Oklahoma Gas and Electric Company
2013 Oklahoma Demand Programs Annual Report In Accordance With Annual Reporting Requirements Title 165: Oklahoma Corporation Commission Chapter 35. Electric Utility Rules Subchapter 41. Demand Programs 165:35-41-7. Reporting
June 2014
Oklahoma Gas and Electric Company
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Oklahoma Gas and Electric Company
0 TABLE OF CONTENTS 1.0 Executive Summary ......................................................................................................
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2.0 Portfolio Impact ...........................................................................................................
11
3.0 Portfolio Programs ....................................................................................................... 3.1 Weatherization Program
17 19
3.2 Home Energy Efficiency Program
23
3.3 Positive Energy – New Home Construction Program
27
3.4 Geothermal Heating Cooling and Water Heating Program
31
3.5 Commercial Lighting Program
35
3.6 Commercial Energy Efficiency Program
39
3.7 Industrial Energy Efficiency Program
43
3.8 Energy Efficiency Education Program
47
3.9 SmartHours
51
3.10 Integrated Volt-Var Controls
59
3.11 Load Reduction Program
63
4.0 Evaluation, Measurement and Verification ................................................................... 4.1 EM&V Overview
67 69
4.2 Program Evaluation Summary
71
4.3 Program Ratios
73
5.0 Supplemental Information............................................................................................
75
6.0 Appendix...................................................................................................................... 6.1 OG&E Program Information
83 85
6.1.1 Research and Development Report 6.2 Attached EM&V Reports
111 112
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Oklahoma Gas and Electric Company
1.0 Executive Summary
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Oklahoma Gas and Electric Company
Executive Summary OG&E is filing its Comprehensive Demand Program Portfolio Annual Report for 2013. This report is required to be filed by June 1, 2014 per Annual Reporting Requirements Title 165: Oklahoma Corporation Commission Chapter 35. Electric Utility Rules Subchapter 41. Demand Programs 165:3541-7. OG&E began implementation of the Demand Program in July 2008. On July 16, 2012, OG&E submitted the new Portfolio to the OCC for program years 2013-2015. On December 20, 2012 the Oklahoma Corporation Commission approved a Joint Stipulation and Settlement Agreement was executed between the Stipulating Parties Cause No. PUD201200134 by Order No. 605737. The approved 3 year portfolio states OG&E’s expectation to reduce a total of 202,160 kW of demand and 371,342,883 kWh of energy savings over the life of the measures, at an expected cost of $146,084,822. Below are the results for 2013. 2013 RESULTS: 65,545 kW – Demand Reduction Achieved (85% of goal) 82,314,801 kWh – Energy Savings Achieved (123% of goal) $39,022,625 – Actual Expenses (78% of goal) $1,858,951 – Incentives Earned $ 13,773,983 - Lost Net Revenues PROGRAM IMPLEMENTATION IN 2013 The new portfolio added two new programs to enhance demand response efforts. The programs are the OG&E SmartHours program and the Integrated Volt-Var Control program (IVVC). SmartHours offers residential and small commercial customers the opportunity to combine dynamic pricing (Variable Peak Pricing and Time of Use) with in-home technology (Program Communicating Thermostat and Energy Information Website) to enable customers to better manage their electricity usage. The IVVC program focuses on the active control of the distribution system reactive power to minimize energy losses and active control of voltage to ensure acceptable customer voltage while reducing demand during peak periods. OG&E dedicated 8 employees to the Oklahoma Energy Efficiency & Demand Response Programs in 2013. In addition, OG&E contracts with third-party providers to implement several programs. These third-party providers include; CLEAResult to manage the Home Energy Efficiency Program (“HEEP”) HVAC tune up program and to implement a targeted program for schools, Skyline Energy Solutions to provide the weatherization services for the Weatherization Residential Assistance Program (“WRAP”), and contracted with Direct Options to manage the on-line internet based commercial lighting input
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Oklahoma Gas and Electric Company
form and provide marketing support for HEEP and Weatherization Program(s). Information about these vendors is included in section 5.3, Supplemental Information. EVALUATION, MEASUREMENT & VERIFICATION: OG&E commissioned EnerNOC to conduct a comprehensive process and impact evaluation on each of the programs in the portfolio. (see appendix). EnerNOC provided findings and recommendations on all of the programs. In addition, OG&E requested to EnerNOC perform several special studies addressing specific EM&V issues. These special studies include; Plenum seal study Net to gross white paper review HEEP Kit savings Embedded water savings Attic ventilation Custom energy report meter and AC condenser cleaning These studies were conducted to better understand the achievable kW and kWh savings associated with each item. LOST NET REVENUE: As part of the approved Comprehensive Demand Programs, OG&E is allowed to recover Lost Net Revenue (LNR) for all of the Demand Programs with the exception of the education program and IVVC program. OG&E has reported $13,773,983 in LNR for the demand programs during 2013.
INCENTIVES: OG&E is also allowed to earn an incentive on the amount of energy (kWh) reductions achieved. This incentive was calculated using the Total Resource Cost Test (TRC) for each program. OG&E was allowed to earn a shared incentive equal to 15% of the net benefit created by the demand programs. OG&E earned $1,858,954 in incentives in 2013.
PROGRAM RESULTS IN 2013 VS. ORIGINAL ASSUMPTIONS (Highlights & Variances): Weatherization Residential Assistance Program (WRAP) There are 6 weatherization installation impact measures for the program. The deemed savings estimate as filed, assumed the average weatherized home would save 2,756 kWh annually. After applying the deemed savings values by measure, the actual results saved 3,254 kWh annually. The large kWh reduction was due to installing only measures that met a Savings to Investment Ratio (“SIR”) of 1.0 rather than a set of measures cumulatively meeting the SIR of 1.0 or more. By applying this method, OG&E was able to weatherize additional homes, and increase kWh savings.
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Oklahoma Gas and Electric Company
Residential HEEP84% of participants elected to have duct repairs/seals performed during their tune up, with 59% of duct seals performed around the plenum, where approximately 80% of the duct leakage occurs. The tune up amount remained at $75 in anticipation of adding plenum sealing to homes with a smart thermostat installation. 1,995 plenums were sealed by Corix Utilities while in the home installing a smart thermostat. Accordingly, OG&E was able to increase significantly the kWh savings. The in-home audit was replaced with an on-line audit, allowing customers to sign up for a customized energy report. Attic insulation rebate was new to 2013 and the expected results were slightly lower than expected. Positive Energy HomeOG&E believes the Program has contributed to participating builders from all over the OG&E service territory transitioning to more energy efficient homes. Geothermal HVACIn spite of high upfront loop cost continuing to be a barrier for customers, OG&E was able to reach all goals in the residential geothermal program. Customers installed geothermal in 228 new and retrofit homes resulting in a total of 997 tons. This year was very successful and 2014 looks to be strong as well. Commercial Lighting: In 2013, there was clear evidence from participant surveys that the OG&E Commercial Lighting Program is influencing buying behavior by as much as 90%. OG&E has seen the program continue to grow and gain momentum each year. As was true in previous years, goals were exceeded by a healthy margin. In 2013, more emphasis was placed on reaching out and educating lighting vendors about our program. Plans are in place to continue this education process in 2014. Commercial Energy Efficiency Program (CEEP) & Industrial Energy Efficiency Program (IEEP)2013 marked the first year of the 3-year CEEP & IEEP program. Most projects in CEEP & IEEP take between 6-18 months from start to finish. Building a pipeline is very important to the success of this program. We estimate that 64% of the projects identified in 2013 will be completed in 2014. SmartHours By the end of 2013, the 79,000 customers participating in SmartHours reduced system demand by 119 MW, and each saved $150 on average during the four month summer period. Major information technology (IT) improvements have also been made in communication infrastructure, web services, system integration, and cyber security. OG&E’s implementation of the SmartHours program was a primary factor in OG&E being selected to receive the prestigious EEI Edison Award in 2013. Integrated Volt-Var ControlsOG&E implemented 61 circuits during 2013 and measured the savings for each circuit. OG&E is measuring this program in both operating modes; the demand reduction and the optimization mode. This system allows OG&E to reduce system peak without any negative impacts to the customer. Once a
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circuit is installed, the first year is developing the baseline for demand reduction and energy efficiency that will be obtained on the circuit in the future. This method builds a deemed savings on each circuit. Results have been a 2% improvement in the circuit savings for a total of over 8.1 MW of load reduction on peak during the test season of 2013. A MWH reduction will be reported after the 2014 summer season when the circuits are transitioned from test to full operation. The chart below shows the kW savings by program. 71% of the kW savings for 2013 was from the SmartHours Program, 11% from the HEEP program, 7% from Commercial Lighting Program, and the Weatherization by 6%. KW SAVINGS BY PROGRAM
2013 Actual KW
SmartHours 71% Resiedntial WRAP 6%
Education 0% Industrial IEEP Commercial Commercial 1% CEEP Lighting 1% 7%
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Residential HEEP 11% Positive Energy Home 2% Geothermal HVAC 1%
Oklahoma Gas and Electric Company
COST EFFECTIVENESS: OG&E is required annually to provide the Oklahoma Corporation Commission with an update to the Cost Effectiveness of each of the demand programs. OG&E engaged Frontier Associates to provide this analysis. Based on Frontier Associates actual results calculations, all programs continue to be cost effective. The full report is detailing the effectiveness of each program is included in 6.2 Attachment H Cost Effectiveness. CONCLUSION: The 2013 Demand Program Portfolio achieved 65.5 MW and 82,315 MWh savings. This represents 85% and 123% of the plan respectively. During 2013, OG&E managed the portfolio to meet the approved budget in 2013.
