Investor-Owned Utility LIEE-CARE 2009-2011 Budget Applications. Presentation to the LIOB San Diego Gas & Electric Company Southern California Edison Company Southern California Gas Company Pacific Gas and Electric Company San Diego, CA June 5, 2008. Overview. - PowerPoint PPT Presentation
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San Diego Gas & Electric CompanySouthern California Edison Company
Southern California Gas CompanyPacific Gas and Electric Company
San Diego, CAJune 5, 2008
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Overview
Review of 2009 – 2011 LIEE-CARE Program and Budget Applications Common Utility Proposals SDG&E Application SCG Application SCE Application PG&E Application
Statewide Strategic Plan Update
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Common Proposal: Program Achieves 25% of Programmatic Initiative
Methodology and factors considered to determine estimated number of customers to be served between 2009-2011. Starting Point: Estimated number of eligible
LIEE customers Subtracted from the starting point include:
Number of households served by LIEE 2002 thru 2008 (actuals plus estimate for 2008)
Estimated number of households unwilling to participate (10%)
Number of households served by LIHEAP/DOE 2002 thru 2008 (actuals plus estimate for 2008)
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Common Proposal: Ten Year Rule
The utilities agreed on the following modifications/exceptions to be added to "Section 2.8 Previous Participation" of the LIEE P&P Manual:
New cost effective measures or technologies that were not previously available in the LIEE program at the time the utility treated a home shall be made available for those qualifying customers
In the event a key program eligibility requirement now makes a customer eligible for measures previously not offered at the time the utility treated the home, the utility shall make available those cost effective measures for qualified customers.
This modification gives the utilities full flexibility to return to homes that have been treated in the past and to provide the customers with cost effective measures that were either not available at the time the home was treated, or were not offered due to a condition that has now changed.
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D.07-12-051 directed that a statewide brand be developed for the LIEE program that all utilities would use as a tag line along with each utility’s own LIEE program name.
Utilities are in the process of contracting with an Ad Agency to develop and present several potential:
Statewide program descriptions/taglines Statewide program names
Potential program descriptions and names will be tested in focus groups conducted in all four utility service territories in multiple languages.
The Joint Utilities expect to present a recommendation to the Commission by July 14, 2008.
Common Proposal: Single Statewide Marketing Tagline
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Common Proposal: Measurement and Evaluation (M&E) Studies
Statewide Studies Total Cost
Impact Evaluation of the 2010 LIEE Program
$600,000
Process Evaluation of the 2009 LIEE Program
$250,000
Non-Energy Benefits Study $300,000
Refrigerator Degradation EUL Study*
$200,000
LIEE Household Segmentation Study**
$200,000
Total $1,550,000 * Joint study funded between the three electric utilities: PG&E, SCE and SDG&E. ** Joint study funded between SCE and PG&E.
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SoCalGas & SDG&E
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SoCalGas & SDG&E:Program Goals
SoCalGas & SDG&E proposed audit based, customized approach is primarily designed to:
Focus on the achievement of energy savings Reduce low-income customers’ bills Improve cost effectiveness Address health, comfort and safety issues.
Proposed program is aligned with the Strategic Plan.
To achieve maximum energy savings, the proposed LIEE program puts additional focus on highest energy users, without excluding those eligible customers who have lower energy consumption.
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SoCalGas & SDG&E: Cost Effectiveness
A primary goal is to improve the cost effectiveness of the LIEE program in PY 2009-2011.
Utility Cost Test Modified Participant Test Total Resource Cost TestPY 2008 0.40 0.58 0.31PY 2009 0.60 0.86 0.51PY 2010 0.60 0.86 0.51PY 2011 0.60 0.86 0.51
Ratio of Program Benefits over Program Costs
Utility Cost Test Modified Participant Test Total Resource Cost TestPY 2008 0.23 0.57 0.17PY 2009 0.46 0.86 0.35PY 2010 0.46 0.86 0.35PY 2011 0.46 0.86 0.35
Ratio of Program Benefits over Program Costs
SDG&E
SoCalGas
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SoCalGas & SDG&E: Program Design
Customized Energy Audit Proposed program design provides a
customized and detailed customized energy audit that creates a personalized energy-use profile for each customer.
Plan is to use an audit tool to compare a customer’s usage to that of neighbors with homes of similar size, construction, and occupancy.
Audit tool will include customer usage patterns, appliance information, and other pertinent household information that will help identify the highest savings opportunities.
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SoCalGas & SDG&E: Program Design
Customized Energy Education Proposing to implement a new and innovative
approach to customer energy education. Based on the results of the customized audit, energy education tailored to the individual customer will consist of the following:
Measures to be installed and associated energy savings; Customer-generated goals related to energy use; Potential benefits to the customer and the environment
and economy; Potential improvements to health, comfort, safety, and
quality of life; and Comparison of energy usage patterns of households with
similar characteristics.
