mce community choice energy - draft implementation plan … · 2019-05-15 · open & public...

Draft Implementation Plan WorkshopMCE Agricultural and Industrial Resource (AIR) Program

Agenda

• Welcome & Introductions• MCE AIR Program Development• AIR Program Overview• Implementation Plan Narrative• Supporting Documents• Questions

Open & Public Process

This workshop is intended to elicit feedback on MCE’s DRAFT Implementation Plan for Agricultural and Industrial Energy Efficiency Program

Feedback received may directly inform the program design. Input may be provided today or via email through Tuesday, May 28th, 2019 to jlande@mcecleanenergy.org

Welcome & Introductions

Alice Stover

Jenn Kreutzer

Joey Lande

Daniel Genter

MCE Team and Roles

OUR MISSION

Renewable EnergyStable, Competitive Rates

Local Economic & Workforce BenefitsEnergy Efficiency

Address climate change by reducing greenhouse gas emissions

MCE 2019 Service Territory

Load and Account Distribution

Small COM

Medium to Large COM / IND

Agricultural

Contra Costa 12.1% 45.7% 0.4%Marin 5.3% 10.5% 0.1%Napa 4.3% 10.2% 0.6%Solano 1.4% 7.9% 1.6%

Load Distribution Among Target Customers

Small COM

Medium to Large COM / IND

Agricultural

Contra Costa 43% 7% 1%Marin 23% 2% 0%Napa 12% 2% 3%Solano 5% 1% 2%

Account Distribution Among Target Customers

Program Background

Timeline

May 31, 2018: MCE EE Business Plan Approved

11.28.2018: MCE 2019

ABAL approved

12.7.2018: RFQ

Released for Ag/

Industrial programs

1.31.2019: Evaluations

and Interviews

completed

3.29.2019: Launched new contract with CLEAResult for

program design and

implementation services

5.15.2019: Implementation

Plan Draft Workshop

5.28.2019:Implementation Plan complete

Program Background

Rationale for a single customer-facing program and implementation partner

• Improve cost effectiveness• Streamlined, lean program management • Similar customer opportunities• CLEAResult’s sector and geographic experience• Allows for engagement of a customer’s entire footprint,

regardless of sector“MCE’s industrial program is designed to serve both manufacturing and refinery facilities as well as some large agricultural producers.”-MCE Business Plan

MCE AIROverview

Emphasis on Customer Experience

Single Point of Contact (SPOC)

Putting customers on a path that serves all their conservation needs through one point of entry

Program Overview

MCE Agricultural and Industrial Resource Program is a comprehensive third-party program aimed to deliver reliable and persistent electric and gas savings within MCE’s service area.

PrgID Sector Implementer Type Program Type Intervention Strategy

MCE10 Industrial Third Party Resource Downstream

MCE11 Agricultural Third Party Resource Downstream

3 Year Program BudgetsMCE10 - Industrial 2019 2020* 2021* Total

Admin $31,227.37 $58,056.22 $58,056.22 $147,339.81Marketing and Outreach $13,291.14 $24,710.16 $24,710.16 $62,711.46Direct Implementation -

Non-Incentive (DINI) $339,512.76 $631,203.53 $631,203.53 $1,601,919.82

Incentives $306,391.39 $569,626.09 $569,626.09 $1,445,643.57Total $690,422.66 $1,283,596 $1,283,596 $3,257,614.66

MCE11- Agricultural 2019 2020* 2021* TotalAdmin $23,430.86 $38,312.96 $38,312.96 $100,056.78

Marketing and Outreach $9,972.75 $16,306.94 $16,306.94 $42,586.63

Direct Implementation -Non-Incentive (DINI) $353,357.97 $577,793.25 $577,793.25 $1,508,944.47

Incentives $379,687.42 $620,845.84 $620,845.84 $1,621,379.10

Total $766,449 $1,253,259 $1,253,259 $3,272,967

* 2020 and 2021 Program Years will be finalized in the Annual Budget Advice Letter

3 Year Projected Net Impacts

* 2020 and 2021 Program Years will be finalized in the Annual Budget Advice Letter

Program Goals

2019 Program Year 2020 Program Year* 2021 Program Year*

net kWh net therms net kWh net therms net kWh net therms

MCE10-Industrial

556,588 71,153 1,179,161 110,000 1,179,161 110,000

MCE11-Agricultural

799,656 30,937 709,938 10,000 709,938 10,000

Forecasted Cost Effectiveness

Program 2019 TRC

MCE10- Industrial 1.60

MCE11- Agricultural 1.52

Program 2019 PAC

MCE10- Industrial 2.05

MCE11- Agricultural 1.77

Program Coordination

The Program will coordinate with Pacific Gas and Electric Company to ensure double dipping risks are mitigated, to minimize potential customer confusion, and ensure customers are receiving maximum benefit

Implementation Plan Content

Recap of MCE’s Business Plan

• Targeted outreach though bill and building data analysis • Convene cohorts of similar customers to learn from

experiences• Promote strategic and continuous energy improvement• Technical assistance throughout project• Integrated assessment process that streamlines multiple

program offerings into one customer report• Utilize a pay-for-performance incentive structure• Rebates and financing to overcome cost barriers

Implementation Plan Summary

From the IP• Program Objectives and

Description• Customer Outreach • Project Pathways• Metrics• EM&VFrom the Manual• Customer Eligibility• Measure Eligibility• QA and QC

Program Objectives

• Raise awareness about energy use and opportunities among agricultural and industrial customers

• Provide customers with a single point of contact for their energy journey, simplifying otherwise complex decisions, while also connecting them to other available local and regional offerings

• Ensure program impacts are verifiable and defensible and that incentive payments align with realized savings where feasible.

• Achieve three-year energy reductions goals and achieve program cost-effectiveness targets

Program Description

• Comprehensive assessments, comprehensive strategies

• Tailored approach for each customer based on their needs

• Multiple pathways to serve customers and claim savings:

• Deemed/Prescriptive• Custom• Strategic Energy Management (SEM)• Normalized Metered Energy Consumption (NMEC)

Customer Outreach

Outreach Strategies• Direct customer engagement• Coordination with MCE Account Managers• MCE events, including “Power Hour” workshops • Targeted outreach through utility bill analysis• Marketing collateral, and case studies• Collaborate with other community based

organizations within the MCE network

Customer Outreach: Customer and Trade Ally Portals

Market BarriersMarket Barrier Risk Management Strategies

Customer or building owner does not prioritize energy efficiency

• MCE offers incentives and programs to reduce payback • Planning assistance to enhance energy savings.• Educate customers about the long-term benefits of energy

efficiency, available incentives, and how to quantify benefits

Customers typically replace equipment only upon failure

• The Program educates trade allies and customers about available energy efficient choices before equipment fails and encourages businesses to plan for equipment replacement or replace early

Due to engineering and technical skills required, project lead, installation, and verification times can conflict with program dates and deadlines

• The Program will work closely with participants and trade allies to track project status and provide support to keep projects moving forward.

Trade allies lack info to upsell projects, and most identified projects are past the design phase, which is too late to affect efficiency choices

• The Program educates trade allies on how to identify potential project opportunities.

• Demonstrate competitive advantages

Process Flow Chart

Initial Customer Outreach

Project Initiation & Development

Custom/Deemed

SEM

NMEC

- Find the pathway that best fits the customer

- Customer enrollment- Application development- Initial engineering QC

- Targeted outreach- Customer leads from The

Program and MCE Account Managers

© 2017 CLEAResult. All rights reserved. 27

SEM Process

Strategic planning with utility

Recruit cohort of facilities

Ensure executive sponsorship and identify champion

Train champion and team site-by-site and

by cohort

Conduct treasure hunt of facility

Develop facility

energy model for

continuous energy use and savings

tracking

Make continuous

improvements

Develop register of

future projects

Use energy model to

measure and report

savings

Communicate, evaluate,

report, educate and

celebrate success

continuously

Strategic Energy Management (SEM) Process

SEM and NMECSEM• Generally, consistency with the California Industrial SEM Design and M&V

Guides• Proposing SEM modifications to fit MCE customer base, leverage best-

practices and ensure cost-effective delivery. These modifications include• schedule changes, workshop spacing, shifting workshop topics, EMA timing, and

milestone incentives and payment timing. NMEC • Program will follow the guidelines set by the Draft Rulebook for Custom

Program and Projects Based on Normalized Metered Energy Consumption (NMEC).

• Program rules will be update as guidelines for the implementation of NMEC projects and program evolves

Metrics

Metric Agricultural Industrial

Capturing Energy Savings Yes Yes

Greenhouse Gas Emissions Yes Yes

Penetration of EE programs and Diversity of Participants

Yes Yes

New Participation No Yes

Cost per Unit Saved Yes Yes

Baseline / Consumption reduction

No Yes

EM&V

• MCE proposes to develop a comprehensive EM&V plan with Energy Division input after the filing and approval of the Implementation Plan

• Separately, MCE intends to complete independent analyses of all meter-based savings claims

Program Manual

Program Manual –Customer Eligibility

• Located in MCE’s Service Area• Receives electric or gas service

from MCE or PG&E• Pays Public Purpose Program

Surcharge on their utility bill• Non-Residential Customer

engaged in industrial or agricultural business or operations

ProcessHeat RecoveryProcess ControlsProcess OptimizationVFD on Process FanVFD on Glycol PumpPumpingVFDs on Well PumpVFDs on Booster PumpIrrigation ControlsPump Upgrades

Program Manual – Expected Measures

Compressed AirPressure Drop ReductionCompressor SequencingLightingLighting UpgradesLighting ControlsOtherHigh efficiency ventilation fans and controlsLow pressure Irrigation SystemWastewater upgrades

RefrigerationRefrigeration ControlsEvaporator UpgradeVFD on CondenserSteam SystemsBoiler ControlsEconomizerBlow Down Heat RecoveryInsulationBoiler Upgrade

Program Manual – IncentivesCustom, NMEC

Category $/kWh $/therm

Targeted Measure $0.20 $1.50

Standard Measure $0.15 $1.50

Early Adopter Multiplier 20% 20%

Measure Platform Payment Timeline

Custom, Deemed 100% of the incentive paid upon project completion and verification of energy savings

NMEC

20% of Year 1 estimated incentive paid upon execution of the NMEC Enrollment Agreement100% of Year 1 incentives minus the 20% enrollment payment will be paid upon MCE approval of Year 1 energy model

100% of Year 2 incentive paid upon MCE approval of Year 2 energy model

Program Manual – IncentivesSEM Milestone Payments

Milestone Quantity RateInitial: Energy and Relevant variable Data

and Workshop Attendance 1/participant $2,000/participant

Subsequent: Updated Data and Opportunity Register 4/participant $1,000/participant

SEM Performance Payments

Category $/kWh $/thermBRO Measure (EOY 1 and

EOY 2) $0.03 $0.25

Targeted Measure $0.20 $1.50

Standard Measure $0.15 $1.50

Quality Management

• Quality Assurance– Standardize processes & train staff– Seek feedback from all stakeholders– Data review & documentation

• Quality Control– Administrative & Technical Reviews– Pre & Post Inspections

Timeline and Milestones

2019 Milestone TimelineImplementation Plan Workshop May 15, 2019

Comments/Feedback Period May 15 - 24, 2019

Incorporation of Comments and Feedback May 15 - 28, 2019

Implementation Plan Filing May 28, 2019

Targeted Outreach for Project Recruitment June 2019

CPUC Reporting Monthly and Quarterly

Reference / Document Locations

• Draft Implementation Plan: https://www.mcecleanenergy.org/regulatorydocuments/#ee_program

• California Industrial SEM Design Guide: https://www.cpuc.ca.gov/General.aspx?id=6442456320

• California Industrial SEM M&V Guide: https://www.cpuc.ca.gov/General.aspx?id=6442456320

• Draft Rulebook for Custom Program and Projects Based on Normalized Metered Energy Consumption (NMEC):

https://www.cpuc.ca.gov/General.aspx?id=6442456320

Questions

Thank YouMCE Manager of Customer Programsjlande@mceCleanEnergy.org

Supplemental Slide: Program DesignThe program is designed to meet the needs of a diverse range of agricultural and industrial customers, guiding each participant to the path that’s right for them. The Program will:• Combine incentives and other financing resources to reduce costs, align with

benefits, and reward savings.

• Carefully consider customer journeys and value propositions

• Form meaningful links between energy savings and internal priorities

• Reduce complications associated with vetting and approving new products

for incentives

Supplement Slide: Process Flow Chart

Custom/DeemedEngineering Pre-

Review & Approval

InstallationEngineering Post-

Review & Approval

Incentive Payment

NMECOpportunity

Register & Initial Incentive

InstallationModel

Development, Review & Submittal

Evaluation of Year 1, Year 2 &

Incentive Payments

SEMKick-off Meeting, Workshops 1-2,

EMA #1, & Treasure Hunt #1

Workshop 3-6, Energy Map, EMA

#2, & Treasure Hunt #2

Workshop 7, EMIS Planning/

Implementation

Evaluate, Report, & Educate

Accomplishments

Supplemental Slide: SEM Modeling Tool

Supplemental Slide: MCE AIR Logic Model