Sample Energy Efficient Program Request For Proposal
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- June Kelly
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1 May 22, 2015 Subject: Puget Sound Energy Customer Energy Management Implementation term Request for Proposals (RFP) Dear Potential Bidder: In this document and its attachments Puget Sound Energy, Inc. (PSE) is soliciting proposals for new energy efficiency programs and services for the 2016 through 2017 program period. An RFP for renewal of existing programs will be released in late July 2015 for energy efficiency programs and services for the 2016 through 2017 program period. This RFP is sponsored by the Customer Energy Management (CEM) group at PSE. The CEM group is soliciting support for new demand side management products, programs and/or services that will result in direct and measurable gas and/or electric energy savings. PSE is soliciting proposals for 18 new programs and reserves the right to determine whether or not submitted RFPs provide the quality and detail needed to proceed with activating a program in these sector topic areas: Small Business Direct Install Small Agricultural Direct Install Lodging Direct Install Commercial New Construction Performance Based Incentive Program Commercial New Construction Design Competition Industrial Strategic Energy Management Small Data Centers Energy Efficiency Industrial Pump & Blower Efficiency Improvement Initiative Single Family Electric Water Heater Replacement Program Single Family Rental Market Engagement Neighborhood Sweeps Multifamily New Construction - Whole Building Savings Approach Multifamily Retrofit Strategic Energy Management Residential Controls Single Family Performance Heat Pump Pilot Multifamily Retrofit ELV Thermostat Residential and Commercial Audit Software Tool Web-Based Lighting Retrofit Calculation Tool This RFP solicitation includes the following documents: Table of Contents PSE New Programs Energy Efficiency Services RFP Exhibits A-D Puget Sound Energy Page 1 of 126
2 You may provide an RFP response for more than one program listed herein. Each sector area bid should be separately submitted with all bid components clearly labeled with your company name and the product, and the program or service being proposed. Your first action item (see Solicitation Timeline in I. Introduction Section B of the RFP) is to provide Intent to Bid form. This allows PSE to identify correct contact(s) for ongoing RFP communications such as answers to questions, updates, etc. Intent to Bid forms and Bidder questions due June 5, 2015 and must be submitted electronically. Electronic proposals must be received by no later than 5:00 PM Pacific Time, June 26, 2015 to CEMRFP @pse.com Additionally,(2) hard copies must be received by no later than 5:00 PM Pacific Time, July 1, 2015 Puget Sound Energy Attn: Eli Buzuku North Creek Parkway BOTH01 Bothell, WA All communication regarding this RFP should be directed to the following: CEMRFP @pse.com Sincerely, Elaine Markham, PE, CEM, CMVP Senior Market Analyst Energy Efficiency New Program Development Puget Sound Energy Puget Sound Energy Page 2 of 126
3 Puget Sound Energy Customer Energy Management REQUEST FOR PROPOSALS --- New Energy Management Programs for Program Portfolio Table of Contents I. INTRODUCTION... 5 A. KEY CONSIDERATIONS FOR BIDDERS... 5 B. SOLICITATION TIMELINE... 5 C. BIDDER QUESTIONS... 6 D. ABOUT PUGET SOUND ENERGY... 6 E. ABOUT CUSTOMER ENERGY MANAGEMENT RFP SPONSOR... 8 II. POTENTIAL PROGRAMS... 9 A. SMALL BUSINESS DIRECT INSTALL... 9 B. SMALL AGRICULTURAL DIRECT INSTALL C. LODGING DIRECT INSTALL D. COMMERCIAL NEW CONSTRUCTION PERFORMANCE BASED INCENTIVE PROGRAM E. COMMERCIAL NEW CONSTRUCTION DESIGN COMPETITION F. INDUSTRIAL STRATEGIC ENERGY MANAGEMENT G. SMALL DATA CENTERS ENERGY EFFICIENCY H. INDUSTRIAL PUMP & BLOWER EFFICIENCY IMPROVEMENT INITIATIVE I. SINGLE FAMILY ELECTRIC WATER HEATER REPLACEMENT PROGRAM J. SINGLE FAMILY RENTAL MARKET ENGAGEMENT K. NEIGHBORHOOD SWEEPS L. MULTIFAMILY NEW CONSTRUCTION - WHOLE BUILDING SAVINGS APPROACH M. RESIDENTIAL CONTROLS III. PILOT PROGRAMS A. SINGLE FAMILY PERFORMANCE HEAT PUMP PILOT B. MULTIFAMILY RETROFIT ELV THERMOSTAT PILOT C. MULTIFAMILY RETROFIT STRATEGIC ENERGY MANAGEMENT PILOT IV. SOFTWARE AND WEB-ENABLED TOOLS A. RESIDENTIAL AND COMMERCIAL AUDIT SOFTWARE TOOL B. WEB-BASED LIGHTING RETROFIT CALCULATION TOOL V. PROPOSAL DETAILS A. REQUIRED ACTION ITEMS B. COMPLETING YOUR PROPOSAL C. BID EVALUATION D. POST PROPOSAL: NEGOTIATIONS, CONDITIONS AND AWARDING OF CONTRACT(S) E. SUPPLEMENTAL INFORMATION EXHIBIT A PROPOSAL COVER LETTER EXHIBIT B PROPOSAL SUMMARY DOCUMENT EXHIBIT C PROPOSAL COST SUMMARY DOCUMENT Puget Sound Energy Page 3 of 126
4 EXHIBIT D DOING BUSINESS WITH PSE REFERENCE DOCUMENTS AGREEMENT FOR SERVICES... ERROR! BOOKMARK NOT DEFINED. 2. STATEMENT OF WORK AND BUDGET DOCUMENT INSURANCE REQUIREMENTS MUTUAL CONFIDENTIALITY AGREEMENT (MCA) CO-BRANDING WITH PSE PROGRAM PARTICIPATION DATA REPORTING REQUIREMENTS CUSTOMER INTERACTION REQUIREMENTS Puget Sound Energy Page 4 of 126
5 I. INTRODUCTION The goal of this Request for Proposal (RFP) is to identify and consider for implementation new programs that will provide Energy Management programs to PSE customers for the program years, as well as obtain contracts for a limited quantity of new programs. This RFP is sponsored by the Customer Energy Management (CEM) Department, the PSE division chartered with delivering energy efficiency services to PSE Customers. PSE is seeking proposals for programs and/or program support services that will produce electricity and natural gas savings from both residential and business customer sectors throughout the entire service area. Proposed services are to be delivered between January 1, 2016 and December 31, A. Key Considerations for Bidders Any products bid through this RFP should be available for implementation starting January 1, 2016 and ending December 31, PSE will determine from the list of responding interested parties, those vendors and contractors with whom PSE, in its sole judgment, wishes to engage in further discussion and/or negotiate a contract. PSE is under no obligation to select any proposal. For all awarded contracts, PSE must approve Evaluation, Measurement