the promotion that they ordered far more product than MEEA or the manufacturer had projected. Combined with the longshoremen s lockout, this meant that some other retailers who waited until the last minute to order product or who only ordered small amounts of product faced a product shortage and were unable to order more once they realized there was a high consumer demand for the CFLs. WECC was able to help minimize the impact of the product shortage on MEEA s promotion by working with other manufacturers to provide substitute products for retailers served by Focus on Energy in Wisconsin and Minnesota Power, freeing up more of the Westinghouse products for stores in the MEEA territory. Secondly, some areas faced over subscription. The momentum gained from the 2001 Change a Light Change the World promotion along with the heavy retailer-supported marketing yielded higher-than-projected participation rates. In 2001, MEEA was faced with severe under subscription, so over subscription was a pleasant problem to address. Based on the lessons learned from 2002 and the enthusiastic support of manufacturer and retailers for this promotion, future efforts should include additional mechanisms to halt the promotion or to control volume in areas of oversubscription while supporting the areas that still remain under-subscribed. As a result of the 2002 Change a Light Change the World promotion over 154,000 CFLs were sold in the region, translating to over 70,000,000 kwh savings over the life of the CFLs, saving enough energy saved to keep 85,200 tons of C0 2 from being released into the atmosphere and equaling the removal of over 11,000 cars from the road. The Midwest has become a major force in the CFL market and is positioned to leverage even more resources from manufacturers in the future. With the next Change a Light promotion still nine months away, manufacturers and retailers are already clamoring to be the selected partner for MEEA s campaign in Additionally, a framework has been developed that will allow future promotions to build upon the success of this program, helping to continue to raise awareness and market share for ENERGY STAR qualified products across the Midwest. 20

21 Appendix Attachment A: List of Participating Stores Attachment B: Agreement with Angelo Brothers Company Attachment C: Information supplied to Ace Hardware Retailers Attachment D: Information supplied to Ace Hardware Retailers Attachment E: Illinois Radio Script, Illinois and Ohio Print ads Attachment F: Press release. 21

22 Attachment A StoreName StoreAddr StoreCity State SHERWIN HARDWARE, INC 1705 W CAMPBELL ST ARLINGTON HEIGHTS IL ACE HARDWARE 24 NORTH DRYDEN ARLINGTON HEIGHTS IL HORIZON HOME CENTER 1065 E COLUMBIA ST ARTHUR IL KELLEY'S ACE HARDWARE & RENTAL 1955 E NEW YORK ST AURORA IL ACE HARDWARE 994 N LAKE ST AURORA IL BARRINGTON ACE HARDWARE 189 WEST NORTHWEST HWY BARRINGTON IL BARTLETT ACE HARDWARE 136 BARTLETT PLAZA BARTLETT IL BRITE ACE HARDWARE 400 N ILLINOIS AVE BELLEVILLE IL HOMETOWN ACE HARDARE 6938 WEST MAIN BELLEVILLE IL LAHO ACE HARDWARE 5 N YORK RD BENSENVILLE IL BRENKO INC. ACE HARDWARE OGDEN AV BERWYN IL TELE-TRON ACE HARDWARE 6604 W CERMAK RD BERWYN IL ACE HARDWARE 1 AIRWAY COURT BETHALTO IL DUKE'S ACE HARDWARE 5634 W 87TH ST BURBANK IL BATSON'S ACE HARDWARE 426 E MAIN ST BUSHNELL IL ACE HARDWARE #12100-I 111 E NORTH STREET CARLINVILLE IL ACE HARDWARE 904 W BROADWAY CENTRALIA IL DEJAY'S ACE HARDWARE S KEDZIE AVE CHICAGO IL POTASH BROS. ACE HARDWARE 110 W GERMANIA PL CHICAGO IL ACE INDUSTRIAL SUPPLY 2318 N CICERO AVE CHICAGO IL THE GREAT ACE 2639 N ELSTON CHICAGO IL ELSTON ACE HARDWARE 2825 W BELMONT CHICAGO IL ACE STORE #71-I 3310 N CENTRAL AV CHICAGO IL LAKEVIEW ACE HARDWARE 3921 N SHERIDAN RD CHICAGO IL UPTOWN ACE HARDWARE 4654 N BROADWAY CHICAGO IL STREETERVILLE ACE HARDWARE 680 N LAKE SHORE DR CHICAGO IL EBELS ACE HARDWARE 190 W JOE ORR RD CHICAGO HEIGHTS IL ACE FOUR SEASONS HARDWARE 227 CEDAR ST CHILLICOTHE IL LANG'S ACE HARDWARE 5527 W CERMAK RD CICERO IL ACE HARDWARE 85-I 114 N MADISON CLINTON IL COTTON'S ACE HARDWARE 229 N MAIN ST COLUMBIA IL ARTURI ACE HARDWARE 5445 W 127TH ST CRESTWOOD IL CRETE ACE HARDWARE 1050 EAST EXCHANGE CRETE IL ACE HARDWARE 1045 E OAKTON ST DES PLAINES IL KURTS ACE HARDWARE INC CHICAGO RD DOLTON IL KIN-KO ACE HARDWARE 6216 SOUTH MAIN ST DOWNERS GROVE IL SUTHERLAND ACE HARDWARE 2244 E WASHINGTON ST EAST PEORIA IL ZIEGLER'S ACE HARDWARE 215 N SPRING ST ELGIN IL ELMHURST ACE HARDWARE 145 E FIRST ST ELMHURST IL EUREKA ACE HARDWARE 1964 SOUTH MAIN EUREKA IL LEMOI ACE HARDWARE 1008 DAVIS ST EVANSTON IL EVERGREEN PARK AVE ACE HARDWAR 3404 W 95TH STREET EVERGREEN PARK IL NUSSBAUM PLUMBING & HEATING, 124 EAST LOCUST ST FAIRBURY IL 22

