Xcel Energy's Energy Efficiency Programs - Derek Shockley Trade Relations Manager Commercial and Industrial

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Xcel Energy's Energy Efficiency Programs - Derek Shockley Trade Relations Manager Commercial and Industrial
Xcel Energy’s
Energy Efficiency
    Programs
      Derek Shockley
  Trade Relations Manager
 Commercial and Industrial
Driver: Colorado’s Energy Needs
  In the last decade:
                                            Up 39%

                         Up 19%
    Up 15%

   Number of           Electric Use         Peak
   Customers          per Customer         Demand
  Xcel Energy must meet customers’ needs
     †   Manage supply by obtaining more power
     †   Manage demand by reducing customers’ usage
                                                      2
Xcel Energy’s Environmental
Leadership
  No. 1 wind power provider
  Windsource®
   „Largest green-pricing program in USA
  Industry-leading energy efficiency programs
  One of largest photovoltaic systems 8.2
   megawatts
  Solar*Rewards - 2,100 customers, 12 megawatts
  Voluntary emissions reductions

                                                   3
Reduce Demand
Efficiency programs
 Estimated Capacity to 886-994 MW
 Annual energy use reductions to 3,699 GWh
  (2009-2020)

Past legislation (2006-2013)
 320MW demand reduction
 800GWh use reduction

    530 MW is approximately the size of Xcel Energy’s largest
               coal-fired power plant in Colorado

                                                                4
How Xcel Energy Helps
 Provides incentives to adopt energy-efficient technologies
 Rebates provide trade partners a tool to influence a
  customer’s purchase decision
 Xcel Energy brand name and neutral 3rd party endorsement

 Results: energy savings and quicker paybacks
                 for customers

                                                               5
Xcel Energy’s Efficiency Programs

 Cash rebates, as opposed to bill credits

 For existing facilities or new construction

 For Xcel Energy electricity business customers in
  Colorado
  „ Adding natural gas programs in 2009 (retail gas
    customers only)

                                                      6
7
Xcel Energy Efficiency 2008
  Program Descriptions
Xcel Energy Offers
Three Types of Programs

 Prescriptive programs

 Non-prescriptive programs

 Studies/Audits

                              9
Xcel Energy
Prescriptive Programs
Prescriptive programs

Predetermined rebate amounts          Included programs:
and related savings for various        Lighting
energy-saving technologies
                                       Cooling
 No preapproval required
                                       Motors and variable
 Qualifying technologies are           frequency drives
  listed on the rebate applications

                                                              10
Xcel Energy
Non-prescriptive Programs
Non-prescriptive rebates

For equipment and               Included programs:
conservation efforts not         Custom Efficiency
covered with the prescriptive    Energy Management
programs                          Systems
                                 Energy Design Assistance
 Preapproval required

 Rebate amounts and energy
  savings may vary greatly by
  project

                                                             11
Xcel Energy Studies/Audits
Studies/Audits

Xcel Energy funds a portion of      Included programs:
a study, which may lead to           Compressed Air
identifying energy-saving
                                     Recommissioning
opportunities
 Preapproval required               Refrigeration
                                      Recommissioning
 Additional rebate opportunities
  can be realized by submitting a    Energy Analysis
  prescriptive or custom rebate
  application                        Lighting Redesign

                                                          12
Xcel Energy
     2008
Program Results
Xcel Energy Program Results in
Colorado
Small Business, Commercial and Industrial
 2007 (Year-End)
  „ 32.9 MW demand reduction
  „ 94.9 GWh annual energy use reduction

 2008 (Year-End)
  „ 35 MW demand reduction
  „ 118 GWh annual energy use reduction

                                            14
Xcel Energy Biennial Filing

      Submitted August, 2008
     Approved December, 2008
Proposed & Approved Programs
 35 enhanced or new electric and natural gas
  efficiency and conservation programs
  „ Businesses – new rebates, enhanced program
    customization and natural gas equipment rebates
  „ Residential – incentives for saving natural gas and
    electricity
  „ Low-income customers – special programs to provide
    rebates and help with in-home weatherization

