Electric Discount and Energy Competition Act of 1999 (EDECA)

1. State Incentives for Energy EfficiencyCommercial and IndustrialNew Jersey Board of Public UtilitiesOffice of Clean EnergyMona L. MosserBureau of Energy Efficiency

2. Electric Discount and Energy Competition Act of 1999 (EDECA) • Eliminated traditional retail monopolies • Consumers can select an energy supplier • Lower rates are expected over time due to competition • Immediate and increasing discounts implemented

3. Energy Efficiency Energy technologies can mean buildings that are more: • Energy Efficient • Reliable • Cost-effective and • Environmentally Friendly

4. Energy Efficiency Programs Commercial and Industrial • Marketed as New Jersey SmartStart Buildings, is the umbrella name for four individual programs for targeted market segments: • Commercial New Construction • Commercial Retrofit • Abbott School • Non-Abbott Schools

5. The programs are designed to: • Capture lost opportunities for energy efficiency savings that occur during customer-initiated construction events (i.e., when customers normally construct buildings or buy equipment). • Achieve market transformation by helping customers, designers and specifiers to make energy efficient equipment specification, building /system design, lighting design, and commissioning standard parts of their business practices. • Stimulate small commercial customer investments in energy efficiency measures. • Help facilitate effective implementation of New Jersey’s new commercial code and future upgrades to that code.

6. Program Offerings and Customer Incentives • Prescriptive Efficiency Measure Rebates that provide fixed incentives for energy efficiency measures. • Custom Measure Incentives for more complex and aggressive custom efficiency measures. • Multiple Measure Incentives for the installation of multiple eligible gas and electric energy efficiency measures (i.e., two or more of the following equipment types – lighting equipment and controls, unitary HVAC, chillers, electric and gas space heating, gas water heating, motors, and/or variable speed drives).

7. Technical Assistance and oversight to help customers evaluate energy efficiency options, utilize program offerings and services, and effectively use performance-contracted services. Energy Code Technical Support, to assist customer and trade ally understanding of the requirements of the state’s new commercial energy code. Program Offerings and Customer Incentives (cont’d)

8. Commercial New Construction Program • Incentives for new construction projects are available only for projects in State designated “Smart Growth” area • Design Incentives and Support, including building simulation, to architects and engineers to consider and use integrated design approaches that provide additional, synergistic energy savings.

9. Commercial Retrofit • Chiller Optimization • Lighting Remodeling Design • Compressed Air • Financial incentives are provided for: a) the technical studies on a cost shared basis and b) for qualified equipment

10. Commercial Retrofit (cont’d) • Financial incentives are provided for: • Technical studies on a cost shared basis and • For qualified equipment.

11. Farm Facts • Nationwide, the agricultural sector accounts for about three percent of total electricity use • Energy expenses are a significant portion of the farm budget, accounting for up to 10 percent of costs • Since operating margins, especially for small farms, are typically well under 10 percent, energy costs can have an impact on the survival of many small farms

12. Benefits of Energy Efficiency • Energy efficiency reduces consumption, which reduces bills. • Reduces the need for costly electric grid upgrades, keeps wholesale price of power down. • Energy efficiency promotes job creation. • Energy efficiency can reduce the high cost of renewable energy.

13. August 14,2003 Blackout

14. Program Delivery • The C&I Program is currently delivered by the State’s seven natural gas and electric utilities. • In 2004, the C&I program manager(s) for each of the program target segments will implement the program consistent with: • program design • program eligibility requirements • equipment baselines and efficiency standards • incentive levels, for both the core program offerings and the specialized program paths

15. Areas of Focus • Pumps • Motors • Lighting • HVAC • Operating Procedures • Green Energy • Billing Errors

16. ECO #8 Raritan Millstone High Lift #8 and #9 Pump and Motor Replacement and VFD installation • Economics (with VFD installation and #14/#15 engine shut down savings from ECO #24) • Implementation Costs $842,000 • Annual Cost Savings $384,000 • Simple Payback 2.2 years • Economics (with Pump and Motor Replacement only) • Implementation Costs $460,095 • Annual Cost Savings $110,000 • Simple Payback 4.2 years

17. Lighting Retrofit • Implementation Costs • $21,160 • Annual Cost Savings • $7,900 • Simple Payback • 2.7 years • Conversion of old T12 fixtures to T8 fixtures

18. Combined Heat &Power Program On July 27, 2004 the New Jersey Board of Public Utilities approved the funding level of $5 million for the Office of Clean Energy’s Combined Heat and Power (CHP) Program

19. CHP INCENTIVE PROGRAM TECHNOLOGY AND INCENTIVE LEVELS

20. Contacts mona.mosser@bpu.state.nj.us www.bpu.state.nj.us www.njcep.com http://www.njsmartstartbuildings.com