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PECO Smart Ideas for Your Business June 2013 - May 2016 Programs September 2013

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PECO Smart Ideas

for Your Business

June 2013 - May 2016 Programs

September 2013

Agenda

PECO Smart Ideas Program accomplishments

New phase

New programs

Commercial programs

New tools, resources and funding

Success stories

Website

Q&A and networking

2

Smart Ideas Program Accomplishments

Since June 2009, more than:

• 32,000 audits completed for Low Income customers

• 7.6 million CFLs bulbs sold

• 328,400 home rebates issued

• 30,990 refrigerators, freezers recycled

• 79,000 home e-audits completed

• 3,890 commercial incentives awarded

• 579,000 customers participated (excludes lighting purchases)

• 2,648 education outreach events

PECO named ENERGY STAR® Partner of the Year in 2012 & 2013

3

Average Annual kWh Savings by Measure

-

50,000

100,000

150,000

200,000

250,000

300,000

2009 -2013

658,438

4

Project Counts by Customer Type

0

100

200

300

400

500

600

700

2009 –2013

5

PA Act 129, new phase

New three-year program cycle

• June 1, 2013 to May 31, 2016

PECO energy savings target is 2.9% or 1,125 GWh

• 10% of Plan savings must come from Government, Institutional

and Non Profit business customers (existing requirement)

• 4.5% of Plan savings from Low Income (new requirement)

No demand reduction requirements in new program cycle

• PA State Wide Evaluator analyzing cost effectiveness for possible

program inclusion

6

Residential:

PECO Smart Appliance Recycling

PECO Smart Lighting Discounts

PECO Smart Home Rebates

PECO Smart Driver Rebates

PECO Smart A/C Saver

PECO Smart House Call

PECO Smart Usage Profile

PECO Smart Energy Saver

PECO Smart Builder Rebates

Commercial:

PECO Smart Equipment Incentives (C&I)

PECO Smart Equipment Incentives (GNI)

PECO Smart Construction Incentives

PECO Smart A/C Saver

PECO Smart Business Solutions

PECO Smart Multifamily Solutions

PECO Smart On-Site

PECO Smart Ideas Programs

7

PECO Smart Multifamily Solutions

Energy savings for multifamily property owners and tenants

• Buildings with four or more units

• Includes master-metered and residentially metered properties

• C&I, GNI, and low income properties are eligible

• Program marketed directly to building management

Free direct install of low-cost measures for multifamily residents

Free energy assessment for common areas including a report of potential energy-saving upgrades

• Prescriptive incentives for installation of high-efficiency equipment that address common areas or whole building improvements

8

PECO Smart Business Solutions

Direct installation of energy saving measures

• Small business customers with peak demand less than 100 kW

• Target: neighborhood shops, “mom and pop” stores

Incentives cover up to 50-60% or more of direct installation costs

• Includes eligible lighting, refrigeration and electric hot water measures

Program CSP offers

• Interest free financing available provided by CSP

• Discounts for lump-sum payments

Program promoted directly to small business owners

9

Incentives for the installation of combined heat and power (CHP) technologies to reduce facility energy use

• Technologies includes turbines, reciprocating engines and fuel cells

• Technologies must meet minimum equipment efficiencies to qualify

• Customer assistance throughout the development and installation of the on-site project

Incentives paid on a combination of installed capacity and generated energy

Capacity incentives:

Incentive structure • Capacity Payment

• Performance Incentive at $0.02/kwh for Year 1 performance

• Capacity incentive cannot exceed 40% of project cost

• Incentive capped at 50% of project or $1M

First 500 kW $300/kW

Added capacity between 500 kW and 1.5 MW $150/kW

Added capacity between 1.5 MW and 10.0 MW $ 75/kW

Added capacity above 10 MW $0/kW

PECO Smart On-Site

10

PECO Smart Ideas

Commercial Programs

11

New, Major Changes

Incentive levels now higher for GNI customers, ~20%

Lighting paid on a per watt reduced basis

Chillers, LEDs, motors are custom measures

Pre-approval applications must be submitted before

project begins

Retroactive projects are not eligible

Pre-inspections may be required before application is

approved and funds reserved

Final project applications must be submitted no later than

90 days after project completion

12

Program Eligibility

PECO commercially metered distribution customer

Facility improvement must result in reduction in kWh

usage and/or permanent load reduction

All installed equipment must meet or exceed the

specifications given in the corresponding program

application

• Code baseline is ASHRAE 90.1 2007

Customers must submit a preapproval application before

the project is started

Retroactive projects are excluded

13

General Qualification Terms for Incentives

Program is available until May 31, 2016. • First program cycle: June 1, 2013 through May 31, 2014

