ral blectric Cooperative Corporation - Kentucky cases/2012-00484/20130110_Joint... · Witness: Big...

ral blectric Cooperative Corporation 109 Bagby Park e Grayson, KY 41 143,1292 Telephone 606-474-5136 0 1-800-562-3532 0 Fax 606-474-5862

January 9,20 13

Mr. Jeff Derouen Executive Director Kentucky Public Service Commission 2 1 1 Sower Boulevard Frankfort, KY 40601

PUBLIC SERVICE COMMISSION

RE: Case No. 20 12-OO484

Mr. Derouen:

Please find attached the original and six (6) copies of the joint applicants’ responses to the Commission’s first request for information in the above referenced case.

If there are any questions, please feel free to contact Don M. Combs at (606) 474-5 136.

-

n Rural Electric

A Touchstone Energy’ Cooperative t

COMMONWEALTH OF KENTUCKY

BEFORE THE PUBLIC SERVICE COMMISSION

In t h e Matter of:

JOINT APPLICATION OF BIG SANDY RURAL ) ELECTRIC COOPERATIVE CORP., ) FLEMING-MASON ENERGY COOPERATIVE, ) INC., GRAYSON RURAL ELECTRIC 1 COOPERATIVE CORP., FOR AN ORDER ) APPROVING KY ENERGY RETROFIT ) RIDER PERMANENT TARIFF )

CASE NO. 201 2-00484

COMMISSION STAFF’S FIRST REQUEST FOR INFORMATION TQ BIG SANDY RURAL ELECTRIC COOPERATIVE CORPORATION,

ELECTRIC COOPERATIVE CORPORATION FLEMING-MASON ENERGY COOPERATIVE, INC., AND GRAYSON RURAL

The undersigned, Don M. Combs, as Manager of Finance and Accounting of Grayson Rural Electric, being first duly sworn, states that the responses to an order dated December 14,201 2, herein are true to the best of my knowledge and belief formed after reasonable inquiry.

Dated: January I O , 2013

Grayson Rural Electric

Don M. Combs Mgr. Finance 8t Accounting

Subscribed, sworn to, and acknowledged before me by @O 0 b k , as M ~ T . fhncc&Acc+-for - . . . & X ~ . V S ~ , ~ R ECC on behalf of

said Corporation this 1Ot.h day of J a n u a r l ' , 201 3.

Item --L Page of R

Witness: Big Sandy - Bruce Aaron Davis Fleming Mason - Joni Hazelrigg

Grayson - Don Combs MACED - Bill Blair

Case No. 2012-00484 First Data Request -Dec. 14, 2012

1. Refer to footnote 3 on page 3 of the Application and the Data Report for

the period of December 1, 2011 through May 31, 2012, contained in the Semi Annual

Report filed on June 20, 2012. In the Data Report, Jackson Energy was the most active

cooperative with respect to the Kentucky Energy Retrofit Rider (“KER Rider”), but the

footnote states than Jackson Energy is not filing for a permanent rider at this time.

a. If known, explain why Jackson Energy is not proposing a

permanent rider at this time.

b. If known, explain when and if Jackson Energy expects to propose a

permanent KER Rider.

Response:

a. It is not known by the applicants why Jackson Energy is not

proposing a permanent rider at this time.

b. Again, this is not known by the applicants.

Item 2 Witness: Big Sandy - Bruce Aaron Davis

Fleming Mason - Joni Hazelrigg Grayson - Don Combs

MACED - Bill Blair

Page )- of


2. In the Application, the Joint Applicants state that they will partner with the

Mountain Association for Community Economic Development (“MACED”) to operate the

KER Rider program. Provide the total dollar amount, to date, of funds paid by MACED

to your particular cooperative, as well as the total amount of funds paid by your

particular cooperative to MACED for the retrofit project.

