1 providing energy choices a subsidiary of. providing energy choices agenda: welcome &...
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1
Providing Energy Choices
a subsidiary of
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Providing Energy Choices
Agenda: Welcome & Introduction Rates and Energy Markets 2011 Conservation & Load Management Programs Financing Programs at CDA Overview of Southern Conn Gas Company Renewable Energy Efficiency Programs The Future of Energy: Building a Smart System Q&A / Adjourn
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Welcome
Mr. Anthony J. Vallillo
Executive Vice President and
Chief Operating Officer, UIL
President, UI
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50%50%
Who isWho is ??Headquartered in New Haven, CT, UIL Holdings Corporation is the parent company for Berkshire Gas, Connecticut Natural Gas, Southern Connecticut Gas and The United Illuminating Company.
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Who isWho is ??
Western Mass.
~35,000 Customers
127 Employees
738 Sq. Miles
No. Central & Southwest Corner of CT
~158,000 Customers
341 Employees
716 Sq. Miles
Southwest & Central Coast Line of CT
~173,000 Customers
324 Employees
512 Sq. Miles
Southwest & Coast Line of CT
~324,000 Customers
1,066 Employees
333 Sq. Miles
66 Towns in CT & MA -- 694,000 Customers -- 1,858 Employees
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The Towns We ServeThe Towns We Serve
Western Massachusetts
Connecticut
Berkshire Gas
Conn. Natural Gas
Southern Conn. Gas
The United Illuminating Co.
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Why Natural Gas?Why Natural Gas?• Consistent with core business – regulated energy
delivery
• Creates a larger, diversified energy delivery company
• Integrates resources, efficiencies and best practices to benefit all customers
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For More Information For More Information Please Visit Our Web Sites…Please Visit Our Web Sites…
www. .com
www.berkshiregas.com
www.cngcorp.com
www.soconngas.com
www.uinet.com
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Questions?
Local Companies Local Companies Working For YouWorking For You
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Rates and Energy Markets
Mr. Michael Coretto
Associate Vice President
Regulatory Affairs, UIL
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Topics for Today
January 2011 Rate Changes & Impacts
Update on UI Power Procurement
Looking Ahead
Questions
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January 2011 Rate Changes
Several individual line items changed
Impact on typical customer receiving generation services from UI:
Impact of January 1, 2011 Rate ChangesRate is in cents per kWh
Avg. Rate 12/31/2010
Avg Rate 1/1/11 Change
Residential Rate R 23.92 23.56 -1.5%
Commercial Rate GST 18.83 18.20 -3.3%
Industrial Rate LPT 17.09 16.76 -1.9%
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UI Average Electric Rates2007 - 2011
0
2
4
6
8
10
12
14
16
18
20
22
Jan. 2007 Jan. 2008 Jan. 2009 Jan. 2010 Jan. 2011
Distribution Transmission C&LM CTA SBC Renewables GSC FMCC
Cents/kWh
Jan 2010 GSC includes -0.090 c/kWh for FMCC
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How UI Procures Power
Full Requirements Service Required by statute and regulation Bundled - all products needed to serve load Supplier takes share of UI load serving obligation Supplier takes all volume/migration risk “Laddered” procurements over time
Quarterly RFPs
Oversight by consultants to DPUC and OCC Joint Recommendation to DPUC
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Laddering of Standard Service Procurement
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1st H '10 2nd H '10 2011 2012 2013
Procured in Round 6, May 2008Procured in Round 7, August 2008Procured in Round 8, November 2008Procured in Round 9, February 2009Procured in Round 10, April 2009Procured in Round 11, July 2009Procured in Round 12, November 2009Procured in Round 13, February 2010Procured in Round 14, April 27 2010Procured in Round 15, July 27 2010Procured in Round 16, October 27, 2010Procured in Round 17, February 9, 2011
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Power Prices vs. Natural Gas Prices: 2011
$40
$50
$60
$70
$80
$90
$100
$110
$120
$/MWh
$3.50
$4.50
$5.50
$6.50
$7.50
$8.50
$9.50
$10.50
$11.50
$/MMBtu