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2.0 Portfolio Impact
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Oklahoma Gas and Electric Company
Table 2-1 summarizes the expenditures for 2013. TABLE 2-1
Demand Programs Portfolio Summary by Cost Type 2013 Total Cost Budget Actual
Program Cost Summary Type
%
Inducements Administration
($) 1,174,013 48,564,219 49,738,232 0 49,738,232
2% 98% 100% 0%
Subtotal Research & Development Total
100%
($) 399,886 37,825,544 38,225,431 801,042 39,026,473
%
1% 76% 77% 2% 78%
Table 2-2 below is a summary of the money spent by program in 2013. TABLE 2-2
Oklahoma Gas and Electric Company 165:35-41-7 Reporting Demand Programs Portfolio Summary by Program 2013 Program
Budget
Nam e
Program Type
Market
% of
Actual
Funds
($)
($)
Used
Resiedntial WRAP
Weatherization
Res (All)
5,624,596
6,256,217
111%
Residential HEEP
HVAC Inspection or Tune-up
Res (Single-Fam ily) 4,095,040
2,438,862
60%
Positive Energy Hom e
New Construction- Incentives Res (Single-Fam ily) 1,188,800
1,216,973
102%
Geotherm al HVAC
HVAC
Res (Single-Fam ily) 585,250
592,967
101%
Com m ercial Lighting
Lighting
Sm all C&I (All)
1,257,955
1,406,322
112%
Com m ercial CEEP Industrial IEEP
Custom and Bundled Custom and Bundled
Sm all C&I (All) Sm all C&I (All)
1,840,715 293,325
619,437 381,951
34% 130%
Education
Energy Audit or Evaluation
Res (All)
921,200
801,042
87%
Research & Developm ent
N/A
Res (All)
800,000
373,705
47%
Sm artHours
Dem and Response
Res (All)
25,499,979 17,171,515
67%
IVVC
Dem and Response
N/A
7,631,372
7,763,634
102%
Total 49,738,232 39,022,625
78%
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Oklahoma Gas and Electric Company
Table 2-3 below shows the inducements paid by program for 2013. TABLE 2-3
Demand Programs Portfolio Inducements by Program Program Name Resiedntial WRAP Residential HEEP Positive Energy Home Geothermal HVAC Commercial Lighting Commercial CEEP Industrial IEEP Education SmartHours IVVC Total
% of
Budget
Actual
% of
Total
($)
($)
Budget
31% 23% 7% 3% 7% 10% 2% 5% 0% 0%
368,000 268,000 78,000 39,000 83,000 121,000 20,000 61,000 136,013 0
162,931 118,545 14,865 16,024 20,481 16,764 17,258 33,020 0 0
44% 44% 19% 41% 25% 14% 86% 54% 0% -
88%
1,174,013
399,886
34%
Table 2-4 below shows a breakdown of the non-inducement program costs for 2013 TABLE 2-4
Demand Programs Portfolio Summary by Cost Type Program Cost Summary
2013 Total Cost % of Total
Type Planning & Design Customer Education Incentives / Rebates Evaluation, Measurement, and Verification Admin Costs Research & Development Total
0% 41% 50% 2% 5% 2% 100.0%
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Budget ($) 200 20,462,091 24,991,737 1,174,013 2,310,191 800,000 49,738,232
Actual ($) 0 16,971,651 17,999,551 399,886 3,270,750 380,787 39,022,625
% of Budget
0% 43% 46% 1% 8% 1% 100%
Oklahoma Gas and Electric Company
Table 2-5 below shows program expenditures and energy sales as a comparison to company sales. TABLE 2-5
Company Statistics - State of Oklahoma Revenue and Expense Budgeted ($000's)
Program Year
Total Revenue
2008 2009 2010 2011 2012 2013
$ 1,602,378 $ 1,952,125 $ 1,766,547 $ 1,763,431 $ 1,846,312 $ 1,899,624
DR Program Spending $ $ $ $ $ $
940 3,760 15,402 14,902 14,900 49,738
Energy
Actuals ($000's) % of DR S pe nding to R e v e nue
Total Revenue
0.1% 0.2% 0.9% 0.8% 0.8% 2.6%
$ 1,748,114 $ 1,573,937 $ 1,886,390 $ 1,984,084 $ 1,931,964 $ 1,977,770
Budgeted MWh
DR Program Spending $ $ $ $ $ $
679 4,001 12,576 18,201 14,515 39,023
% of DR S pe nding to R e v e nue
0.0% 0.3% 0.7% 0.9% 0.8% 2.0%
DR Total Annual Annualized Energy Energy* Sales Savings 23,345,592 23,472,824 23,084,291 22,804,685 23,850,391 24,498,847
6,036 24,145 45,492 45,492 45,492 66,866
Actuals MWh DR Savings as % of Total Annual Annualized Energy Energy* Energy Sales Savings Sales 0.0% 0.1% 0.2% 0.2% 0.2% 0.3%
24,506,900 23,468,858 24,361,896 25,763,723 25,818,012 24,203,016
4,011 41,986 47,473 60,743 65,902 82,315
*Annualized Energy - this is the annualized energy savings derived from the lifetime savings.
Table 2-6 below shows the Cost of Saved Energy (CSE) on a kWh basis for the Energy Efficiency Portfolio. TABLE 2-6 Period 2010 2011 2012 2013 2010-2013
kWh 47,473,097 60,743,474 34,405,983 82,314,801 224,937,355
Costs $12,576,019 $17,783,157 $14,419,730 $39,022,625 $83,801,531
$ / kWh 0.026 0.028 0.040 0.046 0.036
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Savings as % of Energy Sales
0.0% 0.2% 0.2% 0.2% 0.3% 0.3%
Oklahoma Gas and Electric Company
Table 2-7 below shows the kWh, kW and the dollars spent on the Comprehensive Demand Programs in 2013. TABLE 2-7 ENERGY
2013
kWh
Energy Savings kWh
% of
Budget
Actual
Goal
Resiedntial WRAP
6,890,439
11,965,000
174%
Residential HEEP
11,268,000
13,229,000
117%
2,505,077
3,387,000
135%
Program
Positive Energy Home Geothermal HVAC
1,582,305
591,000
37%
Commercial Lighting
18,057,607
19,867,000
110%
Commercial CEEP
16,481,126
1,858,000
11%
3,114,628
2,424,000
78%
0
28,993,801
-
59,899,182
82,314,801
137%
Industrial IEEP SmartHours Total
DEMAND
2013
kW
Demand Savings kW
% of
Budget
Actual
Goal
Resiedntial WRAP
1,353.00
3,493.00
258%
Residential HEEP
1,065.00
6,305.00
592%
Positive Energy Home
1,915.00
1,248.00
65%
Program
Geothermal HVAC
386.00
265.00
69%
Commercial Lighting
4,339.00
3,941.00
91%
Commercial CEEP
2,924.00
433.00
15%
473.00
355.00
75%
n/a
n/a
-
Industrial IEEP Education Research & Development
0.00
0.00
-
SmartHours
0.00
39,402.50
-
12,455.00
55,442.50
445%
Total
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Oklahoma Gas and Electric Company
2013
BUDGET
Program
Budget
Actual
% of
($)
($)
Goal
Resiedntial WRAP
5,624,596
6,256,217 111%
Residential HEEP
4,095,040
2,438,862
Positive Energy Home
1,188,800
1,216,973 102%
Geothermal HVAC
60%
585,250
592,967 101%
Commercial Lighting
1,257,955
1,406,322 112%
Commercial CEEP
1,840,715
619,437
34%
Industrial IEEP
293,325
381,951 130%
Education
921,200
801,042
87%
800,000
373,705
47%
25,499,979
17,171,515
67%
Research & Development SmartHours IVVC
7,631,372
Total
49,738,232
7,763,634 102% 39,022,625
78%
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3.0 Portfolio Programs
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3.1 Weatherization Residential Assistance Program 3.1.1 Program Description The OG&E Oklahoma Weatherization Residential Assistance Program (WRAP) is a continuation of the 2010 Demand Portfolio energy efficiency program targeted to customers that are OG&E Oklahoma residential customers. This program allows the customer to participate in programs to assist in managing energy costs. The program targeted OG&E Oklahoma residential customers who own, rent, or lease their single family home, duplex, or mobile home and who have incomes at or below $50,000, or are owners of multifamily units whose population rental units are 66% occupied by customers certified as Hard-to-Reach per program guidelines. A Residential "Hard-to-reach customer" is defined as residential electricity users who rent their residences from persons other than kin related to the third degree of affinity or consanguinity, trusts operated by and for the benefit of the users, or the users' legal guardians, and Residential electricity users who traditionally fail to engage in energy efficiency or demand response programs because of one or more severe barriers beyond those experienced by average residential customers in a utility's service area. The Program is designed to improve the thermal envelope of the dwelling. OG&E recognizes the Oklahoma Weatherization as a significant component in the Energy Efficiency area. One contractor, Skyline Energy Solutions, was chosen to work the program. The contractors utilized EnerTrek® the on-line database provided and supported by Frontier Associates. EnerTrek® is used to record contractor inputs for each home, which resulted in capturing actual kW and kWh savings by measure. OG&E also partnered with Central Oklahoma Habitat for Humanity and Rebuilding Together OKC, which enabled these non-profit agencies to provide weatherization services to qualified OG&E customers, based on OG&E’s Program requirements. Presentations were made by OG&E members to civic organizations, senior citizens groups, and to church groups throughout the OG&E Oklahoma territory, informing customers of the programs. Contractors weatherized 3,677 qualified homes in 2013. Contractor crews installed essential weatherization measures in homes to upgrade them to energy efficient standards. Blower door testing was performed in each home providing a measurable air leakage reduction which enabled the Program to capture actual kW and kWh reductions for CFM reduction. Duct repair/sealing was performed to increase kW and kWh savings for duct and plenum sealing. Some of the measures installed included: ceiling insulation, window caulking, door weatherstripping, compact fluorescent lighting, duct and plenum seal, return air cavity sealing, CO detectors, and smoke detectors. OG&E continues to audit the Program in the field on a regular basis to ensure that proper installation procedures and safety standards are followed. The contractor is a RESNET HERS
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Rater. Contractor crews receive on-going training for improvements in proper home weatherization methods.
3.1.2 Program Highlights
OG&E weatherized 3,677 homes during 2013 at an average cost of $1,701.45 per home. Online database EnerTrek®, provided and supported by Frontier Associates, was utilized to capture customer information as well as actual kW and kWh savings by each measure installed. OG&E weatherized several multi-family housing complexes; including Ardmore Retirement Village and OKC Housing Authority To date including the Quick Start Program, OG&E has weatherized 14,595 energy-inefficient homes, occupied by financially-challenged residential customers.
3.1.3 Program Budget, Savings and Participation The actual savings realized for each home were calculated using EnerTrek®, an online database provided and supported by Frontier Associates, which provided actual kW and kWh savings per measure. TABLE 3-1 Resiedntial WRAP
2013
Budgeted Savings
Actual Savings
% of Goal
Annual
Actual
% of
Dem and
Energy*
Dem and
Energy*
Budget
Expenses
Budget
kW
kWh
kW
kWh
Dem and Energy* kW
kWh
$5,624,596
$6,256,217
111%
1,353.00
6,890,439
3,493.00
11,965,000
258%
174%
2013 Participants
% of
Targeted Actual Goal 2,500
3,677
147%
*Annual Savings
The deemed savings realized for each home was calculated using .54 kW and 2,756 kWh per home. This number was evaluated and derived by Frontier Associates. OG&E weatherized 3,677 homes for an annual kWh savings of 11,965,000 and an annual demand savings of 3,493 kW. These annual savings have an average life of 14.1 years for a lifetime energy savings of 168,137,875 kWh. $600,000 was transferred from the Home Energy Efficiency Program to WRAP due to funds not being used in HEEP. There was an overwhelming response to weatherization program.
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Oklahoma Gas and Electric Company
3.1.4 Description of Participants The participants of the WRAP program are OG&E residential customers who are financiallychallenged customers, as well as those with disabilities, veteran status, limited income security, high energy usage residential customers and other classes of customers that OG&E determines would greatly benefit from weatherization in the home and whose residence is energyinefficient. Customers meeting the DOE WAP funding guidelines are still eligible (LIAP). These are customers who are not likely to have the necessary funds to pay for the installation of measures that will optimize energy efficiency.
3.1.5 Challenges and Opportunities The customer may be eligible for the program but the home may not qualify due to program restrictions. Due to health and safety, OG&E will not weatherize a home that has unvented combustion space heaters as its main source of heat. The home must have proper ventilation before any air sealing is performed.
3.1.6 Outlook for Continuation, Expansion, Reduction or Termination The overall perception of the OG&E Weatherization programs has been very positive as indicated in the customer surveys performed by Evolve Research. 87% of customers surveyed who received weatherization stated they would recommend OG&E’s weatherization services to others. 45% of customers feel that lowering their energy bill is the biggest benefit of the program, while the second benefit of the program is having a more efficient home at 28% and their homes’ comfort at 17%. With a mean score of 9.51, it clearly is of value to customers – these survey scores reinforce the importance of the program.
3.1.7 Planned or Proposed Changes to Program and Budget The new Weatherization Residential Assistance Program (WRAP) was approved for 2013-2015 on December 20, 2012 by the Oklahoma Corporation Commission. One of the changes made in the EnerTrek database was to change the calculation method of the SIR (savings-to-investment ratio) per measure, instead of a cumulative SIR calculation. This allows each measure installed to stand alone in the program, making each measure cost-effective. We revised the income qualifications so the program could be marketed more easily to customers. The age of the customer was removed since this is no longer a factor in this program. The length of time in the home was removed due to being restrictive to individuals who rent. We removed the cap on the home in order to perform additional cost saving measures on homes where value was not being created. The database can now perform the correct functions of what measures will qualify for each home.
