2013 AEP Ohio Business Incentives Program

2012 Program Results

• AEP Ohio received 3,153 applications

• Annual energy savings achieved = 223 GWh

• Paid $15.6 Million in incentives

2012 Participation

Industrial/Manufacturing 42%

School 10%

Miscellaneous 9%

Large Office 7%

Government/Municipal 6%

Conditioned Warehouse 6%

Large Retail/Service 6%

Medical- Hospital 5% Small Retail/Service

5% College/University

4%

Variable Speed Drives • Incentive $60 per hp

– Pump or fan motor

– Supply return fan

– Hot water pump

– Cooling tower fan

– HVAC motor

• $100 per hp, VSD air compressor

• Typical energy savings: 5 to 25 percent

New High Efficiency Transformers • Better reliability • For single- or three-phase

transformers meeting or exceeding NEMA Premium™

• Efficiency requirements at 35 percent load are eligible

• Base Incentive $60-$1,000, plus efficiency bonus $0.75-$30.25

• Utility owned transformers NOT eligible

• Typical segment, large commercial, schools, industrial

More Ways to Save: Compressed Air, Motors, VFDs

• Variable frequency drives

• NEMA Premium motors

• Added compressor storage

• No-loss condensate drains

• Refrigerated cycling thermal mass air dryer

• Air compressor replacement

• Dryer

• Compressed air engineered nozzle

• Compressed air leak repair

Potential customer segments

• Manufacturing

• Hospitals

• Large office

• Universities/Schools

• Restaurants

• Water/Wastewater Treatment

Custom Program • Electricity saving measures not

found on prescriptive list, may qualify for custom incentives – $0.08 per first year kWh saved

• AEP Business team will conduct technical site assessment to help identify energy efficiency opportunity

• Payback must pass utility cost effectiveness test – typically a one- to seven-year payback

Some Common Custom Projects • Process improvements • VFDs on pumps and fans over 200 HP • VFDs on compressors over 100 HP • New technology applications • EMS over 50,000 sq ft. • Large Air Compressors • Compressed Air System Optimization • Injection Molding Machines • Cooling tower optimization • Building Envelope Measures • ‘Free’ cooling – water-side economizers

Custom Worksheet

Compressed Air

12%

EMS 7%

HVAC 20%

Lighting 6%

Motors 5%

Other 28% Process VSD

16%

Refrigeration 5%

Virtualization 1%

Custom Project By Measure Type

2012 Custom Projects

2013 Custom Projects Submitted

• Less lighting

• Less HVAC

• More EMS

• More compressed air

• More motors

Savings ideas for Compressed Air

• Replace constant speed air compressor with VFD air compressor

• Retrofit VFD on a constant speed compressor • Install intelligent controllers on a group of air

compressors • Replace compressed air operated knifes and

bars with low-powered energy efficient blowers

• Replace non-cycling air dryer with cycling thermal mass dryer

New Construction/Major Renovation: Three Paths

Whole Building

Design team applies during design phase,

energy simulation model required.

Typically incentives deeper, incentives

available to owner and design team

Custom Need to establish baseline energy

consumption, requires some engineering

calculations

Captures savings for non-standard

equipment e.g. compressors, process

equipment

Prescriptive Uses prescriptive

worksheets, Lighting Power density, HVAC,

VFD’s

Easiest approach, less time required when no energy model is done

New Construction/Major Renovation: Whole Building

• Design team incentives

– $0.02 to $0.04/kWh

– Based on 10 percent efficiency over ASHRAE 90.1-2007

• Owner incentives

– $0.08 to $0.12/kWh

– Based on 10 percent efficiency over ASHRAE 90.1-2007 standard

Fully executable model required starting July 1,

2013

New Construction: Prescriptive Lighting Power Density (LPD)

Retroactive Projects • Known as Self Direct Program • Available to largest energy users

