SMUD s Cutting Edge Utility Programs

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1 . SMUD s Cutting Edge Utility Programs Rob Lechner, Harlan Coomes, Tim Berg, Wade Hughes, Jim Parks Green California Summit Sacramento Convention Center April 8, 2015 Powering forward. Together.

2 About SMUD 610,000 customers 1.4 million population $1.4 billion in revenues 900 mi 2, 2331 km 2 service territory 7 member, elected Board of Directors Not-for-Profit Utility 2nd largest muni in California, 6th largest in the US 3299 MW peak load 2073 employees

3 Power Flow Central Station to Customer

4 Smart Grid Projects & Budgets Smart Grid Budget $351M ($307.7M SGIG + $43.3M R&D) AMI, $145.2 R&D Projects, $43.3 Cyber Security, $1.7 Technology Infrastructure, $27.1 DA, $58.6 Demand Response, $9.7 Customer Applications, $53.7 Smart Pricing Options, $11.6

5 Smart Grid Vision

6 Smart Grid Vision

7 Demand Response Demand Response is a change in customer electrical load in response to a price signal, load reduction (or increase) signal, incentive, or request (voluntary action) Two types of Demand Response Behavioral Dispatchable Two ways to create demand response in customer facilities Manual actions Automated actions Commercial and Residential Programs Provide SMUD Demand Response

8 Smart Grid Connectivity - SMUD Automated Demand Response Smart Thermostat SMUD ESB SEEload DRMS OpenADR Client Devices Internet SMUD Enterprise Software Energy Profiler Online 8

9 SMUD Demand Response Portfolio Program Peak Corps (Air Conditioning Load Management) Temperature Dependent Tariff Curtailment Agreements Customer Groups Residential Commercial/Industrial (Closed to new participants) Commercial/Industrial PowerStat Residential PowerStat Small Commercial PowerDirect (Commercial AutoDR) Smart Pricing Options Tariff In-Home Display Checkout New New New New New Residential Commercial Commercial/Industrial Residential (Closed to new participants) Residential 9

10 What Happened When SMUD Really Needed AutoDR in 2014? Actual results! 21 MW load before event Load drops to about 17 MW within 15 minutes of the event start Red = Consumption Lt. Green = Baseline Brown = 4 pm - 6 pm Target Load Profile 10

11 Residential PowerStat Event Days Average Impact 11

12 Greenergy Participant s pay a little more to offset their usage with renewable power. Initiated in 1997 One of the first Utility Green Pricing programs in the nation Residential Greenergy 50% level where SMUD offsets half of your usage for $3 100% level where SMUD offsets all of your usage for $6 Commercial Greenergy New Partner level- For $5 we offset 1 Mwh with renewables Partner Plus level- For $10 we offset 1 Mwh with renewables plus marketing package Center for Resource Solutions (CRS) Green-e certified

13 Greenergy Perennial top 10 Green Pricing program Number 4 in nation for energy sales (NREL) About 71,000 Participants Residential 69,000, and Commercial 1,900 11% of all eligible candidates participate Residential 13%, and Commercial 3% 430 Gwh offset in % of SMUD electric sales

14 Commercial Greenergy Redesign Greenergy Partner for $5/ Mwh (LEED, CEQA, or Corporate Sustainability) Cost is king Needs to be easy to use and acceptable for certification purposes Greenergy Partner Plus for $10/ Mwh (customer requires a marketing benefit) Wants the additional marketing benefit Will pay to be acknowledged partner

15 What s Next for Greenergy Escalating Participation More strategic advertising, better product refinement, marketing to benefit participants Greater Participant Engagement News letter, crowd sourcing, mobile couponing, referring efforts, more entitlements More Local Projects More regional renewable generation

16 Customer & Community Services Innovation Customer Experience Excellence Innovation: SMUD will meet competitive challenges through strategic alliances and new business models Innovation Generator Generate future revenue channels for SMUD Foundation for new energy solutions, products, technologies and services Gain intelligence around the industry transformation Enhance market competitiveness Business Development Business model exploration Competitive intelligence gathering Alliance & partnership information gathering

17 Customer & Community Services Innovation Generator Improve the delivery, reliability or efficiency of the energy we provide to customers Leapfrog other competitive technologies, keeping SMUD on the cutting edge of energy delivery Enhance our customers experience Create a bond of loyalty with our customers Fully utilize our smart grid infrastructure **We respect the confidentiality that is inherent in any new product/service development. Prospective partners can rest assured that all proposals, whether selected for implementation or not, will remain confidential

18 SMUD Energy Efficiency Programs for Commercial, Industrial & Municipal Customers Express Energy Solutions - do-it-yourself program - rebates available for a variety of measures: lighting, HVAC, food service, energy management systems, and more - rebates vary by measure & quantity - customer installs measure(s), completes rebate application and submits to SMUD for payment - rebates of up to $150,000 19

19 SMUD Energy Efficiency Programs for Commercial, Industrial & Municipal Customers Complete Energy Solutions - designed for small to midsized commercial & industrial customers - SMUD provides a free, comprehensive energy assessment and identifies specific energy efficiency measures for installation - once measures installed, rebates are available (rebates vary by measure and quantity, and typically cover 73% of total project cost) 20

20 SMUD Energy Efficiency Programs for Commercial, Industrial & Municipal Customers Savings by Design - for building owners and design teams - SMUD staff provides design assistance via: 1) whole building approach 2) systems approach - up to $150,000 in incentives available 21

21 SMUD Energy Efficiency Programs for Commercial, Industrial & Municipal Customers Custom Incentives - for commercial & industrial process improvements - incentives cover up to 30% of the project cost or $150,000, whichever is less - pumps, motors, industrial fans, exhaust hood & fan projects, injection molding machines, industrial refrigeration are some of the measures covered 22

22 SMUD Energy Efficiency Programs for Commercial, Industrial & Municipal Customers Prop 39 Program - history & background of the program - SMUD-sponsored energy audits - guidance for LEA s in grant filing process - confirmation of projects installation - 17 LEA s have signed MOU w/ SMUD - expect to generate over 40 GWh of savings 23

23 SMUD Energy Efficiency Programs for C/I Customers Contact Information Rob Lechner Supervisor, C/I Account Solutions (916)

24 Contact Information, Discussion and Questions Rob Lechner Harlan Coomes Wade Hughes Tim Berg Jim Parks

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