                                                          16
Proposed & Approved Business
Programs
 New programs                  Enhanced existing programs
   „ Boilers                     „ Compressed air
   „ Behavioral change           „ Cooling
   „ Data centers                „ Custom
   „ Furnaces
                                 „ Energy Analysis
   „ New construction
                                 „ Energy management
   „ Process efficiency            systems
   „ Small business lighting
                                 „ Lighting
   „ Self-directed
                                 „ Motors and drives
   „ Segment-based
                                 „ Recommissioning
   „ Standard offer

                                                              17
Enhancements to
Existing Programs
Compressed Air
  OLD     50-99 hp: 100% study funding, up to $2,500
          99+ hp: 75% study funding, up to $15,000

  NEW Prescriptive rebate of $4,000 - $4,500 on compressor
          systems under 50 hp and $200/airless drain.
          Study rebates remain the same.

Cooling
  OLD     $10-$50/ton, plus $4/ton above standard
          $200/box VAV
  NEW Rebate levels designed to average 33% of incremental cost

                                                                  19
Custom Efficiency
  OLD    $200/kW standard ($400/kW temporary promotion)
         Electric customers only
  NEW $400/kW and/or $7/Dth (MCF)
         Retail electric and gas customers only

Energy Management Systems
  OLD    On-peak up to $400/kW (summer months 8 a.m. – 6 p.m.)
         Off-peak up to $0.0525/kWh
  NEW On-peak up to $400/kW (summer months 8 a.m. – 6 p.m.)
         Off-peak up to $0.08/kWh (6 p.m. – 8 a.m.)
         $7/Dth (MCF)

                                                                 20
Lighting
  OLD    $1.75 - $125/fixture
         Energy efficient lighting including T8, T5, highbays,
         photocells, sensors and LED exit signs

  NEW $1.50 - $210/fixture
         T8 rebates (retrofit only) require high efficiency ballast with
         low ballast factor: $13 - $22 (higher rebates, slightly different
         than original filing)
         Ceramic metal halide rebates – new construction and retrofit:
         $12 - $75

                                                                             21
Motors and Drives
  OLD     $10-$600/motor on NEMA Premium® Efficiency
          motors 1-200 hp
          VFD motors $30/hp 1-200 hp

  NEW Most substantial change, rebates now available for
          retrofitting existing (in-service) motors, and the rebates are
          significant
          Drive rebates have increased (VFD, ASD)
          Rebate applications available on line

                                                                           22
Recommissioning
  OLD    Up to 50% of study cost, max $15,000
         Up to $200/kW or $0.0525/kWh for implementation

  NEW Up to 75% of study cost, max $25,000
         Up to $400/kW summer peak, or $0.08/kWh and $7/Dth

Energy Analysis
  OLD    Online study is free; on-site study $200-$300
         Engineering assistance study up to 50%, max $15,000
         Implementation rebates via applicable program
  NEW Engineering assistance study up to 75%, max $25,000

                                                               23
New Programs Summary
New Programs Summary
Program    Rebates                 Comments

Boilers     $600/MMBTUH for        Prescriptive rebates for boiler tune
           85%Non-Condensing       ups and controls
           Boilers                  Effective Jan. 21, 2009
           $2500/MMBTUH for 92%   Applications available on line
           Condensing Boilers

Furnaces    $80 for 92% AFUE       A prescriptive rebate program
           $120 for 94% AFUE       Installed equipment must match
                                   GAMA specification
                                    Applications available on-line

                                                                            25
New Programs Summary
Program        Rebates                     Comments

Data Centers    Studies up to 75%, max.    RFI process underway to select
               $25,000                     qualified contractors for studies
                New data centers go        Two separate paths: one for existing
               through an EDA type New     data centers and one for new
               Construction program        construction
                All implementation         Preapproval required
               rebates at $400/kW