23 FOX LAKE ACE HARDWARE 10 E GRAND AV FOX LAKE IL DUKE'S ACE HARDWARE 326 N LAGRANGE RD FRANKFORT IL OLSON'S ACE HARDWARE INC W GRAND AVE FRANKLIN PARK IL GENEVA ACE HARDWARE 617 W STATE ST GENEVA IL LEN'S ACE HARDWARE 485 ROOSEVELT RD GLEN ELLYN IL WEISS ACE HARDWARE 1560 WAUKEGAN RD GLENVIEW IL ACE HARDWARE OF GRANITE CITY 3801 NAMEOKI RD GRANITE CITY IL ACE HARDWARE 4806 GRAND AVE GURNEE IL MUTUAL ACE HARDWARE 1393 HALF DAY RD HIGHLAND PARK IL ACE HARDWARE 900 W MORTON JACKSONVILLE IL HORTON'S 60 S LAGRANGE RD LAGRANGE IL LAGRANGE PARK ACE HARDWARE 900 EAST 31ST ST LAGRANGE PARK IL ACE HARDWARE 155 PETERSON RD LIBERTYVILLE IL BRUCE'S ACE HARDWARE 4715 MAIN ST LISLE IL WILL-COOK ACE HARDWARE W 159TH STREET LOCKPORT IL SCHROEDER'S ACE HARDWARE 837 S. WESTMORE AVE LOMBARD IL BJORKMAN'S ACE HARDWARE 4520 CRYSTAL LAKE RD MCHENRY IL VILLAGE ACE HARDWARE 314 W OLD GERMANTOWN RD METAMORA IL BUIKEMA'S ACE HARDWARE 1337 DOUGLAS RD MONTGOMERY IL HORIZON HOME CENTER 1070 S MARKET MONTICELLO IL MATTESON TRUE VALUE HARDWARE 221 BEDFORD RD MORRIS IL KASSING LUMBER CO/ACE HARDWARE PO BOX 109 MOUNT STERLING IL BOWEN ACE HARDWARE 1753 W GOLF RD MT PROSPECT IL KENNY'S ACE HARDWARE 200 SPITLER PARK PLAZA DR MT ZION IL ACE HARDWARE 609 E HAWLEY ST MUNDELEIN IL BUIKEMA'S ACE HARDWARE 1030 N WASHINGTON ST NAPERVILLE IL DOUGLAS ACE HOME CENTER 1212 NAPER BLVD NAPERVILLE IL ACE HARDWARE 5035 ACE LN NAPERVILLE IL BUIKEMA'S ACE HARDWARE 963 W 75TH ST NAPERVILLE IL NEW LENOX ACE HARDWARE 358 W MAPLE NEW LENOX IL NORRIDGE ACE HARDWARE 8330 W LAWERENCE AVE NORRIDGE IL AL'S ACE HARDWARE TH ST NORTH CHICAGO IL JACK'S ACE HARDWARE 3101 DUNDEE RD NORTHBROOK IL EBEL'S ACE HARDWARE CICERO AVE OAK FOREST IL DRESSEL'S ACE HARDWARE 1137 CHICAGO AVE OAK PARK IL ORLAND PARK ACE HARDWARE S LAGRANGE RD ORLAND PARK IL ACE HARDWARE 239 E NORTHWEST HWY PALATINE IL EBELS ACE HARDWARE 6465 W 127TH STREET PALOS HEIGHTS IL DUKE'S ACE HARDWARE 7610 W 11TH ST PALOS HILLS IL ACE HARDWARE 700 N NORTHWEST HWY PARK RIDGE IL DEBO ACE HARDWARE 1713 FOURTH ST PERU IL PETERSBURG ACE HARDWARE 322 EAST SANGAMON PETERSBURG IL BUIKEMA'S ACE HARDWARE 2240 ILLINOIS RT 59 PLAINFIELD IL ACE HARDWARE OF RED BUD 1350 SOUTH MAIN RED BUD IL 23

