Consumers Energy Business Solutions. Commercial and Industrial Energy Efficiency Program April 18, 2013

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1 1 Consumers Energy Business Solutions Commercial and Industrial Energy Efficiency Program April 18, 2013

2 Ralph Huston Energy Advisor Consumers Energy Business Solutions 3965 Okemos Rd. Ste. A-1 Okemos, MI x cell fax TODAY S PRESENTER 2

3 3 Today s Topics Program Summary Special Programs 2013 Measure Updates

4 4 Why Energy Efficiency? Good for your business Good for the environment Good for Michigan

5 5 Energy Efficiency Can Save You Money By improving your energy efficiency you can improve your company s bottom line in many ways Shorten payback times Lower energy costs Increased productivity Increased employee morale Decreased maintenance costs

6 6 Customer Participation Customers from all business segments and sizes are represented Consumers Energy has distributed more than $59 million in incentives to customers since the program began in 2009 Over 50,000 commercial & industrial customers have participated

7 7 Who s Participating Barry County Delton Kellogg Schools, Delton $1,755 Genesee County Flint Community Schools, Flint: $43,401 Genesee Packaging, Inc., Flint $4,332 Ingham County Ashley Delta, LLC, Lansing $46,350 Ionia County Cargill Kitchen Solutions, Lake Odessa: $153 Iosco County Oscoda Area Schools, Oscoda: $2,240 Kalamazoo County Green Bay Packaging, Inc., Kalamazoo $1,150 Galesburg-Augusta Community Schools, Galesburg $2,450 Kent County Ashley Grand Rapids, LLC, Grand Rapids: $40,168 Spectrum Health Hospitals, Grand Rapids: $224,250 Oakland County Holly Area Schools, Holly: $1,464 Otsego County Kirtland Community College, Gaylord: $6,060 Ottawa County Coopersville Public Schools, Coopersville: $11,421 Shiawassee County Machine Tool and Gear, Inc., Owosso: $3,450

8 8 Business Programs Comprehensive business solutions Rebates based on amount of each project s first year savings for lighting, HVAC, insulation, hot water heating, controls and other energy savings projects. Small business solutions Designed to help small commercial and industrial customers, typically considered "hard to reach using less than 400,000 kwh annually

9 9 Comprehensive Business Solutions There are two types of Incentives: Prescriptive incentives Think off the rack, get it and go You install energy efficient equipment and achieve energy savings and pre-determined incentive levels Incentives typically average 20% to 50% of the incremental cost of purchasing qualifying technologies Custom incentives Think tailored, custom fit to your business Incentives are determined on a case-by-case basis Must have a greater than one-year payback period and less than eight years

10 10 Small Business Solutions Objectives: Promote energy efficiency to small businesses Achieve low installation costs and short payback periods Minimize out-of-pocket costs to customers Target customers: <400,000 kwh annual electric usage Commercial customers who typically would not participate in the Consumers Energy Business Solutions Program due to: Lack of capital dollars to make improvements Lack of technical knowledge Limited personnel and resources

11 11 Small Business Solutions Free facility assessment Detailed project proposal from program Installation of approved energy-saving equipment Inspections will assure quality and verify energy savings Minimum hassle or time required Reduction in energy consumption and costs Higher incentives on a limited number of measures Up to $7,500 in incentives per customer

12 12 What s Ahead in 2013 More money for incentives $23.5 million electric incentives $7 million gas incentives Over 40 new measures 200 measures in total Special programs More opportunity to participate

13 Special Programs 13

14 Programs New construction Multiple measure bonus program Buy Michigan Compressed air program Building operator certification 14

15 15 New Construction Incentives available for design and construction of energy efficient buildings Three tiered structure The more efficient the building the higher the potential incentive Incentives for design team and owner Kalamazoo Regional Education Service Agency -WoodsEdge Learning Center Project Details New Construction Project Completed: 2010 Contractor: Tower Pinkster Overall Incentive from Consumers Energy: $48,500 Energy Savings: 33.7 percent Enough savings to supply energy to 20 homes/year Anticipating Leadership in Energy and Environmental Design (LEED) Gold Certification