New             Program covers cost of     Over 50,000 sq.ft. EDA
Construction   energy modeling: $8,000-     • Basic energy savings
               $12,000 to owner’s design
               team                         • Enhanced, seeking LEED
                All implementation         Under 50,000 sq.ft.
               rebates at $300/kW and        • List of energy-efficient measures to
               $7/Dth                      incorporate

                                                                                      26
New Programs Summary
Program         Rebates                     Comments

Process          Study funding with         Qualifier: must have saving potential
Efficiency      customer contribution       of 2 GWhs or 8,000 Dth
                capped at 25% or $7,500      Designed for multi-phase, multi-year
                 Rebates per applicable    plan
                program                      Bonus incentives may be given for
                                            milestones

Self-Directed    $525/kW saved, or          Qualifier: must have over 2 MW and
Custom          $0.10/kWh vs. smaller       10 GWhs combined energy use
                rebates in most other        Larger rebates, customer is doing
Efficiency      programs                    most of the “work”
                 Customer required to do    Rebates can cover up to 75% of
                M&V                         incremental cost vs. 50%

                                                                                      27
New Programs Summary
Program          Rebates                   Comments

Small Business    Same as new lighting    Third-party contractor will administer
Lighting         prescriptive rebates      the program
                 (implementation phase)     RFP is currently underway
                                            Turnkey process for small
                                           businesses under 400kW
                                            No cost for audit and support
                                            Launch: 1st quarter 2009
Standard Offer    Study rebates at 50%     Designed for bundled projects
                 up to $0.10 per sq. ft.    Contains a technical audit phase
                  $250/KW and $0.05 per   and an implementation phase
                 annual kWh saved           Expect ESCO participation, GEO
                                           involvement

                                                                                     28
New Programs Summary
Program         Rebates                     Comments

Segment-Based    Preliminary report cost    Marketing program targeted at
                is $8,000; with a 50%       owner-occupied and leased buildings
                rebate                      of at least 50,000 sq.ft.
                 Investigative studies     Implementation rebates per
                reimbursed at 75%, up to    applicable program plus a 30% bonus
                $25,000

Behavioral       Indirect marketing        Energy Efficiency Workshops
Change          program targeted at small    • Free of charge
                and medium-sized
                businesses                   • Conducted by energy consultant
                                             Employee Education Campaign
                                              • On-site education, posters,
                                            collateral

                                                                                  29
Biennial Goals
 Designed to save more than 425 million kWh of
  electricity and 721,000 dekatherms of natural gas in
  2009 and 2010

 2009/2010 biennium total of $137 million proposed
  for overall portfolio of programs

                                                         30
Contact Information

             Derek Shockley
              303-294-2082
    john.d.shockley@xcelenergy.com
Business Solutions Center 1-800-481-4700
 Rebate info: xcelenergy.com/rebates
     Xcel Energy Account Managers

                                           31
Xcel Energy’s
Standard Offer Program
           &
  Self Direct Custom
  Efficiency Program
Standard Offer Program
 Available to all business customers
  „ Designed to support customers with limited
    financial resources and project labor
  „ School districts and city governments are strong
    candidates
 Leverages GEO’s performance contracting
  program to drive additional conservation
  „ http://www.colorado.gov/energy/index.php?/com
    mercial/category/k-12-schools/

                                                       33
Standard Offer Program Benefits
 Rebates available for technical energy audits (or
  comparable) and equipment installation
  „ Includes all measures under 1 program
 Bundle of measures evaluated for rebate versus
  individual projects
  „ Cap at 60% of incremental cost or 1 yr min
   payback
 M&V verification for 3 years
  „ Variations greater than 10% will result in rebate
   adjustment

                                                        34
Rebate Levels
   Technical Energy Audit        Bundle Implementation
 Up to 50% of the cost of     $250/kW and $0.05/kWh
  the audit                    $7/Dth
  „ Verified based on           „ Must be Xcel Energy retail
    conservation potential        natural gas customer
 $0.10 per square foot cap    kWh and Dth reflect
 Paid at time customer         conservation that occurs
  agrees to implement           in a 12 month time frame
  bundle of measures           Limited to 60% of the
                                incremental cost of the
                                bundle
                               Payback must be >1 year