24 RIVERSIDE ACE HARDWARE 329 E BURLINGTON ST RIVERSIDE IL ZANOCCO ACE HARDWARE 1605 N ALPINE RD ROCKFORD IL BOB'S ACE HARDWARE 2710 TWENTIETH ST ROCKFORD IL BUIKEMA ACE HARDWARE 445 WEBER RD ROMEOVILLE IL BAUMERT'S ACE HARDWARE 821 NERGE RD ROSELLE IL ACE HARDWARE HOME CENTER 559 W RAILROAD ROUND LAKE IL ACE HARDWARE 817 E ROLLINS RD ROUND LAKE BEACH IL KERR HOMECENTER, INC. 117 WEST WASHINGTON ST RUSHVILLE IL ST CHARLES ACE HARDWARE 2750 E MAIN ST SAINT CHARLES IL ACE HARDWARE IN SAUK VILLAGE 1701 SAUK TRAIL SAUK VILLAGE IL SCHAUMBURG ACE HARDWARE 560 S ROSELLE RD SCHAUMBURG IL ELLIS ACE HARDWARE 255 S MAIN ST SENECA IL SKOKIE ACE HARDWARE 5035 OAKTON ST SKOKIE IL ACE HARDWARE 214 NORTH WALNUT SPRINGFIELD IL BISHOP ACE HARDWARE 214 NORTH WALNUT SPRINGFIELD IL W.J. STONE ACE HARDWARE 404 E MAIN ST STEATOR IL ACE HARDWARE IN STEGER 17 E 34TH ST STEGER IL SULLIVAN ACE HARDWARE 435 SOUTH HAMILTON SULLIVAN IL PARK ACE HARDWARE S OAK PARK AV TINLEY PARK IL LEO BROWN LUMBER 416 WEST EDWARDS VANDALIA IL DAVIS ACE HARDWARE 46 SOUTH VILLA VILLA PARK IL KIMPLINGS ACE HARDWARE 1880 WASHINGTON RD WASHINGTON IL ACE HARDWARE 425 WEST LIBERTY WAUCCONDA IL ACE HARDWARE 239 N GENESEE ST WAUKEGAN IL ACE HARDWARE 400 LAKEHURST RD WAUKEGAN IL MURPHY ACE HARDWARE 319 S ROUTE 59 WEST CHICAGO IL BUIKEMA'S ACE HARDWARE 1705 N MAIN ST WHEATON IL ACE HARDWARE OF WHEELING 755 WEST DUNDEE RD WHEELING IL MILLEN ACE HARDWARE 1219 WILMETTE AVE WILMETTE IL WHITMORE ACE HARDWARE 1105 S WATER ST WILMINGTON IL ZION ACE HARDWARE 2660 SHERIDAN RD ZION IL FLEGLES HOME CENTER 1017 HWY 51N BARDWELL KY BURTON ACE HARDWARE 314 CAMPBELLSVILLE ST COLUMBIA KY ACE HARDWARE & APPLIANCES 975 HUSTONVILLE RD STE.27 DANVILLE KY SMITH ACE HARDWARE 1141 LEXINGTON RD GEORGETOWN KY NORRIS HARDWARE, INC 1910 HIGHWAY 41 NORTH HENDERSON KY ACE LAGRANGE HOME CENTER PO BOX 208 LAGRANGE KY ACE HARDWARE 4101 TATES CREEK CENTRE DR LEXINGTON KY NICHOLASVILLE ACE HARDWARE 113 EDGEWOOD PLAZA NICHOLASVILLE KY STOUT'S BUILDING CENTER PO BOX 750 SHEPHERDSVILLE KY DJ'S TOTAL HOME CARE CENTER 6060 LABEAUX AV NE ALBERTVILLE MN ACE HARDWARE 406 BROADWAY ALEXANDRIA MN FRATTALLONE HARDWARE 3527 LEXINGTON AVE N ARDEN HILLS MN KRAMER ACE HARDWARE ST AV SW AUSTIN MN 24