and Verification plans; marketing, sales and/or promotional plans. All conservation measures included in a project proposal must produce savings that can be reliably measured or estimated with accepted engineering methods. PSE requires successful bidders to use our brand mark in activities which are contracted by the parties. Co-branding helps PSE customers recognize that some program activities are authorized by and performed on behalf of PSE. Include in your proposal your company suggestions as appropriate areas which might be considered for co-branding if your company is a successful bidder. Co-branding Guidelines are found in Exhibit D, Doing Business with PSE. All bidders must submit a statement saying you accept the Agreement for Services (Exhibit D) or you must identify area(s) for discussion with suggested language modifications. Include the specific Section and Item number for clarity B. Solicitation Timeline The following represents our initial projected timeline. Puget Sound Energy Page 5 of 126
6 Activity Date* RFP Release May 22, 2015 Intent to Bid Form Due June 5, 2015 Bidder Questions Due June 5, 2015 Bidder Questions Answered June 12, 2015 Electronic proposal Submission June 26, 2015 Hard copy proposal submission July 1, 2015 Notifications: Short-list vendors identified for Interview July 10, 2015 Bidder Interviews, Reference Checks & Selection August, 2015 Scope, Pricing & Contract Marketing, Sales and/or Promotional Plans September, 2015 Negotiation Finalization October, 2015 Proposal/Program Launch January 1, 2016 * All submittals must be received by PSE no later than 5:00 p.m. Pacific Time, on the due date. This timetable is provided for planning purposes only and may be modified by PSE as required. C. Bidder Questions PSE requires questions on the RFP to be submitted in writing, electronically to CEMRFP @pse.com. All questions received from bidders must be categorized by program (e.g. Multifamily Retrofit). PSE will answer and delivered to all Responders that have submitted Intent to Bid for that program. D. About Puget Sound Energy There s a reason why we have been around for more than a century. With the recognition of being Washington State s oldest energy utility provider, comes a responsibility to our customers and employees. It s not just our commitment to safe, dependable and efficient energy that makes us so well regarded, but our dedication to finding solutions and building partnerships throughout the greater Puget Sound region. Puget Sound Energy Page 6 of 126
7 PSE s strives to deliver a great customer experience and looks to our contractors to enhance that experience. PSE Customer Experience Intent Statement: PSE places high value on our interface with and commitment to our customers. The following statement reflects the experience we want to provide to our customers: In every interaction with PSE, I know I am dealing with honest and caring people, who understand me, anticipate my needs and make doing business easy. I can trust they will be fair and do the right thing. If there s a problem, they respond quickly and work until it is resolved to my satisfaction. Their information, products and services provide value and benefit, are reliable and keep me safe. They are committed to help me control my energy cost and to be a responsible steward of the energy I consume. We expect our vendors to embody these words. PSE Basics: PSE strives for continual improvements in safety, customer connection, technology, and communication. And we re only getting better. During our more than 135-year history one thing has remained constant: PSE's focus on safe, reliable, affordable energy service. And we're proud of our legacy: a commitment to great customer service and helping to make our communities better places to live and work. Fast facts Headquarters: Bellevue, Washington Employees: 2,700 Customers: 1.1 million electric and more than 770,000 natural gas Service area: 6,000+ square miles, primarily in Puget Sound region of Western Washington Puget Sound Energy Page 7 of 126
8 PSE Service Area Service area population: Approximately 4 million Counties served: Island (electric) King (combined) Kitsap (electric) Kittitas (combined) Lewis (natural gas) Pierce (combined) Skagit (electric) Snohomish (natural gas) Thurston (combined) Whatcom (electric) E. About Customer Energy Management RFP Sponsor PSE is committed to helping our customers reduce energy costs in this challenging economy and helping to combat climate change. Our success to date can be attributed to our customers, employees and partnerships with program service providers. Together, we achieve a remarkable level of energy savings. The key stakeholders of this RFP are: Residential Energy Management (REM) group that provides energy efficiency products and services to our residential customers. Business Energy Management (BEM) group that provides energy efficiency products and services to our business customers. Puget Sound Energy Page 8 of 126
9 II. Potential Programs This RFP is for residential and commercial programs. New Programs Business Energy Management (8 Programs Total): A. Small Business Direct Install Program Overview Puget Sound Energy s (PSE s) Small Business Direct Install (SBDI) program is designed to be a Small-to-Medium Business (SMB) outreach and engagement program that focuses on customer service, community involvement, and recognition. SBDI will utilize a turnkey project delivery model to provide energy efficiency measures to SMB businesses in a way that meets the unique needs of this customer segment. The program has been designed to complement PSE s other commercial programs and PSE s Energy Efficiency Outreach team goals. PSE is seeking a third party (3P) implementer (or multiple 3P implementers) to provide the program. In order to promote local presence, targeted marketing and outreach, and community relationship management, the program will be implemented regionally. Proposed regions are outlined in Table 1. Table 1. Proposed Regions for SBDI Implementation Region North Central South Counties Whatcom, Skagit, Island Snohomish, King, Kittitas Pierce, Thurston, Kitsap, Lewis Each region will have a savings and budget associated with it, based on the type of energy used (gas, electric or both) and market potential. The selected implementer(s) must demonstrate the existence of or ability to set up a regional office and site for energy efficiency equipment inventory within each region proposed. For the purposes of this Request for Proposals, an SMB is defined as a hard to reach or underserved customer with less than 350 kw estimated/actual billing demand (typically served by electric rate schedules 24 or 25) or less than 12,000 annual therms of gas consumption per year (typically served by gas rate schedule 31). PSE may use rate schedules and/or hard to reach criteria to further define eligible customers. PSE is open to additional input on the definition of a small business as part of this RFP response. Puget Sound Energy Page 9 of 126
