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Consumers Energy Business Solutions. 2012 Commercial and Industrial Energy Efficiency Program November 8, 2011. Energy Optimization Programs. Programs were mandated by PA 295 enacted in October 2008 Utilities are required to reduce energy consumption through energy efficiency measures
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Consumers Energy Business Solutions 2012 Commercial and Industrial Energy Efficiency Program November 8, 2011
Energy Optimization Programs • Programs were mandated by PA 295 enacted in October 2008 • Utilities are required to reduce energy consumption through energy efficiency measures • Consumers Energy is required to reduce electric use by 1% and natural gas use by .75% in 2012 • Consumers Energy optimization programs offer incentives for upgrading, replacing or maintaining equipment
Customer Participation • Consumers Energy has distributed over $40 million to customers since the program began in 2009 • Over 8,000 customers have participated • Customers are from all business segments and are of all sizes
New 2012 Application • New Look • New Measures • Updated Specification Catalog • Modified Incentive Levels
Customer and Project Eligibility • Most Consumers Energy electricity and gas business customers are eligible • Must have a valid natural gas and/or electric account number • The applicant is the firm that purchases the EE measures that are installed at the facility served by the utility • A qualifying facility has at least one meter on an eligible rate schedule • Must meet various program requirements
Project Requirements • Projects must involve a facility improvement that results in a permanent reduction in electrical and/or gas energy usage • Projects that are NOT eligible for an incentive include the following: • Fuel switching (e.g., electric to gas or gas to electric) • Changes in operation and/or maintenance practices or simple control modifications not involving capital costs • On-site electricity generation • Projects that involve peak-shifting (and not kWh savings). • Projects involving renewable energy
Incentive Caps and Limitations • The amount of incentives a facility or customer can receive is limited • Custom incentives must be ≤50% of the total project cost • Prescriptive incentives must be ≤100% of the total project cost • Measures must be installed for five years or the life of the measure, whichever is less • Large gas customers only >100,000 MCF/yr. usage
Common Application Issues • Missing or wrong CE account number • Taxpayer ID not included • Total project cost incomplete • Incomplete incentive worksheets • Lack of itemized invoice • Missing specification sheets • Project not within 60-90 day program guidelines
Things to Remember • Reference your project number on your final application • Make sure the customer signs the application agreement • Payment release authorization must be signed by the customer, NOT the contractor, where applicable • Itemized invoices must include product description, price and quantity • Updated measure worksheet if scope of project has changed • If faxing, include cover sheet to identify project or person of contact • Incomplete applications will result in process delay
Energy Saving Opportunities • Look for quick wins • Lighting • HVAC • Water heating • Plug loads
Lighting • Lighting is typically 30% of your bill • Easy to implement & cost effective • CFL’s • T12-T8/T5 replacement • Exit signs • Exterior lighting • Metal halide replacement • Occupancy sensors
HVAC • Heating & cooling combine for more than 50% of the energy budget • Still easy to do • Programmable thermostats • Boiler/Furnace/RTU tune-ups • Economizers • Boiler controls/sequencing
Water heating • Accounts for 10% of energy use • Harder to find opportunities • Water heaters • Pipe/water heater insulation
Plug loads • “Vampire loads” - they are everywhere • Hard to control • Eat away at your energy cost • Individual printers • Computers • Chargers • AC adapters • Vending machines • Copy machines • Space heaters
Window Reduction • This incentive is for reducing window area by installing an insulated window to existing buildings • Window insulation must be installed in a space which uses natural gas-fired space heating • New window assembly must be greater than or equal to R-11 • The maximum incentive available for this measure is $10,000 per facility
Thank You! Contact Us • E-mail: ConsumersEnergyBusinessSolutions@kema.com • Web: www.consumersenergy.com • Application available at:www.consumersenergy.com/eeprograms • Phone: (877) 607-0737 • Fax: (877) 607-0738