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3.1.8 Program Events and Training
Civic and community presentations, promoting the DSM Programs, were conducted by OG&E members throughout OG&E’s service area. To list a few: Date: 5/13/2013 6/6/2013 6/17/2013 7/24/2013 7/30/2013 8/8/2013 9/27/2013 10/31/2013 11/15/2013
Title Wheatheart Nutrition Site in Enid Community Action Agency in OKC Neighborhood Services Organization Hillcrest Nutrition Center Salvation Army Nutrition Site Easter Seals Nutrition Center in OKC OK State Fair FAA Energy Awareness Event Informed Senior Conference
Online database EnerTrek®, provided and supported by Frontier Associates, was utilized to capture customer information, including actual kW and kWh savings by measure installed. OG&E provided a Weatherization pocket folder that was given to the customer, 12-Month To Do List brochure with additional tips, a Smart Hours brochure explaining the new smart thermostat, residential brochures for HEEP/Weatherization, Who to Call with products, services, and OG&E contact numbers. OG&E provided ID badges and uniforms as a safety and security feature for the weatherization contractors and crews. This provided the customer a way of identifying the weatherization crews as contractors for OG&E. This has been received extremely well by our customers. OG&E provided truck signs for any vehicles the contractors drove while on the job.
Program and member Certification: The OG&E Weatherization Program Manager: o Is a RESNET HERS rater. o Is Lead Base Paint Certified by EPA
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3.2 Home Energy Efficiency Program 3.2.1 Program Description The Home Energy Efficiency Program (HEEP) is a continuation of the Residential Thermal Efficiency and is approved by the Oklahoma Corporation Commission. HEEP is a sequential four-tier offering to residential customers. Customers can sign up for the program through OG&E’s website or by calling the call center. 1. The program begins with an optional on-line energy audit, the Custom Energy Report. OG&E partnered with Direct Options to deliver this portion of the program. Upon completion of the on-line audit, customers receive energy usage information about their home to help reduce their energy use. 2. Customers are eligible for a free cooling system service performed by a licensed heating and cooling HVAC specialist. The value of the cooling system service is $75; customers receive the service for free. OG&E will also pay for the first pound of A/C refrigerant, if needed. 3. After the cooling system service, customers are eligible for $300 of duct system repair and tightening, if needed. 4. Customers could be eligible for an attic insulation rebate. OG&E will subsidize the cost to the customer for having proper levels of insulation installed, 30% of the cost, up to $500.
3.2.2 Program Highlights
In 2013, a total of 6,155 tune ups were performed by over 60 participating HVAC contractors statewide. Additionally, 5,192 duct seals were performed. OG&E partnered with CLEAResult to manage the program. Corix Utilities performed 1,995 AC plenum seals The 2013 AC tune up season officially closed September 9, 2013. However, enrollment continued through the end of the year, with 1400 customers enrolled for the 2014 Tune Up program. In 2013, a total of 267 attic insulation installations were performed. From our surveys completed on the HEEP program, we found that customers were satisfied with the HEEP Program and 70% would recommend HEEP to other customers.
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3.2.3 Program Budget, Savings and Participation TABLE 3-5 Residential HEEP
2013
Budgeted Savings Dem and
Actual Savings
Energy*
Dem and
Energy*
% of Goal
2013
Dem and Energy*
Participants
Annual
Actual
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
$4,095,040
$2,438,862
60%
1,065.00
11,268,000
6,305.00
13,229,000
592%
117%
% of
Targeted Actual Goal 16,344
17,759 109%
*Annual Savings
The deemed savings realized for each home was calculated using .15 kW and 1,610 kWh per home. This number was evaluated and derived by Frontier Associates. In 2013, the HEEP program realized 13,229,000 kWh’s of energy savings and 6,305 kW of demand savings. These annual savings have an average life of 18.2 years for a lifetime energy savings of 240,589,498 kWh.
3.2.4 Description of Participants HEEP is available to all OG&E residential customers who own or rent their home and have a central air conditioning system.
3.2.5 Challenges and Opportunities OG&E began looking for ways to create synergies among various DSM programs and add additional value to the program. One good fit for residential customers included partnering with Corix Utilities for sealing the plenums on HVAC units while they were already in the home installing the SmartTemp Thermostat. Partnering HVAC contractors also extended the overall reach of the program by promoting the HEEP to their established customer base. By the end of 2013 AC tune up season, participating contractors had enrolled 719 customers in the HEEP. The 2013 program got off to a late start, due, in part to re-establishing the online database, managed by CLEAResult. The first AC tune up was assigned in late May. Again this year, one of the biggest challenges going into the cooling season is to deliver the tune-ups and duct seals by licensed AC contractors across the OG&E service territory. This component of the program is 24
Oklahoma Gas and Electric Company
where we gain our kW and kWh savings. Because we are dependent upon the AC contractors to perform these duties during their busiest time of the year, we are always a bit uncertain as to the volume they will perform. OG&E always feels this could potentially be a barrier to achieve the program goals. The concerns are timing of getting cooling systems serviced; cooling systems cannot be serviced when the external temperature are below 70 degrees. The season ended on September 9, 2013. This required all cooling system service work to occur in four or five months of this year. OG&E has been very pleased with the network of AC contractors we worked with to achieve our goals. We continue to fine tune the program and look for ways to increase deemed savings. The Attic Insulation rebate portion of the program is new for 2013. We anticipate increased participation as marketing efforts increase through mailouts to contractors, customers and community meetings.
3.2.6 Outlook for Continuation, Expansion, Reduction or Termination The response to the program has been positive as shown in the customer satisfaction survey where 70% of respondents were either somewhat likely or extremely likely to recommend the program to family and friends.
3.2.7 Planned or Proposed Changes to Program and Budget The Demand Portfolio program was approved for 2013-2015 on December 20, 2012 by the Oklahoma Corporation Commission. Due to the late start at end of May, the program was unable to utilize the entire budget when the season ended. Approximately $600,000 was distributed to the residential Weatherization Program. Another change to the program was the elimination of the in-home audit. This was replaced, in part, by the on-line audit. This also made funds available to add the measure of sealing of the plenum by Corix Utilities, while the installers were already in the home installing a SmartTemp Thermostat. OG&E will be distributing Energy Efficiency Kits in 2014 to residential customers when they enroll in Smart Hours
3.2.8 Program Events and Training
On April 8, 2013, CLEAResult Consulting and OG&E held two training classes for a large group of the licensed HVAC contractors that were participating in the HEEP Program. This training was held to review the program requirements and to refresh the contractors on how the invoices were to be completed and returned to CLEAResult Consulting for payment.
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Oklahoma Gas and Electric Company
On February 6, 2013, OG&E trained personnel from Corix Utilities on OG&E’s HEEP Program on how to seal residential AC plenums. It seemed like a very good fit since Corix Utilities was already in the home installing the SmartTemp Thermostat. Civic and community presentations, promoting the DSM Programs, were conducted by OG&E members throughout OG&E’s service area. To list a few: Date: 1/18-20/2013 4/3/2013 5/11/2013 6/1/2013 9/18/2013 9/27/2013 10/12/2013 10/31/2013
Title OK Home and Garden Show at the OKC State Fair Grounds Choctaw Nation Energy event in McAlester OKC Home Energy Fair at the Myriad Gardens Energy Efficiency at Communication Federal Credit Union Oklahoma Green Building Summit OK State Fair Tinker AFB Energy Show FAA Energy Awareness Event
Program and Member Certification The OG&E HEEP Program Manager: o Is a RESNET HERS rater. o Is Lead Base Paint Certified by EPA
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Oklahoma Gas and Electric Company
3.3 Positive Energy – New Home Construction Program 3.3.1 Program Description Positive Energy - New Home Construction (PE-NHC) is a comprehensive long term new home energy efficiency program targeted to residential customers and builders. The program is designed to assist customers in managing energy costs. The purpose of the program is to make builders and homeowners aware of the benefits of energy efficiency and PE-NHC practices. The program is also designed to increase the overall efficiency, quality and sustainability of customer homes based on the National Association of Home Builders (NAHB) Green Home Building guidelines, the Environmental Protection Agency's ENERGY STAR Homes program, the Residential Energy Services Network's Home Energy Rating System and the Federal Energy Policy Act of 2005 guidelines. Efficiency programs that are recommended by these guidelines include: high efficiency cooling and heating, tighter home construction, high efficiency water heating, higher levels of wall, ceiling, floor and slab insulation, and high efficiency windows. Other components of the NAHB Green Home Building guidelines recommend using recycled building material, adding rainwater collection for lawn care, day lighting, and numerous other "green" building characteristics. PE-NHC design would help to reduce both energy consumption and peak demand for OG&E.
3.3.2 Program Highlights
OG&E believes that new homes should be built to the highest standards of construction with recognition for energy efficiency, techniques, technology and green materials. A new home built and inspected to OG&E Positive Energy guidelines will provide the homeowner opportunities for energy saving, improved durability, and quality not available in standard construction. OG&E wants to partner with builders to encourage positive decision making that will provide long term energy savings benefits to new home buyers.
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3.3.3 Program Budget, Savings and Participation TABLE 3-6 Positive Energy Hom e
2013
Budgeted Savings Dem and
Actual Savings
Energy*
Dem and
Energy*
% of Goal
2013
Dem and Energy*
Participants
Annual
Actual
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
$1,188,800
$1,216,973
102%
1,915.00
2,505,077
1,248.00
3,387,000
65%
135%
% of
Targeted Actual Goal 1,200
1,301
108%
*Annual Savings
The deemed savings realized for each Positive Energy Home was calculated using 1.37 kW and 1,789 kWh per home. This number was evaluated and derived by Frontier Associates. OG&E certified 1,301 homes in 2013 for an annual kWh savings of 3,387,000 and annual demand savings of 1,248 kW. These annual savings have an average life of 23 years for a lifetime energy savings of 77,901,000kWh.
3.3.4 Description of Participants
Oklahoma Builders
3.3.5 Challenges and Opportunities
Convincing builders to spend more money on their homes in a down market while appraisers are not increasing appraisal values for energy efficient/green homes verses standard homes. Convincing customers to build a home from energy efficient and comfort perspective when other features such as granite appear more desirable. We must accomplish this with increasing interest in both builders and consumers. Convincing consumers to demand energy efficient and comfortable homes that have had third party inspections and testing to insure quality control in energy efficient building science.
3.3.6 Outlook for Continuation, Expansion, Reduction or Termination The current program ends December 31, 2015.
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Oklahoma Gas and Electric Company
3.3.7 Program Events and Training Highlights of Events:
Program Manager has recruited and approved 8 HER’s raters throughout the Oklahoma service territory to perform HVAC load calculations, plan analysis, thermal bypass inspections and blower door/duct blaster testing for certification of OG&E Positive Energy homes. He meets with each of them on an ongoing basic to perform quality assurance on inspections, home testing and certification. Program Manager has met with construction trades including insulation companies, HVAC distributors/installers, framers, slab installers, window distributors/installers to help implement improved building science practices for OG&E Positive Energy homes. These meetings have occurred at associate home builders meeting, table top trade shows as well as on the construction sites. Program Manager made a presentation for home appraisers to teach them about energy efficient building science methods and techniques. The Program Manager has had over 300 meetings with builders to convince them to build OG&E Positive Energy Homes throughout the Oklahoma Service territory. He meets with many of them on a regular basis to insure they build to OG&E’s standards. He works to educate them about existing and new energy efficient methods and building practices. He has discussed improved building science strategies at home builder meetings throughout our territory as well as meeting with many of them on a 1 on 1 basis. OG&E is also an education sponsor for the Central Oklahoma Home Builders Association, where builders are educated about improved building techniques and practices. OG&E was a major sponsor for the Oklahoma Green Building summit in 2013. The Program Manager is a founding member of the Oklahoma State Green Building Committee; he continues to work to put this summit on each year to educate builders, trades, architects, energy engineers, real estate professionals and the public. He brought over 100 people to the summit in 2013.
