energy optimization overview may 11, 2009
DESCRIPTION
Energy Optimization Overview May 11, 2009. Legislation. Energy Optimization in PA 295. Detroit Edison must achieve the following energy savings targets: Incremental Energy Savings ~ Impact to Detroit Edison 2008/9 0.30% of 2007 retail sales150,000 MWh - PowerPoint PPT PresentationTRANSCRIPT
Energy Optimization Overview
May 11, 2009
Legislation
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Energy Optimization in PA 295
• Detroit Edison must achieve the following energy savings targets:
Incremental Energy Savings
~Impact to Detroit Edison– 2008/9 0.30% of 2007 retail sales
150,000 MWh
– 2010 0.50% of 2009 retail sales250,000
MWh– 2011 0.75% of 2010 retail sales
375,000 MWh
– 2012+ 1.00% of prior year retail sales500,000
MWh
Subject to MPSC rulemaking and outcome of final order
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• The program is paid for via customer surcharges
• Non-residential electric customers will be assessed a monthly meter charge, estimated to be:
• Primary metered sites• 2009 - $250• 2010 - $350
• Secondary metered sites*• 2009 - $2.75• 2010 - $3.75
*Represents an estimated average. The MPSC Temporary Order specifies that multiple per-meter charges be offered to reflect the diverse load characteristics of this class
• All classes will contribute toward low income residential programs
Subject to MPSC rulemaking and outcome of final order. Also subject to program spending levels, program launch date and other variables.
Energy Optimization Surcharges by Customer Class
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Energy Optimization Program Spending & Impact
• To comply with legislation and ensure all customers have the opportunity to participate, programs
will be offered to each customer class• Programs likely to be offered include: Residential Low Income, ENERGY STAR, Appliance
Recycling, Residential HVAC, Multifamily Direct Install, New Home Construction, C&I Prescriptive,
and C&I Non-Prescriptive • Our program will include customer education and pilot programs for future EO program
development and emerging technologies• Program cost will include customer incentives, program delivery and other costs
Preliminary Detroit Edison EO Program Spending & Impact
Program Year Est. Maximum Program Cost
($mil)
Est. Annual Savings Goal (MWh)
Est. Cumulative Savings Goal
(MWh)
2009 $33.1 150,000 150,000
2010 $44.2 250,000 400,000
2011 $66.3 375,000 775,000
2012+ $88.4 500,000 1,275,000
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Energy Optimization Program Timeline
Legislation signed
MPSC temporary
order
EO plan filed
EO Plan approved by
MPSC
Launch Programs
October 6, 2008
December 4, 2008
March 4, 2009
June 3, 2009
Mid to Late 2009
EO Programs
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Detroit Edison Energy Optimization Portfolio
Integration with MichConMichConPortfolio
Detroit Edison Portfolio
Residential Programs
C&I Programs
C&I Prescriptive
C&I Non-Prescriptive
ENERGY STAR
Residential HVAC
Appliance Recycling
Residential New Homes
Custom Program
RFP Program
New Construction
Low Income Program
Emerging Technologies
Multifamily Direct Install
Demand Response
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Program Description Products
Key Delivery Channel
ENERGY STAR
Increase the market share of ENERGY STAR qualified products sold through retail sales channels
CFLs
Clothes Washers
Room ACs/Dehumidifiers
Retailers
Appliance Recycling
Provide pick-up and special drop-off events for operable, inefficient appliances and, dismantle and recycle these appliances in an environmentally safe manner
Refrigerators & Freezers
Room ACs
Dehumidifiers
Certified Recycling Agency & Retailers
HVAC Encourage customers to install energy-efficiency heating and cooling equipment
Central AC
EMC furnace motors
Distributors &
HVAC Dealers
Low Income Work with existing CAP Agencies to expand their low income services and issue RFPs for vendor(s) to install energy-efficiency equipment and improve insulation levels for low income homeowners
Refrigerators CFLs & Education
CAP Agencies and Contractors
New Home Construction
Provide incentives and assistance to encourage the construction of ENERGY STAR certified homes
Electrical appliances, building shell materials
Homeowners, Builders/Dev.
Multifamily
Direct Install
Provide direct installation of EE measures to residential customers living in multifamily buildings.
CFLs, T-8 & T-5 lamps, LED signs,
Contractors
Residential Program Overview
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Program Description ProductsKey Delivery
Channel
C&I Prescriptive The C&I Prescriptive Program provides incentives to Detroit Edison’s C&I primary and secondary customers for the installation of energy-efficient equipment for numerous applications
Lighting
HVAC
Motors/VFDs
Food Service
Detroit Edison Account Mgrs/ Energy Partnership
Equipment Dealers & Distributors
C&I Custom The C&I Custom Program provides custom incentives to C&I customers for the installation of innovative and unique energy-efficiency equipment and controls.
Compressed air
Process equipment
Unique processes
Detroit Edison Account Mgrs/ Energy Partnership
Equipment Dealers & Distributors
C&I RFP The C&I RFP Program provides custom incentives to select C&I customers/markets on a very targeted and limited time basis for the installation of innovative and non-standard energy-efficiency equipment and controls.
Unique processes Detroit Edison Account Mgrs/ Energy Partnership
Equipment Dealers & Distributors
C&I New Construction
The C&I New Construction Program provides design assistance and custom incentives to customers for building more efficient new buildings and installing energy-efficiency equipment and controls that are not required by building energy codes and are above standard construction practices
Lighting
HVAC
Building envelope
Controls
Architects and Engineers, Building Owners
Commercial & Industrial (C&I) Program Overview
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Collaboration with Other Michigan Utilities
Potential areas of collaboration Include:
• Common database for measures and their deemed savings value
• Common cost effectiveness model – DSMore
• Similar or Consistent Programs•High Level – Custom, Prescriptive, New Construction, Low Income, Multi-Family•Detailed Level – Coordination of measures, incentive levels & processing, qualification & technical standards•Possible joint RFP for implementation (ex: Low Income, Refrigerator Turn In, Application Processing)
• EM&V – range from similar approaches to combined evaluations
C&I Prescriptive
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C&I Prescriptive Program
Encourages C&I customers to improve energy efficiency in existing and new facilities using predetermined measures and incentive amounts.
– Lighting
– Motors/Pumps/Drives
– HVAC equipment
– Controls
– Refrigeration and other Food Service equipment
T-12
T-8
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C&I Prescriptive Program Process Flow
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C&I Prescriptive Program – Q & A
What is the target market? All Detroit Edison C & I customers.
How many measures are offered? Over 170 measures will be offered.
What are the incentives? Incentives vary widely based on the measure installed (ex. perhaps $20 for a T8 fixture, $1,000 for a large HVAC roof top unit).
How is the program implemented? Detroit Edison will manage the program with a third party implementation contractor who will work with our Michigan located trade allies to deliver the programs.
When will the program be available? Detroit Edison will file its program with the MPSC in March 2009 and the programs will be available in mid to late 2009.
How do customers receive incentives? The customer or their contractor completes and submits a rebate form (which they will find on our web site) with the appropriate documentation to receive incentive dollars.
How do customer know what qualifies as a prescriptive measure?
Through promotional and educational materials created for Account Managers and our web site.
What if my customer’s technology is not included in the prescriptive program?
The prescriptive program offers proven technologies that will help Detroit Edison achieve the mandated savings goal. Non-standard technologies could be covered in the non-prescriptive programs.
How will Account Managers be kept informed of developments or changes in the program?
Tactical Marketing will develop periodic updates to keep you informed.
C&I Non-Prescriptive
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C&I Non-Prescriptive Programs
Flexible programs that encourage C&I customers to install energy efficient measures in their facilities using custom incentives to draw out innovative and unique energy efficient equipment and controls
•Three non-prescriptive programs:
– C&I Custom. Detroit Edison incentives for approved customer projects
– C&I RFP. Detroit Edison targets certain market sector (i.e. hospitals), limited time basis.
– C&I New Construction. Incentives for upgrade of whole building as a system, above current building codes.
C&I Non-Prescriptive Measures Policies
• Pre-approved engineering estimates will be used to set targets for per kW and kWh savings from each application.
• Incentive levels will vary over time based on costs and market need, but Detroit Edison will typically set them in one-year increments.
• Detroit Edison will use two tiers for Custom Program incentives.
– Tier I: Uses a lower rate, focuses on established, known technologies that customers may not use without incentives.
– Tier II: Higher-level tier rewards customers for using technologies that are newer, riskier, or otherwise less likely to be used.
• Most new technologies will start at the second tier and migrate to the first as the market accepts them.
• Projects may have payback period restrictions
• Projects may be bundled under RFP Programs
• Customers who self-direct will not be eligible
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C&I Non-Prescriptive Program Process Flow
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C&I Non-Prescriptive Program – Q & A
What is the target market? Existing C&I customers utilizing more complicated systems or unique processes in existing and new facilities.
How do customers apply for a custom program?
Customers submit an application that must be approved by Detroit Edison.
How are incentive levels set? C & I Custom
Incentives will be set using a per kW and kWh basis so that both energy and demand savings will be rewarded.
We may have other limitations to ensure equity among customers
C & I RFPIncentives will be based on the RFP issued by Detroit Edison for a narrowly defined market or technology, e.g. hospitals, schools, etc.Incentives will be set using a per kW and kWh basis.
C & I New ConstructionIncentives will be based on the percent improvement above the local building code or above the ASHRAE 90.1-2004 standards as determined by DOE-2 or equivalent building simulation modeling.
How will custom programs be verified?
Customer programs will be evaluated by an independent firm to ensure approved application measures are installed and estimated savings are achieved.