Response:

Paid bv MACED Paid bv COOP to MACED

Fleming Mason $151,703.93 $5 , 079.9 1

Grayson 87,994.44 $4,2 04.00

Big Sandy 93,099.82 $4,536.75

Item 3 Page )- of 2




3. Refer to page 4, Item No. 11 of the Application.

a. The response states that to date, $538,008 in capital has been

deployed through the program. For each of the Joint applicants, provide a breakdown

of the manner in which the capital has been deployed at your particular cooperative,

including:

( I ) The types of costs involved, including costs of actual

projects, advertising and promotional costs, and administrative costs;

(2) The associated dollar amounts, for each type of cost shown

in the response to Item 3.a.(?) above.

b. The average monthly retrofit project charge is stated as $38.70.

Provide the average payback period associated with the $38.70 charge.

Response:

a. See Response for Item 2 for Capital Deployed for applicants (Paid

by MACED). $538,000 has been revised currently to $ 560,302 and

in cl u d e s Jackson ’ s participation ($2 27,5 04.2 8).

1. Other costs not included in the Projects costs include

general administrative and accounting labor costs, UCC

filing and software fees..

2. The labor costs have not resulted in addition costs for the

Cooperatives, but have been absorbed by reallocating job

Item 3 Page 2 of 2




duties. See response to Item #4. The UCC and software

fees have been insignificant and have been covered by the

Project management fee.

b. 14.5 years

Item Lp- Page of 2




4. Refer to page 4, Item No. 12 of the Application. Joint Applicants state that

some additional accounting costs incurred have been, to date, adequately covered by

the existing project management fee calculated as part of the Retrofit Project Charge.

a. Provide the dollar amount of the additional accounting costs

incurred by your particular cooperative that have been covered by the existing project

management fee.

b. Provide the average amount of the project management fee at your

particular cooperative for projects to date.

c. Provide the total amount of funding provided through the Kentucky

Home Performance Program to your particular cooperative for reimbursement of the

initial training costs associated with attaining Building Performance Institute certification.

Explain the reasons for the additional costs. In the explanation,

state whether the costs are considered significant, and whether the costs are expected

to be covered by the existing fee for the foreseeable future.

d.

Item - - Page 2 of 5




Response:

a. As stated in the response to Item 3 a. (2), the accounting labor

costs have been included in existing labor costs and do not

represent a net increase in labor costs.

b. Average Proiect Management Fees (incl UCC & Software Fees)

Big Sandy - $209.52

Fleming Mason - $285.1 1

Grayson - $1 91.29

c. Received from MACED for training & Equipment

Including KY Home performance

Big Sandy - $ 13,096.90

Fleming Mason $8,097.00

Grayson - $1 0,538.52

d. These costs are considered insignificant and would be partly

offset by the project management fee. See Response to Item

4(a) above.

Item 2 Page X of I




5. Refer to page 4, Item No. 13 of the Application. Joint Applicants state that

only one of the 98 completed retrofit projects is currently inactive. Joint Applicants

further state that repayment has been suspended on that account and that the Retrofit

Project Charge will resume when service resumes at that location. Additionally, Joint

Applicants state that, in a few cases, some participating locations have significant

damage resulting from fire or natural disaster, but electric service has remained current

at those locations, resulting in no interruption of the repayment of the Retrofit Project

Charge. For each of the Joint Applicants:

a. Provide for your particular cooperative the specific number of

participating locations that have significant damage from fire or natural disaster, as

defined by the Joint Applicants.

b. Provide for your particular cooperative the total number of

completed retrofit project locations that have been sold, foreclosed upon, or for which,

owners have had a change of address since the completion of the retrofit projects.

Response:

a. Big Sandy - 1 due to a natural disaster

Grayson - 0

Fleming Mason - 0

b. Grayson - 2 due to foreclosure

Big Sandy - 0

Fleming Mason - 0

Item & Page of I



Case No. 2012-00484 First Data Request -Dee. 14, 2012

6. State whether payments made on projects are returned to the pool of

capital set aside for future energy retrofit projects. If returned, state

approximately what percentage of the total payments are returned to the

pool.

Response:

The capital source for How$mart to date has been MACED's lending portfolio. When funds are repaid to MACED per the loan agreements between MACED and the co-op, these funds revert to MACED's general pool of capital for lending. MACED indicates no foreseeable problem with continuing to be able to furnish sufficient capital for this work even with significant expansion of the program and additional co-ops participating.