Program and member Certification: The OG&E program manager is a certified HERS rater for RESNET and certified for Energy Star Version 3.
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3.4 Geothermal Heating Cooling and Water Heating Program 3.4.1 Program Description The geothermal program is a DSM offering approved by the Oklahoma Corporation Commission. Geothermal equipment is widely considered to be the most energy efficient method to heat and cool a home. Geothermal is also considered to be the most comfortable, longest lasting, and lowest maintenance of any system. While geothermal provides unmatched advantages, the system also comes with a significantly higher initial cost. The higher first cost has been a barrier to wide term acceptance of geothermal systems. To help overcome the higher initial cost barrier, OG&E has paid an incentive of $375 per ton for new or replacement installations of residential geothermal heat pumps. Generally considered a product of upperend custom homes and high end retrofit applications, the OG&E incentive has helped introduce a proven technology to a wider variety of customers.
3.4.2 Program Highlights
Program became available for residential applications installed after February 10, 2010 216 homes took advantage of OG&E incentives in 2013 Continued use of OG&E website to educate and promote program
64 Habitat for Humanity new and existing homes installed geothermal 3.4.3 Program Budget, Savings and Participation TABLE 3-7 Geotherm al HVAC
2013
Budgeted Savings
Actual Savings
% of Goal
Annual
Actual
% of
Dem and
Energy*
Dem and
Energy*
Budget
Expenses
Budget
kW
kWh
kW
kWh
Dem and Energy* kW
kWh
$585,250
$592,967
101%
386.00
1,582,305
265.00
591,000
69%
37%
2013 Tons
% of
Targeted Actual Goal 1,000
997
100%
*Annual Savings
The deemed savings realized for each geothermal home was calculated using 1.54 kW and 6,329 kWh per ton. This number was evaluated and derived by Frontier Associates. OG&E installed 216 geothermal heat pumps to new or existing homes which added 997 tons for an annual kWh savings of 591,000 and annual demand savings of 265 kW. These
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annual savings have an average life of 20 years for a lifetime energy savings of 11,820,000 kWh.
3.4.4 Description of Participants Participants are residential homeowners with yards large enough to support the installation of the geothermal loop and understanding the benefits from energy efficiency in the home due to the increased cost of this technology.
3.4.5 Challenges and Opportunities Geothermal opportunities have been identified as a strategic initiative for OG&E. Because of OG&E’s history with the technology, the local manufacturing presence and the energy efficiencies delivered from geothermal OG&E has decided to explore business opportunities.
3.4.6 Outlook for Continuation, Expansion, Reduction or Termination The current program ends December 31, 2013. A new Geothermal Program was approved for 2013-2015 on December 20, 2012 by the Oklahoma Corporation Commission. There were no changes made between the current program and the new 2013-1015 program.
3.4.7 Planned or Proposed Changes to Program and Budget No changes planned for 2014.
3.4.8 Program Events and Training Highlights of Events: Oklahoma State Fair / Promote Geothermal Technologies to the public by hosting and manning an informational booth for fair-goers. Field questions from prospective customers, distribute brochures, and promote energy information to the public which will inform homeowners in future HVAC decisions, talking individually with roughly 2000 customers over a 10 day period, further solidifying OG&E’s position as a trusted energy advisor to the ratepayers of Oklahoma. Green Building Summit ’13 / Attended a 2 day informational summit in OKC learning about new technologies while presenting geothermal options and distributing brochures to builder customers and ratepayer attendees. Summit attended by approximately 200 builder customers, all interested in the latest in energy saving building techniques and equipment.
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BASCO Parade of Homes Show House / Public open house featuring a brand new home incorporating the latest in building techniques and energy efficient equipment available to consumers on today’s “for sale” new home construction market. Over the course of 3 weeks the house is open during the Parade of Homes and viewed by approximately 1000 prospective buyers and curious home owners. This “for sale” home help promote the latest in ideas for today’s new home buyer. A valuable marketing tool for new products along with geothermal technologies, the Parade of Homes events are always a great way to leave the customers with informational brochures and inform the public of new products. COHBA Parade of Homes Show House / Parade of Homes event for the Central Oklahoma area featuring a “for sale” new home viewed over a 3 week period by approximately 1500 prospective home buyers and curious future home buyers. COHBA Home and Garden Show / A new products event featuring construction ideas for the new home and retrofit market. Open to the public, the Home and Garden show promotes all areas of home construction and décor to an interested future customer. Attended by approximately 10,000 customers over a long weekend, the show is a great way to reach interested customers, distribute brochures, and inform the public about geothermal technology. Tulsa Home and Garden Show / New products show for the Tulsa area reaching approximately 10,000 customers over the course of the event.
Program and Member Certification Certifications and training for the geothermal industry takes place through IGSHPA. Scheduled training for 2013 was as follows: October 8 - IGSHPA Technical Conference, Las Vegas, NV - Trade show for the geothermal industry worldwide, was featuring the latest in products for customers and HVAC dealers. This was a valuable show for networking and learning new technologies which apply to our local market and ultimately to our customers. October 8 - Accredited Drillers and Installers workshop, Las Vegas, NV - Learn the latest in drilling technologies which apply to our local market. Learn about upcoming laws and regulations that will affect the industry focusing on better ways to increase geothermal installations and customer satisfaction. October 4 - Certified GeoExchange Designer Workshop and Conference, Las Vegas, NV - Learn the latest in residential geothermal design and installation and network with dealers that are currently in that business. Stay informed on industry trends which will ultimately benefit customers.
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3.5 Commercial Lighting Program 3.5.1 Program Description The Commercial Lighting Program provides incentives to OG&E’s commercial and industrial customers who purchase and install energy efficient indoor and outdoor lighting, lighting controls, occupancy sensors and light emitting diode (LED) exit lights in both retrofit and new construction applications. This program has been extremely effective in pushing the marginal lighting retrofitters into action; without the incentives from this program, thousands of old inefficient lighting fixtures would still be in service. This program has been instrumental in increasing the public’s awareness regarding energy efficiency, Demand Side Management and the increased awareness of electrical energy’s rising generation costs. The program targets commercial, public authority, and industrial facilities of all sizes with a focus on the small to medium-sized facility. These facilities are expected to have lower saturation rates and awareness levels of high-efficiency lighting. The Commercial Lighting Program usually provides customers with a quick payback on this energy efficiency investment and most rebates cover one-third of the cost of the improvements. The Commercial Lighting program was a continuation of the Quick Start measure. This measure was designed to reach existing and new customers including large school districts, commercial, municipal and industrial complexes. OG&E has used Department of Energy measures, such as the COM/Check program to help develop baselines within the new construction portion of the program and has found this to be a great enhancement in advancing our policy of educating customers with the latest energy efficiency information.
3.5.2 Program Highlights
The Commercial Lighting Program, since its inception, has far surpassed expectations. Local customers have become very aware of this program and many national energy management companies have become very familiar with the program due to our web presence.
The early marketing of the Commercial Lighting Rebate program was hugely successful and has left most of our clientele (contractors, customers, energy managers and vendors) very knowledgeable about our rebate program. The “word of mouth” advertising has been a huge reason for this program’s success.
Marketing material has been developed and updated to provide hard copy information for delivery to customers, usage in trade shows, seminars and other public events. Some new marketing materials have included the presence of both C & I programs.
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OG&E’s commercial lighting program began on-line operations in 2010 and continues to this day. With the onset of new prescriptive measures incorporated in 2013, OG&E began negotiations with third party programmers to upgrade our on-line application process. Beginning in 2013, OG&E unveiled a new more comprehensive on-line version of the application tool which addressed several issues of process improvement. Enhanced capabilities included up loadable confirmation data such as pictures and invoices. The new tool helped lower administration and management time; it helped to satisfy some lingering auditing concerns. The on-line application process has been an extremely valuable EM&V tool and our customers have remarked about the ease of use.
3.5.3 Program Budget, Savings and Participation TABLE 3-8 Com m ercial Lighting
2013
Budgeted Savings Dem and
Actual Savings
Energy*
Dem and
Energy*
% of Goal
2013
Dem and Energy*
Participants
Annual
Actual
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
$1,257,955
$1,406,322
112%
4,339.00
18,057,607
3,941.00
19,867,000
91%
110%
% of
Targeted Actual Goal 451
854
189%
*Annual Savings
The deemed savings realized for each lighting project was calculated using 13.28 kW and 55,321 kWh per project. This number was evaluated and derived by Frontier Associates. OG&E installed 854 lighting projects which added an annual kWh savings of 19,867,000 and annual demand savings of 3,941 kW. These annual savings have an average life of 10.9 years for a lifetime energy savings of 216,374,396 kWh.
3.5.4 Description of Participants
The program targets commercial, public authority, and industrial facilities of all sizes with a focus on the small to medium-sized facility. A survey of participants conducted shows almost half were smaller organizations with less than 50 employees Twenty five percent surveyed had over 300 employees
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3.5.5 Challenges and Opportunities
Because of the overwhelming success of the Commercial Lighting Program during the years of 2010-12, the program exhausted funding prematurely in every year, leaving some customers without incentive to upgrade. With the knowledge, gleaned from the earlier program, of how popular the lighting program had become, more money was allocated for the program years of 2013-2015. With the larger budget, it is imperative to become more aggressive in our advertising as well as making contact with lighting vendors, electrical contractors, and our customers to inform and educate them on the benefits of the OGE Commercial Lighting Program. Conducted a pilot program in the fourth quarter of 2013 to seek out opportunities to address and overcome the key barriers that prevent school districts from taking advantage of energy efficiency opportunities.
3.5.6 Outlook for Continuation, Expansion, Reduction or Termination
The Commercial Lighting Program has been highly successful influencing customers to replace old inefficient lighting with new highly efficient models and the company plans to continue and expand the program. The company sees tremendous opportunity to realize significant kW and kWh savings with this program and budgets were increased considerably for 2013-2015.
3.5.7 Planned or Proposed Changes to Program and Budget
Most prescriptive measures remained from previous years with an incentive increase from $160 per kW to $175 per kW of reduced peak demand in 2013
Due to the popularity and savings of the Commercial Lighting Program and OG&E’s other Commercial rebate programs, OG&E asked for and received greater funding from the OCC. The budget of the CL program increased significantly in 2013 which translated into greater kW and kWh savings.
3.5.4 Program Events and Training Highlights of Events: The OG&E Website has been instrumental in promoting this program and with the advent and explosion of energy management companies across the country; OG&E finds itself discovered in many on-line searches. Locally, word of mouth, along with one on one customer interaction,
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presentations and a strong web presence have been enough marketing force to exhaust funding in the program in all previous years.
Voss Lighting has become a key ally and partner with OG&E in our Lighting Rebate program. Voss is by far the most frequent user of our program among lighting contractors and has been a strong source of market trends, sales analysis and technical data for OG&E. We have solicited their help in outfitting our Tech Center with the latest lighting technologies including LED bulbs and sensors. The installation of these technologies puts our program on display for varying audiences and future customers who come to the facility. A presentation is made annually for the Oklahoma Manufacturing Alliance
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3.6 Commercial Energy Efficiency Program 3.6.1 Program Description The Commercial Energy Efficiency Program (CEEP) offers financial incentives for the installation of a wide range of measures that reduce peak demand. In this program, Commercial, School and Public Authority customers are eligible to participate in the program and qualify for incentive payments of $250 per kW saved by energy efficiency projects that significantly reduce customer peak demand. The flexible nature of the program encourages potential participants to customize an energy efficiency solution to meet their specific needs, but still does not place constraints on smaller opportunities such as single motor replacements or HVAC change outs, etc. In addition to financial incentives OG&E may also take additional steps to overcome barriers large customers face in investing in energy efficiency equipment by: Provide support to customers in helping in the designing of projects and calculating savings estimates. Provide customers with a list of qualified ESCOs. Encourage energy efficiency planning services, emphasizing consistent and long-term return on investments.
