SRP Energy Efficiency and Demand Response Process
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1 SRP Energy Efficiency and Demand Response Process
2 What is Energy Efficiency? Energy Efficiency (EE) Reduce energy use High efficiency equipment Construction efficiency standards Energy use information (M- Power, Internet, Phone) Demand Response (DR) Shift/reduce peak demand Time of use rates Critical peak pricing Direct load control Stand-by generation Thermal storage 2
3 $/MWh Why Promote Energy Efficiency (EE)? Efficiency is cost effective, defers the need to add new resources Innovation, incentives and information Customers control consumption Resource Technologies Average Base Delivered Cost Energy Efficiency Base Supply Side Resources Range 3
4 Common US Energy-Efficiency Offers Appliances Commercial: Food Service Equipment Lighting Home Improvement Heating & Cooling 4
5 Objectives of SRP Energy Efficiency (EE) Programs Defer and/or reduce the need for future generating resources Meet Sustainable Portfolio objective which requires 15% of retail energy from sustainable resources by 2025 Generate MWh savings, contribute to Sustainable Portfolio objectives Achieve MW reductions manage resource needs, peak load reduction Develop programs with strong economics,least cost based Total Resource Cost test Enhance customer satisfaction Meet statutory and regulatory requirements; (current and potential) Create synergies with other SRP programs and price offerings 5
6 Percent of Retail Sales SRP Sustainable Portfolio 16.0% 12.0% 8.0% SRP SPP REQUIREMENT CONSERVATION - Energy Efficiency and Demand Response HYDRO RESOURCES 4.0% RENEWABLE RESOURCES 0.0% 6
7 History of SRP Energy Efficiency Programs Customer load growth With increased emphasis on sustainability, Board adopted the Sustainable Portfolio Principles in April 2004 In 2006, Board approved Sustainable Portfolio Principles target of 15% by 2025 SRP initiated efforts to grow energy efficiency programs in 2008 Source: EIA Annual Energy Outlook ft ft ft Source: Cambridge Energy Research Associates and US Department of Energy
8 History of SRP Energy Efficiency Programs Wire Now - Pay Later Gold Medallion Total Eletric Homes Modernization Program Weather stripping kits "Caulk, Wrap, Strip" Power Saver Time Reduce usage from 3-8 pm Thermal Mass Homes Energy Efficient Homes Security Lighting Lighting Edge M-Power prepay program Power Saver Home Energy Savings Break: Direct Load Audits Control Power Saver StoresClimate Crafted Homes Electric Savings Time/TOU Purchase Power Incentives Power Wise Homes Kilowatch: Home energy audit Heat Pump Incentive Program Customer Signature Series Business Energy ManagerLighting Program Rebates SPATIA PowerWise Retail PowerWise Retail Cool Roof Program Low Income Weatherization Heat Pump AC Incentive Automated Smart Metering Cool Cash Compressed Air Solutions 80 Plus Appliance Recycling EZ3 Time of Use program Premium Efficiency Appliance Rebate Power Wise Home Enhancements Low Income Education Shade Screens CFL "Change a Light" Improved 2010 lighting rebates Program Discontinued Program replaced with successor program Current Programs Potential Programs for FY11 Home Checkup PowerPartner Demand Response New construction Program In-home Display Units Home Characterization Retrofits Home Performance with Energy Star Shade Screen Buy Down Duct Testing and Repair Program Budget and Customer Cap Increase Project Help Heat Pump AC Incentive Retro commissioning Premium Efficiency Motors Variable Frequency Drives Small Business Direct Installation Program Custom Business Program 8
9 History of SRP Energy Efficiency Two decades of experience Late 80s, early 90s high, volatile energy costs SRP, others began energy efficiency or demand side management (DSM) programs In 1989, SRP energy efficient homes program By 1995, several robust programs in place, full support staff Deregulation affected Programs 1992 Late 90 s Early 2000 s Energy Policy Act Utility Restructuring Western energy crisis EPACT and EISA 9
10 Energy Efficiency Study 2007: Quantec Energy Efficiency Study Top down, measure focus Enhanced program offerings, beginning in FY : Cadmus Potential Study Bottom up approach Identify attainable energy efficiency targets 15 year time horizon Develop forecasting tool, scenario capabilities Recommend SRP program updates January, 2010 target 10
11 SRP Residential Programs Timeline FY 08 FY 09 FY 10 PW Homes Cool Cash Pilot CFL Change a Light Low income weatherization Plus: Unbudgeted initiatives: CFL Give-away at Business Offices HVAC Check-up Shade Screen Rebate CFL Buy Down at Select Retailers Additional ACAA Funding ADDED: Appliance Recycling Cool Cash - Ongoing CFL Ongoing, more retailers Premium Efficiency Appliance Rebate PW Home Enhancements Low Income Weatherization Low Income Energy Education EZ-3 TOU Program Will ADD: CFL More retailers More stringent standards PW Homes Home Check-up Pilot Grow EZ-3 Program Other pilots Support Stimulus Initiatives: Low Income Weatherization Energy Efficiency Tax Credits - Energy Star 11
12 SRP Residential Information Programs FY 08 Residential Information Products FY08 PowerWise Solutions - printed (4x per year) Home Energy Manager Energy Savings Guide Annual Account Summary Customer Pricing Letter Contact FY 09 Residential Information Products FY09 PowerWise Solutions - printed PowerWise Solutions electronic Home Energy Manager Energy Savings Guide Annual Account Summary Retail Partner events PowerWise Projects DVD PowerWise page on-line Contact FY 10 Residential Information Products FY10 Save with SRP newsletter Home Energy Manager Living Wisely in the Desert Guide Pricing letter Retail Partner events PowerWise Projects DVD PowerWise Page on-line Savewithsrp.com campaigns Glendale Energy Show Video Energy Savings Scorecard Contact 12