25 ACE HARDWARE 214 W WASHINGTON ST BRAINERD MN CHEROKEE ACE HARDWARE 6256 BOONE AVE N BROOKLYN PARK MN MERLINS ACE HARDWARE 7844 MARKET BLVD CHANHASSEN MN COON RAPIDS ACE HARDWARE 1344 COON RAPIDS BLVD COON RAPIDS MN TIMBER BUILDING SUPPLY STATE HWY 6 DEERWOOD MN ACE HARDWARE 520 FREEPORT AV ELK RIVER MN FLEET & FARM SUPPLY 1300 N STATE ST FAIRMONT MN FARIBAULT ACE HARDWARE 421 2ND AVE NW FARIBAULT MN PELLICCI ACE HARDWARE 113 ELM ST FARMINGTON MN BURGGRAF'S ACE HARDWARE 306 E FIRST ST FOSSTON MN ACE HARDWARE 24 W MINNESOTA AV GLENWOOD MN KUIPERS ACE HARDWARE & RENTAL 7914 OLSON MEMORIAL HWY. GOLDEN VALLEY MN TRUE VALUE HARDWARE 105 WASHINGTON AVE. E. HUTCHINSON MN ACE HARDWARE TH ST E INVER GROVE MN ACE HARDWARE 540 W SECOND ST JORDAN MN JERRY'S ACE HARDWARE 523 SECOND ST KENYON MN MCLEOD'S ACE HARDWARE 65 MAPLE AV N MAPLE LAKE MN WELNA II ACE HARDWARE 2201 E FRANKLIN AV MINNEAPOLIS MN NICOLLET ACE HARDWARE 3805 NICOLLET AVE SOUTH MINNEAPOLIS MN SETTERGREN ACE HARDWARE 5403 PENN AV S MINNEAPOLIS MN DIAMOND ACE HARDWARE 5425 NICOLLET AV MINNEAPOLIS MN ACE HARDWARE PO BOX 466 MONTEVIDEO MN LARSONS ACE HARDWARE 212 W 3RD ST MONTICELLO MN OLIVIA HARDWARE 124 S 9TH ST OLIVIA MN ACE HARDWARE & HOME CENTER 203 WASHBURN AV PAYNESVILLE MN CARLSON ACE HARDWARE MAIN AV SW PRIOR LAKE MN RED WING ACE HARDWARE 1264 WEST MAIN ST RED WING MN REDWOOD FALLS TRUE VALUE PO BOX 9 REDWOOD FALLS MN ROBBINSDALE ACE HARDWARE 4140 WEST BROADWAY ROBBINSDALE MN ARROW ACE HARDWARE TH AV S.E. ROCHESTER MN ARROW ACE HARDWARE 1500 NORTH BROADWAY ROCHESTER MN TERRY'S ACE HARDWARE SOUTH ROBERT TRAIL ROSEMOUNT MN SUBURBAN ACE HARDWARE 1930 LEXINGTON AVE N ROSEVILLE MN KENDALL'S ACE HARDWARE 978 N DALE STREET SAINT PAUL MN MCCABE'S ACE HARDWARE 1200 MAIN ST EAST SLEEPY EYE MN DENNY & KATHY'S ACE HARDWARE TH ST N ST CLOUD MN MIMBACH FLEET SUPPLY 755 MAYHEW LAKE RD NE ST CLOUD MN GRAND AVENUE ACE HARDWARE 1676 GRAND AV ST PAUL MN ARROW ACE HARDWARE 201 S MINNESOTA AV ST PETER MN ACE HARDWARE 1662 MARKET DR STILLWATER MN WACONIA FARM & HOME SUPPLY 801 SOUTH HWY 284 WACONIA MN ACE HARDWARE OF ZUMBROTA 90 EAST THIRD ST ZUMBROTA MN ACE HARDWARE # MANCHESTER DES PERES MO ACE HARDWARE OF MARYLAND HEIGH DORSETT SQUARE MARYLAND HEIGHTS MO 25