Project must be completed, and final application received by May 15th to qualify for incentives in that program year

Paperwork for prescriptive and custom projects must be submitted within 90 days of project completion • Whole building projects have up to 6 months

• On-Site projects must provide performance data for the first 12 months after project is commercially operable

14

Commercial Program Exclusions

Renewable energy sources

Spaces where end-use is residentially metered

Non-electric energy savings

Electric base cases for thermal projects

15

Project Application Process

Verify eligibility

• Non-residential electric PECO customer

• Equipment meets or exceeds specifications in program application

Submit a preapproval application for all projects

Install equipment or perform project work

Submit final application when project is complete

• Measures are installed and operational

• New construction: certificate of occupancy has been issued

• All areas are built out for occupancy

Documentation listed on Final Application Checklist

• Invoices, spec sheets, W-9, TRM worksheets, signed agreement

• New construction: Lighting ComCheck, mechanical and electrical plans, floor plans

16

Commercial Programs

PECO Smart Equipment Incentives

• Commercial and Industrial (C&I)

• Government, Nonprofit and Institutional (GNI)

PECO Smart Construction Incentives

17

PECO Smart Equipment Incentives

18

PECO Smart Equipment Incentives (C&I)

Incentives for a broad range of

energy efficiency retrofit measures for

Commercial and Industrial customers

Prescriptive incentives paid per watt

reduced or per unit

Custom incentives paid per annual

kWh saved in the first year of

operation at $0.08/kWh

19

Incentives for a broad

range of energy

efficiency retrofit

measures for

Government, Nonprofit

and Institutional

customers

GNI incentives are higher

than those for similar C&I

measures

Prescriptive incentives

paid per watt reduced or

per unit

Custom incentives paid per

annual kWh saved in the first year

of operation at $0.10/kWh

PECO Smart Equipment Incentives (GNI)

20

Menu-based with predetermined savings and incentive levels

Lighting

• Indoor, outdoor, garage, traffic signals, and lighting controls

• Incentives per watt reduced or per unit

HVAC

• Air conditioners, heat pumps

• HVAC incentives per ton cooling

• Energy management systems

• EMS incentives per square foot

Refrigeration and Food Service

• Commercial refrigeration, freezers, strip curtains, beverage/snack machine

controls - incentives per unit

Variable Speed/Frequency Drives

• Controlling HVAC fans, pumps, process loads, compressors - incentives per HP

• Kitchen exhaust fan - incentives per unit

Prescriptive Measures

21

Custom Measures

Non-prescriptive measures that require demonstration of energy savings

Eligibility determined on a case-by-case basis

Examples of custom measures include:

• LED tubes - DLC approved

• Chillers

• High efficiency transformers

• PC power management, smart plugs, plug load management

• Building envelope - white/green roof, windows, air sealing, weather-stripping

• Process cooling - mushroom farming, manufacturing,

• Data center upgrades – cooling, server upgrades

• Process upgrades- HEPA filtration, aeration, new equipment

• VSD/VFD not required by code for new construction or major rehab

• New Construction exterior lighting

• Compressed air

• ENERGY STAR office equipment

• Warehouses - automatic door closers

22

Custom Measures - continued

Incentives paid per annual kWh saved in the first year of operation • C&I - $0.08/kWh

• GNI - $0.10/kWh

Submit a savings estimate with your application • Provide the methods used to determine

estimate

• The PECO Smart Ideas team will review methods and may recalculate savings estimates

• The PECO Smart Ideas team provides assistance & determines final approved savings

23

PECO Smart Construction Incentives

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New construction and major building rehabilitation that exceeds

ASHRAE 90.1 2007 code requirements

Prescriptive incentives for energy efficient lighting, HVAC,

refrigeration systems

• Paid per unit, or watts/square foot under code

Custom incentives for non-prescriptive kWh savings measures

including VFD/VSDs not required by code, chillers, exterior

lighting, and building envelope measures

• Paid per annual kWh saved in the first year of operation at $0.10/kWh

Whole building incentives for modeled interactive building

systems performance, at least 5% below baseline.