10 The main objective of the SBDI program is to provide a set of turnkey services to SMB customers. Services provided through this program should include (but are not limited to): Superior customer service, quality assurance and program awareness; Comprehensive energy assessment for qualified customers, identifying all existing efficiency opportunities (lighting, refrigeration, controls, etc.); Custom assessment report detailing energy efficiency measure opportunities; Energy education and information on energy efficiency benefits (overview of online account tools [MyPSE], tips on potential behavioral changes, education on other PSE programs and services, etc.); Local contractor relationship management, program training and enrollment, oversight, and administrative support; Direct installation of measures where/when possible; Project permitting; Support for targeted community efficiency outreach campaigns (i.e blitzes ) Company/Customer recognition and follow-up; Cross-utility coordination; Ensure ongoing system compatibility with PSE s energy efficiency platform Prioritize PSE brand during all marketing and outreach and customer interaction activities Implementer Responsibilities The selected 3P implementer(s) is/are required to manage all day-to-day program activities for the region(s) served. The proposal must demonstrate examples of and/or ability to perform the following responsibilities, at a minimum: A. General program management. a. Monthly tracking and reporting of program metrics, including (but not limited to): i. Savings accomplishments to date ii. Project pipeline and savings forecast at the measure level iii. Assessments completed iv. Projects completed v. Site specific customer data vi. Referrals to other PSE programs b. Ability to directly submit customer assessment and project data with project status to PSE s energy efficiency data platform (Nexant ienergy DSM Central) on a biweekly basis. c. Management and resolution of all customer satisfaction and local contractor issues in a timely manner. Puget Sound Energy Page 10 of 126
11 d. Support program evaluation and independent review activities. e. Development of required applications and participation agreements. f. Energy efficient equipment inventory management and product qualification oversight. B. Relationship Management a. Ensure coordination with PSE SBDI Program Manager, Energy Efficiency Outreach (EEO), and PSE Lighting programs as relevant to program activities. b. Support EEO team to engage local communities in energy efficiency outreach events ( blitzes ). c. Demonstrated understanding of the needs and characteristics of the region(s) served d. Develop relationships with local business organizations (i.e. business associations, chambers of commerce, business councils, etc.) to promote program through a targeted marketing approach. e. Continued coordination with and administration of cost sharing model with local water agencies for water saving measures C. Energy Efficiency Measures a. Comprehensive energy efficiency assessments at customer sites b. Proposal and work order development indicating all eligible measures c. Promotion of other PSE programs and/or services when interacting with contractors and customers D. Local Contractor Engagement E. Marketing a. Annual recruitment and enrollment of interested local contractors (must be registered as active Contract Alliance Network [CAN] contractors) b. Development of and training for Local Contractors on SBDI program, eligibility requirements, and measures c. Negotiation of labor rates for SBDI Projects d. Streamlined contractor-driven project review and approval e. Work order development and assignment to enrolled contractors using a performance matrix referral process (similar to CAN structure) f. Oversight of local contractor activities including: permitting compliance, quality assurance and customer satisfaction review g. Reimbursement of project costs to local contractors in a timely manner a. Coordination with PSE Marketing, SBDI Program Manager and EEO i. All marketing collateral must be approved by PSE corporate communications, and meet PSE messaging and brand guidelines. Puget Sound Energy Page 11 of 126
12 b. Support a localized approach to marketing the program, based on the region(s) served. c. Complete PSE branding on all Program Materials, 3P implementer staffing, and any vehicles used in the field (as reviewed and approved by PSE). d. Help plan and participate in up to 5 community outreach campaigns (i.e. blitzes ) per year aimed to bundle and serve a set number of qualified businesses in a rural area over a three day period. F. Quality control a. Field pre and post inspection of a specified number of projects for each enrolled local contractor b. Ability to provide and support a one year warranty on all installed equipment c. Support PSE efforts to survey customers on program satisfaction G. Additional considerations Savings Targets a. Innovative delivery techniques and program options such as tablet based energy audits and enhanced engagement strategies. The SBDI program bi-annual savings targets for will be based on existing market potential and historical targets for the SBDI program, Commercial Direct Install 1 (DI) Program and for smaller grocery and convenience stores (previously served through the Energy Smart Grocer [ESG] program). Table 2 demonstrates the number of eligible customers (as defined by rate schedules that fall into the SMB definition proposed in the Program Overview section), and estimated participation rates (since 2012). Table 3 demonstrates targets that were set for the SBDI, Commercial DI, and ESG 2 programs in Bidders should use this information to propose potential kwh and therm targets for Note that the Commercial Direct Install program has traditionally focused on water savings measures only. 2 Note that the targets for ESG include savings from large grocery customers which will not be eligible for the SBDI program. Puget Sound Energy Page 12 of 126