3.6.2 Program Highlights 75 projects were completed in 2013 that were significantly smaller than planned. Marketing Materials were developed and printed to provide information to our customers, and to provide handout information at Trade Shows, Seminars and Events. (Sample attached, see in examples). In addition, an electronic version was also created to further enhance our correspondence with customers by being able to immediately provide them information on their requests. The following table reflects the CEEP Program Goals for each year of the program.
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3.6.3 Program Budget, Savings and Participation TABLE 3-9 Com m ercial CEEP
2013
Budgeted Savings Dem and
Actual Savings
Energy*
Dem and
Energy*
% of Goal
2013
Dem and Energy*
Participants
Annual
Actual
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
$1,840,715
$619,437
34%
2,924.00
16,481,126
433.00
1,858,000
15%
11%
% of
Targeted Actual Goal 64
75
117%
*Annual Savings
The deemed savings realized for each lighting project was calculated using 50.34 kW and 283,921 kWh per project. This number was evaluated and derived by Frontier Associates. OG&E installed 75 CEEP projects which added an annual kWh savings of 1,858,000 and annual demand savings of 433 kW. These annual savings have an average life of 17.5 years for a lifetime energy savings of 32,581,963 kWh.
3.6.4 Description of Participants The CEEP program participants are primarily commercial and light industrial customers which will also include school and public authority. The participants are eligible to receive an incentive for upgrading and/or replacing items that may include HVAC, chiller, geothermal, motors, compressed air, intruders, extruders and presses, ect.
3.6.5 Challenges and Opportunities Challenges The largest challenge we face is “Qualifying the Existing Equipment”. The ability to find data and specs sheets on the current equipment, (Motors, HVAC, Chillers, etc.) limits our ability to verify qualifications. This information is vital on the smaller applications, (metering not practical or cost effective), to be able to accurately and effectively compute the kW savings associated with the measure. Additional Opportunities The CEEP Program has shed light on small and large commercial needs in the industry: The need for a Commercial Geothermal Program
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Oklahoma Gas and Electric Company
Additional rebate money available for HVAC, Chiller, Rooftop and Package Units. Evaluate a compensation change, to not pay on just Demand saved, but Energy should be included
Opportunities The intent of the CEEP was to directly target the “Large Commercial” Rate Class, providing them an opportunity to look at their business or facility from a higher level of Energy Efficiency improvements, and recoup some of their investment costs through the OG&E Incentive of $250 per kW saved. This would provide the customer with the ability to look at the process or performance contracting perspective of adopting new energy efficient practices, business solutions, technology and retrofits. OG&E was afforded the opportunity to explore other venues with these customers. It became quickly apparent that these same companies’ would have difficulties in larger project retrofits, and be more inclined to do individual measures from cost or salvaging perspective. This adjusted the playing field from the larger ESCO’s down to more localized contractors’ facilitation the improvements, fixing the broken pieces, and keeping the plant or business operation at a “Day by Need” basis. The DSM Team developed a new strategy of: 1) Targeting ESCO’s – (Keeping them in the loop as the marketing place rebuilds) 2) Targeting Contractors – (HVAC, Geothermal Distributors & Manufacturers, Motor Distributors & Manufacturers, Electricians, etc.). 3) Expand the Market Place to Include Public Authority and Schools 4) Reduce the sub-metering restriction, since they would be individual measures, (e.g. – 25hp motor for a Premium Efficient 25hp motor), which kW is easily calculated from the electrical information contained on the plates.
3.6.6 Outlook for Continuation, Expansion, Reduction or Termination The CEEP Program fills a necessary niche in the Commercial Community. The rebate incentive helps facilitate companies with an opportunity to make necessary energy efficient improvements to their facility, which may not have necessarily been performed. (e.g. – They may have to replace a Motor, but the CEEP incentive may help encourage them to look at, purchase and install a more premium efficient motor).
3.6.7 Planned or Proposed Changes to Program and Budget If funding for this program is depleted prior to December 31, 2014, the program may be suspended. If this happens, OG&E will evaluate whether or not there is a need and if there are 41
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available resources to transfer funds from other programs. Significant customer feedback, either positive or negative, could dramatically impact this program. OG&E should also allow customers six months’ notice of program discontinuation so customers can make adjustments to any upcoming projects.
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3.7 Industrial Energy Efficiency Program 3.7.1 Program Description The Industrial Energy Efficiency Program (IEEP) offers financial incentives for the installation of a wide range of measures that reduce peak demand. In this program, Industrial, customers are eligible to participate in the program and qualify for incentive payments of $250 per kW saved by energy efficiency projects that significantly reduce customer peak demand. The flexible nature of the program encourages potential participants to customize an energy efficiency solution to meet their specific needs, but still does not place constraints on smaller opportunities such as single motor replacements or HVAC change outs, etc. In addition to financial incentives OG&E may also take additional steps to overcome barriers large customers face in investing in energy efficiency equipment by: Provide support to customers in helping in the designing of projects and calculating savings estimates. Provide customers with a list of qualified ESCOs. Encourage energy efficiency planning services, emphasizing consistent and long-term return on investments.
3.7.2 Program Highlights
Secured two large projects yielding 75% of the program goals for the year.
3.7.3 Program Budget, Savings and Participation TABLE 3-9 Industrial IEEP
2013
Budgeted Savings
Actual Savings
% of Goal
Annual
Actual
% of
Dem and*
Energy*
Dem and*
Energy*
Budget
Expenses
Budget
kW
kWh
kW
kWh
Dem and* Energy* kW
kWh
$293,325
$381,951
130%
473.00
3,114,628
355.00
2,424,000
75%
78%
2013 Participants
% of
Targeted Actual Goal 20
2
10%
*Annual Savings
The deemed savings realized for each lighting project was calculated using 22.34 kW and 146,380 kWh per project. This number was evaluated and derived by Frontier Associates.
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OG&E installed 2 IEEP projects which added an annual kWh savings of 2,424,000and annual demand savings of 355 kW. These annual savings have an average life of 19 years for a lifetime energy savings of 46,042,048 kWh.
3.7.4 Description of Participants Participants are industrial customers with equipment that can be upgraded to more energy efficiency equipment higher than minimum energy efficiency standards of today.
3.7.5 Challenges and Opportunities Challenges The largest challenge we face is “Qualifying the Existing Equipment”. The ability to find data and specs sheets on the current equipment, (Motors, HVAC, Chillers, etc.) limits our ability to verify qualifications. This information is vital on the smaller applications, (metering not practical or cost effective), to be able to accurately and effectively compute the kW savings associated with the measure. Opportunities The original intent of the IEEP, was to directly target the “Large Industrial” Rate Class, providing them an opportunity to look at their business or facility from a higher level of Energy Efficiency improvements, and recoup some of their investment costs through the OG&E Incentive of $250 per kW saved. This would provide the customer with the ability to look at the process or performance contracting perspective of adopting new energy efficient practices, business solutions, technology and retrofits. Two Factors Affecting IEEP Direction 1) At the onset of the IEEP, the Industrial Rate Class customers were given the option of opting out of the IEEP. This directly affected OG&E’s initial intent of the program, and the ability to achieve the designed results of the program. 2) The overall health of the economy affected these larger industrial customers; causing them to re-position their approach to investments by balancing the reduction in their work forces, adjusting for the slowdown in marketable consumables affecting their rate of production, forcing many facilities to reduce from 2 and 3 shift programs, down to a single shift. This challenged the company’s budgets and available dollars for energy improvements and capital expenditures.
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OG&E was afforded the opportunity to explore other venues with these customers. It became quickly apparent that these same companies’ would have difficulties in larger project retrofits, and be more inclined to do individual measures from cost or salvaging perspectives. This adjusted the playing field from the larger ESCO’s down to more localized contractors’ facilitation the improvements, fixing the broken pieces, and keeping the plant or business operation at a “Day by Need” basis. The DSM Team developed a new strategy of: Targeting ESCO’s – (Keeping them in the loop as the marketing place rebuilds) Targeting Contractors – (HVAC, Geothermal Distributors & Manufacturers, Motor Distributors & Manufacturers, Electricians, etc.). Reduce the sub-metering restriction, since they would be individual measures, (e.g. – 25hp motor for a Premium Efficient 25hp motor), which kW is easily calculated from the electrical information contained on the plates.
3.7.6 Outlook for Continuation, Expansion, Reduction or Termination The IEEP Program fills a necessary niche in the Industrial Community. The rebate incentive helps facilitate companies with an opportunity to make necessary energy efficient improvements to their facility, which may not have necessarily been performed. (e.g. – They may have to replace a Motor, but the SOP incentive may help encourage them to look at, purchase and install a more premium efficient motor).
3.7.7 Planned or Proposed Changes to Program and Budget Proposed changes to the IEEP Program are to align it with the CEEP Program as described in section 3.6.7 Planned or Proposed Changes to Program Budget.
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3.8 Energy Efficiency Education Program 3.8.1 Program Description The OG&E Energy Efficiency Education Program is designed to help customers make informed decisions about their energy use and provides alternatives to improve their consumption, thereby decreasing demand and energy usage. The program goal is to allow customers to make informed decisions about long term energy efficiency and participate in programs that will help them manage their energy costs and take advantage of price response tariffs. Media – The Education Program provides face-to-face presentations to customers of all classes, allowing them to make informed decisions about how they use energy. The program also allows customers to look at alternatives to improve their consumption, thereby decreasing demand and energy usage. A total of 22 customer presentations were made.
3.8.3 Program Budget, Savings and Participation TABLE 3-10 Education
2013
Budgeted Savings Dem and*
Actual Savings
Energy*
Dem and*
Energy*
% of Goal
2013
Dem and* Energy*
Participants
Annual
Actual
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
$921,200
$801,042
87%
n/a
n/a
n/a
n/a
-
-
% of
Targeted Actual Goal n/a
n/a
-
*Annual Savings
3.8.4 Description of Participants Challenges and Opportunities OG&E has continued to provide updated material to all classifications of consumers throughout the OG&E territory. Challenges to residential, commercial and industrial consumers will be to initiate timely and important energy improvements to homes and businesses. Cost effective measures should be implemented in a timely manner to maintain lower utilities. Education to the consumer is a key in stressing the importance of energy efficiency in all applications.
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Oklahoma Gas and Electric Company
3.8.6 Outlook for Continuation, Expansion, Reduction or Termination OG&E will continue to develop the education program to align and facilitate it’s Demand Response Programs, Energy Efficiency Programs and SmartHours Programs.
3.8.7 Planned or Proposed Changes to Program and Budget for 2014 OG&E proposes to continue to support and promote the growth of energy awareness throughout its customer base. OG&E plans to make available a walk through commercial energy audit for facilities less than 7500 sq. ft. and provide additional enhancements to the Energy Technology Center.