Item 7 Witness: Big Sandy - Bruce Aaron Davis


MACED - Bill Blair

Page A- of


7. Refer to page 5, Item No. 15 of the Application.

a. Joint Applicants attempt to clarify in Item 15(b) that the investment

is tied to the physical location, not an account. Explain the necessity of tying the

investment to the physical location as opposed to the account of an individual customer.

b. Refer to page 5, Item No. 16 of the Application. Joint Applicants

state that the KER Rider “remains a voluntary tariff available to customers”. Explain

how the KER Rider is considered “voluntary,” given the Joint Applicants’ proposal is to

tie the investment to the physical location, rather than the individual account holder

Response:

a. The fundamental concept of this program is to increase the energy

efficiency of physical structures that will have a useful life of 15

years or more. The underlying premise being that the occupant

of the structure will receive the benefit of the retrofit with lower

electric bills for however long they live there. While in most

cases, the customer plans to remain at the location, it is not a

requirement to qualify for this program. The joint applicants felt

that it was important to make the distinction that the investment

is tied to the location rather than the occupant or customer

Item 7 Page 2 of -2-




b.

qualifies and chooses to participate may do so. The joint applicants will

not require participation by any customer. If a customer voluntarily

participates in the program, it is explained that this investment will remain

tied to the electric bill until payment in full of the project cost.

The term “voluntary tariff simply means that any customer that

Item 8 Page J- of 2




8. Refer to pages 5 and 6, Item No. 16 of the Application.

a. On page 6, Joint Applicants state that the proposed KER Rider

requires the development of a Conservation Plan for each retrofit option proposed for a

customer. For your particular cooperative, provide an example of Conservation Plans

developed during the pilot program.

b. For your particular cooperative, provide an analysis of the projected

savings associated with each identified Conservation Plan as compared to the actual

savings experienced by the customer on each account.

Response:

a. See Pages 2 - 31 of this Item.

b. Monthlv Proiected Savings Actual Savings

BS #I $ 67 $ 48

BS #2 24 100

BS #3 28 28

FM #I 92 174

FM #2 93 124

G #I 71 166

G #2 33 45

Kentucky Retrofit Rider Conservation Plan

PhGf 2 31

ver. 11/17/2011

, Exa m pl e Co n se rvat i o n Plan

Your home uses energy for heating, cooling, and base load [which is everything that is not heating or cooling).

28600 kWh 0 kBTU 0 kBTU 0 kBTU

/Redace HVAC Heating with New HVAC Heating Svstem. I Replace HVAC Cooling with New HVAC Cooling System. Reduce the house air leakage from 5020 to 3000 cfm50. 4. Rim joist insulation listed above will contribute to air sealing. 3. Reoair and reolace oanelinn missing on A frame ceiling. 2. Remove window AC units. 1. Air seal basement door. Create a new, sealed and insulated attic access from closet in addition. Add Rim Joist Insulation. Install R-19 insulation in floor. Add Insulation in attic to 12" total from existing. (Install Programmable Thermostat. I Savinas from Baseline: Savinas from Actuals: Conversions to Fuel Current Rates Proiected Savinas l v r l

7671 kWh (Elec) 7,361 kWh (Elec) 7,361 kWh

0 kBTU (Gas) 0 kBTU (Gas) 0 therms

0.11 /kWh

2.00 /Therm

$810

$0

0 kBTU (Propane) 0 kBTU (Propane) 0 Gal 2.50 /Gal $0

$67 Based on savings from insulation and air seal only due to calibration

Projected Avg Energy Savings (mo) before monthly How$mart Charge

$9,815.60 Cost of Improvements (est]:

$1,963.12 Kentucky Home Preformance

$7,852.48 Utility Contribution

Not to Exceed Amount (90% of Savings)

@ 3%

over 15 years

84% of projected savings

1. Sign Purchase Agreement 2. Select contractor and schedule the job 3. Energy Specialist returns to inspect completed work 4. Savings begin and installments charge appears on utility bill. If, after operation, any of the upgrades fail, the Utility will reevaluate the work.

