2017 AEP Ohio Business Incentive Programs

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1 2017 AEP Ohio Business Incentive Programs

2 Consolidated Outreach Cover all EE programs, one stop shop Do you know who your assigned Energy Advisor is? Opportunity assessments- walk through We are here to help you with all of your EE projects and applications.

3 Efficient Products for Business Lighting Measures

4 Efficient Products for Business HVAC Measures

5 Efficient Products for Business VFD Measures on Pumps and Fans

6 Efficient Products for Business Motors

7 Two facility use types 2017 Advanced Lighting controls Low lumen output fixtures/high fixture density (office, classroom) High lumen output fixtures/low fixture density (warehouse, manufacturing) LED with controls & data retrieval 2017 incentives Low lumen output fixtures/high fixture density (office, classroom) at $0.75/sq. ft. High lumen output fixtures/low fixture density (warehouse, manufacturing) at $0.30/sq. ft.

8 Process Efficiency Process Efficiency (formerly Custom) $0.07 per kwh saved Most projects are typically process related Can t find it on the Process Efficiency for Business Program menu $25K per measure threshold (above at 2 /kwh) Pre application required

9 Process Improvement All plant process and productivity improvements energy intensity (kwh/product unit) will be used to compare pre and post. Improvement in energy intensity will be considered for incentives even if there is only a slight increase in energy usage. Removal of bottle neck(s) in the production flow to improve productivity adding new equipment may improve the total plant productivity and energy intensity process upgrade in Water/Wastewater Treatment plants"

10 Process Efficiency Improvement (Membrane Upgrade) at Delphos Wastewater Treatment Plant

11 Delphos Wastewater Treatment Plant Projects Summary Measure Year Completed Annual Energy Savings (kwh) Annual Cost Savings Incentive Lighting Retrofit ,831 $565 $425 Lighting Retrofit ,276 $82 $112 Blower Replacement ,108,774 $70,962 $66,526 Lighting Retrofit ,845 $438 $1,144 Lighting Retrofit ,790 $179 $360 Motor Replacement ,400 $10,714 $12,696 Membrane Upgrade ,117,012 $263,489 $97,286 Totals 5,412,928 $346,429 $178,549

12 Incentive Process Step 1 identify a project contact EA Step 2 get a proposal, ROI, calculate incentives Step 3 internal approval and work on submitting pre application w/ EA Step 4 implement project and submit final application/invoices = GET PAID

13 Efficient Financing for Business Program Works across multiple products: Capital Leases, PACE, Tax Exempt Municipal Financing, Energy Service Agreements And with multiple, vetted, capital providers: To bring you the best financing arrangement for every kind of job, From $1,000 to Multi million dollar deals

14 Financing Start Now Close more jobs by offering a finance based payment plan Combining incentives with low interest rates mean many projects will cash flow on day 1 HBC Energy Capital makes financing easy Fill out a finance request: Call: (720) or, Info@hbcenergycapital.com

15 Continuous Energy Improvement - CEI Program 2017 Cohort Opportunities

16 Energy Efficiency Programs Prescriptive Programs Process Efficiency (Custom Program) New Construction Program RetroCommissioning Program (RCx) Self Direct Program Express Program for Small Business Customers Data Center Program Continuous Energy Improvement Program (CEI)

17 Energy Management s Time has Come Early 1900 s Today Safety Quality Lean Six Sigma Energy Environment Sustainability Management Evolution

18 CEI Process Employee Engagement Events Employee Ideas Communications Training Management Involvement Assign Executive Sponsor Assign Energy Champion Energy Policy & Goals Form Energy Team Energy Team Planning Energy Plan Master Calendar Team Reports Assessment Improvement Process Opportunity Register Prioritizing Projects Energy Scans Energy Audits Measurement Baseline Data MT&R Model Analysis Communications

19 CEI Key Elements Structured Network Group Employee Engagement Performance Tracking Using Energy Model Workshops (One Year Period) Coaching and Technical Resources Lean and Six Sigma Principles Executive Sponsor Tools and Materials Focus on No/Low Cost Measures Program Length: 12 month Rebate: $0.02 / kwh reduced

20 20 CEI Tools and Techniques Energy monitoring data logging Energy mapping 9 Energy Wastes awareness, training Other training and awareness aids Toolbox Talk Cards, Tip Sheets, Energy Opportunity Tags ADKAR change management model Employee engagement events Kaizen Event Energy Scan Maturity Model Energy Management Assessment

21 21 Performance Tracking Using Energy Model Cumulative sum of differences (CUSUM)

22 2016 CEI Results 100 Total Participants Manufacturers Hospitals Universities Cohorts Companies 54 GWh Cohorts Companies 54 GWh Cohorts GWh Savings

23 No/Low Cost Example 1 VOC (Volatile Organic Compound) Stripping Towers Outgas well water before using in the process. Shut down blowers not needed to maintain EPA levels. Turn off 4 40hp motors running 24x7. $35,000/yr. savings. Barley Malting Processing Facility

24 No/Low Cost Example 2 Electric Heated Curing Oven Ran 24/7. Capable of higher throughput. Change schedule to run daily product on one shift. Saved 8% on total electricity bill. Window Manufacturing Facility

25 Is the Opportunity and Timing Right? Support from top management Benefits worth the effort Enthusiastic energy champion Resource bandwidth Production data to support model Employee engagement in process improvement

26 Efficient Program Design Add energy to existing activities Workshops designed to do work Don t create another program NO Fees ($) CEI program resources help carry the load NO Penalties

27 Next Steps? Verbally Commit Sign the Enrollment Agreement Identify Executive Sponsor Identify Energy Champion Schedule and Attend Kick Off Event March April 2018 Location TBD

28 CEI Participant Comments CEI has given us metrics we have not had before. In the past all we had was our bills and now we have a model to predict our energy usage. The CEI program has been invaluable in helping identify opportunities and quantify energy savings results. This program has resulted in significant savings through the first year of application. By soliciting ideas from the plant employees, as well as listening to the free experts brought in by the CEI program we realized that many improvements could be made to further reduce energy without much capital investment. The CEI program enabled us to achieve some energy savings that we would not necessarily have achieved without it. It served as a driver to look deeper into ways to save. CEI provided us with the most comprehensive feedback we have been given regarding our readiness for ISO CEI is the perfect program to help us become ISO compliant. We definitely would not have recognized all the improvement opportunities without the CEI program. Another benefit to the CEI program was being able to share information with other industrial group members of our cohort and we were able to get several ideas from them as well. The Cohort meetings were a great way to learn about the initiatives at the other plants.

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