UTILITY COMPANY PROGRAMS
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1 UTILITY COMPANY PROGRAMS Jonathan Livingston (Moderator), President and Founder, Livingston Energy Innovations Neil Sybert, Senior Energy Programs Advisor, Customer Programs Department, SDG&E Leticia Ayala, Customer Programs Advisor, Southern Cal Gas Company Robyn Zander, Project Manager, Energy Efficiency Division, Southern California Edison Richard Jett, Manager, Market Segment Solutions, Energy Efficiency, Southern California Edison
2 UTILITY COMPANY PROGRAMS Neil Sybert, Senior Energy Programs Advisor, Customer Programs Department, SDG&E
3 Presented to TRIO Symposium March 12, 2010
4 Implementing Utility Energy Efficiency Programs Third Party (3 rd Party) Programs Part of the utility Energy Efficiency Portfolio of programs filed with the California Public Utilities Commission (CPUC) Page 4
5 Request for proposals (RFPs) for utility designed energy efficiency programs or services For economic reasons Vendor better suited to provide service Consulting services Page 5
6 What is a 3 rd Party Program? Non-IOU implementers (Energy Efficiency Contractors EEC) responsible for designing and delivering the program rather than implementing an IOU-designed program Why is it important? Competitively bid Energy Efficiency (EE) Programs intended to identify innovative approaches or technologies to improve investor owned utility (IOU) portfolio performance These programs would focus on new program ideas to achieve or exceed the Commission s savings goals Performance or Non-Performance by the EEC is part of the CPUC s evaluation of utility overall EE portfolio performance Page 6
7 The CPUC has directed that a 20% minimum of all IOUs portfolio budgets be designated for 3rd Party Programs Page 7
8 13 contractors managing 14 programs Types of Programs offered Non-resource programs (informational programs): 4 Resource programs (programs that provide energy savings): 11 Program Markets Residential: 4 Non-Residential: 9 Page 8
9 Planned RFP for 3 rd Party Commercial Sector Program The RFP will be posted on our web in the near future Those interested can provide me a card need address SDG&E is encourages Diverse Business Enterprises (DBEs), which are businesses that are one of the following: 51% minority owned business 51% service disabled veteran owned business 51% women owned business Must be certified by the CPUC Page 9
10 UTILITY COMPANY PROGRAMS Leticia Ayala, Customer Programs Advisor, Southern Cal Gas Company
11 Contracting Opportunities in Energy Efficiency at SoCalGas 12 March 2010 TRIO Symposium 2006 Southern California Gas Company. All copyright and trademark rights reserved"
12 Third Party Programs in the SCG Portfolio The CPUC has directed that a 20% minimum of all IOUs portfolio budgets be designated for Third Party Programs
13 Third Party Programs in the SoCalGas Portfolio CPUC Definition of a Third Party: Non-regulated implementers of ratepayer funded energy efficiency activities SoCalGas is responsible for Administration and performance of the EECs as part of our portfolio performance Performance or Non-Performance by EECs is part of the CPUC s evaluation of SoCalGas Overall Performance
14 Cycle Third Party Programs 17 contractors managing 18 programs Programs offered Non-resource programs: 7 Resource programs: 11 Program Markets Residential: 8 Non-Residential: 4 Cross-cutting: 6
15 Other Opportunities for Contractors at SoCalGas Contractor for Core or Partnership programs Consultant for Energy Efficiency programs
16 Current Opportunities for Contractors Energy Efficiency Contracting information available at: No open RFP s at this time If you are interested in SoCalGas future Energy Efficiency solicitations please visit and register at: to receive a Call for Abstracts document
17 UTILITY COMPANY PROGRAMS Robyn Zander, Project Manager, Energy Efficiency Division, Southern California Edison
18 Third Party Solicitation Process Southern California Edison Technology Resource Incubation Outreach March 12,
19 Overview Purpose The Approach Multiple Flights and Solicitations Statewide Bid Portal 19
20 Purpose To procure the most cost-effective and reliable energy savings in support of the current Energy Efficiency Program cycle. Key objectives: Focus on new innovative program ideas Improve the quality of the proposals and to ensure reliable, cost-effective programs are selected 20% of all IOUs portfolio budgets must be third party Encourage Divers Business Enterprise ( DBEs) 20
21 The Approach Statewide vs. Local Statewide Solicitations Occur on a statewide level (i.e., all IOUs participate) Local Solicitations Occur within an individual IOUs service territory Independent from other IOUs Each IOU responsible for document creation and distribution to bidders 21
22 The Approach Types of Third Party Statewide solicitations: General Solicitation Allows bidders to submit EE proposals without direction from IOU Calls for a two-stage submittal process, Release one RFP, One IOU takes lead on the development and release of RFP in close coordination with all participating IOUs Common scoring criteria Targeted Solicitations: Provides potential bidders opportunity to respond to a general scope of work (e.g., - market segment-based, strategy-based, etc.) Calls for a one-stage process, Release one RFP per targeted solicitation, multiple targeted solicitations One IOU takes lead on the development and release of RFP in close coordination with all participating IOUs Common scoring criteria 22
23 Statewide Bid Portal Common solicitation process with a Web-based solicitation portal (PEPMA) Web-base solicitation portal is used for bidders to register for receiving RFPs Allows bidder to upload electronic proposals and store electronic versions of solicitation documents in each IOU virtual room Each IOU independently scores their proposals SW RFPs 3 rd Party Bids Bid Portal ** IOUs Review & Score IOUs Submit Selections to CPUC Peer Review Group Oversight **One Lead IOU designee per SW RFP 23