13 Table 2. Eligible Customers by County/Region and Estimated Participation Rates Eligible Customers Defined by Rate Schedule 3 Region County Total G % Participation (Estimated 4 ) Island 3,589 3, % North Central South Skagit 8,026 7, % Whatcom 10,767 10, % King 87,652 46,687 4,135 36,830 15% Kittitas 2,135 1, % Snohomish 9, ,786 6% Kitsap 10,545 9, % Lewis % Pierce 21,363 9, ,723 10% Thurston 16,247 11, ,023 19% Table 3. Historical Targets by Program SMB Programs & Targets kwh Therms Small Business Direct Install 12,427,997 19,385 Commercial Direct Install 1,147, ,630 Energy Smart Grocer 12,000, ,000 Program Costs Proposal should include a proposed administrative payment structure which may include (but is not limited to) the following payment structures: performance basedpayment, time and materials, milestone driven, flat fee, or a combination. PSE would be interested in and may consider a payment structure that prioritizes the smallest business customer through some type of tiered performance-based payment or bonus model. PSE will compare and align proposed material costs with those supplied by other PSE commercial programs. Estimated budget should be based on the proposed measure mix (Attachment 1) and anticipated kwh and therm targets. If implementer is proposing a performance based payment model, bidder should demonstrate how the performance payment was determined in the notes section of Exhibit C. Measures/Systems 3 Rate schedules are available for public review on the PSE website at Schedules.aspx?Schedule_x0020_Type=Rate%20and%20Adjusting%20Schedules 4 Estimated participation rates are based on participation in any PSE program since 2012 Puget Sound Energy Page 13 of 126
14 SBDI measures include lighting, refrigeration, aerators, smart plug-in strips, and some basic HVAC measures. Anticipated measures are both traditional direct install measures (screw-in LED lamps, water savings measures, LED open signs, webenabled thermostats, controls, etc.) as well as more comprehensive measures (lamp and ballast replacements, full fixture retrofits, fuel canopy lighting, Electronically Commutated Motors and controls, basic HVAC tune up measures, etc.) that may require project permitting. For the hospitality market (hotels/motels), the measures may also include packaged terminal heat pump (PTHP) units and occupancy controls. A list of eligible measures is included as an attachment to this RFP. Candidates responding to this RFP are requested to complete this attachment with estimated installation costs for each of these measures, to be used as part of the proposal review. Costs should include unit, labor, installation equipment rentals, permitting, and any other related costs. Equipment should include the cost of the unit being installed. These costs are expected to be estimates, and will be further refined as part of the contracting process with the selected 3P. If the 3P implementer would like to propose additional measures during the program cycle, the 3P shall provide calculations to support claimed unit energy savings for new and/or modified measures delivered by the program, and all energy savings shall be verified using standard engineering practices. Incentives Incentive by measure may vary depending on the measure installed and negotiated labor rate. It is anticipated that a subset of measures will be no-cost, while others will have an incentive cap that may be comparable to PSE s other program incentives. For the purposes of this proposal, program incentives should be based on a mix of no-cost and low-cost measures. Proposed incentive budget for no-cost measures should be based on total measure and installation costs. Incentive budget for lowcost measures should be estimated based on a $0.20 per kwh up to 50% of project cost for lighting measures, and $0.30 per kwh or $5/therm up to 70% of project cost for non-lighting measures. An estimate is acceptable, as final incentive by measure and total incentive budget will be determined as part of the contract negotiation process. Eligible Customers Commercial customers receiving electric and/or gas service from PSE are eligible if they meet the proposed definition of an SMB customer (less than 350 kw or 12,000 therms). This includes small to mid-sized grocery and convenience stores, churches, and other small customers that were previously excluded from the SBDI program. Agricultural and hospitality customers are excluded from participating in this program. Puget Sound Energy Page 14 of 126
15 How Commercial Customers Can Participate As appropriate, PSE and the 3P implementer will recruit qualifying customers for this target market program. Recruitment may be done through community blitzes, word-of-mouth referrals, door-to-door recruitment, key account relationships, and targeted marketing campaigns through small business associations. Proposal should demonstrate existing or proposed relationships with associations or organizations that support small businesses and how they will be leveraged, if available. The 3P implementer will be required to actively screen and recruit potential customers. Key Partnerships Key partnerships include PSE account executives, PSE s Energy Efficiency and Outreach teams, small business associations, other utilities that provide service to PSE customers, and government and community organizations. Summary of Supplemental Proposal Requirements Proposal should address the following requirements in addition to the Proposal components listed in Section V. Page limit for the additional requirements should not exceed 5 pages (not including Attachment 1). 1. Overview of experience directly related to the program-specific responsibilities listed under Implementer Responsibilities. 