InvestorOwned Utility LIEECARE 20092011 Budget Applications

1
Investor-Owned Utility LIEE-CARE 2009-2011
Budget Applications

• Presentation to the LIOB
• San Diego Gas Electric Company
• Southern California Edison Company
• Southern California Gas Company
• Pacific Gas and Electric Company
• San Diego, CA
• June 5, 2008

2
Overview

• Review of 2009 2011 LIEE-CARE Program and
  Budget Applications
• Common Utility Proposals
• SDGE Application
• SCG Application
• SCE Application
• PGE Application
• Statewide Strategic Plan Update

3
Common Proposal Program Achieves 25 of
Programmatic Initiative

• Methodology and factors considered to determine
  estimated number of customers to be served
  between 2009-2011.
• Starting Point Estimated number of eligible
  LIEE customers
• Subtracted from the starting point include
• Number of households served by LIEE 2002 thru
  2008 (actuals plus estimate for 2008)
• Estimated number of households unwilling to
  participate (10)
• Number of households served by LIHEAP/DOE 2002
  thru 2008 (actuals plus estimate for 2008)

4
Common Proposal Ten Year Rule

• The utilities agreed on the following
  modifications/exceptions to be added to "Section
  2.8 Previous Participation" of the LIEE PP
  Manual
• New cost effective measures or technologies that
  were not previously available in the LIEE program
  at the time the utility treated a home shall be
  made available for those qualifying customers
• In the event a key program eligibility
  requirement now makes a customer eligible for
  measures previously not offered at the time the
  utility treated the home, the utility shall make
  available those cost effective measures for
  qualified customers.
• This modification gives the utilities full
  flexibility to return to homes that have been
  treated in the past and to provide the customers
  with cost effective measures that were either not
  available at the time the home was treated, or
  were not offered due to a condition that has now
  changed.

5
Common Proposal Single Statewide Marketing
Tagline

• D.07-12-051 directed that a statewide brand be
  developed for the LIEE program that all utilities
  would use as a tag line along with each utilitys
  own LIEE program name.
• Utilities are in the process of contracting with
  an Ad Agency to develop and present several
  potential
• Statewide program descriptions/taglines
• Statewide program names
• Potential program descriptions and names will be
  tested in focus groups conducted in all four
  utility service territories in multiple
  languages.
• The Joint Utilities expect to present a
  recommendation to the Commission by July 14, 2008.

6
Common Proposal Measurement and Evaluation (ME)
Studies
Joint study funded between the three electric
utilities PGE, SCE and SDGE. Joint study
funded between SCE and PGE.
7
SoCalGas SDGE
8
SoCalGas SDGEProgram Goals

• SoCalGas SDGE proposed audit based, customized
  approach is primarily designed to
• Focus on the achievement of energy savings
• Reduce low-income customers bills
• Improve cost effectiveness
• Address health, comfort and safety issues.
• Proposed program is aligned with the Strategic
  Plan.
• To achieve maximum energy savings, the proposed
  LIEE program puts additional focus on highest
  energy users, without excluding those eligible
  customers who have lower energy consumption.

9
SoCalGas SDGE Cost Effectiveness

• A primary goal is to improve the cost
  effectiveness of the LIEE program in PY
  2009-2011.

SoCalGas
SDGE
10
SoCalGas SDGE Program Design

• Customized Energy Audit
• Proposed program design provides a customized and
  detailed customized energy audit that creates a
  personalized energy-use profile for each
  customer.
• Plan is to use an audit tool to compare a
  customers usage to that of neighbors with homes
  of similar size, construction, and occupancy.
• Audit tool will include customer usage patterns,
  appliance information, and other pertinent
  household information that will help identify the
  highest savings opportunities.

11
SoCalGas SDGE Program Design

• Customized Energy Education
• Proposing to implement a new and innovative
  approach to customer energy education. Based on
  the results of the customized audit, energy
  education tailored to the individual customer
  will consist of the following
• Measures to be installed and associated energy
  savings
• Customer-generated goals related to energy use
• Potential benefits to the customer and the
  environment and economy
• Potential improvements to health, comfort,
  safety, and quality of life and
• Comparison of energy usage patterns of households
  with similar characteristics.

