PG&E ADR Incentive Program

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PG&E ADR Incentive Program SVLG Energy Committee 9/25/2014 "PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 2014 Pacific Gas and Electric Company. All rights reserved. These offerings are funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.

Agenda Auto-DR is a great way to help customers easily participate in demand response events PG&E ADR Program Team Demand Response Automated Demand Response PG&E ADR Incentive Program

ADR Program Team Core Program Management Fred Yoo, PG&E Program Implementation Energy Solutions ASWB Engineering Technical Advisor Lawrence Berkeley National Lab 2

Demand Response Demand response is a short-term shift or reduction of electricity use in response to utility peak demand or other system needs 2

Manual Demand Response You manually reduce electric load Labor intensive Neglected when staff resources are not available Measures may vary for each DR event 2

Automated Demand Response PG&E Demand Response Automation Server (DRAS) Business Client EMS HVAC Lighting Machines

ADR Client o o o o Client must be Open ADR 2.0A or 2.0B certified OpenADR is a standardized, open, communication protocol www.openadr.org/certified-products Currently 59 certified products

Automated Demand Response Benefits for customers include: Improved performance in DR events Increased control of the building s operation year-round Operational Efficiency: enhanced monitoring and maintenance of current electric energy systems Lower utility bills through strategic usage management to reduce demand charges ADR technology incentives can make projects more financially viable Increased corporate citizenship by helping to prevent blackouts and brownouts Reduce peaker power plant emissions, improve air quality, reduce greenhouse gases 3

Two Sources of Funds for Auto-DR DR Program Participation ADR Technology Incentive PDP, DBP, CBP, AMP Ongoing revenue from shedding load during DR events One time incentive to help offset costs for hardware and software that enable ADR

Demand Response Programs Programs for businesses to save money and help California meet energy demand ADR Eligible DR Programs Business Programs Peak Day Pricing Plan (PDP) Demand Bidding Program (DBP) Aggregator Programs Capacity Bidding Program (CBP) Aggregator Managed Portfolio (AMP)

ADR Program The ADR Incentive Program makes it easy for customers to automatically participate in DR events. The program offers: Incentives Technical Services Customer Application Assistance 2

ADR Program Incentive Structure Incentives are based on calculated kw peak load reduction Program promotes projects that include energy efficiency and demand response Technology Category Incentive Rate ($/dispatchable kw) Automated Demand Response $200 Advanced Technology HVAC $350 Advanced Technology Lighting $400 TENTATIVE 2015-2016 Incentives: $7 million

Incentive Structure 1st Payment: 60% provided once equipment is installed and verified 1 st Payment: 60% 2 nd Payment: 40% 2nd Payment: up to 40% based on customer meeting performance goal

ADR Program For up-to-date program information visit: www.pge-adr.com

ADR Eligibility Requirements Requirements to be eligible for ADR Program incentives Non residential customer Electric services from PG&E Interval meter installed (required before incentive payment) Existing account with 12-24 months billing and usage data Enrolled or eligible to enroll in PG&E DR programs Project is new equipment that provides incremental kw and kwh reductions New equipment or systems not already installed Stay enrolled in DR program for 3 years after receiving incentive

Common Auto-DR Strategies 1. Temperature Adjustment (HVAC) 2. Dim or Shut Off Non-Essential Lighting 3. Curtail Industrial Processes (manufacturing) 4. Curtail Refrigeration Load (cold storage) 5. Cycle Off Rooftop Package Units (HVAC) 6. Curtail Battery Chargers (forklifts, carts, manufacturing) 7. Limit Air Handler Fan Speeds

ADR Program Project Milestones Screening and Enrollment Project Approval Installation Load Shed Verification First Incentive Payment DR Season Performance Second Incentive Payment Continued Customer Service 7

Thank You ADR Program Contact: Christine Riker, Energy Solutions (510) 550-8513 criker@energy-solution.com