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SoCalGas & SDG&E: Program Design
Customer Rewards Designed to reward customers who are able to
consistently maintain a reduction in their overall energy consumption.
This element will analyze customer energy usage after LIEE measures are installed and the energy usage will be compared to the same timeframe during the previous year.
Two Reward levels – Platinum & Gold The Platinum Level Incentive will be awarded to
customers who reduce their energy consumption by 20% or more.
The Gold Level Incentive will be awarded to customers who reduce their energy consumption by 10% to 19%
Customers may receive up to two rewards in one year during the first year of program participation.
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SoCalGas & SDG&E: Program Design
Customer Segmentation Identify those neighborhoods that have a high density of
customers who have a high likelihood of meeting the LIEE program’s eligibility guidelines.
Group the identified potentially eligible customers into tiers based on their household energy usage
To achieve maximum energy savings as soon as possible, usage levels of customers will be prioritize.
The expected number of households within each segment to be reached (PY 2009 – 2011) is approximately:
SoCalGas - 172,000 at or below baseline allowance and 171,000 above baseline allowance
SDG&E - 20,000 high users, 21,000 medium users, 19,000 low users
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SoCalGas & SDG&E: Program Design
Natural Gas Measure MixAt or Below Baseline Above Baseline
Ceiling Insulation Caulking Faucet Aerator Ceiling Insulation Furnace Clean and Tune Duct Testing/SealingFurnace Filter Evaporative Cooler CoverFurnace Repair/Replacement** Faucet AeratorHigh-Efficiency Clothes Washer Furnace Clean and TuneLow Flow Shower Head Furnace FilterMinor Home Repair* Furnace Repair/Replacement**Standing Pilot Change Out*** High-Efficiency Clothes WasherWater Heater Blanket Low Flow Shower HeadShower Start Shower StartWater Heater Pipe Wrap Minor Home Repair
Water Heater Replacement (Tank and Tankless) Standing Pilot Change Out***Caulking Water Heater Replacement (Tank and Tankless)Duct Testing/Sealing Water Heater Blanket Evaporative Cooler Cover Water Heater Pipe Wrap Weather-stripping Weather-stripping
Notes:* Minor Home Repairs are limited to "Repairs Required to Mitigate Catastrophic Envelope Leaks" as defined in Table 6-2 of the 2006 LIEE Statewide Policy and Procedures Manual
** Only available for owner-occupied homes*** Only available for operational furnaces
Blue text SDG&E onlyMeasures shown in Red text are proposed new measures
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SDG&E: Program Design
High Medium Low
Air Conditioner Replacement Air Conditioner Replacement Air Conditioner Replacement
Air Conditioner Tune-up Air Conditioner Tune-up Air Conditioner Tune-up
• Targeted Direct Mail• Cross Promotion• Email Blasts• Canvassing• Advertising• Community Events• Coordination with Local Agencies• Customer Contact Centers• Brochures• Telemarketing• On-Line Request Form
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SoCalGas & SDG&E: Integration & Leveraging
Integration with Energy Efficiency – e.g., Mobile Home, Innovative Outreach and Measure Program. Ltg Exchange, etc
LIHEAP Potential Opportunities Implement a structured referral system Track customer referral in the program database and measures
installed by LIEE or LIHEAP. Provide LIHEAP contractors serving the SoCalGas service territory
access to SoCalGas’ LIEE database Strategic Partnership with Imperial Irrigation District to
provide low income customers in the overlapping service territories those measures offered by each utility
Strategic Partnership with Metropolitan Water District to leverage funds for the direct installation of HE clothes washers.
Cities, local communities & schools– continue to partner with these entities to conduct local events
CSI - coordinate efforts with the SF and MF program administrators to ensure that homes receiving CSI measures have received LIEE measures
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SoCalGas: PilotHE Forced Air Unit Furnace
SoCalGas proposes to offer a natural gas high-efficiency FAU furnace pilot to customers with high space heating needs during the winter season.
The pilot will replace existing, inefficient operational natural gas FAU furnaces with high-efficiency units that have an efficiency rating of at least 92%.
The pilot will be implemented for approximately 250 customers and the installations will occur after the 2008-2009 winter season.
Bill analysis will be used to determine the cost effectiveness for each installation and the results will be evaluated to determine if this potential measure will be offered in upcoming program years to customers with high space heating needs.
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SDG&E: Pilots Smart Meters - IHD & PCT
In Home Display (IHD) pilot - to customers with Smart Meters as part of the energy education process to help customers know their actual energy usage beginning in 2010
Programmable Communicating Thermostat (PCT) pilot - beginning in 2011. PCTs are thermostats that can receive price or electric system reliability signals, and can be programmed by a customer to automatically reduce energy consumption through thermostat set-point adjustments.