26 ACE HARDWARE OF AFFTON 9449 GRAVOIS RD ST LOUIS MO ACE HARDWARE 221 LAMP AND LANTERN VILLAG TOWN AND COUNTRYMO CENTERBURG ACE HARDWARE 3941 COLUMBUS RD CENTERBURG OH ZETTLER ACE HARDWARE 1840 HARD RD COLUMBUS OH SCHREINER PLUMBING & HARDWARE 2585 N HIGH ST COLUMBUS OH BEECHWOLD HARDWARE CO N HIGH ST COLUMBUS OH ACE HARDWARE 10 TROY RD DELAWARE OH HANDYMAN ACE HARDWARE 11 N GRAND AV FAIRBORN OH MCAULIFFE ACE HARDWARE 1299 W FIFTH ST MARYSVILLE OH CLEVER ACE HARDWARE N SANDUSKY ST MT VERNON OH KLINKER'S 100 SEVENTH STREET WAVERLY OH 26

27 Attachment B Agreement with Angelo Brothers Company. The Wisconsin Energy Conservation Corporation with offices at 211 S. Paterson St., 3 rd Floor, Madison, WI (WECC) has entered into a partnership with the U.S. Department of Energy (DOE) / U.S. Environmental Protection Agency (EPA) ENERGY STAR program. WECC has also entered into agreement with the State of Wisconsin Focus on Energy Program, Midwest Energy Efficiency Alliance, and various participating electric utilities to implement an instant rebate promotion targeting ENERGY STAR qualified compact fluorescent light bulbs (CFLs). The promotion will coincide with the National ENERGY STAR Change a Light, Change the World consumer awareness campaign during the months of October and November The objectives of a partnership between WECC and Angelo Brothers Company (hereinafter referred to as Angelo Brothers) are to improve retailer and consumer knowledge of the ENERGY STAR Program and to further market penetration of qualified Westinghouse Brand CFLs. This can be accomplished through cooperatively funded market activities designed to increase the market appeal of qualifying Westinghouse CFLs. Accordingly, WECC and Angelo Brothers hereby agree as follows. 1. COOPERATIVELY FUNDED CONSUMER PROMOTION ACTIVITIES Angelo Brothers and WECC agree to cooperatively fund the following consumer promotion activities. a. Activity 1: Cooperatively Fund Ace Hardware Instant Cash-Back Consumer Incentive Promotion Type Instant (in-store) consumer cash-back incentive paid by eligible Ace Hardware retailers to end consumers who purchase eligible Westinghouse ENERGY STAR qualified CFLs. Promotion Period October 1, 2002 through November 30, Eligible Retailers Ace Hardware affiliated retailers in the States of Wisconsin, Minnesota, Illinois, Ohio, Missouri, and Kentucky. Eligible Product Westinghouse Twin Pack 15w Mini Twist CFL model number Monetary Contributions WECC will contribute $4 per unit toward a $6 per unit cooperative consumer incentive on Westinghouse Twin Pack 15w Mini Twist CFL model number Angelo Brothers will contribute $2 per unit toward a $6 per unit cooperative consumer incentive on Westinghouse Twin Pack 15w Mini Twist CFL model number IMPLEMENTATION AND FULFILLMENT OF CONSUMER PROMOTION ACTIVITIES a. WECC will determine which Ace Hardware retailers will be offered access to the instant consumer incentive and will provide Angelo Brothers with a complete list of participating retailers by October 31, b. Angelo Brothers will provide consumer incentive claim forms to eligible retailers. c. WECC will provide for the initial fulfillment of instant rebate claims made by eligible retailers. 27