Internal Hub Cal 2011Forward Power Price $/MWh
Henry Hub Cal 2011 NaturalGas Price $/MMBtu
Auction Dates
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Components of Generation Service Charge
62.0%19.1%
1.5%
2.9%
1.9%
2.5%
3.4%
1.1%
5.5%
Energy
Capacity
Congestion
Reserves
Other ISO Products
RPS
Distribution Losses
Cost and Risk of Credit
Market/Volume Risk Premium
Component PercentEnergy 62.0%Capacity 19.1%Congestion 1.5%Reserves 2.9%Other ISO Products 1.9%RPS 2.5%Distribution Losses 3.4%Cost and Risk of Credit 1.1%Market/Volume Risk Premium 5.5%TOTAL 100%
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Generation is About ½ of System Cost
System Average Rate for 2011, by Component
26%
9%
53%
12%
Distribution Transmission
Generation Services Social Policy Costs
Cents/kWh Distribution 4.88 Transmission 1.78 Generation Services 10.13 Social Policy Costs 2.26
TOTAL 19.05
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Approximately 70% of the load in UI’s territory is served by 3rd Party Suppliers
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10
MWh
3rd Party LRS - 24.0%3rd Party SS - 43.0%UI LRS - 1.1%UI SS - 31.9%
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Looking Ahead
Under Current Market Conditions, UI’s Generation Services Charge for Standard Service is projected to decline in 2012 vs. 2011
Congestion Costs in CT continue to be a non-issue, due to transmission additions, new generating capacity, and customer DG installations
Issue of Renewable Portfolio Standards and how best to meet them
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UI Average GSC Rates2009 – 2011 and Projected 2012
0
2
4
6
8
10
12
2009 2010 2011 2012P
Cents/kWh
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Impact of New Transmission and Capacity Additions
Congestion 2005 - 2010
$(2.00)
$-
$2.00
$4.00
$6.00
$8.00
$10.00
Jan-
05
Apr-0
5Ju
l-05
Oct-
05
Jan-
06
Apr-0
6Ju
l-06
Oct-
06
Jan-
07
Apr-0
7Ju
l-07
Oct-
07
Jan-
08
Apr-0
8Ju
l-08
Oct-
08
Jan-
09
Apr-0
9Ju
l-09
Oct-
09
Jan-
10
Apr-1
0Ju
l-10
Oct-
10
Month
$/M
Wh
CT
Zo
ne
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Renewable Portfolio Standard
3 Classes of renewables in CT
Long-run cost impact could be substantial
New England Class I Renewable Supply Need
0
5000
10000
15000
20000
25000
2009 2013 2015 2020
GW
h
Existing
Expected from Planned
Additional Need
Surplus
Demand for Class I Renewables
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Q & A
Year Class IClass II or
Class I (add'l)Class III Program Total Low High
2005 1.5% 3% 4.5% 13.6 30.7
2006 2% 3% 5% 16.1 37.8
2007 3.5% 3% 1% 7.5% 30.4 66.7
2008 5% 3% 2% 10% 44.5 99.4
2009 6% 3% 3% 12% 55.4 121.2
2010 7% 3% 4% 14% 66.3 143
2011 8% 3% 4% 15% 72.6 160.3
2012 9% 3% 4% 16% 79.1 178
2013 10% 3% 4% 17% 85.1 194.6
2014 11% 3% 4% 18% 91.3 211.8
2015 12.5% 3% 4% 19.5% 100.7 237.5
2016 14% 3% 4% 21% 110.6 264.6
2017 15.5% 3% 4% 22.5% 120.1 290.7
2018 17% 3% 4% 24% 130.8 319.8
2019 19.5% 3% 4% 26.5% 148.2 637.12020 20% 3% 4% 27% 152.9 379.7
Estimated Annual Costs $ Millions
CT Renewable Portfolio Standards
Data from DPUC presentation , 12/ 2010
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Costs of Renewable Technology
Technology Estimated Levelized Costs
Cents/kWh
Landfill Gas 5.6
Biomass 11.0
Hydro 11.0
Wind 11.2
Fuel Cells 17.4
Offshore Wind 19.9
Solar PV 52.0
Today’s power supply costs are in the range of 7-8 cents/kWh.
Source: IRP, Table 10, P.62; Brattle Report, Section 10D (RPS Section)
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Questions?
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2011 Conservation and Load Management Programs
Mr. Richard Steeves
Energy Efficiency Board Chairperson
Mr. Patrick McDonnell
Senior Director, UI
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Energy Efficiency & Background
Connecticut Energy Efficiency Fund was created in 1998 by CT State Legislature
Energy efficiency is a valuable resource Reduces air pollutants and greenhouse gases
Creates monetary savings for customers
Reduces need for more energy generation
Creates jobs
The overall vision for the future evolution of the Energy Efficiency Fund C&I programs is to cost-effectively support a sustainable and competitive business
climate for Connecticut’s businesses and industries based on bottom-line solutions for economic competitiveness, environmental stewardship, and social
responsibility.
