Transcript Texas Large Commercial and Industrial Standard Offer Program Brown Bag Teleconference

Texas Large Commercial and
Industrial Standard Offer Program
Brown Bag Teleconference
May 23, 2003
1
Overview of Today’s Topic
Over $20 million in incentive funds remain
available for qualifying energy efficiency
projects through Texas’ Large Commercial
and Industrial Standard Offer Programs!
2
Outline

Brief overview
–

Waltz Across Texas
–

Billy Berny, AEP
Eligible Measures
–
3
An Introduction to each of the service areas by
program managers at each of the utilities
Project Sponsor Eligibility
–

Jay Zarnikau, Frontier Associates LLC
Doug Maxey, Xcel Energy
Outline cont.

Application Process
–
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Measurement and Verification
–
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Mike Stockard, Oncor
Example Incentive Calculations
–
4
George Smith, CenterPoint Energy
Karen Radosevich, Entergy
TEXAS
Xcel
Electric Retail Service Area Map
Investor-Owned Utilities
WTU
Xcel
AEPNorth
SWEPCO
Oncor
Oncor
EPE
TNMP
TNMP
AEP-North
AEP-North
CenterPoint EGS
Legend
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AEP Texas Central Company (AEP - Central)
El Paso Electric Company (EPE)
Entergy Gulf States, Inc. (EGS)
CenterPoint Energy (CenterPoint)
Xcel Energy (Xcel)
AEP Southwestern Electric Power Company (SWEPCO)
Texas-New Mexico Power Company (TNMP)
Oncor (Oncor)
AEP Texas North Company (AEP - North)
TNMP
AEP-Central
April 2003
Entergy - Gulf States, Inc.
Karen Radosevich
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Entergy - Gulf States, Inc.
 Serves 350,000 customers in Southeast Texas
 Industrial (Beaumont & Port Arthur)
 Residential (The Woodlands & Conroe)
Goals and Budget
Goal
2003 Budget
Remaining Funds
3.1 MW
$ 1,305,940
$ 1,239,549
Contact Information: Terry Swan
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(409) 981-3245
[email protected]
Xcel Energy
Doug Maxey
8
Xcel Energy

Serve 269,000 customers on the high plains of Texas
– Amarillo
- Lubbock
Goals and Budget
Goal
2003 Budget
Remaining Funds
3.1 MW
$ 1,305,940
$ 1,239,549
Contact Information: 806-378-2887
9
[email protected]
Texas-New Mexico Power
Tony Thompson
10
Texas-New Mexico Power Goals and
Budgets
Goal
2003 Budget
Remaining Funds
0.64 MW
$ 240,000
$ 192,000
Contact Information: 817-377-5579
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[email protected]
AMERICAN ELECTRIC POWER
Billy Berny
AMERICAN
ELECTRIC
POWER
AEP TEXAS
CENTRAL
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AEP TEXAS
NORTH
AEP
SWEPCO
American Electric Power
Program Incentive Budgets
Total Incentive Budget
AEP - Texas Central
AEP – SWEPCO
AEP - Texas North
$
$
$
$
Available Funds as of April 28, 2003
based on approved Contracts
2,587,279
589,500
596,841
3,773,620
$
$
$
$
2,083,621
589,500
596,841
3,269,962
FOR MORE INFO...
Go to www.aepefficiency.com for program details and application
procedures.
Contact Information: 325-674-7293
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[email protected]
CenterPoint Energy
George Smith
14
CenterPoint Energy Statistics
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Houston metropolitan area
1.8 million customers
System peak demand of 15,000 MW
Cities: Houston, Galveston, Baytown,
Richmond/Rosenberg
Load is 40% residential, 30% commercial, 30%
industrial
CenterPoint Goals and Budgets
Goal
2003 Budget
Remaining Funds
10.2 MW
$ 6,252,000
$ 2,600,000
Contact Information: 713-207-3488 [email protected]
16
Oncor
Mike Stockard
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Oncor Service Area Statistics

Provides distribution service to 2.64 million premises.

