PA ACT 129 UPDATE THE NEXT GENERATION OF UTILITY ENERGY EFFICIENCY PROGRAMS IN PA
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1 PA ACT 129 UPDATE 1 THE NEXT GENERATION OF UTILITY ENERGY EFFICIENCY PROGRAMS IN PA Schaedler Yesco Act 129 Update Seminar June 19 th, 2013 Wilkes Barre, PA Stephen Moritz: President AllFacilities Energy Group
2 ALLFACILITIES ENERGY GROUP: WHO WE ARE 2 REGISTERED CONSERVATION SERVICE PROVIDER UNDER PA ACT 129 PROGRAM MANAGER FOR DUQUESNE LIGHT S SMALL C&I PROGRAM PHASE 1 SUB TO KEMA FOR PECO AND PPL S C&I PROGRAMS ONE OF THE LARGEST SUBMITTOR OF REBATES IN THE FIRST ENERGY PROGRAMS 27 EMPLOYEES HEADQUARTERED IN PITTSBURGH, ADDITIONAL OFFICES IN PHILADELPHIA AND DELAWARE
3 ACT 129 OVERVIEW: PROGRAM SUMMARY 3 WHAT IT IS State Legislation requiring utilities to permanently reduce electricity demand over time across residential, commercial and industrial sectors Funded by surcharges on electricity bills Approximately $100M in funding Required 3% Reduction In Phase 1 HOW IT WORKS PA Public Utility Commission (PA PUC) sets energy efficiency goals, rules, and penalties for non compliance Individual utilities submit plans to meet PA PUC s energy efficiency goals
4 ACT 129 OVERVIEW: PROGRAM SUMMARY 4 HOW IT WORKS (cont.) Utilities re distribute electricity bill surcharges as rebates and subsidies to support customer energy efficiency projects Rebates for appliances, lighting, HVAC, building controls and automation technologies Subsidies for energy audits and certain project design and consultant costs
5 ACT 129 PHASE I: RESULTS 5 ALL UTILITIES APPEAR TO BE ON TRACK TO MEET 3% ENERGY EFFICIENCY TARGET 4.5% DEMAND REDUCTION TARGET BY SPRING 2014 SWE WILL PROVIDE AN AUDIT AND REVIEW OF THE SAVINGS AND PHASE I VERIFIED RESULTS WILL BE AVAILABLE COMISSION DETERMINATION OF UTILITY COMPLIANCE WILL OCCUR SOMETIME AFTER SWE S REPORT IS SUBMITTED IT IS COST EFFECTIVE TO MOVE FORWARD WITH PHASE II
6 ACT 129 PHASE II : ELEMENTS TERM ( ) 6 MAINTAINED SAVINGS CARVE OUT OF 10% FOR GOVERNMENT/EDUCATION/NON PROFIT ENTITIES DEVELOPED SAVINGS CARVE OUT OF 4.5% FOR LOW INCOME SECTOR (150% OF FPL) NO DEMAND REDUCTION TARGET TARGETS ARE NON CUMULATIVE FROM PHASE I EXCESS MWh SAVINGS FROM PHASE I CAN BE CREDITED TOWARDS PHASE II GOALS EXCESS $ SAVINGS FROM PHASE I RETURNED TO RATE PAYERS
7 ACT 129 PHASE II TARGETS 7 EDC THREE YEAR PROGRAM ACQUISITION COST (S/MWh) THREE YEAR % OF 2009/10 FORECAST REDUCTIONS THREE YEAR MWh VALUE OF 2009/10 FORECAST REDUCTIONS DUQUESNE $ ,722 MET ED $ ,753 PENELEC $ ,813 PENN POWER $ ,502 PPL $ ,072 PECO $ ,125,851 WEST PENN $ ,533
8 ACT 129 OVERVIEW: WHAT PROGRAMS ARE THERE? 8
9 ACT 129 OVERVIEW: WHAT PROGRAMS ARE THERE? 9 DIRECT INSTALL PRESCRIPTIVE Small Buildings Standard Products CUSTOM Special Projects AllFacilities Energy Group 2012 All Rights Reserved
10 ACT 129 OVERVIEW: DIRECT INSTALL 10 WHAT IT IS Rebates of up to 70% of the project cost Use an approved contractor to install energy efficiency equipment in your building HOW IT WORKS Contractor provides a quote for equipment and labor with the rebate discounted off the quote Contractor gets paid by the utility for the rebate amount
11 ACT 129 OVERVIEW: DIRECT INSTALL CASE STUDY 11 AllFacilities Energy Group 2012 All Rights Reserved
12 ACT 129 PROGRAM SUMMARY: PHASE III? 12 Ohio New Jersey Maryland New York Pennsylvania Goal 0% 5% 10% 15% 20% 25% Pennsylvania New York Maryland New Jersey Ohio Goal 3% 15% 15% 20% 22.2% CURRENT PROGRAM EXPIRES MAY 31, 2016 PUC IS ALREADY EVALUATING MODELS FOR IMPLEMENTATION ON JUNE 1, 2016
13 13 QUESTIONS? STEPHEN MORITZ President, AllFacilities Energy Group (866)
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