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Energy Efficiency Programs
Offer technical assistance to commercial & industrial customers who want to improve energy efficiency
Offer financial incentives to help implement energy-efficient measures No. 8 ranking in ACEEE’s 2010 State Scorecard Support economic growth in Connecticut*
– Creates more than 2,675 direct jobs
– Acts as an economic development engine creating businesses to deliver energy efficiency services
*CT Renewable Energy / Energy Efficiency Economy Baseline Study - March 27, 2009
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Program Administration
Energy EfficiencyBoard
Connecticut Department of
Public Utility Control
Municipalities Bozrah Light & Power
Groton Utilities Jewett City Dept. of Public Utilities
Norwich Public UtilitiesSouth Norwalk Electric & Water
Third Taxing District Wallingford Electric
Electric CompaniesConnecticut Light & Power
United Illuminating
Natural Gas CompaniesConnecticut Natural Gas
Southern Connecticut GasYankee Gas
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2010 Energy Efficiency Fund Program Results for UI
2010 lifetime energy savings – 793.7 Million kWh
2010 summer peak demand savings – 10.7 MW
$152.8M saved in electric energy costs (Lifetime from 2010 investments)
• ~$18.4M saved annually
Every dollar spent in 2010 on efficiency programs will generate more than $3 in future lifetime electric system benefits
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C&LM Funding Sources
2010 C&LM Revenue Sources
$15.3
$9.8
$9.5
$120.8
$11.8
$12.3
Electric customers (3 mills perkWh)
ISO-NE Forward CapacityMarket (FCM)
Class III Renewable EnergyCredits
American Reinvestment andRecovery Act (ARRA)
Regional Greenhouse GasInitiative (RGGI)
Firm Natural Gas Customers
*Pending DPUC Approval
$179.5 (millions)*
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Energy Efficiency Fund Sources
Funding is generated from electric and natural gas utility customers
– Electric customers pay 3 mils per kilowatt-hour Funding is generated from natural gas utility customers
– Natural gas programs are funded through gas utility bills and approved by the Department of Public Utility Control
– Programs are for firm gas customers only
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2011 Conservation & Load Management Programs
Maximizing CT’s Energy Efficiency Funds
Pat McDonnellSr. Director, Conservation & Load Management
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2011 C&I Program Budgets*
CL&P $36,879,076
UI $ 9,207,186; ~ $1.0M committed
YGS $ 2,700,000
CNG $ 2,000,000
SCG $ 1,850,000
*Proposed – Pending DPUC Approval (Dockets 10-10-03 & 10-10-04)
Includes Energy Efficiency Fund, RGGI, ODR and ARRA Funds
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2011 C&I Program Budgets*
Incentives % committedCL&P $26,493,000 ~ 70%UI $ 6,482,278 ~ 15%YGS $ 2,149,672 ~ 50%CNG $ 1,512,321 ~ 40%SCG $ 1,331,253 ~ 15%
*Incentive budgets only
Proposed – Pending DPUC Approval (Dockets 10-10-03 & 10-10-04) Includes Energy Efficiency Fund, RGGI, ODR and ARRA Funds
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2011 Project Incentive Caps
$750,000 Cap (cumulative total all programs) per Federal Tax ID per year
$150,000 Cap per metered site per program per year
$100,000 Financing Cap per Municipality per project
$400,000 Financing Cap per Municipality per year
Gas Incentives ≥ $100,000 require DPUC approval
The Incentive Cap does not apply to natural gas projects
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Commercial & Industrial Programs
New Construction, Major Renovation &
Equipment Replacement
Retrofit Projects &
Small Business
Operations & Maintenance
Projects
Retro Commissioning
PRIME Load Management
Loans &
Financing
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Energy Conscious Blueprint (ECB)
Designed to capture electric and natural gas energy savings when they are most cost effective - during the design phase of new construction, major (gut) renovation or adding new equipment.
Typically referred to as lost opportunities
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ECB - Custom – New Construction (Whole Building Performance)
Designed to encourage integrated designs & high performance buildings Model Subsidy
Base or “Code” Building Model $1000 High Performance Building Model $5000 Maximum
Building /System Compliance (Installation) Whole Building Incentive (% better than code/$/sq ft)
– 10% $0.15/ sf– 11% -15% $0.30/ sf– 16% -20% $0.60/ sf– 21% - 25% $1.00/ sf– 26% - 29% $1.50/ sf– > 30% $2.00/ sf
Certification Bonus– LEED Silver / 2 Green Globes $ 5,000– LEED Gold / 3 Green Globes $10,000– LEED Platinum / 4 Green Globes $15,000
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ECB - Prescriptive
Lighting System Related Projects
Lighting designs/installations ≥ 10% less than code– Incentives = lesser of $0.15/sq ft or $50/fixture
Lighting designs/installations ≥ 30% less than code– Incentives = lesser of $0.50/sq feet or $50/fixture
Occupancy Sensors $20/fixture controlled– Buildings over 5,000 sq. ft. must have lighting control strategy (as
required by code)
Subject To Utility Caps* Code = ASHRAE 90.1-2004 (all addenda)
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ECB - Prescriptive (continued)
For non-lighting system related projects:
We pay up to 95% of the incremental cost for new construction and up to 75% for equipment replacement
We measure the incremental cost and the energy savings relative to Building Code* or reasonable & customary design practices
Agreement is prepared and signed prior to ordering equipment & materials, or construction
Subject to Utility Caps
*Code = ASHRAE 90.1-2004 (all addenda)
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Specific Examples
New construction
High reflectivity roofing
HE lighting, including w/occupancy sensors
HE brine chillers
HE heat pump loop system
HE rooftop HVAC units
Water-to-air heat wheels
Variable frequency drives w/ HE motors on fans, pumps & kitchen hoods
Oversized cooling towers
CO2 control for air handling units
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Energy Opportunities (EO)
Designed to improve the energy efficiency of customers’ existing facilities via retrofit opportunities.
Retrofit: to voluntarily exchange or modify inefficient, functioning equipment with high-efficiency alternatives (for the sole purpose of saving $)
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Replace inefficient building systems
Lighting system replacements & controls
Heating & cooling system upgrades
Process system upgrades
Building control systems & repair
Incentives designed to pay up to 50% of the retrofit cost for qualified projects
Energy Opportunities (EO)
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For Lighting & non lighting system projects We can pay up to 40% of the installed cost of the energy-
efficient system change. – Up to 40% for qualified LED / Induction lighting technologies– Interior or exterior applications
Lighting design must exceed Code by at least 15%. If not, use Express Lighting Rebate Application
We measure the installed cost and the energy savings relative to what currently exists
Agreement is prepared and signed prior to ordering equipment & materials
Energy Opportunities (EO)
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Comprehensive Initiative
A Comprehensive project is defined by the following criteria: Must have energy savings from at least two electric end uses and at least
two measures
– Gas measures within the project are not considered by the criteria
One end use must equal 85 percent or less of the project’s energy savings or peak summer demand reduction value (based on $0.35 per annual kWh or $1000 per kW).
