1 / 27

Military Base Standard Offer Program

Military Base Standard Offer Program. El Paso Electric. Background. SB 652, enacted during the last legislative session, resulted in changes to Public Utility Regulatory Act (PURA).

lorne
Download Presentation

Military Base Standard Offer Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Military Base Standard Offer Program El Paso Electric

  2. Background • SB 652, enacted during the last legislative session, resulted in changes to Public Utility Regulatory Act (PURA). • SB 652 was a comprehensive bill to improve the prospects for maintaining military bases in Texas. By increasing energy efficiency and reducing energy costs, bases have a better chance of remaining open. • The legislation targets electric utilities that are located in areas that are outside of ERCOT.

  3. Background • PUCT approved rules for this Program on March 4. • Applicable facilities in EPE service area are Ft. Bliss and ADAC. • The goal is to reduce aggregate electricity consumption (kWh) at these facilities by 5% before 1/1/2005. • Goal is 7,370,000 kWh • Incentive levels are higher than other standard offer programs being implemented by utilities under SB 7 (electric utility restructuring bill). • EPE is making $1.3 million in incentive funds available to achieve this goal.

  4. What’s a Standard Offer Program? • Any energy efficiency measure meeting PUCT requirements can qualify. Not measure-specific. • EPE pays incentives based on the kW and kWh savings. Not tied in to measure costs. • Measure eligibility: • Retrofit or new construction measures • Permanently-installed measures only • Most renewable measures are allowed • Installed equipment must exceed minimum efficiency standards, if applicable.

  5. Project Opportunities • HVAC • Lighting • Motor retrofits • Variable frequency drives • Controls • Process improvements • Fuel-switching from electric • Renewable energy projects, including wind and PV

  6. Ineligible Measures • Measures with life less than 10 years • Removable measures (generally includes plug loads) • Cogeneration or self generation (except renewables) • Fuel switching to electric • Measures that rely on changes in behavior and require no capital investment • Projects that eliminate an existing function, or relocate existing operations outside the EPE service area.

  7. EPE’s Role as Program Administrator • Oversee that programs follow rules and template guidelines • Review, approve or reject program applications • Verify and inspect that measures meet intended purpose • Administer incentive dollars • Provide outreach to project sponsors

  8. The Role of the Project Sponsor • Develops a energy efficiency project that meets the requirements of the Program and Ft. Bliss. • Executes an agreement with EPE to deliver a specific quantity of kW and kWh. • Negotiates with Ft. Bliss to implement the proposed energy efficiency project. • Implements the project within the required timeframe. • Documents the installation and resultant energy savings. • Receives incentive payment from EPE.

  9. Examples of Project Sponsors • Fort Bliss acting as its own project sponsor • Third-Party Project Sponsors • A/C Dealers • Insulation Contractors • Energy Efficiency Service Providers • Renewable Energy Project Developers • A&E Firms • Lighting Contractors • Electrical Contractors

  10. Third-Party Project Sponsor Requirements • Third-Party Project Sponsors must have: • Adequate insurance • All appropriate licenses • References • Evidence of technical and managerial capabilities and experience • Evidence of financial capability

  11. Military Bases SOP Goal is kWh, not kW Better for motor drive and other high-load factor projects No limit on lighting projects Higher payments Expedited project approval and payments. Ft. Bliss can act as its own project sponsor. Other SOP Emphasis is peak demand. Reduced payments for high load factor projects May require a deposit. Most projects are lighting only. Most project sponsors are third-party ESCOs. Comparison with Other SOPs

  12. Standard Incentive Payment • Demand payment: $278.29 per kW of peak demand savings • Energy payment: $0.095 per kWh of annualenergy savings • All incentives are paid directly to project sponsor.

  13. “Hard-to-Reach” • Projects that benefit “hard-to-reach” customers, such as certain personnel living in military housing units, may be eligible for the HTR incentive payments of $556.58/kW and $0.19/kWh. • EPE estimates that the majority of family housing for E-1 through E-3 grades would qualify as hard-to-reach households, and that many additional units for grades E-4 through E-6 are also hard-to-reach, with over 1,000 potential hard-to-reach units.

