Building Energy Services Program Xenergy

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1 Program Synopsis implements the Building Energy Services (BEST) program, part of the Oakland Energy Partnership, in the small and very small commercial market (100 kw or less). A key objective of this local program is to reach hard-to-reach businesses in economically depressed areas. The program audits and installs cost-effective high-efficiency lighting measures, as well as some HVAC and customized measures. Key features of BEST are complete turnkey service, door-to-door marketing, high incentive levels (prescriptive and custom elements), and outreach by city and local organizations. Program Type Incentive PrescriptiveRebates CustomIncentivesSPC BillCreditsRateDiscounts Services DirectInstallation FinancingLoansLeasing FreeMeasures InHousePlusSubs IncentiveOther Information and Training GeneralEducation MailAudit TelephoneAudit OnSiteAudit OnLineAudit DesignAssistance FeasibilityStudies EndUserTraining TradeAllyTraining Program Focus Primary Market Events Targeted AllMarketEventsTargeted NewConstructionRenovation ExistingConstructionAll ExistingConstructionRetrofit ExistingConstructionNaturalReplac ExistingConstructionEarlyRetire Primary Program Focus EndUser SupplySide EndUserAndSupplySide Residential End User Target Markets ResidentialALL SingleFamily MultiFamily MobileHome LowIncome - 1

2 ResOther Commercial/Industrial End User Markets Commercial All Offices Retail Restaurant Public (govt.) Facilities Grocery Store Health Care Education Lodging (Hotels/Motels) Warehouses Industrial All Other Market Barriers End User Supply Side Information or Search Costs Performance Uncertainties Asymmetric Information and Opportunism Hassle or Transaction Costs Hidden Costs Misplaced or Split Incentives Product or Service Unavailability Externalities Non-Externality Pricing Inseparability of Product Features Access to Financing Bounded Rationality - 2

3 Organizational Practices or Customs Irreversibility Other End User Other Supply Side Customer Sizes Targeted (C/I only) VerySmall Small Medium Large Supply Side Actors Targeted SupplySideActorNotProgFocus AorEFirms Manufacturers Realtors Developers Builders Contractors TradeAssociations WholesalersDistributors Retailers EnergyServiceCompanies NonProfitNotForProfitGroups Govt Other Types of measure/end use technologies ALL MEASURES HVAC High Efficiency DX/HP High Efficiency Chillers High Efficiency Room/Terminal Economizers Control Systems Variable Speed Drives Occupancy Sensors Duct Sealing and Balancing Lighting Compact Fluorescents Electronic Ballasts Reflector Systems Efficient Fluorescent Lamps (T-8, T-5, etc.) Lighting Controls Occupancy Sensors High Intensity Discharge - 3

4 Equipment Testing/Tune-up Commissioning Retro-commissioning Space Heating Heat Pump programmable thermostats, advanced controls, window film Water Heating Motors Load Control (Cycling) High Efficiency Insulation Blankets Low-Flow Showerheads Low-Flow Aerators Solar Assisted High Efficiency Variable Speed Drives Industrial Process Compressed Air Motors Pumps Day lighting delamping Applicances Refrigerators Dish Washers Clothes Washers Clothes Dryers Office Equipment Plug Load Building Envelope Insulation Infiltration Control Glazing and Glazing Control Windows Refrigeration High Efficiency Controls Variable Speed Compressors Multi-Stage Compressors - 4