3.8.8 Program Events and Training Highlights of Events: A total of 24 OG&E community education presentations were made to various external customer groups reaching approximately 3,500 during 2013. Groups and events included: Cleveland County Conservation District OCCC Informed Seniors Seminar USGBC Spring Forum in Tulsa YWCA Money Mania Communication Federal Credit Union Del Center Senior Nutrition Center Candlelake Nutrition Center Memorial Nutrition Center Harrah Nutrition Center Capitol Hill Nutrition Center Spencer Nutrition Center McGuire Nutrition Center MA Nutrition Center Temple Nutrition Center Hillcrest Nutrition Center Andrews Nutrition Center Minority Business Conference Choctaw Nutrition Center Easter Seals Nutrition Center Northeast Senior Center Oklahoma Department Environmental Quality OKC Community Roundtable
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Oklahoma Gas and Electric Company
Guthrie Roundtable Tinker Air Force Base Energy Expo Reed Center OKDHS
3.8.5 Energy Technology Center The OG&E Energy Technology Center offers a high tech meeting facility, free of charge, to business and community organizations. It's the ideal location for meetings, training seminars, business receptions and retreats for smaller groups. Built with state-of-the art green technology, the Energy Technology Center showcases the latest in energy innovations including interactive displays of some of OG&E's latest customer program offerings including smart grid, wind energy and a variety of energy efficiency programs. The high-tech environment of the tech center provides a comfortable atmosphere with the convenience of a butler kitchen and audiovisual equipment. During 2013, approximately 3,500 people participated in events held at the technology center. Each visiting organization was presented a 20 minute overview of OG&E’s 2020 Vision and program offerings. Throughout their visit, attendees have the opportunity to learn about OG&E’s efficiency program through a variety of video presentations and collateral material located throughout the hallways. A CFL/LED interactive light display allows customers learn about the energy savings when compared to an incandescent light bulb. 2013 visiting organizations included:
Urban League of Greater Oklahoma City Green Schools Ok Renewable Energy Council Health Alliance for Uninsured OK State Dept. of Health OK Recycling Tech Now Traveler Aide Redbud Financial TEG Solutions Christmas Connection Oklahoma State Regents for Higher Education Oklahoma Department of Rehabilitation Services Harrah High School
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Oklahoma Gas and Electric Company
Assoc. of Energy Engineers Peace is Possible Public Strategies Oklahoma Institute for Child Advocacy OU Solar Project OSU Leadership Training Youth Against Tobacco Team Oklahoma Central with Merk & Company AAE Lunch/Learn Institute for Child Advocacy OKC Day Shelter Possibilities, Inc. Oklahoma Child Support Services Innovative Teaching Solutions Association of American Indian Physicians Women of Wealth Oklahoma Adult Education Association Bill Grimes & Associates, Inc. FAA Neighborhood Alliance OK Commission on Children and Youth Performance Management Public Relations Society of America Great Neighborhoods-NACO Independent Drilling Oklahoma City Public Schools Northeast Church of Christ Leo Brown, Agency Chaplain OK State Regents Walker Comp. CPA group Sigma Gamma Rho Sorority Birthing Project Ok Highway Patrol
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Oklahoma Gas and Electric Company
3.9. SmartHours 3.9.1 Program Description Oklahoma Gas and Electric Company (OG&E) has successfully implemented a new time-based rate over a three year period under a program known as SmartHours, which has provided about 79,000 participating customers with prices that varied daily in order to entice changes in their patterns of electricity consumption and achieve a reduction in peak demand. The program is gradually being expanded to all customers, with a total projected enrollment of 120,000 customers by the end of 2014. The SmartHours dynamic pricing campaign is recognized in the industry as a leader in terms of scale and impact for a smart grid enabled price response program.
3.9.2 Program Objectives The primary goal of OG&E’s SmartHours program is to assess the demand response achieved through various technologies and dynamic rate plans. The program is designed to test, and gain knowledge about customer acceptance of, time-based rate designs and enabling technologies. Two rates are offered: a Time-of-Use rate with a Critical Price component (TOU-CP) and a Variable Peak Pricing rate with a Critical Price component (VPP-CP), for both residential and small commercial customers. The two technology offerings include a web portal, and a programmable communicating thermostat (PCT). The ultimate goal of the program is to determine if the demand reductions achieved will allow OG&E to delay capital investments in incremental generation resources. With the objective of a demand reduction of 2.0 kW per customer and in anticipation of 20% residential and small commercial participation, OG&E hopes to gain roughly 165 MW by year end 2014 of virtual generation that will contribute to this avoided generation.
3.9.3 Program Budget, Savings and Participation Load reduction is estimated by comparing the load for the customers with each rate-technology combination with the load for customers in the control group. Comparisons are made between several different day types, including average weekend days, average weekdays, event days, and average days for the various price levels for the VPP-CP rate. The SmartHours program results are presented below in three phases, with a brief overview of the first two phases representing the pilot study years and the third phase representing the first year of expansion beyond the pilot study.
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Oklahoma Gas and Electric Company
Phase 1 – 2010 Beginning in early 2010, OG&E recruited 3,000 customers located in Norman, Oklahoma, for the demand response study. The primary objective of the study was to determine the most effective combination of rate and technology in reducing on-peak energy consumption. OG&E hypothesized that it could achieve 1.3 kW of max reduction per customer and 20% participation by 2014. Study results obtained from the testing period, June 1 through September 30, 2010, showed that the initial hypothesis of 1.3 kW of max demand reduction was achievable. In particular the VPP/PCT combination provided the greatest amount of demand reduction, approximately 1.96kW or 58% on average, for the VPP/PCT participants when compared to the control group. This result was likely explained by the automated response of the thermostat, which was lacking in the web. Phase 2 – 2011 The second year of this study was a continuation of Phase 1 with a few changes. OG&E engaged an additional 3,000 participants, located in Moore and South Oklahoma City. During Phase II, OG&E was able to test responsiveness to Critical Price events, and also gain insight into commercial participation. The results from this phase confirmed the success of the VPP/PCT combination measured in 2010, with a maximum demand reduction of 1.97kW per customer. Aside from the load impacts, Phase 1 and 2 analyses showed there was an apparent relationship between demographic segment and demand reduction. Focusing on 2010 results (Phase 1) of the VPP/PCT treatment, high income participants exhibited the greatest average baselines than other income groups, as well as the highest average demand reduction. Additionally, low income participants exhibited the highest percentage in demand reduction (68%) during Phase 1, when compared to the other segments. As of May 2012, 2.9% of enrollments dropped out of the program, and 5% of enrollments moved. During both phases, the un-enrollment rates were below 5%. Phase 3 – 2012 Based on the positive results of the two year demand response pilot, OG&E initiated the SmartHours expansion program in January 2012. This program promotes participation in the VPP rate and signing up for a thermostat. As of September 30, 2012, approximately 35,144 residential customers were participating in the SmartHours pricing program, and 61.5% percent of those customers also accepted a free PCT and are referred to as SmartHours Plus participants. Phase 4 – 2013 By the end of 2013, the 79,000 customers participating in SmartHours reduced system demand by 119 MW, and each customer saved $150 on average during the four month summer period. Major information technology (IT) improvements have also been made in communication infrastructure, web services, system integration, and cyber security. OG&E’s implementation of
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Oklahoma Gas and Electric Company
the SmartHours program was a primary factor in OG&E’s receipt of the prestigious EEI Edison Award in 2013.
Some of the benefits envisioned upon full project completion in 2017 include: reducing demand by 176 MW through dynamic pricing. OG&E has established a target of enrolling 120,000 customers in its “SmartHours” program. SmartHours
2013
Budgeted Savings
Actual Savings
% Of Goal
Annual
Actual
% Of
Demand*
Energy*
Demand*
Energy*
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual Goal
$7,108,785
71%
53,089.99
6,966,903
39,402.50
28,993,801
74%
416%
40,000
55,781 139%
$9,943,243
Demand* Energy*
2013 Participants
% Of
*Annual Savings
3.9.4 Use Case Description
During Phase 1, customers were randomly assigned to either a TOU-CP option or a VPP-CP option. Customers in the control group were left on their existing standard rates. A critical price event is a time during any day and any price level that suddenly there is a need to reduce demand. It could be a number of things that cause this, an example could be that generation failed or a natural disaster caused the ability to meet demand to be compromised. The Critical Price component in each rate plan can be called at any time, with a minimum of a 2 hour notice. The purpose of the critical price event is to encourage customer to shift demand outside of the critical peak event immediately. The VPP-CP was designed by replacing the on-peak price (from 2:00 PM to 7:00 PM on weekdays) in the TOU rate with one of four variable prices shown in the chart below. Under the VPP CP, a single price will apply to the entire five-hour on-peak window each weekday. Four defined price levels – Low, Standard, High, and Critical – simplify communications of price level. The day-ahead on-peak prices for VPP-CP are communicated to the customer by 5:00 PM on the previous day via email, text message, and/or voicemail.
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Oklahoma Gas and Electric Company
In conjunction with the two rates, OG&E tested four combinations of technology: a PCT, an IHD, a web portal, and a combination of all three. Two of the technologies, PCT and web portal, require specific customer qualifications. If a customer does not have central air conditioning, they cannot be assigned to PCT. If a customer does not have internet access, they cannot be assigned to web portal.
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Oklahoma Gas and Electric Company
OG&E collected interval data using smart meters from a sample of customers to estimate the load reduction resulting from various combinations of dynamic rates and enabling technologies. The two rate plans and four technology options described above result in eight combinations with a separate sample of participating customers needed for each. In order to implement a randomized design, all eligible customers were randomly assigned to either one of the participant groups or the control group. This allowed for direct and unbiased comparison of the rate-technology options. Because the program targets system peak reduction, it is important to consider the nature of the OG&E system load. The 2011 OG&E system peak of 6,509 MW occurred at the hour ending 4:00 PM on August 3. This summer system peak is much higher than the winter peak of 4,580 MW, which occurred on February 10 at the hour ending 8:00 AM. Reducing just the specific hour of the system peak will not significantly reduce OG&E’s capacity requirements – load must be reduced in all of the peak hours. Also important is the number of hours throughout the year that the system load is at or near the system peak. The nature of the OG&E system load is such that a technology-enabled dynamic rate plan offered in this program has the potential to reduce system capacity requirements significantly.
3.9.5 Challenges and Opportunities The most effective rate/technology combination for residential customers is the VPP-CP with PCT. The VPP rate provided the highest load reduction on the hottest days, and also provideed a full range of prices for OG&E to work with. On days when capacity is plentiful, there is no need for customers to reduce on peak energy, so the low rate can be set. When capacity is short, a High or Critical price can be set, and the Load reductions will be greater. The VPP-CP allows OG&E to tailor the price to the capacity. Combining the PCT with the rate automates the
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Oklahoma Gas and Electric Company
load reduction, giving the customer the ability to choose between the relative importance of cost and comfort, and to vary that choice across the different prices. OG&E could consider finding new ways to encourage customers without PCTs to shift load. As an example; encouraging customers to customize an “event plan” through the web portal that outlines specific actions to be taken during an event or critical day, may increase load reduction. Similar event or action plans are often employed for demand response programs with non-automated commercial and industrial customers. While no evidence of customer fatigue was seen during the summer of 2012, it may be prudent to consider the possibility of fatigue, especially during days that are forecasted to be the system peak, and develop a protocol that ensures too many events are not called. For planning purposes, in absence of a weather adjusted estimate, it is recommended to begin the Critical Price event period an hour prior to the expected system peak on a High priced day to maximize the impacts closest to the system peak. Impacts on Critical days with similar weather conditions without a Critical Price event had similar maximum impacts, but the impacts were 14% lower at hour-ending 5:00 PM. The following is a general overview of lessons learned: Primary customer driver is savings. Technology and savings create sustainability, but technology only matters if it facilitates customer savings. Automation is the key to sustainability. Thermostats were shown to be more effective in reducing demand compared to the alternatives that lack automated response capabilities (web portal, IHD). Pricing is critical to success. The differential between on-peak and off-peak prices must be significant enough to create demand shift. Members must be involved and engaged. Communicating daily prices creates awareness and focus. Use multiple channels including television, radio, print, earned media, website, and social media to engage and educate customers. Customer enrollment must be easy. Provide online enrollment and a dedicated call center. Effective cross-functional and supplier relationships are crucial. Information technology, effective processes (quality assurance, software development life cycle), and trusted partners and “Regulators” will be key essential elements. Statistical study is important to understand what is driving results.