28 d. WECC will invoice Angelo Brothers for its per unit contribution to the consumer cash-back incentive by January 15, e. WECC will provide Angelo Brothers with electronic data including the consumer information from each consumer incentive fulfilled. The data will include the consumer s name, address, and telephone number, quantity, model, store name and address, and incentive provided. f. Angelo Brothers will remit payment to WECC for its contribution to the consumer cash-back incentive net/30 from the date of receipt of invoice. 3. PERMISSION TO USE a. License by Angelo Brothers. Angelo Brothers hereby grants to WECC a royalty-free license to use its trademarks, trade names, and logos in advertising, product literature, premium materials and other items pursuant to the terms of this Agreement, as approved by Angelo Brothers in advance. b. License by WECC. WECC hereby grants to Angelo Brothers a royalty-free license to use its trademarks, trade names, and logos in advertising, product literature, premium materials and other items pursuant to the terms of this Agreement, as approved by WECC in advance. c. No Rights in Other s Property. Each party acknowledges that the provisions of this Agreement do not convey any right, title, or ownership interest in the Other s Property, including trademarks and copyrights, of the other. 4. FEDERAL AND STATE LEGAL COMPLIANCE Both parties shall conduct the promotions and all activities described herein in conformity with all Federal and State statutes and regulations as such laws are interpreted and enforced as of the date the promotion is first introduced to the public. Both parties shall file all bonds, guarantees, and/or duties that may be required and shall obtain all necessary Federal and State authorizations or approvals that may be required to conduct the promotion described herein. 5. LIABILITIES AND INDEMNIFICATION a. Intellectual Property. Each party hereby agrees to indemnify, defend and hold harmless the other, its parent, subsidiaries and affiliates and the officers, directors, employees, shareholders and agents of each against any third party suit, claim, action, proceeding, losses, or expenses (including, without limitation, reasonable attorneys fees) for actual or alleged infringement of any trademark or copyright or other intellectual property if used by the indemnified party as approved by the indemnifying party for use pursuant to this Agreement or if used by the indemnifying party in connection with the Other s Property pursuant to this Agreement. b. Indemnification by WECC. WECC will indemnify, defend, and hold Angelo Brothers its parent and affiliated companies and their agents, shareholders, officers, employees and directors ( Indemnities ) harmless from any third party liability, loss or expense (including, without limitation, reasonable attorney s fees) incurred by any of them in connection with WECC s performance of any of the responsibilities assumed by WECC herein, including any advertisement, endorsement, or claim made by WECC without the express consent of GE as required by this Agreement. c. Indemnification by Angelo Brothers. Angelo Brothers will indemnify, defend, and hold WECC, its parent and affiliated companies and their agents, shareholders, officers, employees and directors ( Indemnities ) harmless from any third party liability, loss or expense (including, without limitation, reasonable attorney s fees) incurred by any of them in connection with Angelo Brother s performance of any of the responsibilities assumed by Angelo Brothers herein, including any advertisement, endorsement, or claim made by Angelo Brothers without the express consent of WECC as required by this Agreement, or any claim, suit, or action against any of the indemnities arising out of or related to the duly approved advertisement, 28

29 promotion, and endorsement of Angelo Brothers product, or any claim, suit, or action concerning any Angelo Brothers product. 6. APPROVALS Each party agrees to submit to the other, copies of any material utilizing the other s trademarks, trade names, logos, copyrights, or making reference to the other party or its products, as well as any other materials indicated for review by the other party prior to the distribution. Each party hereby agrees to notify the other party whether it approves or disapproves any submitted material within seven (7) working days after receipt of the material. Approval shall not be unreasonably withheld. 7. TERM OF THE AGREEMENT This Agreement is effective starting October 1, 2001, and shall expire one (1) year from such date. 8. TERMINATION a. Termination Without Cause. Both parties shall always be entitled to terminate this Agreement, and such termination will be effective thirty (30) days after written notice of termination is mailed to the other party by courier or First Class Mail. b. Termination With Cause. It is hereby agreed that any material breach of the provisions of this Agreement shall entitle the non-breaching party to terminate this Agreement and cancel all activities contemplated thereby upon thirty (30) days written notice. In the event that any party believes another has committed an action, which would constitute a basis to terminate this Agreement, the offended party shall first provide written notice of its intention to terminate unless the action or event is cured within thirty (30) days. If said breach is not remedied within that period, this Agreement shall be terminated automatically and all activities contemplated thereby shall be canceled without any further obligation to perform on the part of the non-breaching party. Such termination shall not otherwise affect or prejudice the rights of either party to damages, if any. In the event that the alleged action is cured within the thirty (30) day period, this Agreement shall remain in full force and effect, and, upon written notice to the breaching party, the Agreement shall be extended by the total number of days which were required to effect a cure. c. Insolvency or Force Majeure Condition. In addition, this Agreement may be terminated by written notice by either party immediately upon the other party s insolvency, application for relief from creditors under any bankruptcy or insolvency procedure, assignment for the benefit of creditors, liquidation, or suffering any adjudication of bankruptcy; or by either party immediately upon the uninterrupted persistence of a force majeure condition as defined herein. d. Obligations and Liabilities Accrued Before Termination or Expiration. The termination or expiration of this Agreement for whatever reason shall not relieve either party of any obligation or liability that has accrued prior to termination or expiration nor affect or impair the rights of either party arising under this Agreement prior to such termination or expiration, including but not limited to Angelo Brothers obligation to reimburse WECC pursuant to Paragraph INDEPENDENT CONTRACTOR All parties to this Agreement understand and agree that no partnership, joint venture or agency relationship is created hereby. Each party shall be conclusively deemed to be an independent contractor and not under the control or supervision of any other party. 10. ASSIGNMENT 29