Cost-effectiveness- First criteria considered in the review of potential measures Efficient lighting Refrigerator replacement Evaporative cooler installation Central air conditioner maintenance Pool pump replacement
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Non-Cost Effective Measures
In evaluating measures that were not cost-effective, SCE was guided by Commission intent to “… continue to authorize funding for measures that serve important social objectives but may not be cost-effective, as long as they serve our primary objective of reducing energy use and promoting other values such as participants’ quality of life
Central Air Conditioners Window/Wall Air Conditioners
2009-2011 Total $422,338,000 300,000 24,386 89,386,403 5,241,725
2007 shows actual program results. 2009-2011 results are estimates. Budget includes REACH PLUS.
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2009-2011 LIEE Represents a Significant Program Expansion
Increased families served Increased funding 9 new pilot programs 5 new program studies 2 new measures New segmentation and outreach
approaches New partnerships, leveraging, and
integration opportunities
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2009-2011 LIEE Program Delivery Strategy PG&E will offer the LIEE program through a
multi-layered approach that considers: energy use, climate zone and housing type. This approach makes some less cost‑effective
measures available based on a customer’s electric and/or gas use.
Customers with the highest energy use also offer the greatest opportunity to save energy.
Helps customers: who save money on their bill Helps all California ratepayers: who benefit as
decreases in energy use strengthen the State’s energy resources and decrease GHG emissions.
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LIEE for PG&E Electric CustomersMeasure Low User Medium User High User
Energy Education
Screw in CFL
Interior HWD Light
Occupancy Sensor
Refrigerator
Torchiere
Evaporative Cooler
Window/Wall AC
Exterior HWD Light
Attic Insulation 1
AC Tune-Up
Door Weather-stripping2
Caulking 2
Attic Access Weather-stripping 2
Minor Home Repairs2
Available to all qualifying customers
Maybe available to qualifying customers based on climate zone and/or housing type
Maybe available to customers based on need
1 Attic Insulation - Feasible if the customer cools the home with a Central Air Conditioner.
2 Weatherization - Feasible if the customer’s home is All Electric.
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LIEE for PG&E Gas CustomersMeasure Low User High User
Energy Education
Water Heater Blanket
Low Flow Showerhead
Faucet Aerator
Pipe Insulation
Door Weather-Stripping
Attic Access Weather-Stripping
Attic Insulation
Utility Gaskets
Caulking
Duct Test/Seal
Minor Home Repair
Furnace Repair/Replacement 1
Water Heater Repair/Replacement1
Available to all qualifying customers
Maybe available to qualifying customers based on climate zone and/or housing type
Maybe available to customers based on need
1 Available to qualifying home owners.
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Nine LIEE Pilots Meals on Wheels – Deliver microwaves
to those customers who receive meals and don’t have a microwave (80% more efficient than ovens).
High Efficiency Washing Machines – Deliver high efficiency washing machines to households with 5 or more members. Test the viability of this measure.
Habitat for Humanity – Join with humanitarian home builder and rehab partner to create more energy efficient low-income housing.
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Nine LIEE Pilots (con’t)
City of San Jose – Partnering with City of San Jose’s strong neighborhood initiative program to assist in serving low income customers.
City of San Joaquin (Fresno County) – Partner with City to provide services to low income customers.
Energy Education Workshops – Continue to look for more efficient ways to perform group educations with CBOs.
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Nine LIEE Pilots (con’t) SmartAC – Leverage PG&E’s demand
response programs to educate low-income customers about air conditioning cycling options.
SmartMeter™ – Focus on educating low income customers on the value of AMI and how it can help them lower their utility bills.
Online Training for LIEE Implementation Crews – Explore more efficient training options and reduce crew in-class training time by 50%.
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2009-2011 CARE Program Proposed the same residential program
requirements for Sub-Metered tenants Proposed two-year certification for CARE
Expanded Programs Proposed a survey of customers not
responding to Recertification and Post-Enrollment Verification requests
CARE Administration budgets requested: ($7,732,000 current 2008 budget) $8,761,000 for 2009 $9,216,000 for 2010 $9,521,000 for 2011
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In Conclusion
PG&E’s 2009-2011 LIEE and CARE application represents a thoughtful balancing of: LIEE as an energy resource Cost-effectiveness Increased funding without overburdening
non-Low Income customers Innovation & experimentation Improving available information Retention of valuable program elements Health, Safety and Comfort for LIEE
customers
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PG&E 2009-2011 Low Income Programs Testimony Internet links to PG&E's Application and
Testimony for Approval of the 2009-2011 Low Income Energy Efficiency and CARE Programs and Budget: