Commercial & Industrial Conservation and Energy Efficiency Programs

Transcription

1 St. Louis Green Business Challenge Energy Efficiency Seminar May 30, 2013 Commercial & Industrial Conservation and Energy Efficiency Programs Jim Travis Laclede Gas Company

2 About Laclede Gas Company at a Glance : A Subsidiary of The Laclede Group Serve 10 counties in eastern Missouri. Total Customers 628,000 customers: 588,000 Residential 40,000 Commercial / Industrial (2012 Laclede Group Annual Report) The Laclede Group Acquisition of Missouri Gas Energy

3 Laclede Energy Efficiency Collaborative Established as part of Laclede s August 2007 revised Tariffs The charter EEC members: Laclede Gas Company Missouri Public Service Commission Office of the Public Counsel Missouri Department of Natural Resources Assemble a cost-effective portfolio of energy efficiency programs that provide Laclede residential, commercial, and industrial customers with direct benefits and long-term energy savings. Programs launched November 2008

4 Why Encourage Energy Efficiency? Revenue Impact Partially Decoupled Rates Laclede s support for energy efficiency is made possible by the introduction of rate structures that break the link between the amount of gas sold and revenue collected necessary to recover fixed costs. Environment The efficient use of natural gas by our customers contributes to a healthier environment.

5 Energy Intensity in Commercial Buildings Energy efficiency and conservation efforts can be individually small but collectively significant. According to a recent study by Bloomberg Finance L.P. developed in partnership with The Business Council for Sustainable Energy, energy consumption in commercial buildings in the U.S. has decreased by over 40% since This improvement is mainly due to reduced consumption of primary energy (predominately natural gas) which can be attributed to higher levels of efficiency in new buildings and improvements to hardware and operations relating to heating, ventilating, and air conditioning within older buildings. Source: Sustainable Energy in America 2013 Factbook Bloomberg Finance L.P. & The Business Council for Sustainable Energy

6 Annual CO2 Emissions form U.S. Energy Consumption Source: U.S. Energy Information Administration, Monthly Energy Review April 2013

7 EIA Projections for carbon dioxide emissions Source: December 2012 U.S. Energy Information Administration U.S. Dept. of Energy

8 Examples of Reduction Opportunities for Carbon Dioxide Strategy Energy Efficiency Energy Conservation Examples of How Emissions Can be Reduced Improving the insulation of buildings, traveling in more fuel-efficient vehicles, and using more efficient (natural gas and) electrical appliances are all ways to reduce energy consumption, and thus CO 2 emissions. See EPA's ENERGY STAR program for more information on energyefficient appliances. See EPA's and DOE's fueleconomy.gov site for more information on fuel-efficient vehicles. Learn about EPA's motor vehicle standards that improve vehicle efficiency and save drivers money. Reducing personal energy use by turning off lights and electronics when not in use reduces electricity demand. Reducing distance traveled in vehicles reduces petroleum consumption. Both are ways to reduce energy CO 2 emissions through conservation. Learn more about What You Can Do at Home, at School, in the Office, and on the Road to save energy and reduce your carbon footprint. Source: United States Environmental Protection Agency - June

9 Laclede Conservation and Energy Efficiency Programs Overview Cost Effectiveness of Utility Funded EE Programs Commercial and Industrial Energy Efficiency Rebate Program Building Operator Certification (BOC) Program Emerging Technologies

10 Natural gas industry experienced historically low prices in 2012 Challenges to Natural Gas Utility Funded Energy Efficiency Programs (Avoided Cost of Gas)

11 Cost Effectiveness Overview In its simplest form, energy efficiency cost-effectiveness is measured by comparing the benefits of an investment with the costs from the perspective of each impacted stakeholder. Benefit-Cost = NPV Σ Benefits (dollars) Ratio NPV Σ Costs (dollars) Participate Cost Test - Impact on utility customer participant Ratepayer Impact Measure - Impact on non-participating utility ratepayers. Program Admin. Cost Test Impact on utility who provides the incentives. Total Resource Cost Test - Impact on the participant, non-participant, and utility. A summation of Ben. and Costs to the participants and non-participants (TRC most recognized by states and utility administrators) Societal Cost Test - Impact to all in the utility service area, state, or nation as a whole Measures the relative performance or economic attractiveness of an energy efficiency investment compared to a baseline. Based on California Standard Practice Manual of Demand-Side Programs and Projects

12 An Illustratrative Look at Natural Gas Program Expenditures Source: American Gas Association Natural Gas Efficiency Program Report 2011 Program Year

13 Laclede Gas Company Energy Efficiency Rebate Program (November 2008 March 2013) Customer Class Total E.E. Measures Since Inception Rebate Dollars Since Inception *Est. 1 st Yr. Gross MCF savings Impact Customers Reached Residential 25,195 $ 2.48 Million 210,410 MCF 4.3% Commercial/Ind 938 $ 1.09 Million 176,188 MCF 2.3% *Total gross savings impact of over 3.8 million therms equivalent to the removal of 6,300 small-sized homes*. (*1,200 sq. ft. /average 600 annual therms).

