1. © 2001 The Gas Company. All copyright and trademark rights reserved. High Efficiency Unit Heaters Workpaper Presentation Prepared for Cal TF Presentation Sept 24, 2014

2. Overview Seeking TF approval of draft workpaper Measure Description Measure Summary Abstract Review Comments – Cal TF Abstract Review Comments – Commission Staff CEUS data: SCE vs. statewide EFLH: Connected vs. peak load, other considerations Savings: WP vs DEER IMC

3. Measure Description Unit Heater Self-contained, automatically-controlled, vented fan-type gas space heater designed to be installed without ducts, within the heated space Thermal Efficiency: 90% or above (11% improvement) Size ranging 50~600 kBtuh Measure Application Type ROB/NC Measure Delivery Type Prescriptive rebate per kBtuh Impacted Market Non-residential Warehouses, distribution facilities, garages, loading docks, & etc. Market Potential Low shipping volume in CA

4. Measure Summary Gas Savings 0.38 therms/kBtuh (CA average) Range between 0.17 ~ 0.87 therm/kBtuh for 16 CZs Decreased by a factor of 2.85 (peak load vs. connected load) IMC $8.17/kBtuh Incremental equipment cost + additional material & labor for condensing unit EUL 20 years DOE shipping data + DEER HVAC-Frnc Net-to-Gross: 0.70 default value per DEER All-Default<=2yrs

5. Abstract Comments– Cal TF EUL – 20 years Oversizing No oversizing factor to be considered Savings Methodology Engineering calculation using CEUS and other resources Building type Use warehouses Enclosed space with an appropriate temperature control

6. Abstract Comments– Commission Staff Calculating savings based on the actual capacity and climate zones. Equivalent full load hours highest in SCE EFLH: Non-coincident peak heating load vs. Total connected equipment load Comparison to simplified DEER Additional Installation Cost

7. Savings Calculation

8. CEUS: SCE vs. Statewide Utilities Areas in CEUS SCE: Substantially higher consumption (W/H) SCE: Lower than PG&E (20%) for other building types Study Sample 250 warehouses surveyed 65 sites metered TF Feedback Requested: Use statewide data?

9. CEUS: Equivalent Full Load Hour Peak Load vs. Connected Load Peak Load Calibrated using metered data collected by fan measurements for sample of buildings One-hour maximum consumption, based on simulated load profile Connected Load Gathered from actual site surveys of equipment inventories Represents how equipment is actually sized and placed for this building type

10. Equivalent Full Load Hour: Additional Considerations Operation depends on Thermostat settings and setback schedules Bldg. location and climate Door openings Ventilation system Ceiling heights Internal heating loads Agreed on “Connected Load”?

11. Comparison with Simplified DEER Preliminary analysis using DEER by Commission Staff Conditioned Storage (SCn) D08-NE-HVAC-airAC-SpltPkg-240to759kBtuh-9p8eer Measure Case:HEATING-HIR = 1.11 Base Case: HEATING-HIR = 1.25 Are savings reasonable?

12. Consideration of Cost Additional labor and supporting material Site-specific conditions dictating whether installation cost is higher or lower than conventional unit heaters. Condensate disposal Replacement of existing flue Condensate neutralizers, and outdoor-air dampers require periodic servicing Estimated additional $500 incremental installation cost per unit IMC: $6.07 (equipment) + $2.10 (installation) = $8.17 / kBtuh

13. Question or Comment?