I understand that:

Values on previous page are estimates only and are not a guarantee of savings. Energy savings are a best-effort estimation calculated using a computer model. The model takes into account previous usage and characteristics of the house to determine usage and potential savings. Actual savings will vary depending on behavior, weather events, maintenance of the efficiency improvements, and future utility rates.

The IJtility has explained what I can do to reduce my energy consumption including, but no limited to: thermastat and other equipment settings, the impact of lighting changes, and additional appliance or home investments not covered under How$martKY.

Value of the improvements [cost ofwork) is an estimate and will be verified with the selected contractor. Final monthly charge will be determined at the time of contractor selection. I f final project cost is more than the "not to exceed" amount, then customer may opt out of the installation.

Non-payment of the charge will be treated like non-payment of the utility bill potentially resulting in disconnection of service.

The Kentucky Energy Retrofit Rider [marketed as How$martKY) is a voluntary utility tariff that amortizes the cost of the efficiency improvement over the course of fifteen years or 75% of the expected life of the improvement [whichever is less) a t a fixed interest rate. The expected cumulative cost to the customer over the course of the payback period of the improvements is as follows:

Fixed Monthly Charge

-- Estimate Not t o Exceed

$57 $61

Capital Investment $7,852

Project Fee(s) 4.50% $353

Capital Fee 0.50% $39

Total Interest over life of payback

Total Cost over life of payback

$2.043

$10,249

$8,310

$374

$42

$2.247

$10,931

Payback Period (years) 15

Cost of Capital 3%

Account Holder: Owner: print n a m e print n a m e

Date: Date:

Energy Efficiency for Everyone

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5,680 kWh 0 kBTU 0 kBTU O kBTU P Heating

Cooling 2130 kWh 0 kBTU 0 kBTU

Base 18400 kWh 0 kBTU 0 kBTU % r’

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PdGE 6 O F 31

ver. 11/17/2011

Your home uses energy for heating, cooling, and base load (which is everything that is not heating or cooling).

, \

c_ Example Co nse rva t i o n Plan


lAdd Rim Joist Insulation. I /Install R-19 insulation in floor. I IReduce the house air leakage from 3278 to 2240 cfm50. I 7. Spray foam on band board (listed elsewhere) will contribute to air sealing. 6. Air seal large Denetrations where accessible in attic and crawl with foam board and / or wrav foam as needed. 5. Create and install foam board box with weatherstrip over attic stairs to air seal opening. 4. Seal foam board in attic on skvliaht shaft. Tane corners and foam toD and bottom edges. 3. Cap open kitchen soffits on attic side with foam board, sealed at edges. 2. Replace laundry door to garage. 1. Air seal laundry door to exterior. Savinas from Baseline: Sovinas from Actuals: Conversions to Fuel Current Rates Proiected Sovinas lvr)

2374 kWh (Elec) 2,564 kWh (Elec) 2,564 kWh 0.11 /kWh $282

0 kBTU (Gas) 0 kBTU (Gas) 0 therms 2.00 /Therm $0

$0

$24

0 kBTU (Propane) 0 kBTU (Propane) 0 Gal 2.50 /Gal

Based on savings from insulation and air seal only due to calibration Projected Avg Energy Savings (mo)

before monthly How$mart Charge

$3,415.00 Cost of Improvements [est]:

$683.00 Kentucky Home Preformance

$2,73 2 -00 Utility Contribution


@ 3%

over 15 years

Monthly Charge


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Heating

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_- -_ -

_ _ - - - - _ _ Add Insulation __ in att ic . to 12" - total from existing. ___ Seal Duct Work to 10% of fan capacity.

2. Replace batt insulation over the soffit areas after - installing ._ - . air - - barrier.

__ 3. Air seal al l large penetrations .. - in the crawl space I subfloor, - - with .__

1. Install a foam board air barirer over the att ic side ._ . of - the . dropped . kitchen soffits. Edges - andseams . _ - bust __ . be sealed - _I__

Savinas from Baseline: Savinqs from Actuals: Conversions to Fuel _I__- Current Rates Proiected Savings &jj

special attention to plumbing - . under tub(s).