14 Commercial and Industrial Energy Efficiency Rebate Program Provide direct incentive rebates for the implementation of high efficiency natural gas equipment

15 Laclede s Commercial & Industrial Energy Efficiency Rebate Program Who can take part in the rebate program? All Commercial & Industrial (C&I) business customers of Laclede Gas Company under any C&I rate schedule. What defines a Laclede Customer? A customer is an individual active Laclede Gas account or meter. Is there a cap on rebates? $25,000 / customer / program year The Two Types of C&I Rebates: Prescriptive (Standard) pre-qualified list of equipment and services with a fixed rebate amount. Custom Implementation of a natural gas related energy efficiency improvement that does not fall under the prescriptive category. Program Year? (August 1 July 31)

16 Commercial / Industrial Energy Efficiency Prescriptive Rebates Prescriptive Rebate Measures (pre-qualified equipment or service having a set rebate) Condensing Gas Furnaces Low-intensity Radiant Infrared Heaters Water Heaters Space-heating Boilers Steam Traps Boiler Tune-Ups Thermostats Commercial Foodservice Equipment Vent Dampers Continuous Modulating Burners

17 Commercial & Industrial Prescriptive Rebates High Efficiency Furnaces Rebate >= 92% AFUE $200 >= 94% AFUE $250 Low-intensity IR Heaters $300 per heater Vent Damper 50% of equipment cost or $500 cap per boiler, whichever is lower. Continuous Modulating Burner 25% of equipment cost or $15,000 per burner, whichever is lower Thermostat Electronic programmable setback thermostat $40 High-Efficiency Water Heaters Rebate $50 62% 67% EF* Steam Trap Replacements (Max. of 25 failing units per program year). 50% of equipment cost or $2,500 total, whichever is lower. Must include steam-trap survey/failure study report. Rebate $125 67% 82% EF Rebate $200 82% EF * Energy Factor

18 Space Heating Boilers - Prescriptive Rebate Equipment or Service Rated Rebate Gas space heating boiler less than 300,000 BTU/hour input Gas space heating boiler over 300,000 and less than 1,000,000 BTU/hour input Gas space heating boiler over 1,000,000 BTU/hour input Minimum efficiencies (AFUE*): Hot water: 85.0% Over 15 PSIG steam: 81.5% 15 PSIG or less steam: 83.0% Minimum thermal efficiencies: Hot water: 83.0% Over 15 PSIG steam: 81.5% 15 PSIG or less steam: 83.0% Minimum thermal efficiencies: Hot water: 83.0% Over 15 PSIG steam: 81.5% 15 PSIG or less steam: 83.0% $500 /MMBTU/H + $200 /MMBTU/H per percentage point above min. AFUE* (max $750) $500 /MMBTU/H + $200 /MMBTU/H per percentage point above min. efficiency (max $1,500) $500/MMBTU/H + $200/MMBTU/H per percentage point above min. efficiency (max $3,000)

19 Commercial & Industrial Prescriptive Rebates Boiler Tune-ups Equipment or Service Gas-fired boiler tune up Non-profit customers Rebate 75% of the tune-up cost up to $750 per boiler, whichever is lower Gas-fired boiler tune up All other C/I customers 50% of the tune-up cost up to $500 per boiler, whichever is lower Submit a combustion test result completed both before and after tune-up. Boilers are eligible for tune-up rebate every two years.

20 Commercial Foodservice - Prescriptive Rebate Gas Convection Oven 50% of the cost or $200, whichever is lower. Gas Fryers 50% of the cost or $350, whichever is lower. Griddles 50% of the cost or $400, whichever is lower. Gas Steamer 50% of the cost or $475, whichever is lower. Kitchen low-flow spray wash nozzle GPM Rating of 1.6 or less. 50% of the cost or $100 per valve, whichever is lower.

21 C&I Rebate Program Energy Audits An energy audit can qualify for a rebate: Achieves at least an ASHRAE Level 1 Walk-through analysis. Culminates in the implementation of at least one natural gas efficiency measure found in the audit. Must be performed by a certified professional. An audit is not required to receive qualifying equipment rebates. Audit Rebates: Non-profit Customers 75% of the audit cost up to $600 for buildings < 25,000 sq. ft. and $750 for buildings > 25,000 sq. ft. For Profit Customers 50% of the audit cost up to $375 for buildings < 25,000 sq. ft. and $500 for buildings > 25,000 sq. ft. Note: For customers with more than one building per account, there is a limit of 3 audit rebates per customer, per program year. Energy for each audited building must be estimated based on total utility metered use if sub-metered data is not available.

22 Custom Measures Rebates for energy efficiency projects that fall outside the standard portfolio of Prescriptive Rebates... Send us your project design to evaluate Examples: Large EE boiler projects, steam to high-efficiency hot-water boiler replacements, boiler economizers, boiler O2 trim systems, direct-contact water heaters, high-efficiency pool heater, heat-recovery projects, a desiccant system that is replacing a steam or hot water loop for reheat, or even more intriguing, a desiccant operating to recover heat from gas-fired equipment.etc. Project application must be submitted to Laclede for pre-approval prior to implementation. Benefit / Cost Ratio Result 1.0 Simple payback 2 years (no rebate for measures that achieve a payback of less than 2 years) Maximum allowable rebate (per project per account per program year) = $25,000 Rebate amount based on the lesser of: A buy-down to a two year payback $6.63 per MCF saved during the first year.

23 Base Case Equipment Data Units Type/Description Boiler Upgrade 1 Fuel Input 32,148,250 BTU/hr Nominal Efficiency 80.0 % Estimated Peak Output 25,397,118 BTU/hr Operating Hours 2,000 Hrs/Yr Annual Thermal Output 50,794,236,000 BTU/Yr Annual Gas Consumption 64, Mcf Base Case Equipment Cost $413,600 $ Example - Custom Project Evaluation Steam Boiler Upgrade Savings and Rebate Calculations Annual Energy Savings 6, Mcf Incremental Equipment Cost 571,510 $ Annual Participant Savings 74,626 $ Simple Payback ( 2 yrs) 7.66 Yrs Benefit/Cost Ratio ( 1.0) 1.54 Pass High Efficiency Equipment Data Units Rebate Status Approved Type/Description Boiler Upgrade 1 Fuel Input 28,959,085 BTU/hr Nominal Efficiency 87.7 % Estimated Peak Output 25,397,118 BTU/hr Equipment Life 15 Yrs Operating Hours 2,000 Hrs/Yr Annual Thermal Output 50,794,236,000 BTU/Yr Calculated Rebate 25,000 $ Buy-down to two year payback Determination of Rebate $571,510 ($74,626 x 2) = $422,258 $6.63 per Mcf saved 1 st year 6, Mcf x $6.63 = $42,288 Annual Gas Consumption 57, Mcf High Efficiency Equip. Cost 985,110 $ Rebate $25,000 (Cap)

24 Gas & Electric Energy Savings Energy efficiency projects may result in both gas and electric energy savings. Custom projects may offer the best opportunity for dual utility Incentives. HVAC /Central Plant Boiler and Chiller Upgrades Thermal Controls/Occupancy Sensors Demand-Controlled Ventilation (DCV)

25 Luxury Hotel Custom Rebate (Example Case Study) Replaced 935 standard bi-metal thermostats with networked occupancy sensors. Natural gas savings achieved by minimizing heat and fresh air requirements resulting in load reduction on the central gas boilers. Therm savings/year 28,536 KWh Savings/year 787,091 Annual Bill Savings (Gas): $33,367 Investment: $337,236 Simple Payback (Gas): 10.1 yrs. Benefit/Cost Ration: 1.18 Laclede Gas Rebate : $18,919 This project received both an Ameren rebate and Laclede rebate

26 Local Community College Custom Rebates Replaced (1) natural gas hot water boiler (approx. 75% efficient) with (3) AERCO, 93% efficient natural gas hot water boilers operating in parallel and controlled by a boiler management control system. Also installed occupancy sensors in 120 classrooms and integrated to the individual lighting circuits and terminal boxes serving the HVAC to the rooms. Natural gas savings achieved by higher efficiency boilers and minimizing heat requirements resulting from set point controls from occupancy sensors ASHRAE Energy Audit Performed Annual Gas savings (therms): 37,653 Annual Bill Savings (Gas): $44,054 Incremental Equip. Cost: $224,181 Simple Payback (Gas): 5.1 yrs. Benefit/Cost Ration: 2.30 Laclede Gas Custom Rebate : $24,964 (included an energy audit rebate) (Calculated KWh Savings/year as well)

27 Commercial/Industrial Rebate Program: Custom Rebate Case Study Local High School: Converted inefficient steam heat distribution system to a high efficiency hot water heating system. Also replaced inefficient window air conditioners with new chilled water supply/return piping distribution system connecting to a more efficient chilled water system located in the power house. Incremental Gas Equipment Cost: $245,000 Annual Gas Savings (MCF) 3,880 Annual Bill Savings: $35,000 Simple Payback: 7.0 yrs. Benefit/Cost Ratio: 1.52 Gas Rebate Calculation: Incremental Investment $245,000 Buy down to Allowable Payback: $35,000 x 2 yrs. $70,000 Difference: $175,000 Rebate at 2 yr. payback $175,000 Rebate at $6.63 / MCF saved 1 st Yr. 3,880 MCF x 6.63 = $25,724 Total Rebate $25,000 (cap)