The remaining end use(s) must equal 15 percent or more of the project’s energy savings or peak summer demand reduction value (based on $0.35 per annual kWh or $1000 per kW).
* For more information, contact your UI Representative.
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Comprehensive Incentives
• Lesser of: – 50% installed cost (electric portion only)
– Buy-down of project to 2–year payback based on customer electric metered savings
– Energy savings caps based on the greater of $0.35 /annual kWh or $1000/summer peak kW combined
Additional comprehensive incentives for firm gas projects:– 10% added to all qualifying gas measures
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Operations & Maintenance
Improve electrical & gas efficiency of equipment through changes/repairs
Not intended for normal preventive maintenance, repetitive procedures for a customer on a regular basis, or to subsidize major equipment purchases
Typical Measures
- EMS maintenance, i.e., replacement of defective sensors, relays and actuators, reprogramming
- Compressed air system improvements (repair of leaks)
Incentives
- Up to 40% of installed costs
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Retro-Commissioning (RCx) Provides technical, engineering & implementation support to optimize the
operation of your facility with out installing capital equipment
Improve electrical and/or gas efficiency through changes or repairs Reset chiller discharge temperature
- Reset pump and fan speeds; Demand ventilation - Optimization of AHU supply fan static pressure- Broaden humidity set points in data centers
- Boiler optimization- Confirm sequence of operations for EMS equipment
Facilities must be ≥ 100,000 sq. ft. with Direct Digital Control system that can conduct trending & reporting
- Incentives up to 100% for investigation fees (implementation required)
- Incentives up to 40% for the implementation costs
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PRIME (Process Reengineering for Increased Manufacturing Efficiency)
Increase productivity and reduces per-unit energy usage through Lean Manufacturing Techniques and the Kaizen process
Focuses on industrial manufacturing processes
Typical benefits– Reduces waste of material, time and transportation
– Reduces inventory requirements
Using utility approved contractors, the first two events are provided at no cost to the customer. The customer shares 50% of the cost for up to two subsequent events
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Business Sustainability Challenge
Utilizes a holistic approach to educating customers on the value of managing energy as a resource
Makes energy and carbon management an integral and sustainable part of your business
Provides businesses an opportunity to achieve long-term sustainability through: − energy management practices and investments
− defined environmental/sustainable objectives
− continuous improvement objectives
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Small Business Energy Advantage (SBEA)
Retrofit program for C&I customers with ≤ 200 kW average billing demand
Audits and installation provided by approved contractors
0% financing for qualifying customers
Maximum loan amount - $100,000 On the Bill repayment available Maximum Loan Term
– UI - 48 months
– CL&P - 36 months
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SBEA
Typical measures include: – Energy-efficient lighting, – Lighting controls, – Refrigeration equipment and controls, – Compressed air systems, – Variable speed drives, – Energy management systems– Programmable T-stats, etc.
Incentives up to 40% of installed costs for eligible measures Eligible comprehensive projects can earn incentives up to 50% of
the installed costs Subject to utility caps
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Loans & Financing
2011 SBEA & Municipal Financing– 0% Interest free loan with On Bill Repayment
– $100,000 Maximum Loan (per qualified project)
– Maximum Loan Terms • UI - 48 months; CL&P - 36 months
– Customer size • up to 200 kW
– Requires good bill payment history with utility
– Utilities provide the funding source
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Loans & Financing
2011 Small C&I Energy Efficiency Loan – Third-party lender and loan approval– Subsidized low interest loan - ~7%– Maximum Term = 5 yrs– Loans between $2,000 and $250,000 with interest subsidies on the
first $100,000– Customer eligibility
• in business for at least 3 years• average 12 month demand greater than 10 kW up to 350 kW
– Projects not eligible• Projects utilizing SBEA or Municipal Financing • Any new construction/major renovation projects
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Other Financing OpportunitiesConnecticut Hospital Association (CHA)
Helps Connecticut hospitals finance major energy-efficiency projects.
