Overview of Energy Efficiency Program Offerings

1
(No Transcript)
2
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.

24
(No Transcript)
25
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

36
(No Transcript)
37
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
44
(No Transcript)
45
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.

54
(No Transcript)
55
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 [phone]
• Fax [phone]
• www.txu.com/efficiency