C&I and GNI customers eligible

PECO Smart Construction Incentives

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PECO Smart Construction Incentives

Incentives: systems-based and whole building approaches

Prescriptive track for new lighting, HVAC, refrigeration and food service

Custom track for non-standard equipment such as compressors, specialty lighting applications, HVAC controls and VFDs

Whole Building Performance track captures interactive equipment savings

Systems-Based Approach Whole Building Approach

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PECO Smart Construction Incentives

Whole Building Approach

Modeled energy savings for new construction or major rehabilitation

Incentive based on whole-building energy model performance

Requires whole-building model comparing as-built with ASHRAE

90.1 2007 required systems

• Requires 8,760 hour modeling that uses ASHRAE algorithms

• Model input and certain output files must be submitted

• Architectural, mechanical and electrical plans must be submitted (PDF)

Based on efficiency over ASHRAE 90.1 2007

• Owner incentive: $0.05 to $0.15/kWh saved

• Design team incentive: $0.03 to $0.05/kWh saved

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Intended to encourage integrated energy efficient designs

• Captures interactive equipment savings

• Allows incentives to the design team to help support the additional

analytical work

Owner’s intention to seek whole building incentives must be

documented in the pre-approval application

Design team incentives are only available under the whole

building performance approach

• Not available for prescriptive, custom or lighting-performance measures

• Modeled performance must be at least 10% below baseline

• Design team total incentives cannot exceed $50,000

PECO Smart Construction

Design Team Incentives

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Building performance in

excess of ASHRAE 90.1

2007 baseline building

Customer

incentives

Design team

incentives

≥ 5 to < 10% $0.05/kWh $0.00/kWh

≥ 10 to < 20% more efficient $0.10/kWh $0.03/kWh

≥ 20 to < 30% more efficient $0.12/kWh $0.04/kWh

≥ 30% more efficient $0.15/kWh $0.05/kWh

Customer and Design Team Incentives

Whole Building Approach

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Project Ideas

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Chillers EMS Food Service HVAC Lighting Motor Motors andDrives

Other Refrigeration VariableFrequency

Drive

VariableSpeed Drives

Colleges- Projected Average Annual kWh Savings

0

20,000

40,000

60,000

80,000

100,000

HVAC Lighting Motors and Drives Refrigeration Variable FrequencyDrive

Grocery – Projected Average Annual kWh Savings

PECO Smart Ideas Project Data (2009-2013)

31

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

Chillers EMS HVAC Lighting Motor Motors andDrives

Other Refrigeration VariableFrequency

Drive

VariableSpeed Drives

Manufacturing - Projected Average Annual kWh Savings 3,176,956

0

5,000

10,000

15,000

20,000

25,000

EMS HVAC Ice Makers Lighting Other Refrigeration

Restaurant - Projected Average Annual kWh Savings

PECO Smart Ideas Project Data (2009-2013)

32

New Tools, Resources and

Funding Sources

33

PECO Energy Usage Data Tool

Developed to assist in benchmarking energy use in commercial buildings

System allows for easy data export into ENERGY STAR Portfolio Manager

For more information, visit: www.peco.com/smartenergyusagedatatool

34

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New: Incentive Application Web Portal