30 It is agreed by all parties that there will be no assignment or transfer of this Agreement, nor of any interest in this Agreement, without the prior written consent of all parties, except that any party may freely so assign or transfer to an affiliate of that party. 11. MODIFICATION, WAIVER This Agreement may be modified or amended by the written agreement of all parties hereto. A waiver by any party of any default or breach by another party of any provision of this Agreement shall not be considered as a waiver of any subsequent default or breach of that same or of any other provision hereof. The failure by any party to object to, or to take affirmative action with respect to, any conduct of another party which is in violation of any provision of this Agreement shall not be construed as a waiver thereof, nor of any future breach or subsequent wrongful conduct. 12. ENTIRE AGREEMENT This Agreement constitutes the entire agreement of the parties and supersedes any and all prior agreements or understanding of the parties, either written or oral, regarding the subject of this Agreement. 13. SEVERABILITY If any term of this Agreement shall be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and shall be valid and enforceable to the extent permitted by law. 14. FORCE MAJEURE In the event any party hereto is unable, in whole or in part, to carry out its obligations under this Agreement, those obligations, insofar as they are affected by such an Act of God, shall be suspended during the continuance of any such disability, and such party shall not be liable to any other party hereto if the cause of such disability is remedied insofar as reasonably possible with reasonable dispatch, except that the settlement of any strike, lockout, or other industrial disturbance shall be conclusively deemed to be wholly within the discretion of the party whose obligations are suspended by reason thereof. The term Act of God as employed herein shall mean any event which is not reasonably within the control of the party affected. In the event that the failure of any party hereto to perform any obligation hereunder by reason of an Act of God continues for more than thirty (30) days, any other party hereto may terminate this Agreement upon ten (10) business days notice and in accord with Paragraph 8(d). 15. GOVERNING LAW This Agreement shall be interpreted and enforced in accordance with the laws of the State of Wisconsin (regardless of the choice of law principles of Wisconsin or of any other jurisdiction). 17. ACKNOWLEDGMENTS The undersigned, in their personal or representative capacities, acknowledge that they have read this Agreement in full and have had an opportunity to review it, that they understand and agree to each of the provisions hereto, and that they are duly authorized to sign this Agreement. IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Agreement as of the date first above written. WECC By: 30

31 Name: Title: Date: Angelo Brothers By: Name: Title: Date: 31

32 Attachment C ACE HARDWARE ENERGY STAR Change a Light, Change the World We are pleased to announce the ENERGY STAR Change a Light, Change the World National lighting promotion scheduled for October 2002 during National Energy Awareness Month. The goal of the promotion is to build consumer awareness concerning the energy and money saving benefits of replacing incandescent light bulbs with ENERGY STAR qualifying compact fluorescent light bulbs (CFLs). We invite Ace Hardware stores in qualifying areas (call for details) to participate in this special promotion. Participating stores will provide a valuable service to their community while building a market for these profitable products. Change a Light, Change the World CFL promotion is sponsored by: the Midwest Energy Efficiency Alliance (MEEA), Minneapolis Department of Commerce, Xcel Energy, SMMPA, Illinois Department of Commerce and Community Affairs, Commonwealth Edison, City of Chicago, Missouri Department of Natural Resources, Ohio Department of Development, and Kentucky Department of Energy. Great Product Ace Hardware has chosen a two-pack of 15w Westinghouse compact fluorescent light bulbs, model number 07275, Ace number , as the focus of the Change a Light, Change the World campaign. To earn the EPA and DOE ENERGY STAR label, these CFLs have met stringent criteria for quality and performance. Please see the attached bulletin Incredible Price The 2-pack of Westinghouse CFLs, which normally sell for $6.99, will retail for $.99 after a $6 instant rebate. Your cost through the Ace Hardware warehouse is $5.03 per 2-pack. Each retailer will profit $1.96 on each 2- pack. There will be a quantity restriction of four two-packs per customer. Each customer must complete one instant rebate coupon for all bulbs purchased. The completed coupons will be collected and the discount given at the register. Retailers will be reimbursed by MEEA for the instant rebate net/45 following the promotion. Promotional Support As an incentive to advertise the $.99 after instant rebate price point, MEEA will offer co-op advertising support to participating advertising groups. A press release will be issued to local media. Point-of-Sale Materials Westinghouse will mail instant rebate coupons and point-of-sale materials to each store prior to September 30, Your Role Order product Set up a display Ensure instant rebate coupons are completely filled out. Incomplete coupons will not be accepted. Turn-in the instant rebate coupons for reimbursement following the event. Promotion Schedule August 1st to August 31 st 32