3.9.6 Outlook for Continuation, Expansion, Reduction or Termination OG&E anticipates limited enrollments and installations for years to come. We will use lessons learned to capture and target highest potential demand shifters Expansion to move commercial customers, multi family, schools and churches 56
Oklahoma Gas and Electric Company
Increased penetration of devices in customers’ homes We will continue to focus on customers who provide the most demand response
3.9.7 Planned or Proposed Changes to Program and Budget The program will move into maintenance mode in 2015 We will need to continue to recruit sufficient customers to replace customers leaving the program We expect this to mean we are enrolling a smaller number of customers 2015 through 2020 Increased focus on customer retention and customer education Planned budget is reduced from the earlier years of the program
3.9.8 Program Benefits SmartHours provides knowledge and empowerment to customers. OG&E customers have a choice and are in complete control of their comfort and savings. By understanding when electricity is more expensive, customers are able to make their own decisions and to decide how much they want to save. The program creates a partnership between the company and the customer which is reflected in our survey scores. As customer costs increase due to expected environmental regulations the SmartHours program will become increasingly more important. The customer understanding and control the program provides will be an important contributor to managing customer dissatisfaction with rising customer costs. OG&E is on target to delay adding incremental generation until 2020, which in turn saves the customers of OG&E even more money
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Oklahoma Gas and Electric Company
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Oklahoma Gas and Electric Company
3.10 IVVC 3.10.1 Program Description Oklahoma Gas and Electric Company (OG&E) has successfully implemented an Integrated Voltage and Var Control Program. The Integrated Volt Var Control (“IVVC”) Program is a system of devices, controls, software and communications equipment used to manage OG&E’s distribution system reactive power flow and voltage level. This technology is used to minimize electrical losses and reduce energy demand during peak periods, while ensuring acceptable customer voltage levels. IVVC infrastructure is installed on both 12.47kV and 34.5kV distribution circuits, and includes installation of capacitor controls, Load Tap Changer (LTC) controls, and radios. The program is being deployed over an 8 year period on 400 circuits system wide.
3.10.2 Program Objectives The primary goal of OG&E’s IVVC program is to optimize voltage and reactive power flow to achieve demand reduction on existing feeders. During non-peak periods, IVVC will normally operate in loss reduction mode. In loss reduction mode, IVVC compensates for inefficiencies caused by reactive loads such as electric motors. As a result, energy loss reductions (i.e. energy savings) are expected to be realized during non-peak periods. VVO will be placed in demand reduction or combined loss/demand reduction mode when needed to help reduce system peak energy demand. Demand reduction mode reduces voltage in order to achieve a corresponding reduction in peak energy consumption. Based on study results achieved to date, a peak demand reduction of approximately 2% has been achieved across the circuits on which this technology has been deployed.
3.10.3 Program Budget, Savings and Participation IVVC
2013
Budgeted Savings Demand*
Actual Savings
Energy*
Demand*
Energy*
% Of Goal
2013
Demand* Energy*
Participants
Annual
Actual
% Of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
$3,011,143
$1,807,819
60%
0.00
0
0.00
0
-
-
61
61
*Annual Savings
Load reduction is calculated for each substation bank by computing a conservation voltage reduction factor (CVR) which is multiplied by the voltage change and the demand for each bank. This method was chosen because the results are independent of any Smart Hours 59
% Of
Actual Goal 100%
Oklahoma Gas and Electric Company
reduction. It also creates the most consistency in the analytic procedure. Through experimentation, OG&E has shown that a CVR factor varies with connected load type and cannot be globally assumed. OG&E has also shown that CVR varies on an individual bank, but remains stable when the demand on that bank is higher than 60% of the summer peak demand. A CVR factor is calculated for each substation bank at peak.
Deployment Year 2013 The summer of 2013 was a successful test season for the IVVC deployment at OG&E. Sixty one circuits deployed in 2013 were tested, yielding a total of 8.1MW of demand reduction capability from the tested circuits at the bank level. An adjustment of 6.5% was added to account for substation and transmission losses. The table below provides a summary of the tested banks and their tested MW contribution capability to the overall OG&E demand reduction capability. OG&E is performing further analytics on the low percent reduction feeders to determine next steps for reduction improvement.
Substation Bank
Demand Reduction (kW)
% Demand Reduction
Substation A
620
4.6%
Substation B Bank 1
458
2.9%
Substation B Bank 2
265
1.8%
Substation B Bank 3
220
1.4%
Substation C Bank 1
242
1.8%
Substation C Bank 2
461
3.0%
Substation C Bank 3
201
1.4%
Substation D Bank 1
293
1.9%
Substation D Bank 2 LTC 2
127
0.9%
Substation D Bank 2 LTC 4
212
1.6%
Substation D Bank 3 LTC 5
241
1.7%
Substation D Bank 3 LTC 7
101
0.9%
Substation E
323
2.2%
Substation F Bank 1
327
2.2%
Substation F Bank 2
317
2.6%
Substation F Bank 3
862
6.0%
Substation G LTC 1
205
2.2%
Substation G LTC 2
291
2.2%
Substation G LTC 3
303
2.2%
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Oklahoma Gas and Electric Company
Substation G LTC 4
294
2.2%
Substation H Bank 1
495
3.2%
Substation H Bank 2
369
2.5%
Substation H Bank 3
250
2.5%
Substation I Bank 2
166
1.0%
Substation J Bank 1
213
1.6%
Substation J Bank 1
254
1.8%
Total / Average
8.11
2.2%
OG&E is also the first distribution utility to deploy ABB’s new Volt-Var optimization system, which improves distribution system visibility, provides better accuracy and granularity of data, and allows for better forecasting and integration of more real-time data than ever before. Some of the benefits envisioned upon full project completion in 2017 include 67 MW through VoltVar optimization.
3.10.5 Challenges and Opportunities The following is a general overview of lessons learned: Refining analytic processes can yield a larger reduction. Additional reduction can be achieved through minor capital improvements. Prioritizing optimal circuits is important for initial project success while working in parallel to condition non-optimal circuits for improved reduction potential. Information technology, effective processes and trusted partners are keys to program success.
3.10.6 Outlook for Continuation, Expansion, Reduction or Termination OG&E anticipates continuing successful deployment per the filed schedule shown below.
Circuits
2013
2014
2015
2016
2017
52
60
60
60
72
3.10.8 Program Benefits The most substantial customer benefit derived from IVVC is related to shaving peak demand which, if objectives are achieved, will allow OG&E to avoid new fossil fuel generation until 2020. Also by shaving peak demand, our customers avoid the additional incremental energy costs
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Oklahoma Gas and Electric Company
associated with power generation or purchase during peak periods. Integrated Volt VAR Control also provides the added benefit of reducing line losses throughout the year. Through optimizing the voltage profile along the length of the circuit, less reactive power will be required to maintain system stability and the energy savings will be passed along to our customers.
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Oklahoma Gas and Electric Company
3.11 Load Reduction Rider Program 3.11.1 Program Description The Load Reduction Rider (LRR) became effective on August 2, 2012 and applied to the contract period beginning August 2, 2012. The rider will remain in effect until canceled or modified by order. This rider is available, upon application by the customer and acceptance by the Company, to all customers served under a standard rate schedule with an annual on-peak period maximum demand of 200 kW or above. This rider is available to eligible customers in conjunction with the Day-Ahead Pricing Tariff (DAP) subject to special conditions, as defined within the DAP tariff. The Company, at its sole discretion, may call for curtailment for any operating or economic purpose. The use is not limited to emergency conditions. This rider shall not apply if a service interruption resulting from system-emergency operating conditions should occur. The Customer designates its Subscribed Curtailment Load (SCL) amount during the enrollment period. The Subscribed Curtailment Load (specified in kW) is the amount of load the customer expects to reduce during curtailment events. Customer must specify an SCL equal to at least 10% of the customer’s maximum demand occurring during the most recent on-peak period. Customers must have actual historical measured on-peak period demands to be eligible to specify a SCL. The customer chooses the required notification time period of either 4-hour notification or 1 hour notification. Although the Company endeavors to always give as much notice as possible prior to the curtailment period, the Company will provide the notification to a customer at least within the selected notification time. The customer also chooses a curtailment limit of 40, 80 or 160 hours. This will be the maximum number of hours that the Company will call for a curtailment from the customer. Once the customer has been curtailed for the selected number of hours, the customer is no longer obligated to meet the curtailment commitment and will not be assessed the buy-through provision charges. Customers enrolled in this tariff receive billing credits based on their Subscribed Curtailment Load (Subscription Credits) and load reduction (Performance Credits) during Company called curtailment events. The Subscribed Curtailment Load (specified in kW) is the amount of load the customer expects to reduce during curtailment events. Subscription Credits are applied to the customer’s bill during the summer season months of June through September. The credit is based on the customer Subscribed Curtailment Load and the monthly Subscription Prices posted by the company prior to the enrollment period. Performance Credits are applied to the 63
Oklahoma Gas and Electric Company
customer’s bill during the billing period in which a curtailment is called by the Company. The credit is calculated based on the difference of the baseline energy and actual measured energy during each hour of the curtailment event multiplied by the Curtailment Price communicated to the customer in conjunction with the curtailment notification. Minimum Curtailment Prices are posted prior to the enrollment period. In the event that a customer, with a subscribed curtailment load amount, fails to provide a reduction of Subscribed Curtailment Load during any interval of a curtailment event, the customer is assessed a Buy-Through Charge based on the portion of the Subscribed Curtailment Load not reduced during each hour (or portion of an hour) of the curtailment period. Customers that have met their curtailment obligation (selected curtailment hours) are not subject to the Buy-Through Charge for any hours in which a curtailment event is called beyond the elected curtailment hours.
3.11.2 Program Highlights • • • • •
Subscribed Curtailment Load (SCL) increased from 33 MW to 37 MW 27 Commercial/Industrial Customer Accounts enrolled in 2013 0 Load Reduction Events initiated for 0 hours of Load Reduction in 2013 Net Subscription averaged $64,362 per customer Program cost $47/kW-year reduced
3.11.3 Program Changes No changes were made to the LRR Program.
3.11.4 Program Events There were no Load Reduction events in 2013. During the events all participants were asked to curtail during the time frames given. Table 7-1 shows the date and duration of the curtailment events that occurred in 2013 along with the notification groups that were requested to curtail.
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Oklahoma Gas and Electric Company
Table 7-1
2013 Load Reduction Events Requested to Curtail 1 Hour Notification
Event
Date
Time
Total Hours Annual Total
4 Hour Notification
Hours
40 Hr
80 Hr
160 Hr
40 Hr
80 Hr
160 Hr
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.11.5 Program Analysis One of the Load Reduction program’s main purposes is to assist in reducing the company’s system peak and in Table 7-2 some key analytics are listed to help show the program’s impact on our system peak. The table below represents year ending averages of all 2013.
Table 7-2
Customer Population
Total Program
Average Customer
Subscription Level
37,105 kW
1,374 kW
Performance Level
0 kW
0 kW
Subscription Credit
$1,737,764
$64,362
Performance Credit
$0
$0
Buy-Through Charge
($0)
($0)
Net Credits
$1,737,764
$64,362
The Load Reduction Program saw an average 0 kW reduction at the annual cost of $1,737,764 resulting in a cost per kW reduced of $46.83. The summary of the Load Reduction Rider performance for all participating customers is shown in Table 7-3.