12
SoCalGas SDGE Program Design

• Customer Rewards
• Designed to reward customers who are able to
  consistently maintain a reduction in their
  overall energy consumption.
• This element will analyze customer energy usage
  after LIEE measures are installed and the energy
  usage will be compared to the same timeframe
  during the previous year.
• Two Reward levels Platinum Gold
• The Platinum Level Incentive will be awarded to
  customers who reduce their energy consumption by
  20 or more.
• The Gold Level Incentive will be awarded to
  customers who reduce their energy consumption by
  10 to 19
• Customers may receive up to two rewards in one
  year during the first year of program
  participation.

13
SoCalGas SDGE Program Design

• Customer Segmentation
• Identify those neighborhoods that have a high
  density of customers who have a high likelihood
  of meeting the LIEE programs eligibility
  guidelines.
• Group the identified potentially eligible
  customers into tiers based on their household
  energy usage
• To achieve maximum energy savings as soon as
  possible, usage levels of customers will be
  prioritize.
• The expected number of households within each
  segment to be reached (PY 2009 2011) is
  approximately
• SoCalGas - 172,000 at or below baseline allowance
  and 171,000 above baseline allowance
• SDGE - 20,000 high users, 21,000 medium users,
  19,000 low users

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SoCalGas SDGE Program Design
Blue text SDGE only Measures shown in Red text
are proposed new measures
15
SDGE Program Design
16
SoCalGas SDGE Marketing Education Outreach

• Customer Segmentation
• Marketing Outreach
• Targeted Direct Mail
• Cross Promotion
• Email Blasts
• Canvassing
• Advertising
• Community Events
• Coordination with Local Agencies
• Customer Contact Centers
• Brochures
• Telemarketing
• On-Line Request Form

17
SoCalGas SDGE Integration Leveraging

• Integration with Energy Efficiency e.g., Mobile
  Home, Innovative Outreach and Measure Program.
  Ltg Exchange, etc
• LIHEAP Potential Opportunities
• Implement a structured referral system
• Track customer referral in the program database
  and measures installed by LIEE or LIHEAP.
• Provide LIHEAP contractors serving the SoCalGas
  service territory access to SoCalGas LIEE
  database
• Strategic Partnership with Imperial Irrigation
  District to provide low income customers in the
  overlapping service territories those measures
  offered by each utility
• Strategic Partnership with Metropolitan Water
  District to leverage funds for the direct
  installation of HE clothes washers.
• Cities, local communities schools continue to
  partner with these entities to conduct local
  events
• CSI - coordinate efforts with the SF and MF
  program administrators to ensure that homes
  receiving CSI measures have received LIEE measures

18
SoCalGas PilotHE Forced Air Unit Furnace

• SoCalGas proposes to offer a natural gas
  high-efficiency FAU furnace pilot to customers
  with high space heating needs during the winter
  season.
• The pilot will replace existing, inefficient
  operational natural gas FAU furnaces with
  high-efficiency units that have an efficiency
  rating of at least 92.
• The pilot will be implemented for approximately
  250 customers and the installations will occur
  after the 2008-2009 winter season.
• Bill analysis will be used to determine the cost
  effectiveness for each installation and the
  results will be evaluated to determine if this
  potential measure will be offered in upcoming
  program years to customers with high space
  heating needs.

19
SDGE Pilots Smart Meters - IHD PCT

• In Home Display (IHD) pilot - to customers with
  Smart Meters as part of the energy education
  process to help customers know their actual
  energy usage beginning in 2010
• Programmable Communicating Thermostat (PCT) pilot
  - beginning in 2011. PCTs are thermostats that
  can receive price or electric system reliability
  signals, and can be programmed by a customer to
  automatically reduce energy consumption through
  thermostat set-point adjustments.

20
SoCalGas SDGEProposed LIEE Budgets
21
SoCalGas SDGECARE 2009-2011 Application

• Propose same residential program requirements for
  Sub-Metered
• Two year recertification cycle
• Anniversary date renewal
• Fixed Income Recertification
• Propose two year recertification cycle for
  Expanded CARE Facilities
• Propose to include Section 8 Public Housing in
  Categorical eligibility
• Continue of four year recertification using
  probability modeling
• Expand phone enrollment, 3rd party outreach and
  leveraging opportunities
• Telephone Enrollment
• Continuation of Recertification Telephone
  Enrollment
• Addition of Inbound Telephone Enrollment

22
Southern California Edison

• 2009-2011 Low Income Energy Efficiency Program
  Proposal

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Customer Segmentation

• Mild/Temperate Climates Zones
• Hot Climate Zones
• Customers receive all eligible measures
• High use customers targeted

