Energy Efficiency ProgramPresentation for Senator Padilla

December 15, 2011

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Customer Energy Efficiency Guiding Principles

Establish Clear & Achievable Annual Energy Savings Targets to 2020

Offer Cost-Effective Program Elements

Provide Customer Support & Continuous Improvement of Customer Experience

Support Job Creation in Los Angeles

Demand Rigorous Field Verification of Program Measures & Energy Savings

Invest in Los Angeles

Promote Conservation & Sustainable Practices

Save Money for our Customer

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Energy Efficiency: A Smart Investment

Customers save money by using less energy

Reduces amount of energy needed to meet customer demand

Reduces City’s carbon footprint (GHG emissions) by displacing fossil fuel

Avoids infrastructure costs

Creates local jobs

Continues LA’s commitment to conserve

CREATES LOCAL JOBS

REDUCES CARBON

FOOTPRINT

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Low Cost of Energy Efficiency The least expensive kilowatt is the one never generated

Data as of November 2011Avoided cost of Energy Efficiency includes the blended cost of gas fired and renewable generation of 8.5 cents/KWh; does not capture avoided fixed costs of capacity, like distribution and integration costs.

*

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Energy Efficiency Funding Revenue Sources Today

LADWP Customers

Federal Grants

New Borrowing

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Energy Efficiency Program Drivers

Customer Needs

Technology Advances

Reasonable Incentives

Adequate Resources

Outreach

Regulatory Standards

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Potential Study Key Findings:Commercial Sector shows highest potential for savings with biggest opportunities in lighting

Share of Energy Use 2009-10

Commercial 57%

Residential 34%

Industrial 9%

*Based on Advanced Program

Share of Cumulative Energy Savings by 2019-20*

Commercial 68%

Residential 28%

Industrial 4%

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Top Energy Uses by Customer Sector

Commercial 13,156 GWh

Industrial 2,300 GWh

Residential 7,677 GWh

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Energy EfficiencyProgress to DateIn 2006, LADWP set goal of 10% energy savings over 10 years.

Progress to date is less that we’d like: 3.1% in 5 years

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Annual Energy SavingsWe are not on Target to meet 10% by 2020

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LADWP Follows Strict Protocols to Measure & Verify Energy Efficiency

In-House Reviews: Conduct pre- and post-installation inspections

3rd-Party Reviews (AB2021) Since 2003, we have received independent measurement and verification of energy savings

Revising 3rd-party review to reflect new evaluation component in collaboration with California Energy Commission. Expect to develop new external review in 1st Quarter, 2012

LADWP ARRA ProgramsPresentation for Senator Padilla

December 15, 2011

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Other Program Drivers – – ARRA Grant ProgramsFederal Grant Programs - American Recovery and Reinvestment Act of 2009 (ARRA)

•Low-income Weatherization $ 8.5 million

•Energy Efficiency & Conservation Block Grant (EECBG) Non-Profit Conservation Program: $1.9 million

Community Outreach, Research and Public Education Grants to Non-Profits: $1.5 million

Enhanced Utility Incentives -Whole house incentives -Retrocommissioning -Commercial Lighting and Custom Measures -Refrigerator Exchange for Transitional Housing

$4.1 million

Study of On-Bill Financing: $.05 million

Total $16.05 million

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ARRA Programs 2010-11Commercial Programs

Non-Profit Conservation Program: No-cost audit & retrofit services to selected non-profits Lighting replacements offered Rebates provided for selected upgrades and retrofit work Benefits through reduced energy use, lower bills, & hands-on

experience to share with communities served

Recipient Non-Profits: ~80 non-profits have received audits and/or technical assistance

through the program ~60 are expected to receive actual retrofits through the program Recipients are distributed throughout the City, every Council District

represented Retrofits to be completed April/May 2012

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2010-11 ARRA Grant Program Community Outreach Recipients

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ARRA Programs 2010-11Summary of Outreach Efforts

24 community outreach partners: $90,000 granted per Council District Two at-large projects Each provides quarterly community reports

Outreach Activities: Developed conservation messages in multiple languages and media Held conservation fairs with targeted information and activities Conducted topic-focused workshops and forums Engaged community members in door-to-door campaigns Provided CFLs, showerheads, aerators, and energy monitors to

selected recipients Utilized youth to develop and deliver messages Efforts to be completed March-April 2012

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ARRA 2010-11 Grant FundedCommercial Programs

RCx Express - Retro-commissioning: Pilot introduced in June 2011, www.ladwp.com/rcx Rebate for up to 13 building “tune-up” measures

HVAC airside and waterside measures, plus lighting Examples: adjusting airside economizers & restoring lighting

occupancy sensors Innovative prescriptive process helps achieve savings quickly Rebate to commercial buildings on $0.08 per kWh saved Savings estimated by online tool at California Commissioning

Collaborative and verified by LADWP engineers Projects must be completed by April 2012

ARRA 2010-11 Grant FundedFinancial Assistance Programs

• Study of On-Bill Financing:• Exploration of on-bill financing for home energy improvements &

repayment through utility bill • Expanded research includes consideration of non-residential

customers• Potential options include:

• 3rd party financing• Partner with local gas utility• Targeted MOU with selected customers as pilot

• Consulting with various entities, including CA utilities and other interested & experienced entities

