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Overview of Energy Efficiency Program Offerings

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Jay Zarnikau. Frontier Associates. Utility Energy Efficiency Programs. 1980's - electric utilities sponsored programs focused on rebates. ... – PowerPoint PPT presentation

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Title: Overview of Energy Efficiency Program Offerings


1
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Overview of Energy Efficiency Program Offerings

3
Standard Offer Programs - New Opportunities for
Energy Efficiency
Jay Zarnikau Frontier Associates
  • July 17, 2001

4
Utility Energy Efficiency Programs
  • 1980s - electric utilities sponsored programs
    focused on rebates.
  • 1990s - blocks of kW and kWh reduction were bid
    out through competitive solicitation.
  • 2000s - standard offer and market transformation
    programs.

5
What Is a Standard Offer Program?
  • Program administrator (electric utility) offers
    set incentive payment to participants for each
    kWh or kW saved through installation and
    operation of an energy efficiency measure.
  • Program administrator signs a standard contract
    with participants outlining their
    responsibilities under the program.

6
Definitions
  • Customer any distribution service residential,
    commercial or industrial customer of a utility
    administrator. Customer may take electric energy
    service from any provider.
  • Project a set of energy efficiency measures
    installed at one or several similar electric
    utility distribution customer sites.
  • Project Sponsor an entity contracting with
    Program Administrator to provide energy
    efficiency services at a customer site.


7
What is a Standard Offer Program?
  • Applications considered on per-project basis
    first-come, first-served.
  • Number of participants limited only by available
    incentive dollars.
  • Incentive payments are made to Project Sponsor.
  • Project Sponsor and customer determines
    efficiency measures to be installed.
  • Different from rebates based on performance, not
    prescriptive technologies.

8
Program Administrator Responsibilities
  • Perform outreach to energy services community.
  • Review project applications.
  • Sign contracts with Project Sponsors.
  • Perform pre- and post-installation inspections.
  • Make payments to project sponsors.
  • Report results to Public Utility Commission.

9
Who Are the Program Administrators?
  • Energy efficiency programs will be administered
    by investor-owned utilities
  • Reliant - HLP AEP - CPL
  • TXU Electric AEP - SWEPCO
  • Entergy-Gulf States AEP - WTU
  • Southwest Public Service Texas-New Mexico
  • El Paso Electric

10
Who Can Be a Project Sponsor?
  • Equipment distributors or manufacturers
  • Energy service companies
  • Community based organizations
  • Mechanical or lighting contractors
  • Any other entity providing energy efficiency
    services

11
Project Sponsor Qualifications
  • Statement of professional experience doing
    similar work
  • Evidence of financial strength and capability
  • Work plan for project design, implementation,
    operation and management
  • Proof of insurance

12
Project Sponsor Responsibilities
  • Conduct marketing activities and sign contracts
    with individual customers
  • Apply for incentives
  • Sign standard contract with utility administrator
  • Design and install energy efficiency project
  • Measure and verify energy savings
  • Report savings to Program Administrator

13
Measurement and Verification of Savings
  • Baseline is federal standard or typical practice
    (where applicable)
  • Savings for many measures based on
  • Deemed savings or
  • Simple MV
  • Full MV for some measures
  • In accordance with IPMVP

14
Standard Offer Programs
  • These program templates have been approved by
    the PUC
  • Commercial and Industrial SOP
  • Small Commercial and Residential SOP
  • Hard-To-Reach SOP
  • Load Management SOP

15
Commercial and Industrial Standard Offer Program
  • Targets customers with maximum demands that
    exceed 100 kW.
  • No Project Sponsor can receive more that 20 of
    annual incentive budget.
  • Each project must reduce a minimum of 20 kW.
  • Comprehensive projects are encouraged. Lighting
    savings limited to 65 of each project.

16
Eligible Energy Efficiency Measures
  • Must produce measurable and verifiable demand and
    energy reduction
  • Must produce savings through and increase in
    energy efficiency or a substitution of another
    energy source for electricity
  • Retrofits only, except for renewable DSM measures
  • Minimum of 10 year measure life
  • Measure must meet of exceed minimum equipment
    standards

17
Excluded Measures
  • Plug loads
  • Measures that received an incentive from another
    utility program
  • Self-generation or co-generation, excepts for
    renewable DSM technologies
  • Measures that rely on changes in customer
    behavior and require no capital investment
  • Measures that result in negative environmental or
    health effects

18
Small Commercial Residential Standard Offer
Program
  • Targets residential and small customers with
    maximum demands that are under 100 kW.
  • Includes single family, multi-family and mobile
    homes
  • No Project Sponsor can receive more that 20 of
    annual incentive budget.
  • Each project must reduce a minimum of 20 kW.
  • Comprehensive projects are encouraged. Lighting
    savings limited to 65 of each project.

19
Eligible Energy Efficiency Measures
  • Must produce measurable and verifiable demand and
    energy reduction
  • Must produce savings through and increase in
    energy efficiency or a substitution of another
    energy source for electricity
  • Retrofits only, except for renewable DSM measures
  • Minimum of 10 year measure life
  • Measure must meet of exceed minimum equipment
    standards

20
Excluded Measures
  • Plug loads
  • Measures that received an incentive from another
    utility program
  • Self-generation or co-generation, excepts for
    renewable DSM technologies
  • Measures that rely on changes in customer
    behavior and require no capital investment
  • Measures that result in negative environmental or
    health effects

21
Hard-To-Reach Standard Offer Program
  • Residential customers with household incomes at
    or below 200 of federal poverty guidelines.
  • Customers at or below 125 of federal poverty
    guidelines on waiting list for weatherization
    services.
  • No Project Sponsor can receive more that 20 of
    annual incentive budget.
  • Each household must be assessed to determine
    prioritization of energy efficiency measures to
    be installed.