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MEO

• CARE
• ZIP7
• Data Sharing
• Mobile Energy Units
• Energy Education Kits
• Targeted Direct Mail
• Cross Promotion
• Web-based Enrollment
• Media Advertising
• Community Events
• Coordination with Local Agencies

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Integration with Energy Efficiency

• Home Energy Efficiency Rebates (HEER)
• Multifamily Energy Efficiency Rebate Program
  (MFEER)
• California New Homes Program (CANHP)
• Comprehensive Mobil Home Program (CMHP)
• Home Energy Efficiency Surveys (HEES)
• Efficient Affordable Housing (EAH)
• WET School Program

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Integration with EE, cont

• Mobil Energy Unit (MEU)
• Community Language Outreach Program (CLEO)
• Energy Leader Partnership (EL)
• Summer Discount Plan (SDP)
• Advanced Metering Infrastructure (AMI)
• Medical Baseline
• Energy Assistance Fund (EAF)

27
SCE Application Program Budget
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LIEE Savings Benefits
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Cost Effective Measure Offering

• Cost-effectiveness- First criteria considered in
  the review of potential measures
• Efficient lighting
• Refrigerator replacement
• Evaporative cooler installation
• Central air conditioner maintenance
• Pool pump replacement

30
Non-Cost Effective Measures

• In evaluating measures that were not
  cost-effective, SCE was guided by Commission
  intent to continue to authorize funding for
  measures that serve important social objectives
  but may not be cost-effective, as long as they
  serve our primary objective of reducing energy
  use and promoting other values such as
  participants quality of life
• Central Air Conditioners
• Window/Wall Air Conditioners

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2008 vs 2009LIEE Program Measures
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SCE 2009 2011 Application

• 2009-11 Planned Proposal Recommendations
• Same residential program requirements for
  sub-metered tenants
• Two-year certification for CARE Expanded Programs
• Probability Model for recertification
• Multilingual program awareness campaign
• Spanish, Chinese, Korean, Vietnamese, and
  Cambodian
• Work with Public Housing Authority and Section 8
  agencies within SCE service territory to
  incorporate CARE application into agency intake
  process
• Expanded outreach
• CARE/FERA Administrative Budget Requested
• 4.2 Current 2008 Budget
• 5.5 million for PY 2009
• 5.4 million for PY 2010
• 5.5 million for PY 2011

32
33
PGEs 2009-2011 Low Income Energy Efficiency and
CARE Program Proposals

• PGE
• Low Income Oversight Board
• June 5, 2008
• San Diego, CA

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2009-2011 LIEE Program
35
2009-2011 LIEE Represents a Significant Program
Expansion

• Increased families served
• Increased funding
• 9 new pilot programs
• 5 new program studies
• 2 new measures
• New segmentation and outreach approaches
• New partnerships, leveraging, and integration
  opportunities

36
2009-2011 LIEE Program Delivery Strategy

• PGE will offer the LIEE program through a
  multi-layered approach that considers energy
  use, climate zone and housing type.
• This approach makes some less cost-effective
  measures available based on a customers electric
  and/or gas use.
• Customers with the highest energy use also offer
  the greatest opportunity to save energy.
• Helps customers who save money on their bill
• Helps all California ratepayers who benefit as
  decreases in energy use strengthen the States
  energy resources and decrease GHG emissions.

37
LIEE for PGE Electric Customers
38
LIEE for PGE Gas Customers
39
Nine LIEE Pilots

• Meals on Wheels Deliver microwaves to those
  customers who receive meals and dont have a
  microwave (80 more efficient than ovens).
• High Efficiency Washing Machines Deliver high
  efficiency washing machines to households with 5
  or more members. Test the viability of this
  measure.
• Habitat for Humanity Join with humanitarian
  home builder and rehab partner to create more
  energy efficient low-income housing.

40
Nine LIEE Pilots (cont)

• City of San Jose Partnering with City of San
  Joses strong neighborhood initiative program to
  assist in serving low income customers.
• City of San Joaquin (Fresno County) Partner
  with City to provide services to low income
  customers.
• Energy Education Workshops Continue to look for
  more efficient ways to perform group educations
  with CBOs.

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Nine LIEE Pilots (cont)

• SmartAC Leverage PGEs demand response
  programs to educate low-income customers about
  air conditioning cycling options.
• SmartMeter Focus on educating low income
  customers on the value of AMI and how it can help
  them lower their utility bills.
• Online Training for LIEE Implementation Crews
  Explore more efficient training options and
  reduce crew in-class training time by 50.

