DTE Energy Pilot Programs DTE Insight & Retro-Commissioning MPSC Collaborative Joint Workgroup

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DTE Energy Pilot Programs DTE Insight & Retro-Commissioning MPSC Collaborative Joint Workgroup April 21, 2015

DTE Energy Pilot Program DTE Insight MPSC Collaborative Joint Workgroup April 21, 2015

DTE Insight mobile app was launched in 2014 and will be a core platform to help our customers manage their energy consumption and their homes DTE Energy is the first utility to offer an interactive real-time mobile application tool for customers to understand their energy usage The customer experience as well as the software and hardware were all developed and provided locally with Vectorform LLC, Saline Lectronics Inc. and our residential customers 3

Annual Percent Savings American Council for an Energy-Efficient Economy - June 2010 Report Number E105 12.0% 8.4% 9.2% 3.8% Enhanced Billing Household specific info, advice 6.8% Estimated Feedback Web-based energy audits with info on ongoing basis Daily / Weekly Feedback Householdspecific info, advice on daily or weekly basis Real-Time Feedback Real-time premise level info Estimated Feedback Real-time info to the appliance level Indirect Feedback (Provided after Consumption Occurs) Direct Feedback (Provided Real Time) Based on 36 studies implemented between 1995-2010 4

The customer experience of DTE Insight was cocreated with our residential customers in a rigorous and iterative design process Pre-launch Research and Development Spring-Winter 2011 Customer Experience Blueprint, Technology Experience Concept (Jaylo) 2011 and early 2012 Vectorform prototypes Powerscan, energy bridge and app Spring 2012 Summer 2013 Vectorform Wattson design concept Fall 2013 Project Hudson by Peer Insights with 200 customers November 2013 DTE Insight v1.0 Pilot: usability & satisfaction study Mar 2014 DTE Insight v1.1 Pilot: Feature refinements based on upon research Spring 2014 Launch energy management market review with Parks Associates April 2014 DTE Insight v1.2 Pilot: production readiness Post Launch Roadmap July 2014 DTE Insight v1.3: Production launch, hourly & real-time electricity use, tools, challenges October 2014 DTE Insight v1.4: Dashboard, project cards & tips December 2014 DTE Insight v1.5: Daily gas usage Budget Management & Rates Future Features and Functionality Thermostats, Control and Demand Response

DTE Insight Over 50,000 Downloads Over 10,000 Energy Bridge Requests App downloads far exceeding our original goals and expectations of 10,000 in 2014 2015 goal of 150,000 Energy Bridge requests have shown strong demand 2015 goal of 35,000 Continue to focus on customer engagement to drive higher energy savings 6

DTE Insight Demonstration 7

Evaluation & Measure Validation Analysis of electric savings resulting from the first 6 months of the DTE Insight Pilot (July through December 2014). 8

Annual Percent Savings Current Estimated savings for the DTE Insight Behavioral Program 8.41% 6 Month Impact Analysis Findings 1.22% Mobile App Residential Behavioral Savings Day After Hourly Interval Energy Display Mobile App & Zigbee Gateway Residential Behavioral Savings Real-time 60 second Interval Energy Display EM&V Analysis is on-going Results are in line with ACEEE Report Advanced Metering Initiatives and Residential Feedback Programs: A Meta Review for Household Electricity-Saving Opportunities; June 2010 --- ACEEE Report Number E105 Program Planning is underway to commercialize the Pilot as a Residential Behavior Program Submission of proposed Measures for inclusion to the 2016 MEMD 9

Thank You! Joel T. Miller millerjt3@dteenergy.com 313-235-7602 10

DTE Energy Pilot Programs Retro-Commissioning MPSC Collaborative Joint Workgroup April 21, 2015

Retro-Commissioning Pilot Program Overview 13

Retro-Commissioning Pilot Program Overview What is Retro-Commissioning? Retro-commissioning (RCx) is a systematic process to improve an existing building s performance through the identification of operational improvements that will increase occupant comfort and save energy. Depending on the age of the building, RCx can often resolve problems that occurred during design or construction, or address problems that have developed throughout the building's life. Target energy savings are between 4 6 %. 14

Retro-Commissioning Pilot Program Overview What is DTE Energy offering? Fully funded (free) retro-commissioning (RCx) study to their commercial and industrial customers. How is it offered? An expert engineering team identifying no/low cost energy saving measures with a total simple project payback period of 18 months or less. Customers implement the energy saving measures of their choice to meet the minimum program spend requirement (varies between RCx Lite and RCx Standard). Energy savings are validated through measurement and verification (funded by the Program). Customer walks away with a detailed energy assessment at no cost to them, a more efficient building, and cost savings even after the project has paid for itself. 15

