BGE EmPOWER Maryland Semi-Annual And Program Filing. October 21, 2014 Hearing

Transcription

1

2 BGE EmPOWER Maryland Semi-Annual And Program Filing October 21, 2014 Hearing

3 BGE EmPOWER MD Approach Aggressively investing in cost-effective programs Monitoring and reflecting industry best practices Collaborating with stakeholders Addressing all customer segments Proactively enhancing program design Optimizing delivery Pursuing innovative approaches to drive higher savings 2 2

4 BGE EmPOWER MD Overview Energy Savings (gross wholesale ) Peak Demand Reduction (gross wholesale capability as of 2017) Spend Towards EmPOWER Goals 1.45 million MWh 1,285 MW $663M (up from $375M in prior cycle) 2017 Residential EmPOWER Charge $8.39/mo; $101/yr 3 3

5 EmPOWER Maryland Savings by Program MWh MW Residential EE 664, Commercial EE 541, Total Energy Efficiency 1,205, PeakRewards SM 20, BGE Smart Energy Manager 89, BGE Smart Energy Rewards 16, Streetlights, Transformers, Other 18, Conservation Voltage Reduction 102, Total 1,450,000 1,

6 Energy Use Per Customer Down 9.7% Since 2007 MWh/Customer (Premise) Peak use down 12.0% since

7 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 MWh (millions) Energy Savings Since Inception (Gross Wholesale MWh) Other Actual Forecasted 3.0 PeakRewards Dynamic Pricing Smart Grid 1.0 I&C 0.5 Residential

8 Impacts Through Q Energy Efficiency Participants 384,000 unique residential (excluding Lighting) 17,500 I&C 1.8 million MWh 20 million measures PeakRewards SM 38% participants 426 MW 7 7

9 BGE EmPOWER MD Approach Innovative New Programs Two-way Thermostat Pilot added to PeakRewards Master Metered Multi-Family QHEC Small Business Behavior-based Pilot Program I&C Building Operator Certification I&C Upstream Lighting I&C Energy Analytics and Engagement Tools 8 8

10 Building on Innovative Programs Smart meter enabled programs Default for all customers with smart meter Cross marketing with Energy Efficiency BGE Smart Energy Rewards : Peak Time Rebate Program BGE Smart Energy Manager : Residential Behavioral Program CVR: being rolled out since pilot has been completed New LED offerings via recently approved street lighting tariff 9 9

11 BGE EmPOWER MD Overview TRCs for BGE s Energy Efficiency portfolio remain positive Residential 2.12 Industrial & Commercial 1.55 Total 1.77 TRC by Customer Segment as forecasted for HVAC and HPwES modeled very close to 1.0 Optimizing Net-to-Gross Ratios by monitoring incentives Incentives cover 50-75% incremental cost Coordinated with other EmPOWER utilities 10 10

12 BGE EmPOWER MD Budget Majority of spend continues to be for incentives 11 11

13 Residential 12 12

14 2014 Residential Mid-year Performance 109% of gross wholesale MWh forecast 1.4 million CFLs/LEDs 9,500 QHECs 125,000 measures 98% customer satisfaction 25,000 Appliance Rebates 3,300 Refrigerators, Freezers, Window A/Cs Recycled 1,300 ENERGY STAR New Homes 13 13

15 ENERGY STAR Products Lighting Markdown Halogen hybrid evolving to new baseline Focus on CFLs, LEDs to take larger market share Appliance Rebates Added ENERGY STAR dryer Track ENERGY STAR requirements Window A/Cs, HPWH and tiers for clothes washers and refrigerators Recycling Refrigerators, freezers and room A/Cs, added dehumidifiers 14 14

16 QHEC Program Continued traditional and multi-family BGE disagrees with merging QHEC with HPwES QHEC and HPwES address different customers QHEC for renters and those unwilling/unable to make large investment QHEC is closed contractor market HPwES is open market BGE encourages upselling QHEC to HPwES Website, call center, contractors, program materials Could limit customers who only want QHEC 150,000 QHECs, 98% customer satisfaction 15 15

17 HPwES Savings to investment ratio (SIR) Helps customers understand if EE investment pays for itself over the life of measure(s) Average SIR 1.01, cost per measure rising Average 17-year payback Moving SIR to 1.25 Customers get most from investment Program gets most energy savings toward EmPOWER goal Maintains long-term health of program Improves TRC (0.65 currently, down from 2012) 16 16

18 Duct Sealing Alliance filed to move measure to HPwES Commission ordered change BGE in compliance with Order HPwES takes whole-house perspective on energy savings Duct sealing implemented based on whole-house impacts and treated just like air sealing and insulation Utility requirements always technology-neutral, duct sealing is no different 17 17

19 HVAC Rebate Program Measure Efficiency Level Rebate Central Air Conditioner Tier 1 >16 SEER and >13 EER $500 Central Air Conditioner Tier 2 >18 SEER and >13.5 EER $800 Air Source Heat Pump Tier 1 >16 SEER and >13 EER and >9 HSPF $600 Air Source Heat Pump Tier 2 >18 SEER and >13.5 EER and >9.5 HSPF $1000 Geothermal Heat Pump (Closed Loop) >17.1 EER and >3.6 COP $1500 Gas Furnaces > 92% AFUE with Hi-efficient blower motor $300 Ductless Mini-split Heat Pump Tier 1 (single zone) Ductless Mini-split Heat Pump Tier 2 (single zone) Ductless Mini-split Heat Pump Tier 3 (Multi-zone) >15.5 SEER and >12.5 EER and >8.6 HSPF $200 >18 SEER and >12.5 EER and >9 HSPF $400 > 15.5 SEER and >12.5 EER and >8.6 HSPF $

20 HVAC Rebate Program Good news for customers Federal standards for baseline HVAC systems moving up to SEER 14 Consequently, incremental cost has been lowered Technical Resource Manual (TRM) Rebates cover ~50% of incremental cost Utilities recommending lower rebates that address 58% of new, lower incremental cost September 2014 research shows utility proposed rebates are at a premium when compared to similar HVAC rebate programs Current program rebates higher than necessary Recognizing higher incremental costs further erodes the program s TRC (.69) Accounting for SEER 13 energy savings may not be possible due to evaluation protocols and TRM 19 19

21 New Construction Residential New Construction Modified to address ENERGY STAR 3.1* Unit Building Type Incentive to Builder Multi-family low rise units $400 Two-on-Two condominium units $550 Townhouse and duplex units $750 Single-family detached units $1,250 *Maryland requires 2012 IECC 20 20

22 Key Residential Asks Continue the Gas Connection Program pilot while awaiting Order from Commission after pilot results filed Permission to implement ENERGY STAR standards changes without filing provided consensus among stakeholders and no changes to forecasts 21 21

23 Continuing DR and Behavioral Programs EmPOWER: PeakRewards SM Enhance with two-way thermostat pilot: Honeywell wi-fi thermostat with Opower portal, app Ecobee thermostats with BGE s existing DRMS Smart Grid: BGE Smart Energy Manager Smart Grid: BGE Smart Energy Rewards Two energy savings days 867,000 residential customers eligible 76% average participation $6.55 average credit for participating customers 22 22

24 Industrial & Commercial 23 23

25 2014 I&C Successes Implemented Small Business Energy Advance Customer Investment (CIF) Program Drive closure rate and improve SBES overall performance Over 60 participants through October 15 Combined Heat & Power (CHP) completed projects Upper Chesapeake Medical (2 MW, 13,000 MWh) End of 2014, completing 4 more projects, including Horseshoe Casino (1.2 MW) Retrocommissioning at 183% of energy forecast Progress implementing Automated Benchmarking Tool in Q

26 2014 I&C Challenges Decline in results for 1 st half 2014 vs. outstanding 2013 Prescriptive and Small Business Energy Solutions did not meet energy savings forecast Expected to rebound in the 2 nd half of 2014 Custom Program will continue to lag throughout the year Difficulty in exceeding higher building codes Earlier completion of many large state projects (stadiums, BWI, convention center, etc.) - part of 5 year performance contracts 25 25

27 I&C Overview Continue with successful best practice programs: Small Business, Prescriptive, Custom and Retrocommissioning New innovative programs and analytical tools increase customer awareness and growth of I&C programs Online intake tool expedites process Forecasting 38% net wholesale energy savings growth with 37% budget increase I&C programs account for 55% of energy efficiency budget 26 26

28 Small Business Programs Small Business Energy Solutions (SBES) Program Retain closed contract approach with 80% incentive level Program continues success with effective $/kwh RFP to determine appropriate number of vendors and how territories will be assigned to ensure success Promote other opportunities (i.e. HVAC rebates) Small Business Energy Advance (SBEA) Expected to drive future participation in SBES Will utilize all allotted CIF funds before filing to continue program using EmPOWER Maryland funds 27 27

29 Energy Solutions for Business Prescriptive Program Conforms to statewide incentive matrix Large increase in TLEDs Need flexibility in adjusting incentive levels without direct Commission approval due to rapid decline of LED prices (eliminates re-filing in January) Custom Program Proposing to add $0.28/kWh cap for each project Comprehensive New Construction Program now part of Custom includes major renovations New processes strengthen project documentation 28 28

30 Building Tune-Up Program Changing name from Retrocommissioning Program Term was confusing to customers and misunderstood Incentives for temporary monitoring equipment to improve energy savings calculation and realization rates Automated Benchmarking Tool Simplifies and motivates use of EPA s Portfolio Manager Completion Q No directly attributable energy savings Drives participation in other I&C programs 29 29

31 Combined Heat & Power Program Expecting growth in program based on customers seeing success of completed projects and feeling less risk Retain overall $2 million project cap Remove $1 million production cap Keep $1 million design and construction cap Increase installation incentive from $175/kW to $275/kW for smaller units Further adjustments in incentive levels not needed due to variety of projects BGE has received Potential for very large projects in

32 Upstream Lighting Program (New) Structured after residential CFL mark down program Offered via contractor desks at The Home Depot, Lowes, etc. and all lighting distributors Dedicated SKUs, mostly screw-in LED lamps and reduced wattage fluorescent lamps Process to screen prescriptive applications/invoices for SKUs to avoid double dipping Will track where projects are taking place (i.e. BGE territory) Prescriptive Program primarily used for retrofit or new installation of lighting fixtures and controls 31 31

33 Building Analytics Tool (New) Analyze mid- and large-size building performance Allows targeting of buildings with greatest potential Online tools/reports as a more effective way to engage with customers on improving performance Key Performance Indicators (cost per square foot, cost per hospital bed, etc.) allow benchmarking Analyzes energy use of specific building systems that are inefficient (remote audit) Based on two ICF-sponsored pilots in BGE territory Will track participation in energy efficiency programs and associated savings 32 32

34 2015 Small Business Behavior Pilot (New) Support 1 year pilot, asking approval to continue program while we analyze and file results so we don t start and stop BOC Training Program (New) Training focuses on improving O&M strategies and benefits of implementing energy efficiency projects Applicant will be eligible for incentives up to 80% of enrollment cost up to a max of $800 per course Master-Metered QHEC (New) Based on success of the residential QHEC program and feedback from BGE s residential QHEC contractors Participants in DHCD s MEEHA program will be ineligible 33 33

35 Marketing and Awareness Building 34 34

36 Recognition/Awards 35 35

37 Residential Marketing Leverage limited time offers Seasonal promotional strategies Best, most effective media channels Review analytics Program-specific results Customer/contractor engagement opportunities Evolving media (e.g., internet radio) 36 36

38 I&C Marketing Sector-based One-on-one customer communication Sector-focused account managers Strong trade ally network Shared customer experience Testimonials Business cases Press releases, ground breakings, rebate check presentations Building analytics to educate and engage customers on building performance 37 37

39 BGE s Innovative Marketing Advanced segmentation targets those likely to participate Upselling/cross-selling programs Gas pump toppers mini billboard Social media - Ugly Fridge Contest Successful events 2nd A/C Recycling event Smart phone advertising retargeting Resend s to customers that opened first Variable printing and offers with Gas Connection Program Insert costs into direct mail gives customer exact amount instead of a range of costs 38 38

40 Media Coverage/Events Baltimore Sun 8/14/14: Upper Chesapeake gets $1.5 million from BGE for hospital power plant The combined heat-and-power energy efficiency project is expected to save Upper Chesapeake $9 million over 20 years and generate about 13 million kilowatt hours annually, according to a BGE statement. Officials from Upper Chesapeake Health, BGE and Clark Construction were joined Monday by U.S. Sen. Ben Cardin to recognize the hospital for being the first recipient of the BGE installation incentives. Baltimore Business Journal 9/19/2014 article BGE estimates energy savings at 1.8 billion kilowatt hours per year BGE touts its energy-savings programs as a way to support the state's EmPower Maryland Energy Efficiency Act. EmPower Maryland aims to cut the state's energy consumption by 15 percent by

41 Media/Events (continued) Towson University 4/17 Press Event 9/15/14 Press Event with Customer, BGE, Opower & Governor energy efficiency, BGE SER Ugliest Refrigerator Contest 40 40

42 Marketing Award-Winning Marketing Driving Results BGESmartEnergy.com Visits (000s)

43 Awareness of EmPOWER Programs Driving Customer Satisfaction 8.3 EE Aware Overall Satisfaction

44 No Need for EmPOWER Maryland Branding Risk customer confusion ENERGY STAR being branded EmPOWER MD program being branded Achieving high levels of brand awareness takes years to accomplish and is expensive Customers expect their utility to offer energy efficiency programs BGE already has high program awareness Branding will not drive energy savings 43 43

45 Energy Efficiency Awareness 2014 Residential Study Data BGE East Large Utilities Industry BGE Data. J.D. Power 2014 Electric Residential Study

46 Additional Items 45 45

47 Demand Response Programs PeakRewards SM program has high rates of customer participation and satisfaction. Committed to continuous innovation with enhancements such as PeakRewards Mobile and the smart thermostat pilot. Growing load reducing capability through BGE Smart Energy Rewards BGE expects to achieve comparable value from DR/EE programs under PJM s proposed structural changes to capacity and energy markets Load Reducing Capability - MWs Q PeakRewards & Legacy WH SER 46 46

48 Shareholder Incentives BGE already investing aggressively, without incentives Opposed to penalties as customers ultimately make the decision whether to invest in energy efficiency Penalties/incentives potentially will cause disputes, potential time consuming, non-productive litigation 2017 goal setting; already experienced with 2015 goal Years of disputes in California Disagreements over evaluation results potential conflicts between two evaluators 47 47

49 Additional Questions? 48 48