  14. Incentive Payments • Certain projects are eligible for a eligible for a 20% adder, since El Paso is in an EPA non-attainment area. • Previous energy efficiency projects implemented under SB 5 have qualified for the higher payment. • Projects that would not have been implemented without the adder are eligible. • With the adder: • Standard incentive payments are: $333.95 per kW and $0.114 per kWh. • HTR payments are $667.90 per kW and $0.224 per kWh

  15. Incentive Payment Example #1 • A local HVAC dealer installs 30 high-efficiency AC units, varying in size from 2.5 to 5 tons, and in SEER rating, from 13.0 to 16.0. Using the deemed savings table for central air conditioners, the total kW savings is 24.9, and the annual kWh savings is 42,750. The incentive payment is calculated as follows: • (24.9 x $278.29) + (42,750 x $0.095) = $10,991 • (24.9 x $333.95) + (42,750 x $0.114) = $13,189 with 20% environmental adder • (24.9 x $668.38) + (42,750 x $0.228) = $26,390 if installed on HTR-eligible units with 20% env. adder

  16. Incentive Payment Estimates • The following are estimates only and not based on actual metered or measured data from Ft. Bliss: • 4-lamp T-12 fixture retrofit: $38 (approximately 33,000 required to reach goal) • Energy Star residential refrig. retrofit: $115-$275 (approximately 8,500 required to reach goal) • 3-ton 13 SEER central A/C unit: $282 - $887 (7,500) • 10-ton rooftop A/C unit: $800 (1,750) • VSD for 250 hp water pump: $30,000-$35,000 (30) • 1 mW wind turbine: $400,000 - $450,000 (3-3.5) • The value of the energy savings is not included in the above estimate.

  17. Definition of Peak Demand Savings • The maximum average load reduction occurring during any one-hour period between 1 PM and 7 PM MDT weekdays, from May 1 through September 30 (holidays excluded).

  18. Energy Savings M&V Options • Deemed Savings Option: • Deemed savings are pre-determined savings values for most of the common energy efficiency measures. These kW and kWh values have been approved by the PUCT. • Incentive payments for all measures shown previously are based on deemed savings. • Project Sponsor accepts deemed savings values for measures installed and receives 100% of incentive payment after submitting an installation report.

  19. Energy Savings M&V Options • Project Sponsors may choose to not accept deemed savings estimates, and to perform measurement and verification (M&V) activities. • For measured savings, actual kW and kWh measurements are required to determine incentive payments. • Project Sponsors must submit a measurement and verification (M&V) plan with project application. • Certain measures do not have a deemed savings values.

  20. Program Steps • Project Application • Initial Application • Final Application • Pre-installation inspection / metering • Installation report • Post-installation inspection • Installation payment • Energy savings measurement and verification (M&V) • Savings report • Final incentive payment

  21. Initial Application for Third-Party Project Sponsors • IA includes sponsor qualifications • Identifies intended measures (20 kW savings minimum) • Estimates kW/kWh savings and incentive payments • EPE reviews the IA for sponsor and project eligibility. • Approximately 14-day review period • Upon approval, EPE reserves funds for the project. • Letter of intent from Ft. Bliss • The letter should include a summary description of the project and indication of Ft. Bliss’ level of interest in implementing the proposed project, should the project sponsor’s application be approved. Not required for Ft. Bliss.

  22. Final Application for Third-Party Project Sponsors • Detailed project description • Savings calculations and incentive estimates • Equipment surveys (use standard forms) • Proposed M&V plan • Finalized work plan for completing the project within the required timeframes • Due within 30 days of initial application acceptance • Agreement with Ft. Bliss not required with final application, but must be submitted within 30 days after project go-ahead. Not required for Ft. Bliss.

  23. Installation Report • Updated project implementation information • The demolished and actual installed retrofit equipment inventories, including equipment counts, equipment efficiencies, and equipment nameplate data. • Updates to occupancy or equipment or occupancy schedules • Updated engineering calculations estimating energy and demand savings • Final M&V plan details

  24. Savings Report and Final Payment • If the project sponsor is using simple of full M&V, the project sponsor should submit a savings report after all M&V activities are complete. This report should document the actual demand and energy savings measured for the projects. • Total project payment due less installation payment will be made after invoicing by project sponsor. • If deemed savings are used exclusively, the project sponsor doesn’t need to submit a savings report.

  25. Program Timeline

  26. www.epelectricefficiency.com • Program Web site has: • Latest program announcements • Latest version of program manual for download • Support files: • Deemed savings • Installation standards • Lighting spreadsheets • Helper applications • Information on available funding • Program contacts and links

  27. Contact Information • Mr. John Armstrong - Program Manager • Phone - 915.543.5809 • Email - jarmstro@epelectric.com

More Related