42
2009-2011 CARE Program

• Proposed the same residential program
  requirements for Sub-Metered tenants
• Proposed two-year certification for CARE Expanded
  Programs
• Proposed a survey of customers not responding to
  Recertification and Post-Enrollment Verification
  requests
• CARE Administration budgets requested
• (7,732,000 current 2008 budget)
• 8,761,000 for 2009
• 9,216,000 for 2010
• 9,521,000 for 2011

43
In Conclusion

• PGEs 2009-2011 LIEE and CARE application
  represents a thoughtful balancing of
• LIEE as an energy resource
• Cost-effectiveness
• Increased funding without overburdening non-Low
  Income customers
• Innovation experimentation
• Improving available information
• Retention of valuable program elements
• Health, Safety and Comfort for LIEE customers

44
PGE 2009-2011 Low Income Programs Testimony

• Internet links to PGE's Application and
  Testimony for Approval of the 2009-2011 Low
  Income Energy Efficiency and CARE Programs and
  Budget
• Applicationhttps//www.pge.com/regulation/LowInco
  meProgPY09-11/Pleadings/PGE/2008/LowIncomeProgPY09
  -11_Plea_PGE_20080515-01.pdf
• Testimonyhttps//www.pge.com/regulation/LowIncome
  ProgPY09-11/Testimony/PGE/2008/LowIncomeProgPY09-1
  1_Test_PGE_20080515-01.pdf

45
California Energy Efficiency Strategic Plan
(CEESP)Update of the Low Income Strategies

• Presentation to the LIOB
• San Diego Gas Electric Company
• Southern California Edison Company
• Southern California Gas Company
• Pacific Gas and Electric Company
• San Diego, CA
• June 5, 2008

46
LIEE Strategic Plan Update

• The California Energy Efficiency Strategic Plan
  (CEESP) was filed 6/2/08
• ACR from Commissioner Grueneich dated 5/5/08
  delayed filing of the CEESP from 5/15 until
  6/2/08
• CEESP posted online at http//www.californiaenerg
  yefficiency.com/index.shtml
• The LIEE Sector is addressed in Section 2 of the
  Plan, along with the Residential Sector
• Still treated as a unique market sector
• Places it where belongs and includes low income
  in the context of the residential sector

47
Six Low Income Strategies

• Develop customer segmentation to improve program
  delivery
• Pursue collaboration and leveraging of other
  programs
• Integrate LIEE programs with Energy Efficiency
  and other demand-side programs
• Promote the growth of a trained LIEE workforce by
  developing LIEE workforce training requirements
• Specify and employ program elements that
  emphasize long-term and enduring energy savings
• Specify and deploy Marketing, Education, and
  Outreach (MEO) for LIEE program consistent with
  energy efficiency strategies

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1) Develop customer segmentation to improve
program delivery

• increasing the opportunities for program
  participation and energy savings
• 1.1 Identify customer sectors or segments using
  dimensions such as energy use, geographic
  locations
• 1.2 Develop and implement a plan to achieve 25
  customer participation by 2012
• 1.3 Improve program delivery

49
2) Pursue collaboration and leveraging of other
programs

• 2.1 Increase collaboration and leveraging with
  other low income programs and services

50
3) Integrate LIEE programs with Energy Efficiency
and other demand-side programs

• 3.1 Coordinate and communicate between LIEE, EE
  and DSM programs to achieve service offerings
  that are transparent for the customer
• 3.2 Leverage deployment of advanced metering
  (AMI) to inform and empower low income customers

51
4) Promote the growth of a trained LIEE workforce
by developing LIEE workforce training requirements

• aiming training at low income, minority and
  other disadvantaged communities
• 4.1 Integration with the Workforce, Education
  and Training (WET) strategy in the CEESP
• 4.2 Continuation of existing training resources
• 4.3 Coordination with existing and potential
  resources for training related to LIEE program
  needs

52
5) Specify and employ program elements that
emphasize long-term and enduring energy savings

• 5.1 Improve customer knowledge on energy and
  environmental issues and improve their use of
  energy
• 5.2 Provide low income customers with measures
  that result in the most savings in the LIEE
  program

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6) Specify and deploy MEO for LIEE program
consistent with energy efficiency strategies

• 6.1 Develop the use of a recognizable and
  trustworthy Brand/Tagline for Californias Low
  Income Energy Efficiency
• 6.2 Market LIEE program using segmentation and
  social marketing