- _. .. __ -

2556 kWh (Elec) 3,063 kWh (Elec) 3,063 kWh 0.11 /ItWh $337



Based on savings from insulation and air seal only due to calibration. Projected Avg Energy Savings (mo)

before monthly How$mart Charge $28

$1,820.00 Cost of Improvements [est]: $1,456.00 Utility Contribution

$1,572 Not t o Exceed Amount (90% of Savings)


@ 3%

over 6 years

Monthly Charge $23 83% of projected savings

PACF I I O F 31

1. Sign Purchase Agreement 2. Select contractor and schedule the job 3. Energy Specialist returns to inspect completed work 4.. Savings begin and installinents charge appears on utility bill. If, after operation, any oF the upgrades fail, the Utility will reevaluate the work.

1 uiiderstand that:


'The Utility has explained what I can do to reduce my energy consumption including, but no limited to: therrnastat and other equipment settings, the impact of lighting changes, arid additional appliance or home investments not covered under I-low$martI<Y.

Value of the improvements (cost of work) is an estimate and will be verified with the selected contractor. Final monthly charge will be determined at the time of contractor selection. I f final project cost is more than the "not to exceed" amount, then customer may opt out of the installation.

Non-paymeut of the charge will be treated like non-payment of the utility bill potentially resulting in disconnection of service.

The I<entuclzy Energy Retrofit Rider (market.ed as How$martl<Y) is a voluntary utility tariff that amortizes the cost of the efficiency iinprovement over the course of fifteen years or 75% of the expected life of the improvement (whichever is less) a t a fixed interest rate. 'The expected cumulative cost to the customer over the course of the payback period of the improvements is as follows:


Estimate Not to Exceed

$23 $25




Total Interest over life of payback $151 Total Cost over life OF payback $1,672

$1,572

$'71

$8 5177

$1,819


Cost of Capital 3%

Account Holder: Owner: print name print name

Date: Date:


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Elec Gas Propane WoodiCoal

F I e m i ng - Ma s o n f n e rg y 4 I , , , $ 4 . , , ,

Your home uses energy for heating,

PA&&, I 4 O F 3 I

ver. 11/17/2011

model baseline

0 Heating Cooling

Base

Total tyrl

% r’ e:


Insulate water lines. Install ventilation fans. lnstall dryer vent.

Install CO monitor. Install curtain drain. _I

Improve electrical safety. t Crawl mace vaDor barrier. Replace existing hi consumption blubs with CFL’s. Install R-19 insulation in floor. Add Insulation in attic to 12” total from existing. Replace HVAC Heating with New H K C Heating System.

--i Replace HVAC Cooling with New HVAC Cooling System. Reduce house air leakage to 1000 cfm50.

Savinas from Baseline: Savinas fror, ‘uals: - Conversions to Fuel - - Curren . .es m t e d Savinas (yrJ

9893 kWh (Elec) 10,063 kWh (Elec) 10,063 kWh 0.11 /kWh $1,107



$92 Based on savings from insulation and air seal only due to calibration.


$11,870.13 cost of hnprovements test]: $8,874.67 Ut%* Contribution

Not t o Exceed Amaunt (90% af Savings)

$~,ooo.oo Kentucky Home Preformance

$995.46 Rebates - Utility @ 3%


1. Sign Purchase Agreement 2. Select contractor and schedule the job 3. Energy Specialist returns to inspect completed work 4. Savings begin and installments charge appears on utility bill. If, after operation, a n y of the upgrades fail, t h e Utility will reevaluate the work.

I understand that:


The Utility has explained what I can do to reduce my energy consumption including, but no limited to: thermastat and other equipment settings, the impact of lighting changes, and additional appliance or home investments not covered under How$martKY.

Value of the improvements [cost of work) is an estimate and wiIl be verified with the selected contractor. Final monthly charge will be determined at the time of contractor selection. If final project cost is more than the "not to exceed" amount, then customer may opt out of the installation.


