El Paso Electric El Paso Electric Energy Efficiency Energy Efficiency
Standard Offer Programs - - Standard Offer Programs Opportunities for Energy Opportunities for Energy Efficiency Efficiency El Paso Electric Energy Efficiency December 2007 December 2007
Background - - Utility Energy Utility Energy Background Efficiency Programs Efficiency Programs � 1980 1980’ ’s s - - electric utilities sponsored programs focused on electric utilities sponsored programs focused on � rebates. rebates. � 1990 1990’ ’s s - - blocks of kW and kWh reduction were bid out through blocks of kW and kWh reduction were bid out through � competitive solicitation. competitive solicitation. � 2000 2000’ ’s s - - standard offer and market transformation programs. standard offer and market transformation programs. �
What Is a Standard Offer What Is a Standard Offer Program? Program? � Program administrator (electric utility) offers set incentive pa Program administrator (electric utility) offers set incentive payment yment � to participants for each kWh or kW saved through installation and d to participants for each kWh or kW saved through installation an operation of an energy efficiency measure. operation of an energy efficiency measure. � Program administrator signs a standard contract with participant Program administrator signs a standard contract with participants s � outlining their responsibilities under the program. outlining their responsibilities under the program.
Definitions Definitions Customer : any distribution service residential, commercial or : any distribution service residential, commercial or Customer industrial customer of a utility administrator. Customer may take e industrial customer of a utility administrator. Customer may tak electric energy service from any provider. electric energy service from any provider. Project : a set of energy efficiency measures installed at one or : a set of energy efficiency measures installed at one or Project several similar electric utility distribution customer sites. several similar electric utility distribution customer sites. Project Sponsor : an entity contracting with Program Administrator : an entity contracting with Program Administrator Project Sponsor to provide energy efficiency services at a customer site. to provide energy efficiency services at a customer site.
What is a Standard Offer Program? What is a Standard Offer Program? � Applications considered on per Applications considered on per- -project basis; first project basis; first- -come, first come, first- - � served. served. � Number of participants limited only by available incentive Number of participants limited only by available incentive � dollars. dollars. � Incentive payments are made to Project Sponsor. Incentive payments are made to Project Sponsor. � � Project Sponsor and customer determines efficiency measures Project Sponsor and customer determines efficiency measures � to be installed. to be installed. � Different from rebates: based on performance, not prescriptive Different from rebates: based on performance, not prescriptive � technologies. technologies.
Standard Offer Programs Standard Offer Programs These program templates have been approved by the PUC: These program templates have been approved by the PUC: � Commercial and Industrial SOP Commercial and Industrial SOP � � Small Commercial and Residential SOP Small Commercial and Residential SOP � � Hard Hard- -To To- -Reach SOP Reach SOP �
Commercial and Industrial Standard Commercial and Industrial Standard Offer Program Offer Program � Targets customers with maximum demands that exceed 100 kW. Targets customers with maximum demands that exceed 100 kW. � � No Project Sponsor can receive more that 20% of annual incentive No Project Sponsor can receive more that 20% of annual incentive � budget. budget. � Each project must reduce a minimum of 20 kW. Each project must reduce a minimum of 20 kW. � � Comprehensive projects are encouraged. Lighting savings limited Comprehensive projects are encouraged. Lighting savings limited � . to 65% of each project . to 65% of each project
El Paso Electric 2008 Goals El Paso Electric 2008 Goals Customer Class MW Customer Class MW Residential 0.81 Residential 0.81 Hard to Reach 0.32 Hard to Reach 0.32 Small Commercial 0.41 Small Commercial 0.41 Large Commercial 1.98 Large Commercial 1.98 Total Total 3.52 3.52
El Paso Electric Budget El Paso Electric Budget 2008 Estimated/ Unused 2007 I ncentive Preliminary/ Allocated $/ kW $/ kWh Roll-over* (Estimated) I ncentive Budgets* Program Large Commercial / I ndustrial $398,116 $344,770 $194.60 $0.0665 (Large C&I ) Standard Offer Program * Incentive budgets are subject to change.
Who is the Program Administrator? Who is the Program Administrator? Energy efficiency programs Energy efficiency programs will be administered by the will be administered by the investor- -owned utility: owned utility: investor El Paso Electric Company El Paso Electric Company
Program Administrator Program Administrator Responsibilities Responsibilities � Perform outreach to energy services community; Perform outreach to energy services community; � � Review project applications; Review project applications; � � Sign contracts with Project Sponsors; Sign contracts with Project Sponsors; � � Perform pre Perform pre- - and post and post- -installation inspections; installation inspections; � � Make payments to project sponsors; Make payments to project sponsors; � � Report results to Public Utility Commission. Report results to Public Utility Commission. �
Who Can Be a Project Sponsor? Who Can Be a Project Sponsor? Energy service companies (ESCOs ESCOs); ); � � Energy service companies ( � Local contractors; � Local contractors; � Architecture/engineering firms; � Architecture/engineering firms; � � Renewable energy project developers; Renewable energy project developers; National or local companies that provide energy- -related products related products � � National or local companies that provide energy (e.g., lighting or HVAC); (e.g., lighting or HVAC); � Commercial and Industrial Customers acting as their own Project � Commercial and Industrial Customers acting as their own Project Sponsor; Sponsor;
Project Sponsor Qualifications Project Sponsor Qualifications Statement of professional experience doing similar work � � Statement of professional experience doing similar work Evidence of financial strength and capability � � Evidence of financial strength and capability Work plan for project design, implementation, operation and mana Work plan for project design, implementation, operation and management gement � � � Proof of insurance Proof of insurance � Commercial General Liability � � Commercial General Liability � � Minimum $1,000,000 / occurrence limit Minimum $1,000,000 / occurrence limit � Minimum $2,000,000 / general aggregate limit Minimum $2,000,000 / general aggregate limit � Auto Auto � � � Minimum $1,000,000 / occurrence Minimum $1,000,000 / occurrence � Workers’ ’ Compensation Compensation � � Workers � Minimum $500,000 Minimum $500,000 � A.M. Best Rating of A- A.M. Best Rating of A - VI or better VI or better � � http:/ / www.ambest.com www.ambest.com/ / http:/ /
Project Sponsor’ ’s Responsibilities s Responsibilities Project Sponsor Meeting minimum eligibility criteria; � � Meeting minimum eligibility criteria; � Submitting Initial and Final Project Application forms; � Submitting Initial and Final Project Application forms; � Executing and complying with the terms of EPE’ ’s SOP Agreement; s SOP Agreement; � Executing and complying with the terms of EPE � � Comply with all SOP rules and procedures; Comply with all SOP rules and procedures; � Conduct marketing activities and sign contracts with individual Conduct marketing activities and sign contracts with individual � customers; customers; � Apply for incentives; Apply for incentives; � � Sign standard contract with utility administrator; Sign standard contract with utility administrator; � � Design and install energy efficiency project; Design and install energy efficiency project; � � Measure and verify energy savings; Measure and verify energy savings; � � Report savings to Program Administrator. Report savings to Program Administrator. �
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