Provides distribution service to 370 cities in 92
counties.
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Serves: Dallas, Fort Worth, Tyler, Waco, Midland,
Odessa, Lufkin, Temple, Round Rock
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
Peak system demand of 22,000 MW

2004 Incentive Budget - $ 17.3 million
Contact Information: 214-486-5626
[email protected]
Websites for Specific Utilities
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
AEP - www.aepefficiency.com

Entergy - www.ENTERGYefficiency.com

Oncor - www.oncorgroup.com/efficiency

CenterPoint - centerpointefficiency.com
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Texas-New Mexico Power - www.tnpeefficiency.com

Xcel Energy - www.Xcelenergyefficiency.com
Quick Overview
Jay Zarnikau
Frontier Associates LLC
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Background and Introduction
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
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Texas Senate Bill 7 requires distribution utilities in
Texas to meet 107 of their load growth by offering
and administering energy efficiency programs.
Each of the States affected distribution utilities offer
a Large Commercial and Industrial Standard Offer
Program to help satisfy this goal.
The legislation requires incentive programs to be
market neutral and non-discriminatory, so the C&I
Standard Offer Program is available to all of the
utilities distribution customers on a “first come, first
served” basis.
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.
 Applications considered on per-project basis; firstcome, first-served.
 Number of participants limited only by available
incentive dollars.
 Project Sponsor and customer determines efficiency
measures to be installed—program
measure/technology neutral.
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Contact Information: 512-372-8778 [email protected]
Project Sponsor Eligibility
Billy Berny
AMERICAN
ELECTRIC
POWER
AEP TEXAS
CENTRAL
23
AEP TEXAS
NORTH
AEP
SWEPCO
Program Administrator (Utility)
Responsibilities
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
Perform outreach to energy services community.

Review project applications.

Sign contracts with Project Sponsors.

Perform pre- and post-installation inspections.

Make incentive payments to project sponsors.
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Report results to Public Utility Commission.
Who Can Be a Project Sponsor?
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
Equipment distributors or manufacturers

Energy service companies

Community based organizations

Mechanical or lighting contractors

Any other entity providing energy efficiency services

Large commercial or industrial energy consumers

Project sponsors must meet standard qualifications
(work experience, financial capability, insurance,
proper licensing, etc.)
Sponsor Responsibilities
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
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Market and sign contracts with individual
Utility transmission and distribution customers
Apply for funding from program
Sign Standard Agreement with Utility
Design, procure, and install energy efficiency
measures
Measure and verify energy savings
Project Sponsor Qualifications
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Participants must have the following:
 Evidence of good credit rating
(10K or Financial Statement)
 List of references
 Must hold all applicable licenses
 Evidence of all building permits
 Evidence of necessary insurance
Eligible Measures
Doug Maxey
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Measure Eligibility
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Produces measurable demand and energy savings
Retrofit measures, in most cases
Useful life is greater than ten years
Permanently installed
Fuel switching from electric to non-electric only
Exceeds minimum efficiency standards
Eligible Measures

Constant air volume to VAV conversion
 Chiller replacement
 Packaged cooling unit replacement
 Fan and pump VSD and efficiency projects
 Lighting efficiency and controls
 Air cooling and refrigeration compressor projects
 Industrial process measures
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Ineligible Measures
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Measures with life less than 10 years
Removable measures (generally includes plug
loads)
Exterior lighting
Cogeneration or self generation (except
renewables)
Fuel switching to electric
New construction (some exceptions)
Measures that require no capital investment
Measures that receive incentives from other
Utility programs
Thermal energy storage (unless part of a larger
project)
Project Eligibility
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
Project requirements:
 Utility T&D customers
 Total demand at project site(s) is at least 100 kW

Minimum savings per project:
 20 kW
 Similar customers/sites may be aggregated to
meet this requirement
Project Aggregation
Any number of project sites may be submitted as
a project if they are similar. Contingent on having
the same:
 Sponsor
 Measure
 Occupancy schedule
 Functional use
 Energy consumption patterns
 M&V Plan
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Application Process
George Smith
34
Initial Application

IA
Sponsor submits one Initial Application (IA)
per project
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
FA