Online application

• Enter and edit project applications

• Track and review progress and payment status

• Repeat steps from pre-applications to final applications

• Save and store profile information including attachments

Trade Ally website

• Participation and performance tracking

• Resources including sales tips and training courses

• News about programs and technologies

• Tools to help you build your business

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39

40

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Energy Efficiency Project

Funding Sources

High Performance Building Program • http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/high-

performance-building-program-hpb

Alternative and Clean Energy Program • http://www.newpa.com/find-and-apply-for-funding/funding-and-program-

finder/alternative-and-clean-energy-program-ace

The Reinvestment Fund • http://www.trfund.com/

Sustainable Energy Fund • http://www.thesef.org/

Small Business Pollution Prevention Assistance Account Loan Program

• http://www.portal.state.pa.us/portal/server.pt?open=514&objID=553247&mode=2

42

Success Stories

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Customer Experiences

With the money that Jefferson received from Smart Ideas, we were able to reinvest in more energy saving equipment around our campus. We converted lighting from incandescent to LEDs in our elevators and our lobby areas which are typically on 24 hours per day. We also upgraded our building automation control panels, insulated steam lines and replaced heat recovery tanks. It’s been good to receive this money to upgrade our infrastructure and help Jefferson save energy and money.

Randy Haines, Thomas Jefferson University

Participating in PECO’s Smart Ideas Program is in line with Kendal values of sustaining our environment, preserving our natural resources, and establishing a new balance to ecosystems. Residents have already moved into our new cottages and the neighborhood shows signs of new life - life that is sustained through our green initiatives.

Tom Kopach, Kendal-Crosslands Communities

44

Customer Experiences

Internally we were at a standstill with lighting needs due to the impact of the economy. Learning about the program and gaining approval put us in a win win situation. Now that we upgraded lighting in our warehouse and offices, the warehouse is a safer environment and our picking accuracy has improved. Our offices enjoy benefits of the upgrades as well, and we have also seen an economic impact to our company. Thanks so much for this wonderful and effective program! Gary Novick, Novick Brothers

The incentive enabled us to invest in other energy saving technologies. We are already seeing the energy savings. The new LED lighting gives us more illumination. The security guards prefer it because they have much better visibility at night.

Edward DiMaio United States Air Force, Air National Guard

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Trade Ally Experiences

PECO Smart Ideas has really helped customers to go through with upgrades that they were considering. While the upgrades had favorable paybacks on their own, once the Smart Ideas incentive is included, the results become too good for many of our customers to pass up. Randy Young

Thanks to PECO Smart Ideas, we have been able to help many customers upgrade their systems. This improves efficiency and saves our customers money every time they pay an electric bill. It really is a Smart Idea!

Ron Bergey

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Trade Ally Experiences

Having the incentives makes payback better. It makes the returns better. It makes a more saleable project. Adam, focus group participant

Programs like this in major metro areas like Philadelphia have particularly large economic benefits because that’s where national accounts have real estate density. As a business providing service in the energy efficiency space, we benefit from our customers’ ability to perform more projects. Nate Paist

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The Barnes Foundation

Saves ~ 100,000 kWh annually

PECO Smart Ideas Program presented The Barnes Foundation with an incentive check for $34,000.

New construction installations included lighting controls and HVAC systems.

48

Abington Memorial Hospital’s Cogen Plant

Can Supply 64% of the Facility’s Electricity

PECO Smart Ideas Program presented Abington Memorial Hospital with an incentive check for $2.7 MM.

Project included a 4.5 MW cogeneration plant.

49

Central Bucks School District

Saves ~ $1M Annually

PECO Smart Ideas

Program presented

CBSD with an

incentive check of

$260,000.

Projects included

lighting, sensors,

HVAC upgrades

and operational

changes

throughout the

District.

50

The Federal Reserve Bank of Philadelphia

Saves Over 600,000 kWh Annually

PECO Smart Ideas Program presented the Federal Reserve Bank of Philadelphia with an incentive check for $63,000.

Energy efficiency retrofits included custom lighting, occupancy sensors and lighting controls.

51

Abington School District

Saves > $800K in Annual Energy Costs

PECO Smart Ideas Program presented Abington School District with an incentive check for $336,000.

Projects included lighting, sensors, HVAC, motors and drives and refrigeration.

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Your Picture Here!

For more information

visit PECO.com/SmartIdeas

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PECO Smart

Ideas home

page

Select

“Programs and

Rebates”

54

55

Download

applications,

and

worksheets,

access the

online

application,

find Trade

Allies and

browse the

program

library

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1-888-5-PECO-SAVE (1-888-573-2672)

[email protected]

www.peco.com/SmartIdeas

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