24 UTILITY COMPANY PROGRAMS Richard Jett, Manager, Market Segment Solutions, Energy Efficiency, Southern California Edison
25 SM Energy Efficiency Business Portfolio Richard Jett
26 SM Unleashing the Power of IDSM Providing Customers a More Efficient, Better Integrated Suite of DSM Products and Services Aligning the entire sales and marketing value chain Unleashing the Power New energy management guides Integrated application and fulfillment process Redesigned Web site Application access through multiple channels 26
27 SM What s New? IDSM Marketing Material & Application - Support and accelerate the customer decision making process from awareness to action Expanded Portfolio of Services - Audits, Benchmarking, Continuous Energy Improvement (CEI), Retrocommissioning (RCx) and expanded service offerings designed to overcome market barriers beyond capital cost considerations and identify resource opportunities 27
28 SM What s New?, cont d Segment Specific Third Party Programs Programs designed to target specific markets (e.g. food processing, primary metals, and schools) New Retrofit Measures and Incentives Exterior Induction Features LED Refrigerated Case Door Lighting T8 to T8 Reduced Wattage Interior Lamp and Ballast Retrofit Others Financial Mechanism Program On-Bill Financing (OBF) expansion to cities and counties 28
29 SM Funding History $345 29
30 SM Customer-Centric Portfolio Addressing market barriers at each phase of a facility s life cycle: Site Planning, Building Design & Engineering Building & Construction Operations Continuous Improvement New Construction Programs Statewide: Savings by Design California Advanced Homes Third Party: Sustainable Communities Retrofit Programs Statewide: Commercial/G&I, Industrial, and Agricultural Third Party: Office, Hospitals, Food/Beverage, and Others Cross Cutting Programs Comprehensive HVAC, Emerging Technologies, Codes & Standards, WE&T, and ME&O 30
31 SM Market Barriers to Adoption of EE Lack of awareness regarding Levels of energy performance in existing facilities Opportunities for greater efficiency and cost savings in ongoing operations High-performance design strategies for new facilities Lack of technical expertise Choosing the right measures to maximize savings Cost Initial capital cost More than two year payback Minimal upfront capital investment capability Structural disconnect between capital and O&M budgets 31
32 SM Offerings to Overcome Market Barriers Audits & Technical Services Benchmarking Basic audits Integrated audits Pump tests Retrocommissioning (RCx) Continuous Energy Improvement Incentives Deemed per unit/ measure (Express) Calculated per unit of savings (Customized) Direct Installation No-cost installation of energy efficient equipment Financing Mechanism On-Bill Financing (OBF) 32
33 SM Portfolio Structure Statewide, Local & Third Party Programs 33
34 SM Portfolio Structure Statewide Commercial/ Industrial Agricultural G&I Local Third Party 6 Implementers Financial Solutions 4 Implementers 1 Implementer Cross Cutting Comprehensive HVAC, New Construction & Sustainability, Workforce Education & Training, Others 34
35 SM Portfolio Structure C, I, & A Statewide Programs Program Description Commercial/G&I Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Express Solutions, Customized Solutions, Direct Install, and Continuous Energy Improvement. Industrial Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Express Solutions, Customized Solutions, and Continuous Energy Improvement. Agricultural Statewide-consistent suite of products and services to overcome the market barriers to energy efficiency, including Audits, Pump Tests, Express Solutions, Customized Solutions, and Continuous Energy Improvement. 35
36 Third Party Programs Portfolio Structure Third Party Implemented Programs SM Examples of targeted sub-segments are Data Centers Food/Beverage Gases, Solid Waste Office Petroleum/Oil Schools and Colleges Deliver the same offerings and incentives as the statewide Commercial/G&I, Industrial, and Agricultural programs 36
37 SM Portfolio Structure Statewide Cross Cutting Programs New Construction & Sustainability Savings By Design (SBD) California Advanced Homes (CAHP) Sustainable Communities (SCP) Comprehensive HVAC Residential Energy Star Quality Installation Commercial Quality Installation Commercial Upstream Equipment Quality Maintenance Program Technology & Systems Diagnostics HVAC Workforce Education & Training 37
38 SM Statewide Cross Cutting Programs, cont d Workforce Education & Training Energy Centers Building Operator Certification Mobile Energy Unit Other Emerging Technologies Codes & Standards Marketing, Education & Outreach Strategic Planning & Implementation 38
39 SM Portfolio Structure Local On-Bill Financing Program Offering description Advances SCE s strategy of using targeted and innovative financing for EE Customers receive both an OBF loan and an incentive from an energy efficiency program OBF Loan Amounts Loans to Local Government & Institutional Customers Loans to Commercial, Industrial, and Agricultural Segment Lending amount total $ 12 Million $ 4 Million $ 16 Million 39
40 SM Portfolio Structure Local On-Bill Financing Program Loan caps as follows The minimum loan: $5,000 Business Customer maximum: $100,000 Local Government & Institutional partners maximum: $250,000 40
41 SM Incentives Express & Customized Solutions 41
42 SM Express Solutions Offering description Encourage the adoption of energy efficient products by providing itemized rebates to offset the cost of implementing high-efficiency measures Designed for projects with standardized measures for quicker processing 42
43 SM Customized Solutions Offering description Encourage the adoption of energy efficient products by providing calculated incentives to offset the cost of implementing high-efficiency equipment or systems Designed for complex or unique projects not covered under Express Solutions 43
44 SM Applying for Incentives 44
45 SM Comprehensive Strategy 45
46 SM Segment Guides 46
47 SM Web 47
48 SM The Comprehensive Energy Action Plan 48
49 SM 49
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