2. Proposed regions to be served and demonstrated experience within those communities or other areas with similar characteristics. 3. Input on the definition of a hard-to-reach and/or underserved small-to-mid sized business for the purposes of qualifying for this program. 4. Proposed innovative ways to prioritize serving the smallest and hardest-toreach customers. 5. Innovative recruitment strategies targeted to the qualified customer while leveraging key partnerships. This may be an enhancement of the blitz approach or another similar idea. 6. Complete Attachment 1 to demonstrate estimated installation labor and permitting costs by measure. Anticipated Questions 1. What are some of the differences between the proposed SBDI program and the one that is currently in place? PSE is interested in enhancing and expanding the current SBDI model by redefining program qualifications, increasing customer recruitment and marketing activities, regionalizing implementation of the program, including additional customer types (i.e. small grocery and convenience stores), introducing a co-pay for some measures, and leveraging local contractors to help deliver the program. Puget Sound Energy Page 15 of 126
16 2. What is the PSE process for proposing new measure packages, and what is the required hurdle for deeming new measures? All new measures must be designed in accordance with the Regional Technical Forums Guidelines for the Estimation of Unit Energy Savings. The RTF guideline can be found here: Puget Sound Energy Page 16 of 126
17 Measure Type Electric/ Gas Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Labor & Total Equipment Other 6 Installation Lighting Electric Exterior - LED Area Fixture with Photocell Lighting Electric Exterior - LED Wall Pack with Photocell Lighting Electric Exterior - Fuel Canopy Lighting Lighting Electric Fixture - 3' 1L T12 to 3' 1L T8 Lighting Electric Fixture - 2' 1L T12 to 2' 1L T8 Lighting Electric Fixture - 4' 1L T12 to 4' 1L T8 Lighting Electric Fixture - 4' 2L T12 to 4' 2L T8 Fixture - 4' 3L T12 HO to 4' 2L T8 (delamp & Lighting Electric reflector) Lighting Electric Fixture - 4' 3L T12 HO to 4' 3L T8 Fixture - 4' 3L T12 to 4' 2L T8 (delamp & Lighting Electric reflector) Lighting Electric Fixture - 4' 3L T12 to 4' 3L T8 Fixture - 4' 4L T12 HO to 4' 2L T8 (delamp & Lighting Electric reflector) 5 For measure qualification criteria, please visit PSE s Savings and Energy Center: 6 Equipment costs should include estimated cost of the measure unit. Labor and equipment costs should include labor and installation equipment rentals. Other should include permitting, and any other related costs (please define). Costs should be totaled in the first column under Total. These costs are expected to be estimates, and will be further refined as part of the contracting process. Puget Sound Energy Page 17 of 126
18 Measure Type Electric/ Gas Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Labor & Total Equipment Other 6 Installation Lighting Electric Fixture - 4' 4L T12 HO to 4' 3L T8 (delamp) Lighting Electric Fixture - 4' 4L T12 HO to 4' 4L T8 Fixture - 4' 4L T12 to 4' 2L T8 (delamp & Lighting Electric reflector) Lighting Electric Fixture - 4' 4L T12 to 4' 3L T8 (delamp) Lighting Electric Fixture - 4' 4L T12 to 4' 4L T8 Lighting Electric Fixture - HID to 4' 6L T8 Lighting Electric Fixture - 8' 1L T12 HO F96 to 4' 2L 28W (retro kit 2L 8') Lighting Electric Fixture - 8' 1L T8 F96 to 4' 2L 28W (retro kit 2L 8') Lighting Electric Fixture - 8' 2L T12 Delamp to 4' 2L T8 (retro kit delamp) Lighting Electric Fixture - 8' 2L T12 HO F96 to 4' 4L 28W Fixture - 8' 2L T8 F96 to 4' 4L 28W (retro kit 4L Lighting Electric 8') Lighting Electric Fixture - Multi-Lamp Inc Fixture to 2L F17T8 Lighting Electric Fixture - Multi-Lamp Inc Fixture to 2L F25T8 Lighting Electric Fixture - Multi-Lamp Inc Fixture to 2L F28T8 Lighting Electric Lamp - Tubular LED Lamp and Ballast Puget Sound Energy Page 18 of 126
19 Measure Type Electric/ Gas Lighting Electric Lamp - LED A Lamp Lighting Electric Lamp - LED A Lamp - Globe Lighting Electric Lamp - LED Decorative Lighting Electric Lamp - LED Direction Par 20 Lighting Electric Lamp - LED Direction Par 30 Lighting Electric Lamp - LED MR16 Lighting Electric Lamp - LED Par 38 & 40 Lighting Electric Lamp - Occupancy Sensors Lighting Electric Signs - LED Exit Sign Lighting Electric Signs - LED Open Sign Plug Load Electric Smart Strip Plug-In Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Labor & Total Equipment Other 6 Installation Refrigeration Electric Case Lighting - Delamp T12/T8 with LED install Refrigeration Electric Case Lighting - T12 /T8 Replaced with LED (Reach-in Display Case) Refrigeration Electric Case Lighting - T12/T8 Replaced with LED (Open Case) Refrigeration Electric Case Lighting - Occupancy Sensor / Dimming Controls Refrigeration Electric/ Gas Cases - Add doors to Open Medium Temp Cases Puget Sound Energy Page 19 of 126
20 Measure Type Electric/ Gas Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Labor & Total Equipment Other 6 Installation Refrigeration Electric Controls - Anti-Sweat Heat (Low Temp) Refrigeration Electric Controls - Anti-Sweat Heat (Med Temp) Refrigeration Electric Controls - Evaporated Fan - Walk-In ECM Controller (High Temp) Refrigeration Electric Controls - Evaporated Fan - Walk-In ECM Controller (Low Temp) Refrigeration Electric Controls - Floating Head Pressure - with VFD Refrigeration Electric Controls - Floating Head Pressure - without VFD Refrigeration Electric Gaskets - Reach-in Glass Doors (Low Temp) Refrigeration Electric Gaskets - Reach-in Glass Doors (Med Temp) Refrigeration Electric Gaskets - Walk-in Cooler Refrigeration Electric Gaskets - Walk-in Freezer Refrigeration Electric Motors - Evaporator Motors - Shaded Pole to ECM in Display cases Refrigeration Electric Motors - Evaporator Motors - Shaded Pole to ECM in Walk-in Refrigeration Electric Strip Curtains - Cooler Refrigeration Electric Strip Curtains - Freezer Electric/ Hospitality Gas Packaged Terminal Heat Pump (PTHP) Puget Sound Energy Page 20 of 126
