WELCOME. Association of Energy Service Professionals Chicago Chapter. Event Sponsor: 2 nd Quarter Meeting

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1 WELCOME Association of Energy Service Professionals Chicago Chapter 2 nd Quarter Meeting Event Sponsor:

2 Agenda June 24, :30 5:50 pm Sign-in and Networking 5:50 6:00 pm Chapter Updates 6:00 7:00 pm Panel Discussion 7:00 7:30 pm Networking Reception Remember to grab drinks & snacks throughout!

3 Thank you West Monroe Partners, LLC for sponsoring tonight s meeting!

4 West Monroe Partners We are driven by opportunities to contribute to our clients commercial success. We partner with clients to help generate revenue, reduce costs and transform their thinking, operations, and capabilities. We are at our best when our clients objectives demand tightly managed efforts that make direct progress toward clear business purposes. We are deep technical experts. We are uniquely able to help you understand how technology can form and transform transactions, operations, and customer experiences. A good number of us even code. BUSINESS CONSULTANTS DEEP TECHNOLOGISTS 2015 West Monroe Partners Reproduction and distribution without West Monroe Partners prior consent is prohibited.

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6 AESP Membership Types Chapter Membership only $45 per year This entitles you to member pricing for all local chapter events National Membership (Chapter membership included) $195 per year Member pricing for all chapter events Member pricing for all national AESP events Full AESP member benefits (free Brown Bag webinars, publications, and access to Resource Library, Supplier Directory, Member Directory, and more) Each chapter, per AESP bylaws, is required to charge dues.

7 AESP National Membership Individual Membership is offered for: 1 Year - $195 Group Membership: if your organization has several staff associates interested in the benefits of AESP membership Point system Group Memberships are available at the following levels (point system based): Bronze-level $2,000: 12 points Silver-level $5,000: 32 points Gold-level Platinum-level $10,000: 68 points $20,000: 130 points If you would like to become a group member, please contact Suzanne Jones at (480) or suzanne@aesp.org.

8 AESP National Membership National Membership Benefits: Over 20 AESP Brown Bag Webinars a year free for members Three Conferences a year discounted rate for members Resource Library online access to past webinars, conference papers, PowerPoints Topic Committees Local Chapters Strategies magazine Member Directory Supplier Directory Training Courses Job and RFP Listings

9 AESP Spring Conference Recap Implementation & Technology The Great EEnablers May 19-21, 2015, Portland, OR

10 AESP Summer Meeting

11 Save the Date! Second Annual AESP Chicago Rooftop Party, Aug 13 5:00 8:00pm

12 Call for Sponsors!

13 $500 per company Support the Chapter while growing your business

14 Upcoming Training Also on Aug 13: First time ever full-day Principles of Demand- Side Management training M. Sami Khawaja, executive consultant at Cadmus 40% discount for members!

15 Panel Discussion Illinois Energy Legislation: What is under consideration & what could it mean for your business?

16 Panel Discussion Moderator: Paul DeCotis, Director and Head of West Monroe Partners' East Coast Energy & Utilities Practice Panelists:

17 Illinois Clean Jobs Bill Jen Walling Executive Director Illinois Environmental Council

18 Illinois Environmental Council The Illinois Environmental Council has served as the eyes, ears, and voice of the Illinois environmental community before the state legislature since 1975.

19 Clean Power Plan 30% reduction in carbon emission from the power sector by Illinois s plan is set for 33% reductions by 2030 from 2015 levels. Building blocks Coal plant efficiency Fuel switching Renewables/Nuclear Energy Efficiency

20 Energy Efficiency Resource Standard Established the Energy Efficiency Resource Standard (EERS), requiring natural gas and electric utilities to reduce their annual energy rates and peak demand. Electric sales reduction of 2% by 2015 and holding at 2.0% every year thereafter. Electric utilities must implement cost-effective measures to reduce demand peak by 0.1% over the prior year for a period of ten years. Natural gas reductions must reach 1.5% by 2019, increasing 1.5% each year thereafter.

