FPL C/I HVAC Florida Power and Light

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1 Program Synopsis The C/I HVAC program is a component of FPL's portfolio that seeks to provide MW in 2002 through the installation of DX, PTAC, chiller and thermal storage systems. 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 ResOther Commercial/Industrial End User Markets - 1

2 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 Organizational Practices or Customs Irreversibility - 2

3 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 Equipment Testing/Tune-up Commissioning Lighting Compact Fluorescents Electronic Ballasts Reflector Systems Efficient Fluorescent Lamps (T-8, T-5, etc.) Lighting Controls Occupancy Sensors High Intensity Discharge Day lighting - 3

4 Retro-commissioning Space Heating Heat Pump thermal storage Water Heating Load Control (Cycling) High Efficiency Insulation Blankets Low-Flow Showerheads Low-Flow Aerators Solar Assisted Motors High Efficiency Variable Speed Drives Industrial Process Compressed Air Motors Pumps 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 Commissioning Other (specify) - 4

5 Program Context This is a well established program that has undergone relatively little design adjustment in recent years, other than routine adjustments to the incentive levels, most recently in June As the new ASHRAE 90.1 Standards are adopted in Florida (and then simultaneously in the FPL baseline definition), incentive levels for the DX and chiller components of the program are expected to drop, resulting in a greater dependence in the future on TES installations (and other potential technologies) to meet program goals. FPL has already begun the transition to TES being a stronger component of the program and is now exploring opportunities in the future for an energy recovery ventilation (ERV) program element. Program Components Program Management FPL manages the chiller and DX program by interfacing with participating contractors, and completes all program marketing, training and program tracking. Implementation for DX and chiller components of the program, from a customer perspective, is largely the contractors themselves, who handle the paper work and sell high efficiency options. The TES program, on the other hand, has much greater direct involvement from FPL representatives, spanning project design assistance and feasibility study review, and often downstream involvement in commissioning the system and aiding in proper operation once the system is on-line. Implementing Organization Utility Nonprofit Govt Private IOOther Implementation Structure InHouse TurnkeyContractor InHouseAndSubcontractors Other Reporting and Tracking FPL comprehensively tracks participation in the program, in part using annual evaluations, and uses this information to adjust the program on an ongoing basis. Verification and Quality Control FPL implements verification for a sample of participating customers to ensure that contractor and designer reporting is accurate and to correct deficiencies. Quality control is completed using a number of channels, including a program provision for contractor training and certification, and regular program evaluations. Participation Process FPL markets the program through advertising, flyers, web site and utility representatives. FPL provides contractor training and certification. Contractors and designers (for TES) offer or are asked by customers about high efficiency rebates for DX, chillers and TES. For DX and chillers contractors install units and submit paperwork for each rebate, and credit - 5

6 that amount back to the customer on their invoice. For TES the designers submit a feasibility study, providing analysis of expected peak demand shifts and other hourly load shape data, and also assess the costs and benefits of the TES design and other available options. Based on the expected load shift from the feasibility study, incentive payments are made at project progress milestones, when 25%, 50%, 75% and 100% completed. Additional incentives cover design assistance and downstream commissioning. FPL performs inspections for a sample of participants. FPL manages and tracks program accomplishments. Outreach, Marketing and Advertising FPL occasionally does TV and radio advertising for the C/I HVAC program. Installation and Delivery FPL initially marketed too successfully in 2002, exceeding goals by a nearly 60% margin. This well-entrenched program is now yielding the bounty of consistent delivery over a more than 10 year period. This is an important lesson learned for other DSM markets around the country, where fickle delivery leads to trade ally resistance to a given program. Program Evaluation FPL regularly completes detailed impact, market and process evaluations to inform program effectiveness and cost-effectiveness, with much consideration of program adjustments in repsonse to evaluation findings. Evaluations include: detailed program impact models, market tracking and program adaptation as markets shift, market penetration models to inform program design changes, ongoing tracking of participant and trade ally satisfaction, and ongoing review of new technology or market-based vehicles for DSM. Quantitative Data Program Year: 1/1/02 to 12/31/02 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: - 6

7 The C/I HVAC program is the anchor of FPL's non-dispatchable commercial/industrial programs, accounting for about 75% of savings achieved. List Of Key Sources C/I Heating Ventilation and Air-Conditioning Program Standards, June 2000 Contact Information Name Title Company Phone Craig Muccio Evaluation Coordinator (305) Ext. - 7

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