21 Measure Type Hospitality Space Heat Water-Saving Water-Saving Water-Saving Water-Saving Electric/ Gas Electric/ Gas Electric/ Gas Electric/ Gas Electric/ Gas Electric/ Gas Electric/ Gas Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Total Equipment Labor & Installation Other 6 Packaged Terminal Heat Pump (PTHP) occupancy control Web Enabled Thermostat Aerators Coolermiser Installation Pre-Rinse Spray Spray Valves Showerheads Other proposed measures for PSE consideration (provided by bidder) Puget Sound Energy Page 21 of 126
22 Measure Type Electric/ Gas Attachment 1. Proposed Small to Mid-Sized Business Measure List Measure Details Estimated Measure Cost per Unit Measure Name 5 Labor & Total Equipment Other 6 Installation Puget Sound Energy Page 22 of 126
23 B. Small Agricultural Direct Install Program Overview Puget Sound Energy (PSE) is pursuing the development of a Small Agricultural Direct Install (SADI) program, which is designed to be a small to medium agriculture customer outreach and engagement program that focuses on customer service, community involvement, and recognition. SADI will utilize a turnkey project delivery model to provide energy efficiency measures to agriculture customers in way that meets the unique needs of this customer segment. The agricultural sector is known to have limited experience with energy efficiency programs and tends to have significant savings potential. Furthermore, the agricultural business relies heavily on water use, and even small energy efficiency measures can dramatically reduce water and energy use. PSE is seeking a third party (3P) implementer to provide the program. The main objective of the SADI program is to provide a set of turnkey services to agriculture customers. Services provided through this program should include (but are not limited to): Superior customer service, quality assurance and program awareness; Comprehensive energy assessment for qualified customers, identifying all existing efficiency opportunities (lighting, refrigeration, controls, etc.); Custom assessment report detailing energy efficiency measure opportunities; Energy education and information on energy efficiency benefits (overview of online account tools [MyPSE], tips on potential behavioral changes, education on other PSE programs and services, etc.); Customer outreach and education, Direct installation of measures where/when possible; Technical assistance; Project permitting; Company/Customer recognition and follow-up; Cross-utility coordination; Coordination with and leverage of other federal and state energy efficiency resources Ensure ongoing system compatibility with PSE s energy efficiency platform Prioritize PSE brand during all marketing and outreach and customer interaction activities PSE is interested in providing these services to small agricultural customers (i.e. greenhouse agriculture, dairies and livestock producers, nurseries, crop farmers and food processors) with measures related to (but are not limited to) Puget Sound Energy Page 23 of 126
24 agricultural pump testing, HVAC controls, water savings measures, and lighting solutions (indoor and outdoor). For the purposes of this Request for Proposal, a Small Agricultural customer is defined as a hard to reach or underserved customer with a less than 350 kw estimated/actual billing demand (typically served by electric rate schedules 8 or 11) or gas rate schedule 31. PSE s gas-only customers must be able to demonstrate that they are an agricultural business to qualify for the SADI program. PSE is open to additional input on the definition of a small agricultural business as part of this RFP response. Implementer Responsibilities The selected 3P implementer(s) is/are required to manage all day-to-day program activities for the PSE service territory. The 3P must demonstrate examples of and/or ability to perform the following responsibilities, at a minimum: A. General program management. a. Monthly tracking and reporting of program metrics, including (but not limited to): i. Savings accomplishments to date ii. Project pipeline and savings forecast at the measure level iii. Assessments completed iv. Projects completed v. Site specific customer data vi. Referrals to other PSE programs b. Ability to directly submit customer assessment and project data with project status to PSE s energy efficiency data platform (Nexant ienergy DSM Central) on a biweekly basis. c. Management and resolution of all customer satisfaction and local contractor issues in a timely manner. d. Support program evaluation and independent review activities. e. Development of required applications and participation agreements. f. Energy efficient equipment inventory management and product qualification oversight. B. Relationship Management a. Develop relationships with agricultural business, agencies and/or organizations to promote program through a targeted marketing approach. Puget Sound Energy Page 24 of 126
25 b. Demonstrated understanding of the needs and characteristics of the energy efficiency needs related to small agricultural processes C. Energy Efficiency Measures D. Marketing a. Comprehensive energy efficiency assessments at customer sites b. Proposal and work order development indicating all eligible measures c. Promotion of other PSE programs and/or services when interacting with contractors and customers a. Coordination with PSE Marketing, SBDI Program Manager and EEO b. All marketing collateral must be approved by PSE corporate communications, and meet PSE messaging and brand guidelines. c. Support a localized approach to marketing the program d. Complete PSE branding on all Program Materials, 3P implementer staffing, and any vehicles used in the field (as reviewed and approved by PSE). E. Quality control a. Ability to provide and support a one year warranty on all installed equipment b. Support PSE efforts to survey customers on program satisfaction F. Additional considerations a. Innovative delivery techniques and program options such as tablet based energy audits and enhanced engagement strategies. b. Coordination with and leverage of federal and state agency resources for energy efficiency services Savings Targets The Small Agriculture program bi-annual savings targets for are: Gas program target: TBD Electric program target: TBD Table 1 demonstrates the number of eligible customers (as defined by rate schedules that fall into the SMB definition proposed in the Program Overview section), and estimated participation rates (since 2012). Puget Sound Energy Page 25 of 126