21 Renewable Portfolio Standards Requires specified EUs to generate a certain percentage of electricity from renewable sources. Renewable sources must make up 25% of the overall retail electric sales by Wind energy must make up 60% and solar must make up 6%.

22 Clean Energy Jobs in Illinois Over 100,000 Illinois workers are employed in clean energy jobs (wind turbines and solar panels, electric vehicles, and smart thermostats), more than the state s real estate and accounting sectors combined. Energy efficiency accounted for almost 62% of the jobs, while renewable energy accounted for 28%.

23 2015 goals Renewable Energy Fix the RPS Ramp up to 35% by 2030 Energy Efficiency 20% reduction in demand Carbon Framework Cap and Invest Renewables and efficiency, job transition, environmental justice, LIHEAP

24 Energy Efficiency Implement the cumulative standard through regular 4-year planning process with ICC oversight to ensure that the energy efficiency portfolios are cost-effective. Ensure that residents and owners of affordable housing full participate in cost savings by setting aside a specific portion of the efficiency budgets. Allow non-utility energy efficiency service providers a fair opportunity to compete to deliver savings. Align financial regulation of electric utilities with the goal of capturing all of the cost-effective potential for energy efficiency. Expand successful on-bill financing programs so that private capital can be better leveraged to support energy retrofits. Make time-of-use and real-time pricing more customer-friendly.

25 Renewable Portfolio Standards Make the RPS work: We are not meeting our current goals because our vintage standard did not anticipate changes in the marketplace. We need to fix the technical glitches in the statute and simultaneously allow the Illinois Power Agency to use a longer-term planning horizon to make sure our ratepayer dollars are used effectively. Raise the Renewable Portfolio Standard: Elevate the RPS from the current goal of 25% by 2025 to 35% by A stronger and longer commitment sends a strong signal to investors to come into Illinois for good. Targeted investments in solar on blighted brownfields, rooftop solar, new wind, community solar for ratepayers without rooftop access, and a robust solar program for low-income families. Keep the 2% rate cap in place to keep it cost effective.

26 Carbon Framework To provide the Illinois EPA the toolkit to best limit carbon emissions, this bill would authorize the agency to create a mass-based cap and invest market, should the Illinois EPA deem it to be, after a rigorous stakeholder process, a costeffective option for reducing carbon emissions. Should the Illinois EPA move forward, an auction system for allocating emissions allowances to carbon emitters would be created and the proceeds of this auction would be directed to areas where it is needed most direct bill assistance for families, investments in renewable energy and energy efficiency, and clean energy job transition assistance.

27 Cost Studies Citizens Utility Board found that Illinois customers would save $1.6 billion by 2030 under energy efficiency measures called for under the legislation. Union of Concerned Scientists (UCS), which estimated that the Illinois Clean Jobs bill would save consumers 11% (or $10 per month) in 2020, with the savings increasing to 23% (or $22 per month) by The cumulative savings to all Illinois energy consumers over that period would total $12 billion.

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29 Job Benefits

30 Contact Info Jen Walling

31 Deconstructing Energy Legislation Melville Nickerson Executive Director Accurate Strategies, LLC

32 Deconstructing Energy Legislation June 24, 2015 Melville Nickerson Accurate Strategies, LLC

33 Senate Bill 1585 Low Carbon Fuel Portfolio Standard would create a tradable credit in 1MW units from the following types of low carbon electric generation units: nuclear, solar thermal, solar PV, tidal energy, wave energy, hydro and clean coal generation. Legislative Restrictions Illinois and surrounding states hydro less than 3MW no rate-based projects no power purchase agreement over 5 years credits restricted to a single portfolio standard clean coal projects 70% CCS (June May 2018) 90% CCS (June May 2021) must meet minimum internal resource requirement for capacity established by RTO Eligible Low Carbon Electric Generating Units Exelon s nuclear power plants in the PJM territory: Byron, Braidwood, LaSalle, Quad Cities and Dresden Melville Nickerson Accurate Strategies, LLC