Contract

IR
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SR
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First IA includes Sponsor qualifications
Identifies customers and intended
measures (20 kW savings minimum)
Estimated kW/kWh savings and incentive
payments
Approximately 15 day review period
Utility reviews the IA for participant and
measure eligibility
Upon IA approval, Utility reserves funds for
the project for a limited time.
Submittal 2:
Final Application
IA


FA
Contract
IR
SR
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Sponsor has up to 100 days from IA approval
for submittal of FA (varies by utility)
Information required in the Final Application
(FA)
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•
•
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•
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Detailed project description
Savings calculations and incentive estimates
Equipment surveys (use standard forms)
Proposed M&V plan
Site plan and 1-line drawings where applicable
Agreement between Project Sponsor and Host
Customer
Final Application (cont.)
IA
FA
Contract
IR
SR
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
One FA submitted per project
 FA forms available on Web site
 Utility reviews each FA
• Fulfillment of submittal requirements
• Technical review of measure savings and M&V
plan
• Utility conducts a pre-installation inspection
• Approximately 45 day review
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FA approval
Agreement
(Contract)
IA
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Includes project specific information
• Estimated kW & kWh savings and
incentives
• Approved M&V plan

Security deposit may be required
Installation of approved measures may
proceed after FA approval, after both
parties sign the C&I SOP Agreement,
and pre-installation inspection is
completed
FA
Contract
IR
SR
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Submittal 3:
Installation Report
IA
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FA
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Contract
IR
SR
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Due within 30 days of completion for all
projects
Submitted information similar to FA, except:
 Reports actual retrofit equipment installed
 Updates savings calculations, incentive
estimates and M&V Plan to reflect as-built
condition
 Includes Host Customer certification that
measures were indeed installed
Installation Report (cont.)
IA
FA
Contract
IR
SR
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 Utility reviews each Installation Report (IR)
 Review of final savings estimates and M&V
plan
 Post-installation inspection to confirm
equipment installation
 Approximately 45 day review period
 Upon IR approval, Utility pays Project Sponsor
40% of contracted incentive
Submittal 4:
Savings Report
IA
FA
Contract
IR
SR
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 Submitted after M&V activities completed
 Provides actual project kW & kWh savings
 Submittal will include
 Raw data collected in M&V activities
 Analysis used to calculate savings
 Actual savings achieved
 Review period approximately 45 days
 Remaining incentive payment based on
actual savings achieved (up to 60% of
contracted amount)
Measurement and Verification
Mike Stockard
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Streamlined M&V Procedures
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Measure-specific M&V guidelines
Stipulated values for data such as operating hours,
fixture wattages and equipment efficiencies
Pre-derived savings calculations for some
measures
Minimize project sponsor M&V costs and utility
administration, while producing justifiable energy
savings
C&I Program M&V
Appropriate
M&V Approach depends mainly on:
– Type of retrofit and equipment
– Operational predictability
– Project complexity
Main
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–
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categories of M&V for C&I program:
Deemed savings (in select applications)
Simplified M&V methods
Full M&V methods
Alternate M&V methods may be proposed by
Sponsor, but must adhere to IPMVP and be
approved by Utility
Simplified Lighting Example
 Typical Small Office Building
 Sponsor submits full lighting survey, detailing
existing and proposed fixtures
 3,760 stipulated operating hours for office buildings
 80% coincidence factor for office buildings
Connected Lighting Load (kW)
Survey
Lines
Difference
Stipulated
Operating Hours
Annual kWh
Savings
Existing
Proposed
Hallways/Stairs
5
0.9
0.5
0.4
3,760
1,504
Common Offices
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16.5
3.6
12.9
3,760
48,504
Conference Rooms
5
3.9
2.4
1.5
3,760
5,640
Misc. Facilities
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1.5
1.2
0.3
3,760
1,128
Private Offices
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14.8
10.3
4.5
3,760
16,920
Restrooms
5
1.0
0.7
0.3
3,760
1,128
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38.6
18.7
19.9
Usage Group
TOTAL
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74,824
Simplified Lighting Example (cont.)
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Savings Calculations
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Lighting Demand Savings:
Interactive Demand Savings:
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38.6 kW – 18.7 kW = 19.9 kW
19.9 kW * 0.10 = 2.0 kW
Total Demand Savings: (19.9 kW + 2.0 kW) * 0.80 = 17.7 kW
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Lighting Energy Savings:
Interactive Energy Savings:
19.9 kW * 3,760 hrs = 74,824 kWh
74,824 kWh * 0.05 = 3,741 kWh
Total Demand Savings: 74,824 kWh + 3,741 kWh = 78,565
kWh
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Simplified Cooling Example
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Chiller Replacement in Office Building
Retrofit Description:
1-for-1 300 Ton Water-Cooled
Centrifugal Chiller
Replacement
Existing Chiller Efficiency:
COP=5.0 (0.70 kW/ton)
New Chiller Efficiency:
COP=6.6 (0.53 kW/ton)
Baseline Chiller Efficiency
(ASHRAE 90.1-1989):
COP=5.2 (0.68 kW/ton)
Spot kW measurement of existing 135 kW
chiller at peak conditions:
12-months post-retrofit measured
chiller kWh:
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334,200 kWh
Simplified Cooling Example (cont.)
Savings Calculations