26 County Total 8 11 % Participation (Estimated 7 ) Island 1,504 1, % Skagit 2,118 2, % Whatcom 3,576 3, % King 14,254 14, % Kittitas % Kitsap 4,449 4, % Pierce 3,048 3, <1% Thurston 3,998 3, % Bidders should use this information to propose potential kwh and therm targets for Eligible Customers All commercial customers receiving electric and/or gas service from PSE are eligible if they meet the proposed definition of a Small Agriculture customer (less than 350 kw). Program Costs Proposal should include a proposed payment structure which may include (but is not limited to) the following payment structures: time and materials, performance based-payment, unitized material costs, milestone driven, flat fee, or a combination. PSE would be interested in and may consider a payment structure that prioritizes the smallest agricultural customer through some type of tiered performance-based payment or bonus model. PSE will compare and align proposed material costs with those supplied by other PSE commercial programs. If implementer is proposing a performance based payment model, bidder should demonstrate how the performance payment was determined in the notes section of Exhibit C. Measures/Systems Measures include lighting, refrigeration, aerators, and some basic HVAC measures. Anticipated measures are both traditional direct install measures (screw-in LED lamps, water savings measures, controls, etc.) as well as more comprehensive measures (lamp and ballast replacements, full fixture retrofits, refrigeration warehouse measures, basic HVAC tune up measures, etc.) that may require project permitting. PSE is open to considering other types of measures that would be appropriate for this customer segment. Proposed measures should be ones that fit into a direct installation program model and are supported by existing 7 Estimated participation rates are based on participation in any PSE program since 2012 Puget Sound Energy Page 26 of 126
27 literature and/or utility business cases. Larger, more complex measures will likely be referred to PSE s Commercial and Industrial grant programs. If the 3P implementer would like to propose additional measures, the 3P shall reference resources and/or provide calculations to support claimed unit energy savings for new and/or modified measures delivered by the program. All energy savings shall be verified using standard engineering practices. Incentives Incentives will vary depending on the measure installed and negotiated labor rate. It is anticipated that a subset of measures will be no-cost, while others will have a co-pay that is comparable to PSE s other program incentives. For the purposes of this proposal, program incentives should be based on an estimated $0.20 per kwh up to 50% of project cost for lighting measures, and $0.30 per kwh or $5/therm up to 70% of project cost for non-lighting measures. Final incentive by measure and total incentive budget will be determined as part of the contract negotiation process. How Commercial Customers Can Participate As appropriate, PSE and the 3P implementer will recruit qualifying customers for this target market program. Recruitment may be done through community outreach, word-of-mouth referrals, door-to-door recruitment, key account relationships, and targeted marketing campaigns through small agriculture associations. Proposal should demonstrate existing or proposed relationships with associations or organizations that support small businesses and how they will be leveraged, if available. The 3P implementer will be required to actively screen and recruit potential customers. Key Partnerships Key partnerships include PSE account executives, PSE s Energy Efficiency and Outreach teams, small agriculture associations, other utilities that provide service to PSE customers, and government and community organizations. Summary of Proposal Requirements Proposal should address the following requirements in addition to the Proposal components listed Section V. Page limit for the additional requirements should not exceed 5 pages. 1. Overview of experience directly related to the program-specific responsibilities listed under Implementer Responsibilities. 2. Input on the definition of a hard-to-reach and/or underserved small-tomid sized agriculture customer for the purposes of qualifying for this program. 3. Proposed innovative ways to prioritize serving the smallest and hardest-to-reach customers. Puget Sound Energy Page 27 of 126
28 4. Innovative recruitment strategies targeted to the qualified customer while leveraging key partnerships. Anticipated Questions 1. What is the PSE process for proposing new measure packages, and what is the required hurdle for deeming new measures? All new measures must be designed in accordance with the Regional Technical Forums Guidelines for the Estimation of Unit Energy Savings. The RTF guideline can be found here: Puget Sound Energy Page 28 of 126
29 C. Lodging Direct Install Program Overview Puget Sound Energy s (PSE s) Lodging Direct Install (LDI) program is designed to be a Lodging outreach and engagement program that focuses on customer engagement, and recognition. LDI will utilize a turnkey project delivery model to provide direct installation and access to custom grant energy efficiency measures to Lodging market in a way that meets the unique needs of this customer segment. The program has been designed to complement PSE s other commercial programs and PSE s Energy Efficiency Outreach team goals. PSE is seeking a third party (3P) implementer to execute this program. In order to promote local presence, targeted marketing and outreach, and community relationship management, the program will be implemented service area wide with goals and budgets divided among customer sub segments. Proposed sub segments are outlined as follows: Lodging Sub Segments Large Hotels Small Chain Hotels (Rate Schedule 24 & 25) Small Independent Hotels (Rate Schedule 24 & 25) Each segment will have a savings and budget associated with it, based on the type of energy used (gas, electric or both) and market potential. For the purposes of this Request for Proposals, Lodging is defined as Hotels, Motels, Inns or such businesses that provide short term lodging. This program is designed to reach the