Retro-Commissioning Pilot Program Overview Program Qualifications RCx Lite Commercial buildings/facilities Between 50,000-150,000 square feet Peak demand between 125 500 kw *ideal 300-1000kW Willing to spend a minimum of $3,500 on energy efficiency recommendations Assessment Value (Service Provider Fee): Up to $7,000 RCx Standard Commercial and Industrial buildings/facilities Greater than 150,000 square feet Peak demand greater than 500 kw *ideal >1000kW Willing to spend a minimum of $15,000 on energy efficiency recommendations Assessment Value (Service Provider Fee): Up to $40,000

Retro-Commissioning Pilot Program Overview Project Timeline: RCx Lite vs. Std RCx Lite (4 months) Application & Kick-off meeting: 3 weeks Investigation & Implementation Phase: 9 weeks Verification: 5 weeks RCx Standard (10 months) Application & Kick-off meeting: 1 month Investigation: 4-5 months Implementation: 4-5 months Verification: 1 month 17

Retro-Commissioning Pilot Program Overview Program Process Application Investigation Implementation Verification

Retro-Commissioning Pilot Program Overview Outreach Key Strategies Target Market Segments RCx Application DTE Account Manager Service Provider/ Trade Ally Trade Association Commercial Hospital Hotel Educational Facilities Grocery Retail Direct Customer 19

DTE RCx Pilot Program SIC Category Lite or Standard Gas Provider Phase EDUCATIONAL SERVICES Lite DTE Gas INV AMUSEMENT & RECREATION SERVICES Lite DTE Gas INV AMUSEMENT & RECREATION SERVICES Lite INV SERVICES, (NOT ELSEWHERE CLASSIFIED) Lite INV SOCIAL SERVICES Lite DTE Gas VER HOTELS AND OTHER LODGING PLACES Lite DTE Gas INV EDUCATIONAL SERVICES Lite DTE Gas INV AMUSEMENT & RECREATION SERVICES Lite App review AMUSEMENT & RECREATION SERVICES Std DTE Gas IMP EDUCATIONAL SERVICES Std DTE Gas INV EDUCATIONAL SERVICES Std DTE Gas INV EDUCATIONAL SERVICES Std DTE Gas INV TRANSPORTATION EQUIPMENT Std DTE Gas INV TRANSPORTATION EQUIPMENT Std DTE Gas INV EDUCATIONAL SERVICES Std App Review

Retro-Commissioning Pilot Program Overview Electric ECMs and Energy Savings Measure Category and Name % Program Savings (kwh) % Program Savings (Cumulative kwh) Schedule AHU for Space 26% 26% Economizer and Outdoor Air Control 15% 42% Duct Static Pressure Reduce/Reset 14% 56% Chilled Water Temperature Reset 8% 63% Supply air temperature reset 7% 71% Balance airside 4% 75% Schedule Heaters 4% 79% Schedule Fan Powered/VAV Boxes 3% 82% Reduce Ventilation 3% 85% Condenser water temperature reset 3% 88% Optimize supply fan performance 3% 91% Schedule Lighting 3% 93% Reduce VAV Minimum Position 2% 96% Setback Space Temperature 2% 98% Optimum Start for AHU 2% 100% 21

Retro-Commissioning Pilot Program Overview Natural Gas ECMs and Energy Savings Measure Category and Name % Program Savings (Ccf) % Program Savings (Cumulative Ccf) Schedule heaters 15% 15% Schedule AHU for space 13% 28% SAT Reset 11% 39% Balance airside 8% 47% Setback space temperature 7% 54% Schedule fan powered/vav boxes 7% 61% Economizer and OA control 7% 68% Option Start for AHU 4% 72% Repair/replace dampers 3% 75% CO-based ventialation control 2% 77% Optiimze snowmelt system 2% 79% Schedule return/exhaust fan 2% 81% Reduce ventialation 2% 83% Repair econmizer 2% 85% Demand control ventliation 2% 87% 22

Retro-Commissioning Pilot Program Overview Sample RCx Standard Projects Building Type Office Hospital Education Building Area 166,000 sq ft 390,000 sq ft 760,000 sq ft Annual kwh 3,498,000 15,540,000 9,214,000 Implement Cost $14,500 $17,100 $6,000 Verified kwh Saved 763,850 268,000 231,400 Verified Therms Saved 0 9,510 8,890 T Annual Savings $68,740 $31,980 $24,030 Payback (Yrs.) 0.21 0.54 0.25 23

Service Provider Network 24

Service Provider Network Current RCx Pilot Program Service Provider Network 25

Service Provider Network Role: Service Provider Best fit for RCx Std Conduct energy assessment Establish & document baseline performance D&C Plans: seq of ops Trend data, data logging Verify implementation Report Templates Investigation Report Customer Selection Form (CSF) Verification Report Project leader Role: Trade Ally and Service Provider Best fit for RCx Lite Conduct energy assessment Establish & document baseline performance Verify implementation Report Templates Customer Selection Form (CSF) Verification Summary Project leader 26

Questions 27

Thank You! Donald C. Boza bozad@dteenergy.com 313-235-6706 28