 COP



new 
Energy Savings (kWh)  kWh
*
 1
post-metered  COP

base  rated 

 6.6 


1
  89,977 kWh

5.2




Energy Savings (kWh)  334,200 kWh * 
 COP



new

Demand Savings (kW)  kW
*
 1
pre-metered  COP

base  rated 

 6.6 


1
  36.0 kW

5.2




Demand Savings (kW)  135 kW * 
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General M&V Rules
 Baseline must account for minimum state and
federal standards
 Standard forms must be used
 M&V reports must be complete and properly
documented before any payments will be made
 “Service quality” must be maintained
 For example - lighting levels
 Metering
 Calibration required
 All collected data must be submitted with
reports
 Must be adequate to capture full range of
operating conditions
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Example Incentive Calculations
Karen Radosevich
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Pricing for programs is based on a
cost effectiveness standard
 Based on avoided cost of a new gas turbine:
– $400 per kW capacity
– 2.5 cents per kWh off-peak energy
 Incentives for large commercial and industrial projects can be
up to 35% of avoided cost.
 Incentives vary by utility:
– $150 to $200 per kW reduction
– 5.0 to 6.9 cents per annual kWh saved
 Lighting Cap -- kW and kWh savings derived from lighting
measures are capped at 65% of the total savings.
 Load Factor Cap -- Utilities may place a limit on the ratio of
kWh payment to kW payment.
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Example 1 - Simple Calculation
A commercial HVAC project saves 25 kW of
summer peak demand and 50,000 annual kWh.
25 kW x $175/kW + 50,000 kWh x $0.06/kWh =
$7,375
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Example 2 -- Load Factor Cap
An industrial variable-speed motor retrofit saves 20
kW of summer peak demand and 150,000 annual
kWh. The unadjusted incentive payment for this
project would be:
(20 x$175) + (150,000 x $0.06) = $12,500
The utility is utilizing a load factor cap that limits
combined kW and kWh payment to $600 per kW.
20 x $600 = $12,000
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This project would be subject to the load factor cap.
Incentive would not exceed $12,000.
Example 3 - Lighting Cap
A commercial office project saves 15 kW and 60,000
kWh from lighting measures and 4 kW and 8,000 from
HVAC.
% of kW savings from lighting = 15/19 = 79%
% of kWh savings from lighting = 60,000/68,000=88%
Adjusted kW = (19 x 0.65) + 4 = 16.35 kW
Adjusted kWh = (68,000 x 0.65) + 8,000 = 52,200 kWh
(16.35 x $175) + (52,200 x $0.06) = $5,993
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In conclusion…
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
A new generation of energy efficiency programs
are up and running.

For energy services companies, equipment
distributors and manufacturers, installers of
energy-efficient equipment, and others, these
programs provide new business opportunities.

The state’s utilities and the PUCT are counting on
your ideas and efforts to help ensure that we meet
our goal for energy efficiency!
Questions?
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