lodging industry regardless of size of the lodging establishment. Excluded Lodging sites include Bed and Breakfast establishments using a residential electric meter. PSE is open to additional input on the definition of a Lodging customer as part of this RFP response. The main objective of the LDI program is to provide a set of turnkey services to Lodging customers. Services provided through this program should include (but are not limited to): Superior customer service, quality assurance and program awareness; Comprehensive energy assessment for qualified customers, identifying all existing efficiency opportunities (lighting, refrigeration, controls, etc.); Custom assessment report detailing energy efficiency measure opportunities; Energy education and information on energy efficiency benefits (overview of online account tools [MyPSE], tips on potential behavioral changes, education on other PSE programs and services, etc.); Puget Sound Energy Page 29 of 126
30 Local contractor relationship management, program training and enrollment, oversight, and administrative support; Direct installation of measures where/when possible; Project permitting; Support for targeted community efficiency outreach campaigns (i.e blitzes ) Company/Customer recognition and follow-up; Cross-utility coordination; Ensure ongoing system compatibility with PSE s energy efficiency platform Prioritize PSE brand during all marketing and outreach and customer interaction activities Implementer Responsibilities The selected 3P implementer(s) is/are required to manage all day-to-day program activities for the sub segments served. The proposal must demonstrate examples of and/or ability to perform the following responsibilities, at a minimum: A. General program management. a. Monthly tracking and reporting of program metrics, including (but not limited to): i. Savings accomplishments to date ii. Project pipeline and savings forecast at the measure level iii. Assessments completed iv. Projects completed v. Site specific customer data vi. Referrals to other PSE programs b. Ability to directly submit customer assessment and project data with project status to PSE s energy efficiency data platform (Nexant ienergy DSM Central) on a biweekly basis. c. Management and resolution of all customer satisfaction and local contractor issues in a timely manner. d. Support program evaluation and independent review activities. e. Development of required applications and participation agreements. f. Energy efficient equipment inventory management and product qualification oversight. B. Relationship Management Puget Sound Energy Page 30 of 126
31 a. Ensure coordination with PSE LDI Program Manager, Energy Efficiency Outreach (EEO), PSE Energy Management Engineers and PSE Lighting programs as relevant to program activities. b. Coordinate with other PSE direct install program outreach activities including the Small Business Direct Install program. c. Demonstrated understanding of the needs and characteristics of the customer segments served. d. Develop relationships with local, regional and national Hospitality organizations to promote program through a targeted marketing approach. e. Coordination with and administration of cost sharing model with local water agencies for water saving measures C. Energy Efficiency Measures a. Comprehensive energy efficiency assessments at customer sites b. Proposal and work order development indicating all eligible measures c. Promotion of other PSE programs and/or services when interacting with contractors and customers D. Local Contractor Engagement E. Marketing a. Annual recruitment and enrollment of interested local contractors (must be registered as active Contract Alliance Network [CAN] contractors) b. Development of and training for Local Contractors on LDI program, eligibility requirements, and measures c. Negotiation of labor rates for LDI Projects d. Coordination of onsite lodging engineers for self-install applications e. Streamlined contractor-driven project review and approval f. Work order development and assignment to enrolled contractors using a performance matrix referral process (similar to CAN structure) g. Oversight of local contractor activities including: permitting compliance, quality assurance and customer satisfaction review h. Reimbursement of project costs to local contractors in a timely manner a. Coordination with PSE Marketing, LDI Program Manager and EEO Puget Sound Energy Page 31 of 126
32 b. All marketing collateral must be approved by PSE corporate communications, and meet PSE messaging and brand guidelines. c. Support a localized approach to marketing the program, based on the region(s) served. d. Complete PSE branding on all Program Materials, 3P implementer staffing, and any vehicles used in the field (as reviewed and approved by PSE). e. Participate in up to 5 community outreach campaigns (i.e. blitzes ) per year aimed to bundle and serve a set number of qualified businesses in a rural area over a three day period. F. Quality control a. Field pre and post inspection of a specified number of projects for each enrolled local contractor b. Ability to provide and support a one year warranty on all installed equipment c. Support PSE efforts to survey customers on program satisfaction G. Additional considerations Savings Targets a. Innovative delivery techniques and program options such as tablet based energy audits and enhanced engagement strategies. The Lodging Direct Install Program targets for Electric Program target: TBD Gas Program Target: TBD Program Costs Proposal should include a proposed administrative payment structure which may include (but is not limited to) the following payment structures: performance based-payment, time and materials, milestone driven, flat fee, or a combination. PSE would be interested in and may consider a payment structure that prioritizes the smallest business customer through some type of tiered performance-based payment or bonus model. PSE will compare and align proposed material costs with those supplied by other PSE commercial programs. Estimated budget should be based on the proposed measure mix (Attachment 1) and anticipated kwh and therm targets. Puget Sound Energy Page 32 of 126
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