22
Load Management Standard Offer Program
  • Targets electric load control or shifting of
    electric loads.
  • Load control or shift must be provided for a
    minimum of 10 years.
  • Electric load must be under control of Project
    Sponsor, ISO, or other transmission organization.
  • ERCOT is currently reviewing procedures for Load
    Management to participate in market.

23
Summary
  • Standard offer programs are the next generation
    of energy efficiency programs.
  • Standard Offer programs are targeted to all
    customer classes.
  • Programs are administered by electric utilities.
  • Program marketing and project installations are
    responsibility of the Project Sponsor.

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Russell Bego
26
AEP Service Areas
  • AEP will administer energy efficiency programs in
    the following areas of Texas
  • South Texas (CPL) Corpus Christi
  • San Benito Laredo
  • Northeast Texas (SWEPCO) Longview Marshall
  • North and West Texas (WTU) Abilene
  • San Angelo

27
MW GOALS 2003 5 of load growth
4.6 2004 10 of load growth 8.6 2005
10 of load growth 8.5


AEP - CPL
28
2002 Energy Efficiency Program Budgets
AEP - CPL
29
MW GOALS 2003 5 of load growth
2.5 2004 10 of load growth 2.4 2005
10 of load growth 2.5
AEP - SWEPCO
30
2002 Energy Efficiency Program Budgets
AEP - SWEPCO
31
MW GOALS 2003 5 of load growth 1.4 2004
10 of load growth 3.7 2005 10 of
load growth 3.1
AEP - WTU
32
2002 Energy Efficiency Program Budgets
AEP - WTU
33
2001 Energy Efficiency Program Update
  • Large Commercial/Industrial SOP
  • Incentive funds still available at SWEPCO and WTU
  • Waiver granted by the PUCT for the 20 Project
    Sponsor limit at SWEPCO
  • Residential/Small Commercial SOP
  • Incentive funds still available at SWEPCO and WTU
  • Hard-To-Reach SOP
  • Incentive funds available beginning June 18, 2001
    at CPL, SWEPCO and WTU

34
Karen Radosevich
35
Entergy will administer energy efficiency
programs in the following areas of Texas
  • Most of southeast Texas
  • East of Houston including Beaumont, Port Arthur
    and Orange
  • North of Houston including The Woodlands, Conroe
    and Huntsville

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Goals
2003 5 of Load Growth 5.1 MW 2004 10 of
Load Growth 6.0 MW 2005 10 of Load Growth 6.0
MW
38
2002 Energy Efficiency Budget
Large Commercial Industrial SOP
1,000,000 1,080,000 309,000
2,389,000
Residential/Small Commercial SOP
Hard-To-Reach SOP
SOP Subtotal
ENERGY STAR Homes MT


700,000 - 700,000
AC Distributor MT
MT Subtotal

TOTAL
39
George Smith
40
Reliant Energy HLP Service Area
41
Reliant Energy HLPService Area
42
Goals
  • 2002 5 of Load Growth 12.6 MW
  • 2003 10 of Load Growth 21.2 MW
  • 2004 10 of Load Growth 18.6 MW

43
Energy Efficiency Budgets
Programs 2002 2003 Lg. Comm. Ind.
SOP 3.9M 6.5M Res..Sm.Comm.
SOP 0.9M 1.3M Hard-To-Reach
SOP 0.9M 1.9M ENERGY STAR 1.2M 2.0M A/C
Distributor 1.8M
2.75M Total 8.7M 14.5M
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Doug Maxey
46
  • SPS will administer energy efficiency programs in
    the following areas of Texas
  • Texas Panhandle (except for southeastern corner)
  • South Plains (Lubbock and surrounding counties)

47
SPS Service Territory
48
Goals
2003 5 of Load Growth 3.0 MW 2004 10 of
Load Growth 6.4 MW 2005 10 of Load Growth 5.9
MW
49
Standard Offer Programs (SOP)
50
Market Transformation Programs
51
2002 Energy Efficiency Budgets
224,000 528,000 123,000 875,000
Large Commercial Industrial SOP Residential/Smal
l Commercial SOP Hard-To-Reach SOP
SOP Subtotal
227,000 750,000 977,000
ENERGY STAR Homes MT AC Distributor MT
MT Subtotal
TOTAL
1,852,000
52
Mike Stockard
53
TXU Electric Service Area Statistics
  • Serves 2.64 million customers.
  • Provides service to 370 cities in 92 counties.
  • Serves Dallas, Fort Worth, Tyler, Waco, Midland,
    Odessa,Lufkin, Temple, Round Rock
  • Peak system demand of 22,442 MW.

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Standard Offer Programs
  • Hard-To-Reach
  • Residential and Small Commercial
  • Large Commercial and Industrial
  • Program launch in October 2001
  • On-line application process

56
Market Transformation Programs
  • ENERGY STAR Homes
  • Air Conditioning Distributor
  • Air Conditioner Installer Program
  • Program launch in 2002

57
System Goals and Incentive Budgets
  • Program Goal Budget
  • HTR SOP 2.6 MW 3,528,882
  • Res/Small CI SOP 6.3 MW 4,238,524
  • Large CI SOP 29.9 MW 14,083,924
  • ENERGY STAR Homes MTP 5.2 MW 3,464,682
  • A/C Distributor MTP 6.3 MW 4,238,524
  • A/C Installer MTP 5.4 MW 2,504,466
  • Pending PUC approval

TOTAL
32,059,002
58
For Additional Information
  • Telephone 1-800-273-8741
  • Fax 214-812-7300
  • www.txu.com/efficiency
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