– Contact - Bob Sandler – (203) 294-7312
Department of Public Utility Control (DPUC) - offers loans to C&I customers for installing distributed generation equipment & energy efficiency projects that reduce system demand. 3rd Party - Bank of America One percent below Customer’s applicable rate or no more than the prime rate Minimum Loan Amount $1,000,000
– Contact - Courtney Guzman (Bank of America)• (617) 434-2888 • [email protected]
– Contact - Maureen Hoffman (DPUC)• (860) 827-2811 • [email protected] • DPUC Web Information: http://www.ct.gov/dpuc
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Tax Incentives
Energy-efficient Commercial Buildings Tax Deduction (projects completed before Jan.1, 2014)
Renewable-energy Tax Credits And Grants
Qualifying Advanced Energy Project Investment Tax Credit– More Info:
• www.efficientbuildings.org
• www.energytaxincentives.org/business
• www.dsireusa.org
• www.irs.gov/irb/2006-26_IRB/ar11.html
• www.treas.gov/recovery
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Tax Incentives
Tax Deduction vs. Tax Credit A deduction is a cost subtracted from the adjusted gross
income when calculating the taxable income; tax liability is not reduced dollar for dollar like a tax credit, but in proportion to the tax payer’s tax bracket
Commercial Buildings Tax Deduction (all systems) capped at $1.80 per sq ft
Commercial Buildings Tax Deduction (partial systems) capped at $.60 per sq ft
Consult EPAct 2005 and IRS Notice 2006-52 for qualifications
Courtesy of www.efficientbuildings.org and www.lightingtaxdeduction.org/tax_deduction.html
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Upcoming Training Events
March – Energy Basics April – LEED, An Overview May – Building Performance Modeling: Equest
(Interactive) May – O&M Best Practices June – Commissioning June – RetroCommissioning
Check CL&P/UI Web Site Events Calendars For Updates/Registration
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Summary
Energy Efficiency Fund offers significant monetary assistance for energy efficiency
– UI offers funding, financing and technical assistance
CT is a national leader when it comes to implementing the Energy Efficiency programs
Maximize the “Double Dip”
− CEEF $$$; Federal Tax $$$
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How Do You Get Involved?
Pre-design / Design Phase
Become aware of utility incentive programs
Engage a utility representative throughout project
Sign a Standard Agreement prior to proceeding with the project
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UI Contacts
• UI Account Managers
– Nick Cerjanec, Larry Mai, Tom Marella, Roger Parisi, John Albini, Barbara Pellicano, Gary Pattavina, Rick Valine, Chuck Winchell
• Energy Engineers
– Ken Bouchard, Mike Doucette, Mike Guarino, Dick Lombardo, Pat Reavy, John Sigona, Mike Stein
• C&I Programs Roy W. Haller (203) 499-2025
• Residential Programs Chris Ehlert (203) 499-2965
• Natural Gas Programs Roy W. Haller (203) 499-2025
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Web Information
CEEF/DPUC www.CTEnergyInfo.com
CL&P www.cl-p.com
UI www.uinet.com
Yankee Gas www.yankeegas.com
CNG www.cngcorp.com
SCG www.soconngas.com
CCEF www.ctcleanenergy.com
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Questions?
Pat McDonnell
Senior Director, Conservation & Load Management
The United Illuminating Co.
Office 203-499-2923
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Financing Programs - CDA
Ms. Cynthia Petruzzello
Vice President
Connecticut Development Authority
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www.ctcda.com
About CDA• CDA is a quasi-public authority that provides
credit enhancements that enable and encourage companies across Connecticut to expand and succeed and, in the process, drives economic growth
• CDA’s mission is to provide debt financing and to help businesses grow in Connecticut
• Self-sustaining – not part of the state’s budget
• Through its network of partnerships with banks and other private-sector entities, CDA offers a wide variety of financial assistance programs
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www.ctcda.com
What We Do
• Stimulate business investment and create jobs by providing financing that:– Creates economically vibrant urban communities– Enhances the state’s industrial and economic
base– Redevelops environmentally contaminated
properties– Encourages the expansion of cutting-edge
industries– Increases employment– Increases the state and local tax revenues
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www.ctcda.com
• Provide loans for all general business purposes
• Comprehensive financing for companies undertaking major expansion in Connecticut
• Incentives for municipalities and developers for remediation and redevelopment of Brownfields and for information technology projects
How We Do It
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www.ctcda.com
• CDA is authorized to issue individual loans up to $10 million, with favorable interest rates and terms up to 20 years
• The Small Business Loan Guarantee Program (URBANK) provides portfolio insurance to participating banks to assist them in making loans that are somewhat riskier than conventional loans
• Tax Increment Financing (TIF) creates funding for projects that may otherwise be unaffordable to municipalities such as Brownfield and IT investments
How We Do It
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www.ctcda.com
Energy Initiatives
• In partnership with the Connecticut Clean Energy Fund (CCEF), CDA has been qualified to participate as a risk sharing partner in the Department of Energy’s (DOE) Loan Guarantee Program
• CDA provides loans or loan guarantees for energy efficiency projects
• CDA finances clean energy projects and can bridge State and Federal grants
• CDA administers the Qualified Energy Conservation Bond (QECB) ARRA program
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www.ctcda.com
DOE – Loan Guarantee Program
• ARRA 2009 - Title XVII of Energy Policy Act provides broad authority for DOE to guarantee loans for energy projects
• As Connecticut’s loan-guarantee issuing authority, CDA has been actively involved in the development of the public-private partnership model
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www.ctcda.com
Eligible Project Categories
• Alternative Fuel Vehicles• Biomass• Efficient Electricity Transmission, Distribution and
Storage• Energy Efficient Building Technologies and
Applications• Geothermal• Hydrogen and Fuel Cell Technologies• Energy Efficiency Projects• Solar• Wind and Hydropower
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www.ctcda.com
Qualified Energy Conservation Bonds
• Over $36 million in bonding allocation to Connecticut via ARRA to help lower the financing costs of green energy projects
• QECBs are tax credit bonds designed to benefit private and public entities by providing a 70% interest subsidy
• CDA administers the program and acts as conduit issuer of the allocations for private activity projects for applications
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www.ctcda.com
CDA Solutions that Deliver Value
• CDA offers a think tank of financial solutions that can be customized to address specific customer borrowing needs
• CDA provides timely implementation of financial analysis and loan approval
• CDA resources and experience allow quick responses to changing economic conditions
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www.ctcda.com
In Closing
• CDA is a stable, strong member of the state’s economic development team
• CDA’s strength is as a committed lender and in providing simple, flexible and efficient financing programs
• CDA’s resources and experience allow quick responses to changing economic conditions
• CDA’s goal is to ensure that business growth, job creation and exports are not hindered by lack of financing
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• 999 West Street• Rocky Hill, CT 06067
• Cynthia Petruzzello - (860) 258-7833
• www.ctcda.com
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Overview of Southern Conn. Gas Company
Mr. William Reis
Vice President Administrative Services, UIL
Mr. Gregg Therrien
Director, Regulatory and Pricing
SCG/CNG
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Southern Connecticut Gas
New Haven Gas Light – 1847
Bridgeport Gas - 1849
Serve 177,000 customers in 23 towns
2,300 miles of main
315 employees
Acquired by UIL Holdings in November 2010
Wholly owned Subsidiary
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Service Territory
Western Massachusetts
Berkshire Gas
Conn. Natural Gas
The United Illuminating Co.