                                                               35
Process to Participate
1. Customer signs intent document to participate
       Memorandum of Understanding with GEO for public sector

2. Preliminary walkthrough of customer building
   by Energy Service Company (ESCO) or Xcel
   Energy
3. Customer selects ESCO to perform technical
   energy audit (TEA)
4. Customer submits information for preapproval
   of the TEA
       Xcel Energy TEA Preapproval application

                                                                 36
TEA Preapproval Requirements
 Application
 Proposal (price)
 General description of what will be studied
  „ Square footage
  „ Age
  „ Construction

 Description of potential conservation measures
 Estimation of energy reduction, other cost savings
 Current energy consumption (Xcel Energy can provide)

                                                         37
Process to Participate
5. After receiving preapproval from Xcel Energy commit
   to and complete the TEA.
6. Submit a draft of audit to Xcel Energy for approval.
7. All applicable parties meet to discuss what bundle of
   measures will be implemented. Audit is revised and
   final version submitted to Xcel Energy.
8. Xcel Energy approves the audit and estimates an
   implementation rebate.
  „   A preapproval letter is issued for the bundle of measures.
9. Customer signs an implementation agreement. A copy
   is submitted to Xcel Energy with a rebate application
   and the TEA rebate is issued.

                                                                   38
Process to Participate
10. Measures are installed and initial metering and
   verification (M&V) performed.
                      performed Results are submitted to
   Xcel Energy with rebate application.
11. Xcel Energy verifies implementation, confirms savings,
    and issues the implementation rebate based on M&V
    results.
12. Annually for 3 years, the ESCO or a 3rd party performs
    M&V and submits results to customer and Xcel Energy.
    If savings vary by greater than 10%, implementation
    rebate levels are adjusted.

                                                             39
Self-Direct Custom Efficiency
   Program
 To qualify must be a business customer with
  2 MW of aggregated demand and 10 GWh
  aggregated use
     Program is electric only
 Customer is responsible for a majority of the
  design, engineering, measurement,
  verification and reporting work
 Project can not leverage any of Xcel Energy’s
  engineering resources

                                                  40
Self Direct Program Benefit
Allows the customer to leverage resources they
 already have employed in developing and
 implementing the project to and in doing so
 receive a higher.

Rebate Levels
 $525 per kW reduced or $0.10/kWh conserved

                                                 41
Process to Participate
1. Prequalification
       Your organization will receive a letter that confirms
        you meet the eligibility requirements of the program
        and a spreadsheet for calculating your projects Total
        Resource Cost (TRC).
2. Project Application
       Submit a project description, metering and
        verification plan, and completed TRC spreadsheet
        for your project.

                                                                42
Process to Participate
3. Receipt and Confirmation
       Xcel Energy confirms receipt, reviews the application
        and may request more information.
4. Notification of Pre-Approval
       Xcel Energy will approve (or deny) your application.
        Rebate amount is confirmed and any changes to the
        monitoring plan are defined.
5. Customer confirms their intent to proceed
   and pre-installation monitoring is forwarded
   to Xcel Energy for approval before the
   project starts.

                                                                43
Process to Participate
6. Project is installed.
7. Post installation monitoring is completed
   and any necessary revisions to the TRC and
   project scope are finished. Account
   manager verifies installation and collects
   completion report.
8. Xcel Energy approves report and rebate
   check is issued.

                                                44
Standard Offer vs. Self Direct
1. Rebate TEA 50%, up to     1. Rebate measures
   $0.10/sq. ft.                $525/kW or $0.10/kWh
2. Rebate measures           2. Responsibility on
   $250/kW and $0.05/kW,        customer for the
                                design, engineering,
   $7/Dth                       measurement,
3. 3 year “true up” of          verification and
   rebates and                  reporting work
   conservation                 associated with
                                conservation project
4. Parallels the ESCO
                             3. Customer must have
   sales model                  aggregated 2 MW
5. No size restriction for      demand and 10 GWh
   customer                     usage

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