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UTILITY COMPANY PROGRAMS Jonathan Livingston (Moderator), President and Founder, Livingston
Energy Innovations
Neil Sybert, Senior Energy Programs Advisor, Customer Programs Department, SDG&E
Leticia Ayala, Customer Programs Advisor, Southern Cal Gas Company
Robyn Zander, Project Manager, Energy Efficiency Division, Southern California Edison
Richard Jett, Manager, Market Segment Solutions, Energy Efficiency, Southern California Edison
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UTILITY COMPANY PROGRAMS
Neil Sybert, Senior Energy Programs Advisor, Customer Programs Department, SDG&E
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Presented to TRIO Symposium
March 12, 2010
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• Implementing Utility Energy Efficiency Programs
• Third Party (3rd Party) Programs – Part of the utility Energy Efficiency Portfolio of programs filed with the
California Public Utilities Commission (CPUC)
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• Request for proposals (RFPs) for utility designed energy efficiency programs or services – For economic reasons – Vendor better suited to provide service – Consulting services
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• What is a 3rd Party Program? – Non-IOU implementers (Energy Efficiency Contractors – EEC)
responsible for designing and delivering the program rather than implementing an IOU-designed program
• Why is it important? – Competitively bid Energy Efficiency (EE) Programs intended to
identify innovative approaches or technologies to improve investor owned utility (IOU) portfolio performance
– These programs would focus on new program ideas to achieve or exceed the Commission’s savings goals
– Performance or Non-Performance by the EEC is part of the CPUC’s evaluation of utility overall EE portfolio performance
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• The CPUC has directed that a 20% minimum of all IOUs portfolio budgets be designated for 3rd Party Programs
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• 13 contractors managing 14 programs
• Types of Programs offered • Non-resource programs (informational programs): 4 • Resource programs (programs that provide energy savings): 11
• Program Markets • Residential: 4 • Non-Residential: 9
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• Planned RFP for 3rd Party Commercial Sector Program – The RFP will be posted on our web in the near future – Those interested can provide me a card – need email address
• SDG&E is encourages Diverse Business Enterprises (DBEs), which are businesses that are one of the following: – 51% minority owned business – 51% service disabled veteran owned business – 51% women owned business
• Must be certified by the CPUC
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UTILITY COMPANY PROGRAMS
Leticia Ayala, Customer Programs Advisor, Southern Cal Gas Company
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© 2006 Southern California Gas Company. All copyright and trademark rights reserved"
Contracting Opportunities in Energy Efficiency at SoCalGas 12 March 2010 TRIO Symposium
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Third Party Programs in the 2010-2012 SCG Portfolio
The CPUC has directed that a 20% minimum of all IOUs portfolio budgets be designated for Third Party Programs
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Third Party Programs in the SoCalGas Portfolio
• CPUC Definition of a Third Party: Non-regulated implementers of ratepayer funded energy
efficiency activities • SoCalGas is responsible for Administration and
performance of the EECs as part of our portfolio performance
• Performance or Non-Performance by EECs is part of the CPUC’s evaluation of SoCalGas’ Overall Performance
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2010-2012 Cycle Third Party Programs
• 17 contractors managing 18 programs
• Programs offered • Non-resource programs: 7 • Resource programs: 11
• Program Markets • Residential: 8 • Non-Residential: 4 • Cross-cutting: 6
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Other Opportunities for Contractors at SoCalGas
• Contractor for Core or Partnership programs
• Consultant for Energy Efficiency programs
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Current Opportunities for Contractors
• Energy Efficiency Contracting information available at: http://www.socalgas.com/eecontracting/
• No open RFP’s at this time
• If you are interested in SoCalGas’ future Energy Efficiency solicitations please visit and register at: https://www.pepma-ca.com to receive a Call for Abstracts document
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UTILITY COMPANY PROGRAMS
Robyn Zander, Project Manager, Energy Efficiency Division, Southern California Edison
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18
Third Party Solicitation Process Southern California Edison
Technology Resource Incubation Outreach March 12, 2010
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19
Overview
Purpose
The Approach
Multiple Flights and Solicitations
Statewide Bid Portal
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Purpose To procure the most cost-effective and reliable energy savings in support of
the current Energy Efficiency Program cycle.
Key objectives: Focus on new innovative program ideas
Improve the quality of the proposals and to ensure reliable, cost-effective programs are selected
20% of all IOUs portfolio budgets must be third party
Encourage Divers Business Enterprise ( DBEs)
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The Approach Statewide vs. Local
Statewide Solicitations Occur on a statewide level (i.e., all IOUs participate)
Local Solicitations Occur within an individual IOUs service territory
Independent from other IOUs
Each IOU responsible for document creation and distribution to bidders
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The Approach Types of Third Party Statewide solicitations:
General Solicitation Allows bidders to submit EE proposals without direction from IOU
Calls for a two-stage submittal process,
Release one RFP,
One IOU takes lead on the development and release of RFP in close coordination with all participating IOUs
Common scoring criteria
Targeted Solicitations: Provides potential bidders opportunity to respond to a general scope of work (e.g.,
- market segment-based, strategy-based, etc.)
Calls for a one-stage process,
Release one RFP per targeted solicitation, multiple targeted solicitations One IOU takes lead on the development and release of RFP in close coordination
with all participating IOUs
Common scoring criteria
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Statewide Bid Portal Common solicitation process with a Web-based solicitation portal (PEPMA)
Web-base solicitation portal is used for bidders to register for receiving RFPs
https://www.pepma-ca.com
Allows bidder to upload electronic proposals and store electronic versions of solicitation documents in each IOU “virtual room”
Each IOU independently scores their proposals
SW RFPs 3rd Party Bids
Bid Portal
**
IOUs Review & Score
IOUs Submit Selections to CPUC
Peer Review Group Oversight
**One Lead IOU designee per SW RFP
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UTILITY COMPANY PROGRAMS
Richard Jett, Manager, Market Segment Solutions, Energy Efficiency,
Southern California Edison
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EDISON INTERNATIONAL®
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Energy Efficiency Business Portfolio
Richard Jett
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Unleashing the Power of IDSM
Providing Customers a More Efficient, Better Integrated Suite of DSM Products and Services Aligning the entire sales and marketing value chain
Unleashing the Power New energy management guides
Integrated application and fulfillment process
Redesigned Web site
Application access through multiple channels
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What’s New?
IDSM Marketing Material & Application - Support and accelerate the customer decision making process
from awareness to action
Expanded Portfolio of Services - Audits, Benchmarking, Continuous Energy Improvement
(CEI), Retrocommissioning (RCx) and expanded service offerings designed to overcome market barriers beyond capital cost considerations and identify resource opportunities
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What’s New?, cont’d
Segment Specific Third Party Programs Programs designed to target specific markets (e.g. food
processing, primary metals, and schools)
New Retrofit Measures and Incentives Exterior Induction Features LED Refrigerated Case Door Lighting T8 to T8 Reduced Wattage Interior Lamp and Ballast Retrofit Others
Financial Mechanism Program On-Bill Financing (OBF) expansion to cities and counties
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Funding History
$345
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Customer-Centric Portfolio
Addressing market barriers at each phase of a facility’s life cycle:
Building & Construction Operations
Site Planning, Building Design &
Engineering
Continuous Improvement
Retrofit Programs Statewide:
Commercial/G&I, Industrial, and Agricultural Third Party:
Office, Hospitals, Food/Beverage, and Others
Cross Cutting Programs
Comprehensive HVAC, Emerging Technologies, Codes & Standards, WE&T, and ME&O
New Construction Programs Statewide:
Savings by Design California Advanced Homes
Third Party: Sustainable Communities
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Market Barriers to Adoption of EE
Lack of awareness regarding Levels of energy performance in
existing facilities Opportunities for greater
efficiency and cost savings in ongoing operations
High-performance design strategies for new facilities
Lack of technical expertise Choosing the right measures to
maximize savings Cost
Initial capital cost More than two year payback Minimal upfront capital investment
capability Structural disconnect between
capital and O&M budgets
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Offerings to Overcome Market Barriers
Audits & Technical Services Benchmarking Basic audits Integrated audits Pump tests Retrocommissioning
(RCx) Continuous Energy
Improvement
Incentives Deemed per unit/
measure (Express) Calculated per unit of
savings (Customized) Direct Installation
No-cost installation of energy efficient equipment
Financing Mechanism On-Bill Financing (OBF)
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Portfolio Structure Statewide,
Local & Third Party Programs
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Comprehensive HVAC, New Construction & Sustainability,
Workforce Education & Training, Others
Commercial/
G&I
Statewide
Local
Third Party
6 Implementers
Industrial
Financial Solutions
Agricultural
Cross Cutting
4 Implementers 1 Implementer
2010-2012 Portfolio Structure
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Program Description
Commercial/G&I Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Express Solutions, Customized Solutions, Direct Install, and Continuous Energy Improvement.
Industrial Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Express Solutions, Customized Solutions, and Continuous Energy Improvement.
Agricultural Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Pump Tests, Express Solutions, Customized Solutions, and Continuous Energy Improvement.
Portfolio Structure – C, I, & A Statewide Programs
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Third Party Programs
Examples of targeted sub-segments are Data Centers Food/Beverage Gases, Solid Waste Office Petroleum/Oil Schools and Colleges
Deliver the same offerings and incentives as the statewide Commercial/G&I, Industrial, and Agricultural programs
Portfolio Structure – Third Party Implemented Programs
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New Construction & Sustainability Savings By Design (SBD) California Advanced Homes (CAHP) Sustainable Communities (SCP)
Comprehensive HVAC Residential Energy Star Quality Installation Commercial Quality Installation Commercial Upstream Equipment Quality Maintenance Program Technology & Systems Diagnostics HVAC Workforce Education & Training
Portfolio Structure – Statewide Cross Cutting Programs
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Workforce Education & Training Energy Centers Building Operator Certification Mobile Energy Unit
Other Emerging Technologies Codes & Standards Marketing, Education & Outreach Strategic Planning & Implementation
Statewide Cross Cutting Programs, cont’d
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Portfolio Structure – Local On-Bill Financing Program
Offering description Advances SCE’s strategy of using targeted and innovative
financing for EE
Customers receive both an OBF loan and an incentive from an energy efficiency program
OBF Loan Amounts Loans to Local Government $ 12 Million & Institutional Customers Loans to Commercial, $ 4 Million Industrial, and Agricultural Segment Lending amount total $ 16 Million
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Loan caps as follows The minimum loan: $5,000 Business Customer maximum: $100,000 Local Government & Institutional partners maximum:
$250,000
Portfolio Structure – Local On-Bill Financing Program
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Incentives Express & Customized Solutions
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Offering description Encourage the adoption of energy efficient
products by providing itemized rebates to offset the cost of implementing high-efficiency measures
Designed for projects with standardized measures for quicker processing
Express Solutions
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Offering description Encourage the adoption of energy efficient
products by providing calculated incentives to offset the cost of implementing high-efficiency equipment or systems
Designed for complex or unique projects not covered under Express Solutions
Customized Solutions
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Applying for Incentives
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Comprehensive Strategy
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Segment Guides
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Web
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Energy Action Plan
The Comprehensive
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