16 16 Multiple Measure Bonus Additional incentive bonus for customers pursuing deep dive projects Customer is eligible to receive an additional bonus incentive of 15% of the total incentive amount when Secondary measure incentive must be >25% of the primary measure incentive More than two measure categories must be applied for on the same application

17 17 Buy Michigan Purchase products made in Michigan and qualify for a bonus incentive At least 50% of the cost to manufacture and assemble this product (exclusive of packaging) is performed in the State of Michigan Customer qualifies for a 15% bonus on the total incentive of installed measure Affidavit from manufacturer with application

18 18 Prescriptive Measures 2013 Incentive Catalog

19 19 Lighting Lighting is typically 30% of your bill Easy to implement & cost effective T12-T8/T5 replacement Exit signs Exterior lighting Metal halide replacement Occupancy sensors Lighting controls Induction or LED lighting

20 20 Heating Ventilation and Air Conditioning Heating & cooling combine for more than 50% of the energy budget Easy to find projects Programmable thermostats Boiler/furnace/RTU tune-ups Economizers Boiler controls/sequencing Heat recovery Destratification fans Energy management systems

21 21 Water Heating Accounts for 10% of energy use Opportunities are in all buildings Water heaters Pipe/water heater insulation Pool heaters Pool covers Incoming water heat recovery/preheat High efficiency boilers

22 Plug Loads Vampire loads - they are everywhere Hard to control Eat away at your energy cost Individual printers Computers Chargers AC adapters Vending machines Copy machines Space heaters 22

23 23 Lighting: T12 to T8 Retrofit Can T12 fluorescent lamps retrofitted to T8s and be incentivized in 2013? YES, BUT

24 24 Lighting: T12 to T8 Retrofit T12 to standard T8 applications are not eligible to receive an incentive Except 2 and 3 foot retrofits T12 to High Performance (HP) or Reduced Wattage (RW) T8/T5 lamps ARE eligible to receive an incentive Qualifying products are listed on the CEE1.org website

25 25 VFD s: Prescriptive up to 250 HP HVAC motors greater than 100HP, or process motors greater than 50HP require: Information sheet on the VFD (Application A12) 7 days of pre and post meter data Electronically commutated motors on furnaces

26 26 Industrial Battery Chargers, UPS and Transformers Industrial battery chargers New or replacement three phase, high frequency battery chargers for electric vehicles Uninterruptable power supply Single normal mode AC output UPS Multiple normal mode AC output UPS Transformers Single phase Three phase

27 27 Correctly Sized Hydronic Information required: Pumping Systems Existing pump operational performance Proposed pump operational performance Pumping system improvement summary

28 28 Domestic Water Heater Air-to-water heat pump Tank style (EF 2.0) - $750 Up to $6,000 for a 300-MBH, coefficient of performance 3.0 Electric customers only Boiler style Tank style

29 29 HVAC Controls Boiler controls Boiler plant sequencing Chilled water reset Modulating boiler control Oxygen trim control Linkageless boiler control Centralized energy management system Optimal start-stop for air handling units HVAC occupancy sensor control

30 30 Chiller Tune-up Air or water-cooled chillers Greater than 20-tons capacity Used for either space or process cooling

31 31 Kitchen Equipment Temperature and optical sensor on ventilation hood Installing case cooler doors Retrofit or new Dishwashers Under counter, door, single tank, multitank

32 32 Custom Projects A wide range of facility improvements can qualify for the program including: Boilers Compressed air Building or equipment controls Cooling Lighting Motors Refrigeration Process improvements Heat recovery If it s not a prescriptive measure it probably qualifies as a custom project

33 33 We can do this WITH YOU Thank you! For more information contact the program team (877)

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