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Texas Energy Efficiency. Overview of Energy Efficiency Program Offerings.

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Presentation on theme: "Texas Energy Efficiency. Overview of Energy Efficiency Program Offerings."— Presentation transcript:

1 Texas Energy Efficiency

2 Overview of Energy Efficiency Program Offerings

3 Standard Offer Programs - New Opportunities for Energy Efficiency July 17, 2001 Texas Energy Efficiency Jay Zarnikau Frontier Associates

4 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

5 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

6 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

7 What is a Standard Offer Program? Applications considered on per-project basis; first- come, 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

8 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

9 Who Are the Program Administrators? Energy efficiency programs will be administered by investor-owned utilities: Reliant - HL&PAEP - CP&L TXU ElectricAEP - SWEPCO Entergy-Gulf StatesAEP - WTU Southwest Public ServiceTexas-New Mexico El Paso Electric Texas Energy Efficiency

10 Equipment distributors or manufacturers Energy service companies Community based organizations Mechanical or lighting contractors Any other entity providing energy efficiency services Who Can Be a Project Sponsor? Texas Energy Efficiency

11 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

12 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

13 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

14 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

15 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

16 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

17 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

18 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

19 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

20 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

21 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

22 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

23 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

24 TEXAS Electric Retail Service Area Map Investor-Owned Utilities 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) EPE TXU TNMP WTU SPS SESCO Reliant SWEPCO TXU TNMP EGS WTU TNMP CPL SPS WTU Texas Energy Efficiency

25 Russell Bego Texas Energy Efficiency

26 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 AEP Service Areas

27 MW GOALS % of load growth % of load growth % of load growth 8.5 AEP - CPL Texas Energy Efficiency

28 2002 Energy Efficiency Program Budgets AEP - CPL Large Commercial & Industrial SOP $ 876,508 $ 1,964,508 $ 417,999 $ 3,259,015 Residential/Small Commercial SOP Hard-To-Reach SOP SOP Subtotal:

29 Texas Energy Efficiency MW GOALS % of load growth % of load growth % of load growth 2.5 AEP - SWEPCO

30 Texas Energy Efficiency 2002 Energy Efficiency Program Budgets AEP - SWEPCO Large Commercial & Industrial SOP $ 742,500 $ 522,461 $ 55,339 $ 1,320,300 Residential/Small Commercial SOP Hard-To-Reach SOP SOP Subtotal:

31 Texas Energy Efficiency MW GOALS % of load growth % of load growth % of load growth 3.1 AEP - WTU

32 Texas Energy Efficiency 2002 Energy Efficiency Program Budgets AEP - WTU Large Commercial & Industrial SOP $ 237,693 $ 691,066 $ 154,045 $ 1,082,804 Residential/Small Commercial SOP Hard-To-Reach SOP SOP Subtotal:

33 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

34 Karen Radosevich

35 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

36 Texas Energy Efficiency

37 Goals 2003: 5% of Load Growth5.1 MW 2004: 10% of Load Growth6.0 MW 2005: 10% of Load Growth6.0 MW

38 2002 Energy Efficiency Budget Texas Energy Efficiency Large Commercial & Industrial SOP $ 1,000,000 $ 1,080,000 $ 309,000 $ 2,389,000 Residential/Small Commercial SOP Hard-To-Reach SOP SOP Subtotal: E NERGY S TAR ® Homes MT AC Distributor MT MT Subtotal: TOTAL: $ 3,089,000 $ 700,000 $ - $ 700,000

39 Texas Energy Efficiency George Smith

40 Reliant Energy – HL&P Service Area Texas Energy Efficiency

41 Reliant Energy – HL&P Service Area

42 Goals Texas Energy Efficiency 2002: 5% of Load Growth12.6 MW 2003: 10% of Load Growth21.2 MW 2004: 10% of Load Growth18.6 MW

43 Energy Efficiency Budgets Texas Energy Efficiency Programs Lg. Comm.& Ind. SOP$3.9M$6.5M Res.&.Sm.Comm. SOP$0.9M$1.3M Hard-To-Reach SOP$0.9M$1.9M E NERGY S TAR ® $1.2M$2.0M A/C Distributor$1.8M $2.75M Total$8.7M $14.5M

44 Texas Energy Efficiency

45 Doug Maxey

46 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)

47 Texas Energy Efficiency SPS Service Territory

48 Texas Energy Efficiency Goals 2003: 5% of Load Growth3.0 MW 2004: 10% of Load Growth6.4 MW 2005: 10% of Load Growth5.9 MW

49 Texas Energy Efficiency Standard Offer Programs (SOP) Launch:Residential and 1/1/2002Small Commercial Launch:Commercial and 3/1/2002Industrial Launch:Hard-To-Reach 1/1/2002 Launch:Load Management 1/1/2003 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. Provide incentives for retrofit installation of a wide range of measures that reduce demand and save energy in large commercial and industrial facilities. 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). Provide incentives for various qualifying load management measures.

50 Texas Energy Efficiency Market Transformation Programs Launch:Residential E NERGY 3/1/2002S TAR ® Homes Launch:A/C Distributors 1/1/2002 Promote the construction of new homes constructed to the E NERGY S TAR ® standards. 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.

51 Texas Energy Efficiency 2002 Energy Efficiency Budgets Large Commercial & Industrial SOP Residential/Small Commercial SOP Hard-To-Reach SOP $ 224,000 $ 528,000 $ 123,000 $ 875,000 SOP Subtotal: E NERGY S TAR ® Homes MT AC Distributor MT $ 227,000 $ 750,000 $ 977,000 MT Subtotal: TOTAL:$ 1,852,000

52 Mike Stockard Texas Energy Efficiency

53 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.

54 Texas Energy Efficiency

55 Standard Offer Programs Texas Energy Efficiency Hard-To-Reach Residential and Small Commercial Large Commercial and Industrial Program launch in October 2001 On-line application process

56 Market Transformation ProgramsTexas Energy Efficiency E NERGY S TAR ® Homes Air Conditioning Distributor Air Conditioner Installer Program Program launch in 2002

57 System Goals and Incentive Budgets Texas Energy Efficiency Program GoalBudget* HTR SOP 2.6 MW$ 3,528,882 Res/Small C&I SOP 6.3 MW$ 4,238,524 Large C&I SOP 29.9 MW$14,083,924 E NERGY S TAR ® Homes MTP 5.2 MW$ 3,464,682 A/C Distributor MTP 6.3 MW$ 4,238,524 A/C Installer MTP 5.4 MW$ 2,504,466 * Pending PUC approval TOTAL:$ 32,059,002

58 For Additional Information Texas Energy Efficiency Telephone: Fax:


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