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1 Agenda Thank you Act 129 and Duquesne Light s goals and plan and budget Rates Commercial Market Segments and goals Programs How do I get a rebate? Why I m happy to be a Duquesne Light customer today 3/11/
2 On October 15, 2008, Governor Rendell signed HB 2200 into law as Act 129 of The Act expands the PA Public Utility Commission s responsibilities and imposes new requirements on electric distribution companies (EDCs), with the overall goal of reducing energy consumption and demand. The law requires that each Pennsylvania EDC with at least 100,000 customers implement an EE & C & DR plan. 3 Energy Efficiency and Conservation and Demand Response (EEC & DR) Plan had to be filed by July 1, 2009 to meet the following goals: Energy Consumption Reduction by May 31, % 422,565,351 kwh by May 31, % 140,885,117 kwh Peak Load Reduction - by May 31, % 113 MW For summer peaking utility the deadline is Summer 2012 Mandatory penalties of between $1 million and $20 million to paid by any EDC that does not succeed in meeting the reductions. 2
3 Plan must demonstrate that it is cost-effective by having a Total Resource Cost greater than one. Total Resource Cost calculation is a specialized benefit/cost analysis. Duquesne is looking at the Total Resource Cost of each project being considered for rebate. Subsequent phases of the Commission s Act 129 implementation process will address EDC and default service provider responsibilities conservation service providers SMART METER TECHNOLOGY TIME-OF-USE RATES real-time pricing plans default service procurement market misconduct alternative energy sources cost recovery 3
4 The total cost of the plan could not exceed certain % of the EDC s revenue $78,183,806 over 3.5 years Law allows EDC to recover cost of the plan through rates. Commercial customers pay for programs for commercial customers; residential customers pay for programs for residential customers, etc Forecast 3-1/2 Year Energy Use (kwh) EECDR Plan Funding Residential 4,276,840,291 30% $25,735,926 33% Commercial 6,852,783,429 49% 37,280,984 48% Industrial 2,914,124,575 21% 15,166,895 19% Total 14,043,748,296 $78,183,806 3/11/
5 Monthly Surcharge applicable to the customer s Peak Load Contribution. Act 129 Rates Customer Class Applicable Tariff Rate Schedule /kwh Residential RS, RH, RA 0.23 Small & Medium Commercial Small & Medium Industrial GS, GM & GMH 0.11 GM & GMH 0.20 Fixed Charge $/Month $/kw Based on customer s Peak Load Contribution Large Commercial GL, GLH, L $ $0.87 Large Industrial GL, GLH, L, HVPS $ $0.59 Lighting AL, SE, SM, SH, PAL 0.00 Unmetered UMS 0.00 PA PUC has required each Plan include at least one energy consumption reduction and one demand reduction program for each customer class (residential, commercial, industrial) 10% of the reductions must come from government, institutions of higher learning, and non-profit customers. There must be specific measures for low-income households (measured at below 150% of poverty level) and these must be in addition to LIURP expenditures already made by the EDCs 3/11/
6 Duquesne s Plan On July 1, 2009, Duquesne Light filed its proposed Energy Efficiency and Conservation and Demand Response Plan with the PUC. The plan was approved October 28, 2009 with slight modifications. The modified plan was submitted on December 23, School Energy Pledge program launched Fall Semester 2009 Web site launched December 1, Residential refrigerator recycling launched December 1, Commercial programs launched January /11/ COMMERCIAL PROGRAMS Education Office Buildings Healthcare Retail & Restaurants Govt/Public Agency/Non-profits Umbrella 6
7 Commercial Customers Energy Savings Targets May 31, 2011 May 31, 2013 (kwh) (kwh) Education 10,557,498 24,634,161 Office Buildings 46,251, ,521,087 Healthcare 17,093,091 39,883,880 Retail/Restaurant 18,601,305 43,403,046 Govt/Non-profit 26,920,191 62,813,778 Umbrella 8,043,808 18,768,885 Total Commercial 127,467, ,024,837 Total DL Reduction 244,151, ,349,629 Mandated Goal 140,885, ,565,351 3/11/ Commercial Customers The commercial energy efficiency programs have 2 subprograms 1. Prescriptive Rebates List of 121 items on rebate catalog including motors, lighting, refrigeration with a per unit rebate amount given 2. Customized Incentives For projects not covered by prescriptive rebate list. Incentive amount based on kwh saved per year 3/11/
8 Prescriptive Rebates 1. Purchase and install item(s) from rebate catalog 2. Complete rebate application and submit associated paperwork (info about replaced items too) 3. Installation may be audited by Duquesne Light representative 4. Check mailed to you * Limit on quantity, dollar amount if large becomes a customized incentive 3/11/ Customized Incentives 1. Detailed project description submitted to Duquesne Light 2. Duquesne Light notifies you of incentive amount 3. You sign Customer Incentive Agreement promising to install project, then Duquesne Light reserves the funds 4. You purchase and install equipment 5. You notify Duquesne Light of project completion 6. Project is audited by Duquesne Light to be certain it was built as expected 7. Incentive check mailed to you 3/11/
9 CSP Conservation Service Provider CSPs have customer segment specific knowledge. CSPs are paid for performance (kwh saved) by Duquesne Light. CSPs help customers identify and analyze EE projects and get them processed by DL. Education Segment s CSP is: Dave Defide Manager, Energy Efficiency & Demand Response Duquesne Light Co. ddefide@duqlight.com /11/ DEMAND RESPONSE PROGRAM for COMMERCIAL CUSTOMERS Coming soon! 3/11/
10 Also: More than one project/rebate per customer - okay Alternative supplier (EGS) okay Other funding/tax breaks great Realities New program learning curve Cash for clunkers? Auditing plan now for who will answer auditor s questions 3/11/ Big Picture Benefits financial benefit of lower electric bills for years not just incentive amount environmental benefits of reduced power plant emissions societal benefits of not wasting energy or limited resources needed to produce electricity 3/11/
11 Why I m happy to be a Duquesne Light customer today No dark cloud of impending rate cap removal Surcharge for Energy Efficiency programs didn t start until December 1 Duquesne Light sent a representative today to help my institution benefit from Watt Choices. 3/11/ /11/
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