34 Senate Bill 1585 Possible Market Based Solutions that may negate the Low Carbon Portfolio Standard USEPA Clean Power Plan will require states to reduce C02 emissions from electric power plants creating new market opportunities for Illinois nuclear power PJM capacity auctions prices are expected to increase similar to MISO capacity auction prices PJM and MISO reliability must run contracts act as a safety net to ensure Exelon nuclear power plants remain operational Melville Nickerson Accurate Strategies, LLC

35 Senate Bill 1879 & House Bill 3328 Proposed amendments to the Illinois Power Agency and Public Utilities Acts: Voltage Optimization qualifies as an energy efficiency measure and allows utilities to earn a profit 2018 electric utilities take over DCEO low-income and public sector programs 2018 residential customers would pay demand-based rates on their peak demand Community solar projects encouraged through socialized cost recovery and customer aggregation Brownfield solar projects encouraged in non-attainment area via RPS carve-out RPS fix authorizes electric utilities to purchase RECs when IPA budget falls short to ARES customer migration Net metering limited to 1:1 credit for residential and small commercial customers Creates demand-response resource program development $100M to invest in 5K electric vehicle charging stations $300M to invest in 6 microgrids Melville Nickerson Accurate Strategies, LLC

36 Energy Legislation... a pathway forward Clean Power Plan expanding energy markets: Low carbon electricity generation Energy Efficiency Climate change and technology: mirogrids Energy storage smart grids Demand-response resources Melville Nickerson Accurate Strategies, LLC

37 Accurate Strategies LLC Melville Nickerson Melville Nickerson Accurate Strategies, LLC

38 Regional Overview of Energy Efficiency Policies Stacey Paradis Executive Director Midwest Energy Efficiency Alliance

39 Regional Overview of Energy Efficiency Policies Association of Energy Services Professionals June 24, 2015

40 Midwest Energy Efficiency Alliance (MEEA) MEEA is a collaborative network whose purpose is to advance energy efficiency to support sustainable economic development and environmental preservation. Founded in 2000 to bring strategic partners together to improve market conditions for energy efficiency. 3

41 MEEA s Role in the Midwest Nonprofit serving 13 Midwest states: IL, IN, IA, KS, KY, MI, MN, MO, NE, ND, OH, SD, WI Actions: Advancing Energy Efficiency Policy Facilitating Energy Efficiency Programs Coordinating Utility Program Efforts Delivering Training & Workshops Evaluating & Promoting Emerging Technologies Promoting Best Practices 4

42 $Billions Estimated Annual Utility Investment in Energy Efficiency in the Midwest $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Earlier Statewide EE MN 1983 Pilot legislation 1991 CIP requirement adopted Earlier Statewide EE IA 1990 Initial legislation 1996 Legislation updated Earlier Statewide EE WI Public Benefit Fund Adopted EERS Legislation IL Electric MN Electric, Gas EERS Legislation IL Gas Admin Order IN Electric Voluntary Standard Legislation MO Electric EERS Legislation MI Electric, Gas OH Electric Exec Order IA Gas, Electric Admin Order WI Elec, Gas Legislative Committee WI EERS adjusted Legislation IN EERS overturned OH EERS frozen $1.78 $1.40 $0.38

43 Midwest Efficiency Targets and Funding Levels North Dakota South Dakota Nebraska Kansas Voluntary energy efficiency only Minnesota 1.5% elec by % gas by 2010 (gas goal reduced by commission) Iowa Set on a utility basis 1.2% elec current plans 0.85% gas current plans ND SD NE KS Missouri IRP process; Voluntary electric Wisconsin No specific targets 0.6% elec current est. 0.5% gas current est. MN IA MO WI IL IN Illinois 2% elec by % gas by 2017 Fund sweep of State program proposed 2010 $1.01 billion 2015 $1.78 billion MI KY OH Michigan 1% elec by % gas by 2012 Legislative rollback proposed Indiana Overturned 2014 Future legislation & funding unclear Ohio Two-year freeze after Future legislation & funding unclear. Kentucky Voluntary electric and gas