Southern Conn. Gas
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Orange Operations Center
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Customer Relations Center- Bridgeport
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LNG Facility - Milford
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Key Account Representatives
Your primary contact at SCG
Help find solutions to your most complex energy projects or assist with day to day activities
They are well versed in the technologies for natural gas, such as distributed generation (DG), desiccant dehumidification, micro turbines, fuel cells, and natural gas vehicles
Help you determine best rate or help get a supplier
Assist customers with Natural Gas Conservation Programs
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Key Account Representatives
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SCG Rates Structure
Gas Rates comprised of two major categories:
• Delivery Rates• Customer charge
• Daily demand Meter charge
• Demand charge
• Delivery per CCF charge
• Supply Rates• PGA
• Sales Services Charge (“SSC”)- OR -
• 3rd Party transportation charge (Gas Marketer)
• Transportation Services Charge (“TSC”)
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SCG Rates Structure - Delivery
C&I Customers Assigned to their rate class based on annual usage
Rate SGS (small, <5,000 CCF)
Rate GS (>5,000 < 20,000 CCF*)
Rate LGS (>20,000 CCF*)
* Breakpoint will change to 30,000 CCF with implementation of new rates in 2011
For Larger C&I customers (rates GS & LGS) the monthly demand charge is the highest cost
delivery rate component
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SCG Rates Structure - Delivery
MDQ Example
0
200
400
600
800
1000
1200
1400
11/1
/200
9
11/1
5/20
09
11/2
9/20
09
12/1
3/20
09
12/2
7/20
09
1/10
/201
0
1/24
/201
0
2/7/
2010
2/21
/201
0
3/7/
2010
3/21
/201
0
4/4/
2010
4/18
/201
0
5/2/
2010
5/16
/201
0
5/30
/201
0
6/13
/201
0
6/27
/201
0
7/11
/201
0
7/25
/201
0
8/8/
2010
8/22
/201
0
9/5/
2010
9/19
/201
0
10/3
/201
0
10/1
7/20
10
10/3
1/20
10
Date
MC
F
Daily MCF Billed MDQ AADU
12/17/2009Ratchet
The Billed MDQ is the higher of the actual peak daily DDM read, the Average Annual Daily Use (AADU) or tariff minimum. If no DDM read is available, an estimate using a base and heat factor per degree day is substituted.
An annual review is conducted each April to determine if any customer MDQ values should ratchet down starting with May bills
MDQ Ratchet Period (Up only)
Nov Dec Jan Feb Mar
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Company Sales Service Price established monthly through the
Purchased Gas Adjustment (“PGA”) Regulated by DPUC
Third-Party Supplier Service Negotiated pricing with registered gas
marketers– Terms and Conditions also negotiable (e.g., fixed
pricing)One year term commitment for either supply service once election is made
SCG Rates Structure - Supply
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Questions?John Dobos (203) 795-7830
Mike Smalec (203) 795-7748
Gregg Therrien (860) 727-3184
Questions?
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Renewable Energy Efficiency Programs
Mr. David Ljungquist
Associate Director – Project Development
Connecticut Clean Energy Fund
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Connecticut Clean Energy Fund
Created in 1998, launched in 2000
Mission: Promote, develop and invest in clean
energy sources for the benefit of CT ratepayers
Funding: Primary – Connecticut - surcharge on electric
utility bills ~ $28 million/year
RGGI proceeds & miscellaneous ~ $4 million/yr
New – Federal American Recovery &
Reinvestment Act of 2009 ~ $20 million between
September, 2009 and March, 2012
Methods: Grants and other funding for renewable
energy projects
3
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CCEF Goals
1. Create a supply of clean energy (installed capacity)
2. Foster the growth, development and commercialization of
clean energy technologies
3. Stimulate use of clean energy by increasing public awareness
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Clean Energy Technologies – On-site
Fuel Cells
Click here for more information.