33 Window for stores to order product. September 1 to September 30 th Product, point-of-sale materials, instant rebate coupons and coupon reimbursement instructions will be shipped to the stores. October 1 st to October 31 st Official dates of promotion. Advertising begins. November 15 th Due date to turn in instant rebate coupons for reimbursement. Please contact me for further information: Linda Mae Schmitt Project Manager Midwest Energy Efficiency Alliance T: M: Thank you for your support. 33

34 Attachment D Ace Hardware Teams up with Westinghouse and MEEA October Midwest regional advertising promotion Twin Pack 15 Watt Mini Twist Compact Fluorescent $0.99 After $6.00 In Store Instant Rebate (Limit Four Per Household) After $6.00 Ace Westinghouse RSC Promo In Store Instant Number Number DOM Description Cost Retail Rebate Watt Mini Twist $5.03 $6.99 $0.99 Compact Fluorescent (2 Pack) Promotion Dates: October National Ace Ad; October 1 st 31 st, 2002 Order Date: All orders must be ordered electronically through Ace or faxed to Comprehensive Marketing by August 16 th. All products shipped from the Ace RSC. Dating: January 15, 2003 Instant In Store Rebates Effective Dates: October 1, 2002 Through October 31, 2002 Qualifying Areas: Minnesota, Wisconsin. **** Participating Stores will receive by September 30, 2002 a Westinghouse support package that includes rebate pads, instructions for reimbursement along with POS, Energy Star Banners, etc Recommended Minimum Order Quantities: Discovery Format: Quantity: Convenient 48 Neighborhood 144 Super 336 Store Name: Bulletin #: Store Number: Shipping Address Order Quantity: ****** Please order electronically or fax this order form with your order quantities to Comprehensive Marketing at or Ace Hardware Corporation at ****** If you have any questions or need any additional information, please call Comprehensive Marketing at

35 Attachment E The CBS WCCO radio script: Dave: Hey, Mike, I think we ve struck gold! Mike: We ve found what is absolutely the deal of the year! Dave: October is energy awareness month and as a public service, our friends at Ace Hardware have teamed with the utilities and the state for a campaign called Change a Light, Change the World. Mike: Here s how you can help replace all your incandescent light bulbs with ENERGY STAR qualifying compact fluorescent bulbs. Dave: Because they use 75% less energy, last up to 10 times longer and save up to $45 in energy costs over the life of each bulb! Mike: The savings are even bigger than that. Through October, participating Ace hardware stores are offering a 2 pack of ENERGY STAR qualifying compact fluorescent light bulbs for just $6.99. Dave: There s an instant rebate of $6.00 per two pack, offered as a public service by the Midwest Energy Efficiency Alliance, Xcel Energy, and the Minnesota Department of Commerce. Mike: Making your final cost only 99 cents! That s less than 50 cents per bulb! Dave: At this unbelievable price, PLUS the energy savings, we encourage everyone in CCO land to rush to these participating hardware stores Dave & Mike: Arrow Ace Hardware in St. Peter and Shakopee, Cherokee Ace Hardware, 3805 Nicolet Avenue, Minneapolis and Frattallone s Hardware and Gift Stores, 10 metro locations including White Bear Lake, Woodbury and New Hope. Dave:: Change a Light, Change the World! WQQL Springfield IL Radio Script: Announcer: This is George (George: Shhh) Sorry George is busy showing a troop of boy scouts the finer points of bird watching form helping 4 th and 5 th grade boys tell the difference between a canary and a yellow bellied barn swallow (stop whispering). George works at your local Ace Hardware sotre, and right now in conjunction with the Change a Light Change the World program he can show you how 2-little compact fluorescent light bulbs can save you money in two big ways. First, while supplies last you can get a 2-pack of Westinghouse 15 watt compact fluorescent bulbs for just 99 cents after your 6-dollar instant rebate. And, secondly, these bulbs use 75% less energy and they last 10 times longer than regular bulbs, which means you will save 25 dollars over the life of each bulb. So, stock up now, before they re gone. And remember Ace helps you save money everyday with their Helpful Hardware Club program. Every time you shop you earn points towards gift certificates, life is an ongoing project, and Ace is helping you everyday Ace Hardware at 214 N. Walnut and 1600 Wabash in Springfield, with locations in Jacksonville, Taylorville, Havana and Carlinville. Instant rebate is sponsored by Midwest Energy Efficiency Alliance and Illinois Department of Commerce and Consumer Affairs. 35

36 Ace Circular Advertisement ~ Illinois 36

37 Ace circular Advertisement ~ Ohio 37