Transcript Document 7160682

Texas
Energy
Efficiency
Overview of Energy
Efficiency Program Offerings
Standard Offer Programs New Opportunities for Energy
Efficiency
Texas
Energy
Efficiency
Jay Zarnikau
Frontier Associates
July 17, 2001
Utility Energy Efficiency
Programs
• 1980’s - electric utilities sponsored programs focused
on rebates.
• 1990’s - blocks of kW and kWh reduction were bid
out through competitive solicitation.
• 2000’s - standard offer and market transformation
programs.
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
What is a Standard Offer
Program?
• Applications considered on per-project basis; firstcome, 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.
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
Who Are the Program
Administrators?
Energy efficiency programs will be administered by
investor-owned utilities:
Reliant - HL&P
AEP - CP&L
TXU Electric
AEP - SWEPCO
Entergy-Gulf States
AEP - WTU
Southwest Public Service
Texas-New Mexico
El Paso Electric
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
Measurement and Verification of
Savings
• Baseline is federal standard or typical practice (where
applicable)
• Savings for many measures based on:
– “Deemed” savings or
– “Simple” M&V
• Full M&V for some measures
– In accordance with IPMVP
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
TEXAS
SPS
Electric Retail Service Area Map
Investor-Owned Utilities
WTU
SPS
SWEPCO
TXU
TXU
WTU
TNMP
EPE
TNMP
SESCO
WTU
Reliant EGS
WTU
Legend
Central Power and Light Company (CPL)
El Paso Electric Company (EPE)
Entergy Gulf States, Inc. (EGS)
Reliant Energy – HL&P (Reliant)
Southwestern Public Service Company (SPS)
Southwestern Electric Power Company (SWEPCO)
Southwestern Electric Service Company (SESCO)
Texas-New Mexico Power Company (TNMP)
TXU Electric & Gas (TXU)
West Texas Utilities Company (WTU)
TNMP
CPL
Texas
Energy
Efficiency
Russell Bego
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
2002 Energy Efficiency
Program Budgets
AEP - CPL
Large Commercial & Industrial SOP
$
Residential/Small Commercial SOP
$ 1,964,508
Hard-To-Reach SOP
$
SOP Subtotal:
876,508
417,999
$ 3,259,015
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
2002 Energy Efficiency
Program Budgets
AEP - SWEPCO
Large Commercial & Industrial SOP
$
742,500
Residential/Small Commercial SOP
$
522,461
Hard-To-Reach SOP
$
55,339
SOP Subtotal:
$ 1,320,300
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
2002 Energy Efficiency
Program Budgets
AEP - WTU
Large Commercial & Industrial SOP
$
237,693
Residential/Small Commercial SOP
$
691,066
Hard-To-Reach SOP
$
154,045
SOP Subtotal:
$ 1,082,804
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
Karen Radosevich
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
2002 Energy Efficiency Budget
Large Commercial & Industrial SOP
Residential/Small Commercial SOP
Hard-To-Reach SOP
SOP Subtotal:
$ 1,000,000
$ 1,080,000
$ 309,000
$ 2,389,000
ENERGY STAR® Homes MT
AC Distributor MT
$
$
$
MT Subtotal:
TOTAL:
700,000
700,000
$ 3,089,000
Texas
Energy
Efficiency
George Smith
Texas
Energy
Efficiency
Reliant Energy – HL&P
Service Area
Texas
Energy
Efficiency
Reliant Energy – HL&P
Service Area
GRIMES
WASHINGTON
MONTGOMERY
LIBERTY
WALLER
AUSTIN
HARRIS
CHAMBERS
COLORADO
FORT BEND
GALVESTON
WHARTON
BRAZORIA
MATAGORDA
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
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
$8.7M
$14.5M
Total
Texas
Energy
Efficiency
Texas
Energy
Efficiency
Doug Maxey
Texas
Energy
Efficiency
SPS will administer energy efficiency
programs in the following areas of Texas:
• Texas Panhandle (except for southeastern corner)
• South Plains (Lubbock and surrounding counties)
Texas
Energy
Efficiency
SPS Service Territory
Texas
Energy
Efficiency
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
Texas
Energy
Efficiency
Standard Offer Programs (SOP)
Launch: Residential and
1/1/2002 Small Commercial
Provide incentives for retrofit installation of a wide range
of measures that reduce demand and save energy for
residential and small commercial (<100 kW) customers.
Launch: Commercial and
3/1/2002 Industrial
Provide incentives for retrofit installation of a wide range
of measures that reduce demand and save energy in
large commercial and industrial facilities.
Launch: Hard-To-Reach
1/1/2002
Provide incentives for retrofit installation of a wide range
of measures that reduce demand and save energy.
Includes certain measures with less than a 10-year life
(i.e. CFLs).
Launch: Load Management
1/1/2003
Provide incentives for various qualifying load
management measures.
Texas
Energy
Efficiency
Market Transformation Programs
Launch: Residential ENERGY
3/1/2002 STAR® Homes
Promote the construction of new homes constructed to
the ENERGY STAR® standards.
Launch: A/C Distributors
1/1/2002
Provide incentives for the installation of high-efficiency
air conditioning units less than 20 tons in size that are
typically used in small commercial and residential
applications. Incentives are paid on the basis of deemed
savings.
Texas
Energy
Efficiency
2002 Energy Efficiency Budgets
Large Commercial & Industrial SOP
$ 224,000
Residential/Small Commercial SOP
$ 528,000
Hard-To-Reach SOP
$ 123,000
SOP Subtotal:
$ 875,000
ENERGY STAR® Homes MT
$ 227,000
AC Distributor MT
$ 750,000
MT Subtotal:
$ 977,000
TOTAL:
$ 1,852,000
Texas
Energy
Efficiency
Mike Stockard
Texas
Energy
Efficiency
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.
Texas
Energy
Efficiency
Texas
Energy
Efficiency
Standard Offer Programs
•
•
•
•
•
Hard-To-Reach
Residential and Small Commercial
Large Commercial and Industrial
Program launch in October 2001
On-line application process
Texas
Energy
Efficiency
Market Transformation
Programs
•
•
•
•
ENERGY STAR® Homes
Air Conditioning Distributor
Air Conditioner Installer Program
Program launch in 2002
Texas
Energy
Efficiency
System Goals and
Incentive Budgets
Program
Goal
Budget*
HTR SOP
2.6 MW
$ 3,528,882
Res/Small C&I SOP
6.3 MW
$ 4,238,524
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
Large C&I SOP
TOTAL:
$ 32,059,002
* Pending PUC approval
Texas
Energy
Efficiency
For Additional Information
• Telephone: 1-800-273-8741
• Fax: 214-812-7300
• www.txu.com/efficiency
Texas
Energy
Efficiency