Solar PV and
Solar Thermal
Geothermal
Wind
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Clean Energy Technologies – Grid-Feed
Biomass
Wave/Tidal
Landfill Gas
Hydro
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On-Site DG – “Best of Class RFP”: Launched in November 2010 Proposals due February 28, 2011 Awards to be announced April 22, 2011 Limited to UI/CL&P ratepayers Open to PV, fuel cells, wind, landfill gas,
biomass, hydro, waste heat recovery for power generation
Funding available:
CCEF Commercial Programs
Best of Class Public Buildings
Solar PV $2,400,000 $1,200,000
Fuel Cell $1,800,000 N/A Other Technologies $ 230,000 $ 150,000
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On-Site DG – “Best of Class RFP” (continued): Competitive process, no guarantee of any grant
Maximum total incentive to any one owner is $4 million during any
two-year period.
Building must meet current energy codes or energy audit
recommended measures
Incentive paid as grant, in 3 stages:
CCEF Commercial Programs – Cont’d
Milestone Payment Delivery of generating equipment to site 50% Startup, commissioning, and inspection 40% After six (6) months of successful operation 10%
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On-Site DG – “Best of Class RFP” (continued): Evaluation Criteria
Project Economics
40%
Deployment of the Eligible Resource/Technology 20%
Probability of Project Completion/Feasibility 20%
Public and Unique Ratepayer Benefits
20%
Website: www.ctcleanenergy.com/bestofclass
CCEF Commercial Programs – Cont’d
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“Best of Class” – Solar Photovoltaic (PV): Size limits: 10kW - 200 kW (max. based on peak minus base)
Incentive structure:
Shading analysis required
Roof life & strength must be documented
Maximum incentive adjusted for shading, tilt, azimuth, inverter
efficiency
CCEF Commercial Programs – Cont’d
Maximum Incentive
Incentive Blocks For-Profit Owners**
($/WattPTC) Not-for-Profit Owners
($/WattPTC) ≤100 kWPTC $2.00/Watt $4.00Watt
>100 kW but ≤200 kW $1.25/Watt $3.50/Watt
>200 kW $0.00/Watt $0.00/Watt
Evaluation timeframe 20 years **Includes PPAs with not-for-profit entities
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“Best of Class” – Other Technologies: Incented size limits (all other): None - must be appropriate to on-site load
Incentive limits:
Fuel cell projects need documentation of electric and thermal loads
Wind projects <100 kW need computer wind analysis report, wind map of area. Projects >100 kW need six months of on-site wind data
Hydro projects need water resource documentation, ability to meet LIHI certification standards
CCEF Commercial Programs – Cont’d
Maximum Incentive
Technology Fuel Cells
Small Wind
Small Biomass
Landfill Gas Hydro
Funding cap $2.50/W 40% of
Total Cost 40% of
Total Cost 40% of
Total Cost 40% of
Total Cost Evaluation timeframe 10 yrs* 15 yrs 10 yrs 10 yrs 20 yrs
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State Energy Program: Eligible technologies:
PV - $3.0 million Fuel cells - $8.0 million Solar thermal - $1.8 million Geothermal (ground source heat pumps) - $2.3
million
Applications accepted on a rolling basis
Noncompetitive – first come, first served
Open to all Connecticut establishments
Must adhere to DBA, NHPA, NEPA, “Buy
American”
Projects must be completed by April 30, 2012
Commercial Programs – ARRA Funded
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Solar Photovoltaic (PV) Incentive: Launched in October 2010 Rules similar to old OSDG program Incentive structure:
Actual Incentive: Depends on project economics Incentive cap = $1 million/project Adjusted for shading, tilt, azimuth, inverter efficiency Grants paid 50% at delivery, 40% at commissioning, 10% after 6 months
Size limits: 50kW - 200 kW
State Energy Program – Continued
Maximum Incentive
Incentive Blocks For-Profit Owners* ($/WattPTC)
Not-for-Profit Owners ($/WattPTC)
<100 kWPTC $3.00/Watt $4.50/Watt
>100 kW but<200 kW $2.00/Watt $4.00/Watt
>200 kWPTC $0.00/Watt $0.00/Watt
Evaluation timeframe 20 years *Includes PPAs with not-for-profit entities
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Fuel Cell Incentive: Launched in December 2010 Rules similar to old OSDG program Incentive structure:
Depends on project economics Incentive cap = $2.50 per Watt Incentive limit = $4 million/project Incentive available: $8 million Grants paid 50% at delivery, 40% at commissioning,
10% after 6 months Typically pays 30% - 40% of equipment cost
Size limit: must be < base load (300 kW min.)