13 Thousand MWh Thousand MWh FY09 Residential Annual Aggregate Savings Budget vs. Year-End Actual* Total Budgeted (Aggregate) 250,488 MWh Total Savings (Aggregate) 265,789 MWh *Cadmus Year End data 13
14 Summary of Residential Energy Efficiency Programs (Planned FY10) Program Annual Aggregate MWh Savings Est. Coincident Peak MW Reduction FY10 Incremental Units FY10 Total Resource Cost Appliance Recycling 15, , Cool Cash 7, , Retail CFL 79, ,050, Retail Appliance 9, , LI Weatherization 1, LI Education PW Homes 90, , PW Check-up 1, M-Power 148, , Total* 354, * Excludes savings from discontinued programs 14
15 Thousand MWh Thousand MWh FY09 Commercial Annual Aggregate Savings Budget vs. Year-End Actual* Total Budgeted (Aggregate) 82,522 MWh Total Savings (Aggregate) 82,843 MWh *Cadmus year end data 15
16 Commercial Timeline FY 08 FY 09 FY 10 Lighting Cool Cash A/C Cool Roof Pilot Retrocommissioning Pilot 80 Plus Pilot Compressor Audit Pilot Schools Rider Program ADD: Prescriptive Premium Efficiency Motors Variable Frequency Drives Enhance Cool Cash A/C Rebate Lighting - New Construction Custom Custom Rebate Large Retrofit Program Expanded Compressed Air Power Partner Demand Response ADD: Improved Lighting Rebates Additional Prescriptive Measures New Construction Program Retro-commissioning Non-Traditional Green Sustainable Program Support Stimulus Initiatives: School Efficiency Initiatives Building Codes 16
17 Commercial Information Timeline FY 08 FY 09 FY 10 Commercial Information Products FY08 & FY09 Annual Account Summary Business Energy Manager (thru Questline) PowerWise Business Solutions Signature Series My Account Commercial Information Products FY10 Business Energy Manager PowerWise Business Services Signature Series My Account Industry Insights Web Pages 17
18 Summary of Commercial Energy Efficiency Programs (Planned FY10) Program Annual Aggregate MWh Savings Coincident Peak MW Reduction FY10 Incremental Units FY10 Total Resource Cost Standard Business 40, Custom Business 27, Compressed Air 5, Large Retrofit 2, New Construction N/A Retrocommissioning 1, Green Sustainable N/A SPATIA 10, Total* 87, * Excludes savings from discontinued programs 18
19 SRP PowerPartner Demand Response Program Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 EnerNOC serves as the turnkey service provider MW Program SRP can call up to 15 events per year Began summer 2009 Customer 8 Customer 9 Customer 10 Customer 11 Customer 12 Customer 13 Customer 14 Customer 15 Customer 16 0% 50% 100% 150% 0% 50% 100% 150% 0% 50% 100% 150% 19
20 Summary of Planned FY10 EE Portfolio / Demand Response Program EE Programs Annual Aggregate MWh Savings Coincident Peak MW Reduction FY10 Total Resource Cost Residential Portfolio 356, Commercial Portfolio 123, Total EE Portfolio 480, Commercial DR FY10 FY11 PowerPartner (Max MW of Capacity) * Excludes savings from discontinued programs 20
21 FY10-FY15 Budgeted Annual Aggregate Savings* (thousands of MWh) FY10 FY11 FY12 FY13 FY14 FY15 *Includes M-Power Residential Commercial 21
22 Sending Price Signals M-Power Commercial Demand Response Smart meter TOU & EZ-3 22
23 Customers Respond to Price Signals 23
24 EZ-3 Program Expansion 24
25 Tools for Success M-Power User Display Unit (UDT) My Account Self-service Payment Terminal 25
26 M-Power Customer Satisfaction Satisfaction with M-Power Satisfied or Very Satisfied 89% Ability to Monitor & Control Used Electricity More Wisely 90% 26
27 mysrpmpower.com HOME PAGE WITH CONTEST BENEFITS OFFER TOLD BY THE CUSTOM ER 27
28 Customer Education Commercial Testimonials Online Events 28
29 Aug. 13 Campaign Results Save with SRP Visitor Trend Living Wisely in the Desert Tour Visitor Trend Cool Cash Visitor Trend Appliance Rebate Visitor Trend 29
30 FY10 Marketing Plans Support Corporate Goals Infrastructure Development and Support Capture about 120 million kwh* of energy conservation Reduce demand by about 60 MW* Environmental Ethic Increase awareness of energy-efficiency (EE) solutions Integrate water, environmental and energy sustainability solutions Customer Value and Public Perception Better use technology to reach customers Refine methods to measure cost-effectiveness Help achieve SRP targets for overall satisfaction and value Launched Hispanic EE campaign * Estimate may change based on final FY10 budget. 30
31 Customer Segmentation 31
32 Using Research to better Understand our Customer Satisfaction Research Phone surveys Mail surveys Online surveys Customers Do Customers Like SRP and the many services we provide them? Customer Experience Research Phone surveys Online surveys How was their experience when they contacted us? Product Testing & Tracking Research Focus Groups Online surveys Telephone surveys Are they interested in the products we offer? Do they find value in them? Customer Communications Research Focus Groups Online surveys Telephone surveys What do they think of our messages? Do we communicate in the right way? Customer Segmentation Analysis Database coding Database mining and analysis Customer segmentation analysis and projections Who are our customers? We need to understand all of them as individual groups. 32
33 Measuring Results Product lifecycle tracking Customer participation / product sales kwh / kw reduction and avoided emissions Customer awareness and satisfaction Cost-effectiveness by campaign and channel 33
34 34
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