Total Grant Allocation: $8.5 million*

Total funds expended to date: $5.1 Million

Units Weatherized: 979

Customers in queue: 1,689

Projected Number of Customers Served: 2,668

Targeted Goal: 2,544

Total Jobs Created: 85*Funds will be fully expended by March 2012

Program Progress To Date

Dates MUD Single Total UnitsAs of 12/9/2011 979

11-Dec 280 133 30011-Jan 333 167 38911-Feb 333 167 50011-Mar 333 167 500

2668

Forecasted Unit Production

Weatherization Production Schedule

LOS ANGELES DEPARTMENT OF WATER AND POWER WEATHERIZATION ASSISTANCE PROGRAM

PRODUCTION SCHEDULEGOAL vs ACTUAL

As of December 9, 2011

0

500

1000

1500

2000

2500

3000

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec 9,2011

Dec-11 Jan-12 Feb-12 Mar-12

Month

Num

ber

of D

wel

lings

Production Goal Actual Post-Inspections Completed Actual Dwellings Submitted for Reimbursement

Partnerships* with local agencies to establish a “Green Jobs Pipeline” in Los Angeles for the creation of clean energy jobs and to support the City’s commitment to increased energy efficiency and renewable energy production.

The UPCT program provides 18 months of on-the-job training for new employees who gain on the job training with journey-level or skilled craft workers.

•IBEW Local 18, LAANE, SCOPE, LATT, and LA WorkSource Centers

Green Jobs Creation

After ARRA: Going Forward

Develop a residential home services, direct install program.

Targeted Customers: Low-income and moderately low-income* residential customers.

Install energy efficiency weatherization measures that positively impact the LADWP’s core fuel sources.  

*Low-income customer who don’t qualify under the current “low-income guidelines.

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Questions or Comments?

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SUPPLEMENTAL INFORMATION

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LADWP Recommendations for Savings:Residential Customers

Areas of achievable savings from new and existing programs through 2020

Existing Programs:

Consumer Rebate

Refrigerator Recycling

Low-Income Refrigerator Exchange

New Programs

Low-Income Weatherization

Whole-House Approach

-Rebate Program

-Audits for High Users

Residential Lighting

Education & Outreach

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LADWP Recommendations for Savings:Commercial & Industrial CustomersAreas of achievable savings from new and existing programs through 2020

Existing Programs:

Commercial Lighting Efficiency Offer

Chiller Efficiency

Refrigeration

Custom Performance

New Construction Incentive

Energy Efficiency Loans

Energy Audits

Technical Assistance

New Programs:

Retro-commissioning Rebates

LAUSD Efficiency Program

Non-profit Energy Conservation Program

HVAC Rebate Program

Thermal Energy Storage Rebate Program

Accelerated City Lighting Program

Business Lighting Direct Install

On-bill Financing

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Putting It All Together

Example: Large Office Buildings

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Energy Efficiency Rebates in Action

Estimated Energy Savings (kWh)* $ Rebates Simple Payback**

Custom Performance Program(VFDs on HVAC equipment)

2,821,600 $107,000 10 months ($310,376 svgs/yr)

Custom Performance Program(Carbon Monoxide control system in parking structure)

1,953,300 $34,625 2 months ($214,753 svgs/yr)

Chiller Efficiency Program(300 ton)

147,700 $59,450 0 months ($16,245 svgs/yr)

Commercial Lighting Program(Hi-perf ballasts, reduced watt tubes)

596,300 $100,875 0 months ($65,500 svgs/yr)

Commercial Lighting Program(Hi-perf ballasts, reduced watt tubes)

161,223 $96,450 5 months ($17,735 svgs/yr)

* Estimated annual kWh savings

** Estimated using $0.11 per kWh

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Putting It All Together

Example: Medium Retail

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Energy Efficiency Rebates in Action

Estimated Energy Savings (kWh)*

Rebates Simple Payback**

Custom Performance Program(Energy mgmt control system)

30,734 $2,459 33 months ($3,424 svgs/yr)

Commercial Lighting Program(Hi-perf ballasts and tubes)

53,134 $9,150 5 months ($5,845 svgs/yr)

Commercial Lighting Program(Hi-perf ballasts and tubes)

39,213 $6,996 3 months ($4,313 svgs/yr)

* Estimated annual kWh savings

** Estimated using $0.11 per kWh

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Putting It All Together

Example: Large Hotel

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Energy Efficiency Rebates in Action

Estimated Energy Savings (kWh)*

Rebates Simple Payback**

Custom Performance Program(VFD, energy mgmt ctrl system)

959,100 $76,724 24 months ($105,500 svgs/yr)

Commercial Lighting Program(High-performance ballasts and tubes)

128,825 $33,858 0.5 months ($14,171 svgs/yr)

Chiller Efficiency Program(Water cooled centrifugal)

39,213 $53,256 0 months ($10,634 svgs/yr)

* Estimated annual kWh savings

** Estimated using $0.11 per kWh

Cost Comparison

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Program information and rebate applications can be found online

www.LADWP.com

www.LADWP.com/cleo (Commercial Lighting Program)

www.LADWP.com/custom (Custom Performance Program)

www.LADWP.com/newconstruction (coming soon!)

www.LADWP.com/crp(Residential Rebates)

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For More Information