Project must use 50% of “waste” heat or
Provide enhanced power quality or reliability to
critical electric load
State Energy Program – Continued
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State Energy Program – Continued
Solar Thermal Rebate Program: Launched October, 2009
Incentive structure: For-profit CI&I -- $450 per MMBtu of predicted
annual output Not-for-profit -- $550 per MMBtu of predicted
annual output Incentive available – $1.8M for C I & I projects ($1.2M left) Typically covers 35 – 50% of cost for standard flat plate or evacuated tube systems Incentive limits – $300,000 or 75% of cost Grant paid in full at project completion
Size based on DHW, process water needs
Space heating systems don’t qualify
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State Energy Program – Continued
Geothermal Heat Pump Rebate Program: Launched December, 2009
Size based on HVAC needs Incentive Structure:
CI&I for-profit -- $1,050 per ton
CI&I not-for-profit -- $1,750 per ton
Covers about 20 – 30% of cost
Incentive available – $2.25M ($0.75 M left)
Incentive limits – 100 tons (150 tons for schools)
Only closed-loop systems eligible
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Federal Incentives
For Energy Efficiency: Energy-Efficient Commercial Buildings Tax Deduction
Residential Energy Efficiency Tax Credit
For Renewable Energy Generation: Business Energy Investment Tax Credit or Grant (30%)
30% for solar, fuel cells and small wind
10% for geothermal, microturbines and CHP
Renewable Electricity Production Tax Credit (PTC)
Residential Renewable Energy Tax Credit (30%)
MACRS + Bonus Depreciation (2008-2012)
USDA - Rural Energy for America Program (REAP) Grants (25%) and
Loans (<50%)
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Where Do I Start?
Best source for information about all renewable energy
and energy efficiency incentives:
http://www.dsireusa.org/
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Program Contacts
Dave Ljungquist: 860-257-2352
Rick Ross: 860-257-2887 (fuel cells)
Christin Cifaldi: 860-257-2891 (solar photovoltaic)
Bill Colonis: 860-257-2888 (solar thermal, geothermal)
Connecticut Clean Energy Fund
200 Corporate Place, 3rd Floor
Rocky Hill, CT 06067
http://www.ctcleanenergy.com
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Visit us online atctcleanenergy.com
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The Future of Energy: Building a Smart System
Mr. Roddy Diotalevi
Senior Director, UI
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What is the Smart Grid?
EPRI’s definition to NIST: The term ‘Smart Grid’ refers to a modernization of the
electricity delivery system so it monitors, protects, and automatically optimizes the operation of its interconnected elements – from the central and distributed generator through the high voltage network and distribution system, to industrial users and building automation systems, to energy storage installations and to end-use consumers and their thermostats, electric vehicles, appliances, and other household devices.
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UI’s Smart System
Modernization of UI’s Electric SystemMonitors
SCADA
Optimizes the Operation Voltage Control Automatic switching & restoration
Distribution System Outage Detection Advanced Meter Infrastructure Meter Data Management Smart Meter Deployment
End-Use Customers Home Area Networks Electric Vehicles Distributed Resources
Source: U.S. Department of Energy
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Smart System Value
113
Centered around the Customer Increase system reliability
Improve operational efficiency
Improve asset utilization
Integration of Distributed Resources and energy storage
Educate customers on energy consumption to help them better manage their usage
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Network Meter Deployment
SMART Meters Deployment of 80,000 meters began 2010 - 45,000 installed to
date Two way communications to customer premise Remote Meter Controls Ability to leverage technical capabilities of AMI
– System related• Voltage control and outage detection
– Customer related• ZigBee enabled Home Area Network (HAN)
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Home Area Network (HAN)
Provides near real-time information for the customer to better manage their energy use
Creates opportunities for customers to save energy.
– Dynamic Pricing– Residential Demand Response– Integration of distributed resources
Enables next generation energy efficiency applications
– Electric Vehicles and Smart Appliances
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UI’s HAN Pilot
Objective – Evaluate HAN system solutions including devices, software, and implementation process in order to determine costs, benefits, and potential program offerings to the customer
Initial pilot to include approximately 925 households HAN devices - Tendril & Energy Hub
– In-home display, programmable t-stats, controllable plugs, EVSEs Research study with UC Davis
– Assess customer engagement & savings Explore potential programs during pilot
– Demand Response– Dynamic Pricing
– Integration of Behavioral component Assess applicability to other customer segments
– Business customers are often more sensitive to price
– Open to innovative product and service offerings that boost profitability.
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HAN Challenges
Customer engagement and education
Benefit / Cost of investment
Rapid evolution of technology
National standards for data privacy, cybersecurity and interoperability
Bandwidth availability of AMI
Hype vs. reality around smart grid programs
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UI’s EV Goals
Electric Vehicles
EVs are coming to CT Goal of 25,000 electric cars statewide by 2020
Electric Vehicle Infrastructure Council– Strategize on preparing CT for rapid & seamless integration of EVs into
the market
– (http://www.ct.gov/ecd/lib/ecd/ev_final_recommendation_9.1.10.pdf)
Key Recommendations– Gain early access to EVs
– Enact Legislation to incent EV adoption
– Support build-out of EV charging infrastructure
– Develop policies for rates, pricing, and charging options
– Collaborate to develop regional corridor for public charging
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UI’s EV Pilot
Preparing for EV Arrival
UI Activities Provide leadership and educate customers on EV technology
Stay engaged with stakeholders – EVIC, REVI, EDTA, EPRI, EEI, etc.
Build-out of EV charging infrastructure– EVSE pilot for 10 - 12 charging stations underway
Explore residential charging options – First Volt has arrived
– 95% of EV charging will occur at home
Assess impact to distribution system– Impacts are most severe on transformers and low voltage wires
Assess future opportunities, such as “Smart Charging” and “Vehicle-2-Grid”
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Questions
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