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Texas Large Commercial and Industrial Standard Offer Program

Texas Large Commercial and Industrial Standard Offer Program. Brown Bag Teleconference May 23, 2003. 1. Overview of Today’s Topic.

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Texas Large Commercial and Industrial Standard Offer Program

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  1. Texas Large Commercial and Industrial Standard Offer Program Brown Bag Teleconference May 23, 2003 1

  2. 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

  3. Outline Brief overview Jay Zarnikau, Frontier Associates LLC Waltz Across Texas An Introduction to each of the service areas by program managers at each of the utilities Project Sponsor Eligibility Billy Berny, AEP Eligible Measures Doug Maxey, Xcel Energy 3

  4. Outline cont. Application Process George Smith, CenterPoint Energy Measurement and Verification Mike Stockard, Oncor Example Incentive Calculations Karen Radosevich, Entergy 4

  5. TEXAS Electric Retail Service Area Map Investor-Owned Utilities Xcel WTU Xcel SWEPCO AEP- North Oncor Oncor TNMP EPE TNMP AEP-North AEP-North EGS CenterPoint Legend 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 5 April 2003

  6. Entergy - Gulf States, Inc. Karen Radosevich 6

  7. Entergy - Gulf States, Inc. • Serves 350,000 customers in Southeast Texas • Industrial (Beaumont & Port Arthur) • Residential (The Woodlands & Conroe) Goals and Budget Goal2003 BudgetRemaining Funds 3.1 MW $ 1,305,940 $ 1,239,549 Contact Information:Terry Swan (409) 981-3245 tswan@entergy.com 7

  8. Xcel Energy Doug Maxey 8

  9. Xcel Energy • Serve 269,000 customers on the high plains of Texas • Amarillo - Lubbock Goals and Budget Goal2003 BudgetRemaining Funds 3.1 MW $ 1,305,940 $ 1,239,549 Contact Information: 806-378-2887 doug.maxey@xcelenergy.com 9

  10. Texas-New Mexico Power Tony Thompson 10

  11. Texas-New Mexico Power Goals and Budgets Goal2003 BudgetRemaining Funds 0.64 MW $ 240,000 $ 192,000 Contact Information: 817-377-5579 tthompson@tnpe.com 11

  12. AMERICAN ELECTRIC POWER Billy Berny AMERICAN ELECTRIC POWER AEP SWEPCO AEP TEXAS CENTRAL AEP TEXAS NORTH 12

  13. American Electric Power Program Incentive Budgets Total Incentive Budget Available Funds as of April 28, 2003 based on approved Contracts AEP - Texas Central $ 2,587,279 $ 2,083,621 AEP – SWEPCO $ 589,500 $ 589,500 AEP - Texas North $ 596,841 $ 596,841 $ 3,773,620 $ 3,269,962 Contact Information: 325-674-7293 bgberny@aep.com FOR MORE INFO... Go to www.aepefficiency.com for program details and application procedures. 13

  14. CenterPoint Energy George Smith 14

  15. CenterPoint Energy Statistics • 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 15

  16. CenterPoint Goals and Budgets Goal2003 BudgetRemaining Funds 10.2 MW $ 6,252,000 $ 2,600,000 Contact Information: 713-207-3488 george.smith@centerpointenergy.com 16

  17. Oncor Mike Stockard 17

  18. Oncor Service Area Statistics • Provides distribution service to 2.64 million premises. • Provides distribution service to 370 cities in 92 counties. • Serves: Dallas, Fort Worth, Tyler, Waco, Midland, Odessa, Lufkin, Temple, Round Rock • Peak system demand of 22,000 MW • 2004 Incentive Budget - $ 17.3 million Contact Information: 214-486-5626 mstocka1@oncorgroup.com 18

  19. Websites for Specific Utilities • AEP - www.aepefficiency.com • Entergy - www.ENTERGYefficiency.com • Oncor - www.oncorgroup.com/efficiency • CenterPoint - centerpointefficiency.com • Texas-New Mexico Power - www.tnpeefficiency.com • Xcel Energy - www.Xcelenergyefficiency.com 19

  20. Quick Overview Jay Zarnikau Frontier Associates LLC 20

  21. Background and Introduction • 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. 21

  22. 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; first-come, 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. Contact Information: 512-372-8778 jayz@frontierassoc.com 22

  23. Project Sponsor Eligibility Billy Berny AMERICAN ELECTRIC POWER AEP SWEPCO AEP TEXAS CENTRAL AEP TEXAS NORTH 23

  24. Program Administrator (Utility) Responsibilities • 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. • Report results to Public Utility Commission. 24

  25. 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 • Large commercial or industrial energy consumers • Project sponsors must meet standard qualifications (work experience, financial capability, insurance, proper licensing, etc.) 25

  26. Sponsor Responsibilities • 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 26

  27. Project Sponsor Qualifications • 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 27

  28. Eligible Measures Doug Maxey 28

  29. 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 Measure Eligibility 29

  30. 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 Eligible Measures 30

  31. 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) Ineligible Measures 31

  32. 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 Eligibility 32

  33. 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 Project Aggregation 33

  34. Application Process George Smith 34

  35. IA FA Contract IR SR Initial Application • Sponsor submits one Initial Application (IA) per project • 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. 35

  36. Sponsor has up to 100 days from IA approval for submittal of FA (varies by utility) Information required in the Final Application (FA) 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 IA FA Contract IR SR Submittal 2:Final Application 36

  37. 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 FA approval IA FA Contract IR SR Final Application (cont.) 37

  38. IA FA Contract IR SR Agreement(Contract) • 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 38

  39. 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 IA FA Contract IR SR Submittal 3: Installation Report 39

  40. 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 IA FA Contract IR SR Installation Report (cont.) 40

  41. 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) Submittal 4:Savings Report IA FA Contract IR SR 41

  42. Measurement and Verification Mike Stockard 42

  43. 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 Streamlined M&V Procedures 43

  44. Appropriate M&V Approach depends mainly on: Type of retrofit and equipment Operational predictability Project complexity Main 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 C&I Program M&V 44

  45. 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 45

  46. Savings Calculations Lighting Demand Savings: 38.6 kW – 18.7 kW = 19.9 kW Interactive Demand Savings: 19.9 kW * 0.10 = 2.0 kW Total Demand Savings: (19.9 kW + 2.0 kW) * 0.80 = 17.7 kW Lighting Energy Savings: 19.9 kW * 3,760 hrs = 74,824 kWh Interactive Energy Savings: 74,824 kWh * 0.05 = 3,741 kWh Total Demand Savings: 74,824 kWh + 3,741 kWh = 78,565 kWh Simplified Lighting Example (cont.) 46

  47. Simplified Cooling Example • Chiller Replacement in Office Building 47

  48. Simplified Cooling Example (cont.) • Savings Calculations 48

  49. 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 General M&V Rules 49

  50. Example Incentive Calculations Karen Radosevich 50

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