5 Commissioning Other (specify) Program Context The BEST program, a local third party program, started in The CPUC funded BEST to address equity concerns, so it serves small customers in economically depressed areas of Oakland. Funding was renewed through No co-pay is required for HTR customers (I.e under 20 kw, language other than English). The program reduced rebate levels in 2004, so all other participants have a 15% co-pay. Program Components Program Management Contractors play a critical role in the BEST program. Unlike the classic turnkey model, contractors are not under direct contract with. developed standardized pricing for retrofit measures or contractors can opt for non-standard prices, which reviews on a case-by-case basis. The small vendor pool participates in the program. They often agree to standardized pricing on program measures Contractors conduct door-to-door marketing, audits and installations upon 's pre-inspection approval. developed an Internetbased software tool to manage projects and trained contractors to use the software to generate proposals and track real-timeproject status. Contractors typically audit a facility, which XENERGY staff pre-inspect and approve. After contractors install a measure, XENERGY inspects the job and typically pays rebate checks directly to contractor. Implementing Organization Utility Nonprofit Govt Private IOOther Implementation Structure InHouse TurnkeyContractor InHouseAndSubcontractors Other Reporting and Tracking tracks kw, kwh, number of sites, type of measure, energy associated with different measure types, rebate dollars, and total project costs. The tracking system served several purposes - performance asessment, verification, project and workflow management. BEST's InSite software enables contractors to enter facility assessments online and check the status of their projects on a real-time basis. In addition, the database automatically s a contractor when a project is approved ("Pre-inspection approved, download your work order. Sign and return ). - 5

6 Verification and Quality Control 's rigorous verification process 100% pre- and post-inspection. auditors inspect jobs before installation to ensure pre-existing ligthing fixtures match the contractor proposal and that contractors have not overlooked retrofit opportunities. BEST also offers equipment and labor warranties. has experienced very few customer complaints. Beginning in 2004, requires pre- and post- light level readings to ensure high-quality delamping. Participation Process BEST targets businesses with electricity demand below 100 kw in economically depressed areas in Oakland. Businesses are typically recruited through door-to-door marketing by contractors. Contractors conduct a site assessment and generate a proposal for interested customers using s Internet-based InSite software. then confirms customer eligibility through PG&E and pre-inspects the site to ensure pre-existing equipment matches the contractor s energy audit. The web-based software notifies contractors of project approval. The customer then signs off on the proposal. Contractor installs the measures. conducts inspects 100% of sites after inspection. Contractor typically incentive payment directly from the program and is responsible for collection for any fees owed by the business. Outreach, Marketing and Advertising BEST s primary marketing tools are high incentives and door-to-door canvassing of HTR customers. undertook a strong marketing effort to recruit contractors to the program (i.e. direct mailings, blurbs, telemarketing). This approach succeeded in penetrating the small commercial market in Oakand, as program was quickly subscribed. did more marketing in the program s second round, marketing through the city of Oakland and community organizations (Chambers of Commerce, neighborhood representatives). The effectiveness of a CBO depends on their organization and outreach capabilities. The Chambers were very useful in getting the word out on the program through their print and newsletters. Installation and Delivery adjusted 2004 rebate levels, updating standardized pricing based on input from participating contractors on the cost of different measures. Customers receive $750 per kw of peak energy saved for all lighting retrofits, and $250/kW for screw-ins. The program continues to provide 100% rebates HTR customers and/or comprehensive (projects that include a nonlighting measure), while a 15% co-pay is required of all other participants. Linear fluorescents (i.e. T12 to T8 retrofits and delamping) and CFLs were high-volume measures in the program. Substantial custom electric measures, mostly refrigeration, were rebated in Standard rebate are now offered for those refrigeration measures. Program Evaluation Formal program evaluation is in progress for BEST. The EM&V plan involves on-site inspection of a representative sample of projects, review of the implementation team's savings calculations, and calculation of savings realization rates. Quantitative Data Program Year: January 2002 to December

7 Participation rate is available Cost Breakdown is available Net Savings Breakdown is available Net-to-Gross is available Total Resource Cost Data is available Quantative Data Summary: Plan budget, savings, and cost effectiveness data available. List Of Key Sources Quantum Consulting's Oakland Energy Partnership Program (Program No ) Implementation Plan Contact Information Name Title Company Phone Karen Corfee Business Unit Director (510) Ext. - 7

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