– 700,000 kWh+ annually – Part of National Account or with

multiple locations

• For installations completed after January 1, 2010

• Requires both AEP Ohio and PUCO approval – every application is auto-approved after 60 days with the PUCO

• Incentives paid at 75 percent (compared to programs for future energy efficiency measures)

The Fine Print

• Incentive funds are limited, funds are reserved based on availability

• Measures must be installed for five years or the life of the measure, whichever is less

• Prescriptive, custom incentives may not exceed 50 percent of the total project cost

• Program year begins December 17, 2012 and ends November 15, 2013

• Project completion dates greater than six months may qualify for Self Direct

www.AEPOhio.com/Incentives

How Do I Pre-Apply?

Fill out customer information page and prescriptive or

custom worksheet

Gather scope of project, spec sheets on proposed

measures

Have customer sign the customer information page

and send the gathered information to aepohio

incentives@dnvkema.com or use the online application

Benefits of Pre-Application • Ensures proposed equipment qualifies for incentives

• Ensures incentive estimates are accurate and maximized

• Final applications are generally paid quicker

• Measures requiring pre-app – T12 lamp removal in retrofitted fixtures

– New T5/T8 fluorescent fixtures, LED, HID retrofits, etc

– Lighting Controls

– Custom Projects

– Any project requiring pre-metering

Recommended for All Projects

Tools Available

Marketing & Education Materials

• Segment technology sheets - Now available!

• Customer case studies by segment available

• Technology-specific fact sheets available – Variable Frequency

Drives

– Compressed Air

– Parking Garage/Lot Lighting

NEW Online Application for Multiple Programs

The Evolution of Continuous Improvement

1970 1980 Today

Safety

Quality Lean Energy “CEI” Environmental

Six Sigma

• CEI applies the business management principles of continuous improvement and employee engagement to plant-wide energy efficiency focusing on low/no-cost energy saving opportunities.

• CEI Integrates with and enhances existing continuous improvement programs.

1990

24

CEI Program Participants

• Cohorts of industrial sites within AEP Ohio service territory

• 7 to 14 industrial sites per cohort

• Site annual electrical usage > 10 GWh

• Cohort locations /

– Columbus / Q1 – Underway (Jan 2013)

– Lima-Findlay / Q2 – Underway (May 2013)

– Canton / Q3 – Recruiting (Sept 2013)

25

CEI Program Benefits 1. Infrastructure

• Executive sponsor, energy champion, energy team, energy policy

2. Metrics • Baseline energy model, goal, tracking method

3. Improvement Process •Tools, techniques and practices

4. Technical and Implementation Support

• Electrical energy expertise, how-to expertise, resources

5. Moral Support •Encouragement and Accountability

Incentives ($0.02/kWh) for three years

26

CEI Program Commitments

• Requires no financial commitment

• Requires signing CEI Enrollment Agreement

– Defines incentive payment and program time frame

– Participant agrees to provide “energy driver” data, e.g., production

– Participant agrees to attend and participate in the workshops

– No penalty for early withdrawal or non-participation other than not receiving incentives

• Requires investment in time

27

Initiatives & Upcoming Events

• AEP Ohio Water/Waste water users group

– Next meeting June 27 in Zanesville

• Polymer Users Group

• AEP Ohio Small Foods Segment Seminar

– July 8 (Columbus) and July 9 (Lima)

• Advanced Lighting Controls Initiative

We’re Here to Help!

• Angie Rybalt, Outreach manager, 614-359-6276, angela.rybalt@dnvkema.com

• Barry Gritton, Athens District Outreach, 614-420-0103, barry.gritton@dnvkema.com

• Scot Thrapp, Outreach Newark district, 614-563-9203, scot.thrapp@dnvkema.com

• George Munis, Outreach Lima district, 614-446-5374, george.munis@dnvkema.com

• Ron Rowe, Outreach Canton district, 330-323-7328 ronald.rowe@dnvkema.com

Questions