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Oklahoma Gas and Electric Company
Table 7-3
Summary of Customer Analysis
All Customers
Number of Customers
SCL
Load Reduced
27
37,105 kW
0 kW
3.11.6 Outlook for Continuation, Expansion, Reduction or Termination OG&E has accomplished a comprehensive plan to expand the program incrementally over the next 6 years.
3.11.7 Proposed Changes to Program No changes planned in 2014.
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Oklahoma Gas and Electric Company
4.0 Evaluation, Measurement and Verification
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Oklahoma Gas and Electric Company
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Oklahoma Gas and Electric Company
4.1 EM&V Overview Introduction: The Evaluation, Measurement and Verification Plan is a systematic approach to quantify energy savings. OG&E is using appropriate EM+V for each of the programs in the portfolio. The 2007 International Performance Measurement and Verification Protocol will be the cornerstone for the OG&E Measurement and Verification Plan. OG&E has made a considerable effort to address all customers within the OG&E service area and used deemed savings, stipulated savings and reporting program information to evaluate and monitor the individual program results. OG&E contracted with Global Energy Partners (now EnerNOC) to provide EM&V on the following programs: Weatherization Program Home Energy Efficiency (formerly Residential Thermal Efficiency) Positive Energy – New Home Construction Geothermal Heating, Cooling and Water Heating CEEP & IEEP Program Commercial Lighting SmartHours Section 4.2 outlines the summary of the EM&V activities EnerNOC conducted on each of the programs offered in 2012. The full report is included in the appendix 6.1.
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Oklahoma Gas and Electric Company
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Oklahoma Gas and Electric Company
4.2 Program Summary Evaluation Program summations have been included in each individual’s program’s EM&V Report.
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Oklahoma Gas and Electric Company
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Oklahoma Gas and Electric Company
4.3 Program Ratios Planned Program Year - 2013 Cost-Effectiveness Test
Program Residential WRAP Residential HEEP Positive Energy Home Geothermal HVAC Commercial Lighting Commercial CEEP Industrial IEEP SmartHours IVVC DR Portfolio Total
Ratepayer Impact Levelized Participant Cost Test Measure Cost (PCT) (RIM) $ / kWh 0.021 0.008 0.007 0.006 0.001 0.001 0.002 0.183 0.035 0.009
NPV ($000's) 25,313 52,381 13,842 5,108 107,412 129,266 15,221 26,688 n/a 375,230
Utility Cost Test (UCT)
Total Resource Cost (TRC)
Societal Test (ST)
Ratio
NPV ($000's)
Ratio
NPV ($000's)
Ratio
NPV ($000's)
Ratio
NPV ($000's)
Ratio
2.85 5.81 3.75 2.49 2.98 20.11 23.25 1.50 n/a 4.15
-22,302 -30,619 1,269 -33,216 -42,051 -43,549 -5,653 1,035 4,413 -144,230
0.35 0.35 1.10 0.56 0.72 0.60 0.56 1.01 1.09 0.74
-3,474 4,972 10,294 2,664 100,822 58,816 6,364 12,155 18,063 207,262
0.78 1.44 4.10 2.63 16.21 10.40 8.99 1.11 1.48 2.06
3,690 14,000 18,775 2,232 82,417 73,765 7,959 21,828 30,938 252,112
1.23 2.29 4.26 1.62 2.44 11.47 10.07 1.18 1.73 1.94
3,986 14,560 18,918 2,426 84,918 75,549 8,169 22,002 31,165 258,102
1.25 2.34 4.26 1.65 2.48 11.73 10.31 1.18 1.74 1.96
Actual Program Year - 2013 Cost-Effectiveness Test
Program Residential WRAP Residential HEEP Positive Energy Home Geothermal HVAC Commercial Lighting Commercial CEEP Industrial IEEP SmartHours DR Portfolio Total
Ratepayer Impact Levelized Participant Cost Test Measure Cost (PCT) (RIM) $ / kWh 0.037 0.010 0.016 0.050 0.006 0.019 0.008 0.059 0.036
NPV ($000's) 7,349 -58 1,575 273 11,045 2,316 4,173 19,980 46,749
Utility Cost Test (UCT)
Total Resource Cost (TRC)
Ratio
NPV ($000's)
Ratio
NPV ($000's)
Ratio
NPV ($000's)
2.29 0.99 1.52 1.27 2.74 2.84 14.88 3.85 2.29
-3,377 5,042 -41 -446 -3,011 -591 -535 -8,030 -12,455
0.70 1.61 0.99 0.60 0.75 0.71 0.77 0.75 1.98
1,544 10,919 2,652 83 7,733 831 1,421 30,763 30,763
1.25 5.48 3.18 1.14 6.50 2.34 4.72 1.39 1.98
3,982 6,603 2,340 -24 5,072 1,063 2,132 11,920 32,006
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Ratio 1.64 1.57 1.74 0.97 1.86 2.24 8.77 1.68 1.68
Societal Test (ST) NPV ($000's)
Ratio
4,171 6,862 2,416 -12 5,340 1,098 2,180 12,292 33,266
1.67 1.60 1.76 0.99 1.90 2.28 8.95 1.71 1.70
Oklahoma Gas and Electric Company
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5.0 Supplemental Information
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Frontier Associates brings together an unparalleled knowledge of the market and regulatory issues facing utility companies, business and industry, regulatory bodies, consumers, and all levels of government. Our capabilities fall into three main service areas: Energy Pricing & Resource Planning, Energy Efficiency & Renewable Energy Programs, and Market Research. Frontier is also a leading provider of online utility efficiency program databases with its EnerTrek® system.
EnerTrek® is an online data management system that allows our clients to manage large-scale programs with minimal administrative resources. Established in 1999, Frontier has emerged nationally as an important consultant to electricity retailers and distribution companies, power generators, natural gas distributors, electricity and gas consumers, and manufacturers of energy efficiency related products. Frontier Associates provides consulting assistance in the following areas: Energy Efficiency & Renewable Energy Programs
Program Design Program Administration and Online Databases Program Management Evaluation, Measurement & Verification
Energy Pricing & Resource Planning
Strategic Pricing & Rate Design Resource Planning Policy Development Regulatory Filing Support
Market Research
Surveys Energy Efficiency & Renewable Energy Potential Niche Market Research & Assessment of New Technologies Market Transformation Programs
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Frontier & Associate’s headquarters is locate in Austin, TX with offices across the U.S.
Austin, TX (Headquarters) Houston, TX (Field Personnel) Dallas, TX (Field Personnel) Denver, CO (Field Personnel) Boston, MA (Field Personnel) Buenos Aires, Argentina (Field Personnel)
Frontier Associates LLC 1515 S Capital of Texas Hwy Suite 110 Austin, TX 78746-6544 Phone: (512) 372 8778 Fax: (512) 372 8932 Email:
[email protected]
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ENERGY OPTIMIZATION COMPANY CLEAResult harnesses the world’s most innovative thinking in energy management and delivers the insight and technology to unleash the value of energy. We work with utility clients to design, implement, and evaluate cost effective optimization programs. By providing energy efficient usage and place a stronger focus on holistic organizational strategies, we help customers drive lower costs and get most from energy. Through experience in energy efficiency, demand side management, renewable energy and energy resource acquisition, we help power significant, positive change for our clients. CLEAResult Named to Inc. 500 List of Fastest-Growing Private Companies Austin-based energy optimization firm ranks 144th on an annual list. AUSTIN, Texas—August 24, 2010—Inc. Magazine named CLEAResult the 144th fastest-growing private company in the U.S. in its annual Inc. 500 issue, on newsstands today. The Austin-based energy optimization firm operates energy efficiency and renewable energy programs for utility companies, government organizations and private businesses across the country. Rankings were based on revenue growth from 2007 to 2009, during which time the firm's revenues grew 1,860 percent. "Our growth has been fueled by three major factors: being able to work for an amazing group of clients, achieving measurable, sustainable results for those clients and the
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exceptional group of talented team members in our company," said CLEAResult President Glenn Garland. "We're thrilled to be included on this prestigious list." "We've achieved these results by changing the way people think and act about energy use," said Garland. While its programs vary depending on clients' individual targets, CLEAResult first educates customers on how best to reduce energy use, then provides the support to activate and sustain programs for long-term energy optimization. "There are many approaches to securing our energy future and combating climate change, and we certainly feel we've made significant strides," said Garland. "However, energy efficiency still represents the single greatest opportunity for reducing carbon emissions. Half a billion kilowatt-hours sounds like a lot, but we believe it's just a good start." Contact us at 512-327-9200 or
[email protected] today.
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IT’S ABOUT THE DATA From the beginning, our focus was on the data. Not merely knowing or deploying data to achieve goals – but to truly understand your customer data on a household-level basis. What are the ages and fueltypes of appliances? Heating and cooling systems? Number of people in the household. And more. Over 20 years, we’ve learned that analyzing & associating customer behavior to the data are the game changing components of Direct Options’ programs. It’s about making your data smarter.
THE DISTINCTIONS YOU SHOULD DEMAND Advances in technology now allow you to connect data directly to individual customers – with messaging based on their household’s actual energy use, needs and costs. Not imagined “wants” derived from third-party data. Resulting targeted programs save up to 80% of traditional marketing spending and offer higher program ROI. The real kicker? More satisfied customers!
COMPREHENSIVE SOLUTIONS TO YOUR CHALLENGES Utilities share many common data needs and opportunities. The knowledge gained from our longstanding IOU, Municipal and Cooperative utility relationships yields a core set of data collection and communication tools designed to augment your initiatives. You now approach energy efficiency, revenue generation and customer satisfaction challenges with confidence and defined expectations.
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DIRECT SOLUTIONS You face extraordinary adversity: regulators, stakeholders, mandates and more. Direct Options developed versatile and actionable solutions that drive results and support your goals while keeping the most important asset top of mind, your customer. • Demand Side Management / Demand Response / Energy Efficiency • Customer Satisfaction • Billing, Payment Plans, Surge Protection and Other Products & Services As a data-driven marketing firm, we’re wired to listen, analyze, question and solve problems. Utilities share many common data needs and opportunities prompting development of a core set of data collection and communication tools. While standardized in format and implementation, specific inputs are customizable to accommodate local market conditions, geography, weather, demographic/ economic conditions and existing utility products; all with a sensitivity to your brand and preferences.
Contact Information: Direct Options 9565 Cincinnati-Columbus Road West Chester, OH 45069
513.278.8450
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6.0 Appendix
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6.1 OG&E Program Information
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Weatherization Bill Insert
(front)
(back)
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Flyer
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Postcard
Information Booklet
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Weatherization Brochure
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Customer Insert
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Direct Mail Letter
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Home Energy Efficiency Program HEEP Outreach Kit •
High Density Foam Tape
•
Self Adhesive Door Sweep
•
Light Switch Insulation
•
Outlet Plate Insulation
•
Dupont White Airtite Latex Caulk
•
"How to Weatherize" instruction sheet
•
Rebate Booklet for savings on other energy saving products
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HEEP Radio Advertisment
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Bill Insert
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HEEP Brochure
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HEEP Promotional Material
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HEEP Flyer
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HEEP e-mail
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HEEP e-mail
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HEEP Customer Insert
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Mail
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Positive Energy Home Print Ad for Parade of Homes
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Commercial Lighting
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CEEP / IEEP Program Brochure
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Brochure (front)
(back)
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SmartHours Program
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6.2 EM&V and Cost Benefit Reports EM&V Analysis was conducted by EnerNOC for each program. A copy of these reports can be found in attachments at the end of this report. 6.2 Attachment A Weatherization Program 6.2 Attachment B HEEP Program 6.2 Attachment C Positive Energy Home Program 6.2 Attachment D Geothermal Program 6.2 Attachment E Commercial Lighting 6.2 Attachment F CEEP & IEEP Program 6.2 Attachment G SmartHours 6.2 Attachment H Cost Effectiveness
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