28 Commercial/Industrial Rebate Program: Custom Rebate Case Study Manufacturing Plant: Installed burner controllers and oxygen trim on 300 H.P. and 100 H.P. boiler Investment: $96,120 Therm savings/year 21,510 Annual Bill Savings (Gas): $25,162 Simple Payback: 3.8 yrs. Benefit/Cost Ratio: 3.02 Gas Rebate Calculation: Investment $96,120 Buy down to Allowable Payback: $25,162 x 2 yrs. $50,324 Difference: $45,796 Rebate at 2 yr. payback $45,796 Rebate at $6.63 / MCF 2,151 MCF x 6.63 = $14,261

29 Custom Rebate (Example Case Study) A public school district replaced a 10 year old pool heater at the high school with a 97% efficient condensing pool heater. Base Equipment Cost $12,300 (Standard 80% Eff. Heater) High Efficiency Equip. Cost $33,487 Incremental Equip. Cost $21,187 Annual Energy Savings (MCF) Annual Bill Savings $3,963 Simple Payback (years) 5.35 (Payback 2 years) Benefit/Cost Ratio 2.33 (B/C ration 1.00) Laclede Gas Rebate $2,246 *

30 Building Operator Certification Program Building Operator Certification (BOC) is a nationally recognized training and certification program focusing on energy efficient building operations and preventative maintenance procedures BOC was developed by the Northwest Energy Efficiency Council. The Midwest Energy Efficiency Alliance (MEEA) acts as a liaison between each state and NEEC. The Missouri Department of Natural Resources also serves a vital roll in facilitating the Program in the state of Missouri. The BOC credential is recognized by employers across the country as a sign of the value and contributions certified facilities management personnel can bring to their organizations.

31 Series One BOC Course Structure Each course in the series is completed in a one-day training session, except BOC 103 HVAC Systems and Controls, which is a two-day course. To become certified, participants must pass an exam at the end each day of training and complete assigned projects. BOC 101 Building Systems Overview BOC 102 Energy Conservation Techniques BOC 103 HVAC Systems and Controls (2 days) BOC 104 Efficient Lighting Fundamentals BOC 105 O&M for Sustainable Buildings BOC 106 Indoor Air Quality BOC 107 Facility Electrical Systems

32 How does Laclede Fit Into BOC? Building Operator Certification (BOC) training includes nearly 74 hours of classroom and project work (7.4 CEUs) in building systems operation and maintenance. Laclede Gas through the Energy Efficiency Collaborative facilitates the training by providing the venue for the 8 days of training and upon successful completion of BOC provides a rebate of 50% of the tuition cost provided that the participant s employer is a customer of Laclede. Testimonial I found BOC to be one of the most knowledgeable learning experiences I have had in a classroom setting. At that time, I had decided to send my department and they all could not say enough about the classes, Chief Engineer A Marriott Hotel

33 Residential High Efficiency Rebates Measure Rebate $ Programmable Thermostat (7 day, 5+2 or 5+1+1) $25.00 More and more existing home owners and new home buyers are insisting on high efficiency natural gas appliances. Furnace 92%, <96% AFUE* $150 Furnace 96% AFUE* $200 Boiler 90% AFUE* $150 Visit Us At: Water Heater 62% 67% EF** Water Heater 67% 82% EF** Water Heater 82% EF** *Annual Fuel Utilization Efficiency $50 $125 $200 ** Energy Factor

34 Where to Start/How to Apply: LacledeGas.com Micro Site OriginalGreenEnergy.com

35 Prescriptive Rebate Application Custom Rebate Application

36 Growing a 156 Year Old Company Under new leadership, Laclede is focused on growth. Emerging Technologies Investment in Infrastructure Opportunities for Growth Acquisition of Other Utilities Leverage Current Business Unit Competencies

37 Emerging Technologies: Laclede is committed to the advancement of clean fueled vehicles. Investments in accelerating the introduction of compressed natural gas vehicles is becoming a top priority particularly in the heavy duty fleet transportation sector. The Laclede Group is teaming with the Building Technologies Division of Siemens Industries to launch Spire Natural Gas Fueling Solutions.

38 How to Apply/Obtain More Information Go to: Contact Laclede Gas Commercial & Industrial Marketing Phone us at: Contact Applied Energy Group (AEG), Inc. Phone: Thank You!