PPL Electric Utilities Act 129 Phase 3 Business Rebate Program April 27, 2016
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1 PPL Electric Utilities Act 129 Phase 3 Business Rebate Program April 27, 2016
2 Background ACT 129 was signed into law in November 2008 Energy efficiency programs help customers manage their electric consumption and reduce their electricity costs Programs are available to default supply and shopping customers on a voluntary basis Program costs are recovered from customers Budget is ~$62 million per year Pass through (rider); PPL makes no profit No cross subsidization 2
3 Phases of Energy Efficiency Programs Phase 1: November May 2013 Phase 2: June 1, 2013 May 31, 2016 Phase 3: June 1, 2016 May 31, 2021 Energy Efficiency Plan filed on November 30, 2015 PaPUC approval on March 17, 2016 Programs launch June 1,
4 Status of Phase 2 Business Rebates Waitlist implemented on May 20, 2015 for all sectors and programs Program closed to new pre-applications on April 22, 2016 Customers and contractors with waitlisted projects will be contacted over the next several weeks to advise status of funding Final applications for all completed Phase 2 projects are due by June 15,
5 Phase 3 Overall Energy Reduction Target 1,443,035 MWh/yr Equivalent to a 3.8% reduction in overall consumption Phase 1 (~3.5 years) was 1,146,431 MWh/yr; 3% reduction Phase 2 (3 years) was 821,072 MWh/yr; 2.1% reduction Compliance targets for Phase 1 were set in the legislation Compliance targets for Phase 2 and Phase 3 were set by the PaPUC 5
6 Compliance Targets Low-Income 5.5% of the total energy savings target 79,367 MWh/yr Entirely from income-qualified programs Government, non-profit, education (GNE) 3.5% of the total energy savings target 50,507 MWh/yr Peak Load Reduction 92 MW 6
7 Other Requirements Portfolio of energy efficiency programs must be cost-effective Demand reduction must be cost-effective Cost-effectiveness is determined by the Total Resource Cost test Equitable distribution of programs across customer sectors EDCs must hire Conservation Service Providers (CSPs) to deliver programs EDCs must competitively bid all CSP contracts Cannot reuse Phase 2 CSPs without competitive bids PaPUC must approve all CSP contracts 7
8 Process for Designing Programs Market potential study and other research Results from previous phases A lot of input from stakeholders June - October 2015: OCA, OSBA, SEF, CAUSE/PULP, PPLICA, KEEA, CEO, and others Establish savings and cost budgets for each customer sector (residential, low-income, small C&I, large C&I, GNE) Many iterations File EE&C Plan November 30, 2015 Comments, testimony, reply testimony, reply comments, and a hearing before an Administrative Law Judge PaPUC approval on 3/17/16 8
9 Phase 3 Business Rebate Program Efficient Equipment Program Lighting, lighting controls, refrigeration, HVAC, motors, variable frequency drives and more Rebates based on $/annual kwh saved Custom Program Complex energy efficiency measures requiring measurement and verification Compressed air, motors/vsds, industrial process improvements, building management systems, combined heat and power (CHP), other technologies Rebates based on $/annual kwh saved 9
10 Other Program Highlights Mid-Stream lighting rebates for distributors Program rebates given at Point-of-Sale Encourages trade allies to purchase moreefficient lighting products Easier program participation Direct Discount rebates for qualified trade allies (Fall 2016) Rebates for Behavioral measures (targeting GNE sector) 10
11 Efficient Equipment Rebates Performance-based rebates at: $0.05/annual kwh Up to 50% of project cost or $500,000 Comprehensive list of measures Savings determined by 2016 PA TRM 11
12 Custom Rebates Performance-based rebates at: $0.06/annual kwh Up to 50% of project cost or $500,000 Complex measures requiring measurement and verification Projects must pass TRC to be eligible 12
13 Combined Heat and Power (CHP) Performance-based rebates at: $0.03/annual kwh Up to 50% of project cost or $500,000 Projects must pass TRC to be eligible 13
14 Midstream Lighting Rebates Prescriptive-based rebates vary by product. Rebates provided at the Point-of-Sale (POS) through participating distributors. Customer information must be given by contractor at POS to verify eligibility. 14
15 Direct Discount Rebates Starts Fall 2016 Rebates paid directly to participating trade allies. Requires reenrollment Details and eligibility requirements to follow. 15
16 Online Application Portal Phase 3 project applications can be completed and submitted online starting June 1. Project documents can be also be submitted through the portal. Project status updates will be displayed in the portal. 16
17 RECAP: Phase 3 Business Rebate Program PY8 PPL Business Rebates Efficient Equipment Custom $0.05/kWh $0.06/kWh Additional program services provide based on your individual needs: Technical Assistance Help identify efficiency opportunities that are specific to your business Review efficiency design specs and provide recommendations CHP $0.03/kWh Energy Benchmarking and Master Planning: Learn where and how your facilities are wasting energy Educate on best practices that finance, facilities and administrative staff can employ to maximize longterm savings 17
18 Phase 3 Trade Ally Kickoff Events Dates Venue Times Thurs., 6/2 Tues., 6/7 Wed., 6/8 Thurs., 6/9 Fri., 6/10 Red Lion East Harrisburg 4251 Lindle Road, Harrisburg, PA Hilton Conf. Ctr. 100 Adams Ave. Scranton, PA Genetti/Best Western 1345 North Church Street, Hazleton, PA Lehigh University, Iacocca Hall Hampton Inn 140 Via Bella St, Williamsport, PA 7:30 Breakfast 8-9:30 am 7:30 Breakfast 8-9:30 am 7:30 Breakfast 8-9:30 am 7:30 Breakfast 8-9:30 am 7:30 Breakfast 8-9:30 am *Webinar of the Trade Ally Kickoff presentation will be available for those that cannot attend in person, details will be provided. 18
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