Gas and Electric Energy Efficiency Programs and

Services for Municipal Customers

November 15, 2012

Matthew Foran, National Grid

Elizabeth Cellucci, Columbia Gas of Massachusetts

Mark Rooney, NSTAR

2

Background

• Green Communities Act, July 2, 2008: to promote enhanced gas

& electric energy efficiency throughout the Commonwealth

– Program Administrators develop statewide energy efficiency plan

– Streamlined contracting process that allows cities and towns to

sole-source efficiency projects to a PA, or the PA’s delivery

contractors, if the total work is less than $100,000.

• Three Year Plan providing for acquisition of all available cost

effective energy efficiency

– Aggressive, unprecedented savings goals

– Gas/electric program integration and seamless delivery

– Focus on going “deeper” (more comprehensive) in buildings; and

“broader” (more customers participating)

Mass Save® is a brand sponsored by Massachusetts’ gas and electric utilities and energy efficiency service providers

Who is Mass Save®

Massachusetts EE Programs

Objectives

• Provide incentives to customers to reduce the cost of improving the efficiency of their equipment and their facilities

• Offer technical assistance to customers, contractors, vendors, etc. to identify and evaluate energy efficiency opportunities

• Massachusetts PAs working collaboratively to provide comprehensive solutions through consistent EE programs

Massachusetts EE Programs

• Small Business (Direct Install) – Available to customers < 300 kW

– Limited menu of simple ECMs

•Large Commercial (LCI) Programs – #1: LCI New Construction & Major Renovation

– #2: LCI Retrofit

– Prescriptive Incentives & Custom Incentives

– Technical Assistance

– Promote comprehensiveness through focused initiatives within LCI programs

National Grid Small Business Program

Gas Direct Install Measures

High Efficiency Pre-Rinse Spray Valve (PRSV)

Programmable Thermostats

Low Flow Shower Heads (LFSH)

Faucet Aerators

Pipe Insulation

Duct Insulation

Indoor Boiler Reset Controls

Electric Direct Install Measures

Lighting Upgrades

LEDs

Occupancy Sensors

Programmable Thermostats

Walk-in Cooler Efficiency Measures

• Electric and Gas Direct Install (DI) Program

• Provides free energy audit and a report of recommended energy efficiency

improvements

• The PA pays 70% of the cost of the installation of energy efficient equipment and

customer pays the remaining 30%

• Cost-cutting, efficient equipment available through DI includes:

Large Business Programs

LCI New Construction & Major Renovation

Targets new construction, major renovations and equipment replacement

Promotes selection and installation of higher efficiency equipment and systems

Promotes comprehensive and optimized systems during design phase

Custom Incentives up to 75% of incremental costs

LCI Retrofit

Incentives for replacing existing equipment or systems

Custom Incentives up to 50% of project costs

Large Business Programs

Prescriptive Approach

Predetermined incentive amounts for individual efficiency measures

(e.g. Lighting, Motors, VFD, HVAC, Boilers, Air Compressors)

Required Eligibility Requirements available on Applications

Custom Approach

For unique projects and equipment

Project requires engineering evaluation of costs and savings

Incentives are based on % of actual costs

Projects must pass a Benefit/Cost Ratio (BCR) to determine eligibility for incentives

Technical Assistance

In-depth engineering analysis

Service Provided by Independent Consultants – customer or PA selected

National Grid will typically share the cost 50-50

National Grid Municipal Segment Pilot - 2012

• Pilot program initiated in mid-2012

• Working with three (3) NGRID project installation vendors by territory in MA to promote Whole Building Approach (comprehensive EE)

• Focus is on streamlining the project scoping process and implementation phase

• More formal program for 2013

Columbia Gas Guidelines

10

2008 Priorities Overview Business Size What You Will Receive Potential Incentive Amount

Small Business/Municipal Building • < 40,000 therms per year

• A walk through evaluation or plans analysis

• An evaluation report with recommendations and potential savings

• 50% of the installed cost up to $50,000 per master meter

Medium to Large Business/ Municipal Building(s) • > 40,000 therms per year

• A walk through evaluation

• If a comprehensive energy evaluation and scoping study is required, CMA will pay 50% of the cost up to $7,500

• 50% of the installed cost up to $100,000 per master meter

NStar Municipal Program

• 13 Preferred Vendors

• Selected through Procurement Process (early 2012)

– 29 Expressions of Interest

– 19 Bids Submitted

– 13 Vendors selected

– Cost Plus negotiated and signed with each vendor for Electical and Mechanical

– 3 Year Contract (April 2012 – April 2015)

NStar Preferred Municipal Vendors

• AECOM Energy

• Atlantic Energy Solutions

• Hobart Energy Services

• Horizon Energy Solutions

• Lime Energy

• National Resource Management (NRM)

• Northern Energy Services

• NXEGEN

• Prism Energy Service

• Rise Engineering

• SourceONe

• TNT Energy

• World Energy

NStar Municipal Program: How it Works

• Meet with NStar Sales Executive

• Assessment Scheduled and Performed

• Municipality and Vendor Complete and submit Proposal and Application Forms to NStar

• NStar Engineer evaluates and qualifies ECM’s

• Incentive Pre-Approval Letter issued

• Implementation Phase Begins

• Upon Completion….Post installation verification

• Incentive Issued

NSTAR Municipal Program: Non-Preferred Vendors

• Custom Application – Municipality and selected Vendor contact and work with NStar

from start to finish

• Prescriptive Application – Municipality and/or Vendor submits Prescriptive Applications as

equipment is installed

Contacts / Applications for Municipalities

• Mark Rooney, Energy Efficiency Sales Executive

– Mark.Rooney@nstar.com

– 781-441-3416

• Steve Grattan, Municipal Program Manager

– Steven.Grattan@nstar.com

– 781-441-8243

• http://www.nstar.com/business/energy_efficiency/application_forms/application_forms.asp

Large Commercial Programs: 800-787-1706 or efficiency@nationalgrid.com

Small Business Program: 800-332-3333, or sign up online at www.nationalgridus.com/smallbusinessne

Paul Giguere, Manager of Commercial and Industrial Programs, 413.784.2142

http://www.columbiagasma.com

Working with ESCOs

• Bring PA onboard at conceptual stage – Ensures “A Meeting of Minds” on potential EE program rebate incentives

& other offerings among all stakeholders.

– Obtain utility input on additional cost-effective ECMs to incorporate into the project

• Without early collaboration with PA, ESCOs may only propose ECMs which detail a breakout of utility prescriptive incentives

• After Muni & ESCO finalize ECM performance contract, then ESCO provides all detailed transparent energy calculations to the utility representative and technical consultants for review

• After this technical review, project incentive may increase by combining all prescriptive ECMs with custom ECMs into a single, comprehensive offer.

• NOTE: The PAs are “vendor neutral” - ECMs are evaluated and incentives calculated on their energy-saving merits.