44 Midwest Efficiency Savings - Electric Wisconsin No specific targets 0.6% elec current est million MWh million MWh North Dakota South Dakota Nebraska Kansas Voluntary electric efficiency only Minnesota 1.5% elec by 2010 Iowa Set on a utility basis 1.2% elec current plans ND SD NE KS MN IA MO WI IL IN MI KY OH Michigan 1% elec by 2012 Indiana Overturned Future legislation & funding uncertain Ohio Two-year freeze after Future legislation & funding uncertain Missouri IRP process; Voluntary electric Illinois 2% elec by 2015 Kentucky Voluntary electric efficiency only

45 Midwest Efficiency Savings Natural Gas Wisconsin No specific targets 0.5% gas current est million therms million therms North Dakota South Dakota Nebraska Kansas Voluntary gas efficiency only ND Michigan 0.75% gas by 2012 Minnesota 1.0% gas by 2010 (gas goal reduced by commission) Iowa Set on a utility basis 0.85% gas current plans SD NE KS MN IA MO WI IL IN MI KY OH Indiana Overturned Future legislation & funding uncertain. Ohio Voluntary gas efficiency only Missouri Voluntary gas efficiency only Illinois 1.5% gas by 2017 Kentucky Voluntary gas efficiency only

46 Existing Illinois Policy Framework Rate Cap Limits EE Investment Energy efficiency in Illinois is limited by a rate cap Example of How Rate Caps Limit EE The utilities are not allowed to spend in excess of the amount which would cause rates to rise above the capped percent Even if this means that they cannot reach their mandated efficiency targets Currently, this limits Illinois utilities to about 1.0% annual savings. 9

47 Trends in the Midwest Energy Efficiency Resource Standards are under attack: IN repealed the EE standard mandate April 2014 OH froze the EE standard mandate June 2014 Energy Mandates Study Committee in place Committee Recommendations September 2015 MI considering Integrated Resource Planning (IRP) instead of EE mandate MN legislature considered recent proposal eliminating the CIP standard States mandatory or voluntary EE standards are administered by the utilities within the states, except for IL (state administration) and WI (3 rd Party administration). The emergence of natural gas, renewables and energy efficiency investments is driving the cost of nuclear energy facilities way up. 10

48 Proposed IL Legislation HB 2607/ SB 1485 (Clean Jobs Bill) Raises EE standards and RPS Expands on-bill financing Market based strategies to reduce carbon pollution HB 3293/ SB 1585 (Exelon Bill) Requires utilities to purchase low-carbon energy credits equivalent to 70% of the utility's annual retail sales Includes ratepayer-funded bailout to avoid nuclear facility closures HB 3328/ SB 1879 (ComEd Bill) Utilities takeover administration of low-income and public facilities EE programs in 2018 Microgrids, community solar, energy efficiency products 11

49 Summary: How You Can Get Involved Lots of good stuff going on: Attend (and sponsor) the Aug 13 Rooftop Event Attend the Principles of Demand Side Management one-day course, also Aug 13 Lead development of our new Chapter Mentorship Program Sponsor the November Q event Remember: This is YOUR Chapter let us know what you want to see!

50 Save the Date! Second Annual AESP Chicago Rooftop Party, Aug 13 5:00 8:00pm

51 Upcoming Training Also on Aug 13: First time ever full-day Principles of Demand- Side Management training M. Sami Khawaja, executive consultant at Cadmus 40% discount for members!

52 THANK YOU FOR ATTENDING! Questions? Jamie Peters, AESP Chicago Chapter President Director of Client Solutions, EnergySavvy Event Sponsor: