Energy Solutions In A Energy Solutions In A Complex EnvironmentComplex Environment

Energy Efficiency WorkshopRadisson Hotel Jim StapletonMay 15, 2009

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The Game PlanThe Game Plan

Analyze The Opponent

Create A Winning Strategy

Capitalize on Strengths

Fill The Gaps

Be Ready To Make Changes

Execute The Plan

Be A Winner

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20 Pointers Not To Be

Overlooked in Managing

Energy Costs In Your

Business

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20. How do you start and stop your equipment? How often?

19. There’s no free lunch, efficiency versus operating costs versus load factor.

18. Internal metering, does it exist? Calculating energy use.

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17. Step down transformers – Don’t let them drive up your energy costs! Oversized buildings can be killers.

16. Sensitive equipment and protection.

15. Be cautious of used equipment purchases/ equipment longevity.

14. Low bid purchases, not always the best decision.

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13. Motor rightsizing – it’s easy, down-size when appropriate.

12. Equipment controls – a must to control building systems.

11. Know thy tenant, and realistically calculate their energy bill.

10. Energy costs and the real estate lease – they seldom come together.

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9. Your business versus your building envelope, it makes a huge difference.

8. Little changes make a difference – let’s look at the office PC.

7. Keep an eye on supply costs -- they’re on your bill.

6. Know where your rate class thresholds are. It makes a huge difference.

5. Understand how we meter and bill for demand.

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4. Make operational and productivity changes that reduce your demand.

3. Redundant Systems – worse than a last second loss.

2. Watts / Square Foot Ratio -- Where do you stack up? Versus the competition?

…And…the No. 1 pick for managing your energy costs is…

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1.1. Review your energy profileReview your energy profiletwice a year.twice a year.

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Buildings: Energy and EnvironmentBuildings: Energy and Environment

Use 1/3 of the Nation’s primary energy

(This becomes over 50% when taking into

account the energy use of the infrastructure

needed to support buildings.)

Use 2/3 of the Nation’s gas and electricity

and 1/3 greenhouse gas emissions

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Efficiency - 1Efficiency - 1stst Line of Defense for Controllable Cost Line of Defense for Controllable Cost

Lower gas and electric operating costs help sustain

operations

Improved building performance for higher productivity

Cash incentives reduce construction cost

Added value enhances investment

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Plan Overview – Energy Efficiency Portfolio Plan Overview – Energy Efficiency Portfolio Standard Drives OpportunityStandard Drives Opportunity

National Grid strongly supports actions to expand the State’s energy efficiency efforts. Our petition represents an integrated plan to advance the achievement of the State’s critical 15 x 15 goals.

We will offer a suite of integrated electric and gas programs for residential and commercial and industrial customers that supplement and complement the work of state and local agencies, utilities and particularly NYSERDA:

Proposed budget of $219 million for the three year Plan period ($179 million for electric; $40 million for gas).

Current recovery of projected costs, lost revenues and incentives through the SBC.

Projected lifetime savings are 4.4 million MWh (electric) and 8.5 million MMBtu (gas) and $321 million in net benefits.

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Budget and Goal Allocation - ElectricBudget and Goal Allocation - Electric

Electric Program Energy Savings Goals and Projected Net Benefits

SectorAnnual MWh

SavingsLifetime MWh

SavingsTotal Net

Benefits ($000)

Residential 90,681 699,567 $31,879

Commercial & Industrial

303,409 3,698,049 $289,605

Total - All Sectors 394,090 4,397,616 $321,484

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Planning Builds on Mature Programs, Strategies Planning Builds on Mature Programs, Strategies and Delivery – Commercial and Industrialand Delivery – Commercial and Industrial

Large Business Program Energy Initiative - Retrofit

Targets integrated gas and electric energy efficient opportunities for existing buildings and equipment

Replaces inefficient equipment or systems

Reduces owners operating costs

Technical Solutions Prime Platform

Commissioning – Quality Assurance Incentives up to 50% with buy down to one year

Prescriptive Approach pick & choose measures

LightingHVAC MotorsVFD

Air CompressorsRequired eligibility requirements

available on all applications

Custom Approach for unique situations

Projects must pass Benefit/Costto determine eligibility for

incentives

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Municipal Initiative – Leverage Cities and Towns Municipal Initiative – Leverage Cities and Towns Interest in Environmental and Energy Cost ReductionsInterest in Environmental and Energy Cost Reductions

50%

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Natural Gas

Commercial Energy Efficiency

Programs and Services

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Electric

Small Business Program

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Small Business Program: DescriptionSmall Business Program: Description

Eligible customers <= 100 kW– “Mom&Pops”: Pizza shops, convenience stores, barbershops– Government: cities, towns, state and federal facilities less than 100 kW (schools, libraries,

town halls)– Strip Malls and Chain Stores: Facilities where the individual customers in the building are less

than 100 kW even if mastered meter– University buildings

“Customer just signs the contract”: Program is a direct install, turnkey program designed to overcome barriers to participation for smaller customers;

– No cost, no obligation audit provides project proposal– National Grid contributes 70% Customer = 30%. – On bill financing where customers can choose 12 or 24 monthly installments, interest free or

one time payment with 15% discount– Installation and materials provided through National Grid Small Business vendor– Recycling of fluorescent lamps and ballasts at no cost to customer

Focuses on most common end uses– Lighting: T8 re-lamp/re-ballast and new fixtures, occupancy sensors, LED exit signs & CFLs– Refrigeration: Reach-in/Walk-in controls, high efficiency motors, heater door controls

Questions/Leads: Kathy George 781-907-1576 or email

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Small Business Program: Delivery StructureSmall Business Program: Delivery Structure

Business partners selected through competitive bid process provide the majority of program roles and responsibilities, enabling large scale implementation at aggressive labor and material prices.

Lighting Labor Vendors: Primary responsible for program delivery including marketing, audits, data entry in to InDemand, customer presentation, ordering materials, scheduling electricians. Assigned based on geographic region and provided annual spending and savings budgets with opportunity to earn performance incentives for meeting spending and savings budgets.

Lighting Material Vendor: Provides lighting equipment such as lamps, ballasts, fixtures and occupancy sensors. Typically one for entire state.

Refrigeration Vendor: Specialized end use that focuses on walk-in and reach-in coolers such as found in convenience stores, wine/beer distributors, and other small business with refrigeration systems. Approximately 10% of the total budget and typically one for the entire state.

Recycling Vendor: Picks up fluorescent lamps and ballasts from customer facilities.

National Grid Program Manager and Evaluation staff

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Small Business Program: Upstate New YorkSmall Business Program: Upstate New York

Budget: $60 million NGRID project budget over three years representing $85.7 million to $80.5 million in total projects.

$7 million

$4.5 million

$3.6 million

$7.5 million

Dollar amounts are 2009 estimated project budgets based on SC2/2D kWh.

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Progress to DateProgress to Date

Program Vendors “Bridge” Lighting Vendor started mailings/audits in Capital

region. – Use bridge vendor until RFP process is completed,

expected May/June timeframe. – Provides experience with existing equipment and labor

costs– Demonstrate commitment to 15% by 2015; comply with

PSC April 1 start date Lighting Labor Vendor:

– RFP this week – NY-companies responding to RFI Refrigeration and Farms: same RFI/RFP process in late 2009.

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Existing Facility ServicesExisting Facility Services: Design-Technical-Financial-Educational

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Electric Residential ProgramsElectric Residential Programs

Proposed Electric Programs Residential High Efficiency Central Air Conditioning

Enhanced Home Sealing Incentives

Residential ENERGY STAR Products and Recycling Program

Residential Low Income Program

Residential Internet Audit Program and E-Commerce Sales

New Construction Program

Residential Building Practices and Demonstration Program

EnergyWise Program

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Collaboration with NYSERDA and Joint UtilitiesCollaboration with NYSERDA and Joint Utilities

Working with NYSERDA- Existing Buildings - Coordinate Customer Contacts- Develop Common Incentive Structure- Share Technical Assistance Firms- Create Uniformity in Eligibility Where Possible

New Construction Opportunities for Customers

How do you get new or renovated buildings to exceed minimum code?

How do you meet owners demands for better buildings, built at a reasonable cost, that also create value?

_____________________________________

Advanced Buildings™- Transform New Built Environment to High Performance

Advanced Buildings seminars

______________________________________ Support Role of Commercial Building Codes and

Adoption of higher standards

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ConclusionConclusion

National Grid is committed to achieving 15 x 15 objectivesin NY

Proposed energy efficiency program efforts - will contribute to the state’s climate change mitigation efforts- will help customers manage energy costs

Expected customer benefits are real and substantial

National Grid has a proven track record delivering energy efficiency gas and electric efficiency programs.