The Kentucky Energy Retrofit Rider (marketed as How$martKY) is a voluntary utility tariff that amortizes the cost of the efficiency improvement over the course of fifteen years or 75% of the expected life of the improvement (whichever is less) at a fixed interest rate. The expected cumulative cost to the customer over the course of the payback period of the improvements is as follows:


-- Estimate - Not to Exceed

$64 $83




Total Interest over life of payback s2.309 Total Cost over life o f payback $11,583

Account Holder: print name

Date:

$11,361

$511

$57

$3,072

$14,944


Cost of Capital 3%

Owner: print name

Date:


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0 Heating

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Base 28000 k w h 0 kBTU 0 kBTU

9,170 kWh 0 kBTU 0 kBTU kBTIJ

Total tyrl kWh kBTU kBTU kBTlJ r' =

ntucky Retrofit Rider Conservation Plan


F I e m i ng - Ma so n En erg y I , , I I I .,* , '.

location ID:

OwnerName

Phone

Assessor

ver. 11/17/2011

41.900 kWh 0 kBTU 0 kBTU 0 kBTU

Add spray foam to roof deck behind attic knee walls Add Rim Joist insulation.

Crawlspace Wall insulation. Prom-ammable Thermostat.

Replace HVAC Heating with New HVAC Heating ~. System. Seal Duct Work to 10% of fan capacity. Replace HVAC Cooling with New HVAC Cooling System. 2. Spray foam insulation in attic and crawl space will contribute to reduction of whole house air leakage. 1. Weatherstrip, sweep, and / or adjust al l (five) exterior doors as needed to create a Savinas from Baseline: Savinas from Actuals: Conversions to F& - Current Rates Projected Savinas lvrl

_"I___

10078 kWh (Elec) 10,188 kWh (Elec) 10,188 kW h 0.11 /kWh $1,121



$93 Based on savings from insulation and air seal only due to calibration.




$520.00 Customer Contribution

$300.00 Rebates - Utility

i $11,502.ooj Utility Contribution

$11,502 Not to Exceed Amount (90% of Savings)

@ 3% over 15 years

$83 Monthly Charge


1. Sign Purchase Agreement 2. Select contractor and schedule the job 3. Energy Specialist re turns t o inspect completed work 4. Savings begin and installments charge appears on utility bill. If, after operation, any of the upgrades fail, t he Utility will reevaluate t h e work.

I understand that:



Value of the improvements (cost of work) is an estimate and will be verified with the selected contractor. Final monthly charge will be determined a t the time of contractor selection. If final project cost is more than the "not to exceed" amount, then customer may opt out of the installation.


The Kentucky Energy Retrofit Rider (marketed as How$martKY) is a voluntary utility tariff that amortizes the cost of the efficiency improvement over the course of fifteen years or 75% of the expected life of the improvement (whichever is less) a t a fixed interest rate. The expected cumulative cost to the customer over the course of the payback period of the improvements is as follows:


Estimate Not t o Exceed

$83 $84




Total Interest over life of payback

Total Cost over life of payback

$2.993

$15,012

$11,502

$518

$58 $3,110

$15,129


Cost of Capital 3%


Date: Date:


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ver. 11/17/2011

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4,430 kWh 0 kBTU 0 kBTU O kBTU cooling, and base load 1960 kWh 0 kBTU 0 kBTU (which is everything

14700 kWh 0 kBTU 0 kBTU that is not heating or

Grayson Rural

0 kBTU 0 kBTU kBTU II

Electric

cooling).

Exa m ple Conservation Plan


Add Rim Joist Insulation. Install R-19 insulation in floor. Install Programmable Thermostat. Replace HVAC Heating with New HVAC Heating System. Replace HVAC Cooling with New HVAC Cooling System. Seal or remove whole house fan Seal beams in living room and kitchen Seal att ic access in rear bedroom closet Reduce house air leakage from 2287 to 1100 cfm50. Savinas from Baseline: Savinas from Actuols: Conversions t o m Current Rates Proiected Savinas lvr l




Based on savings from insulation and air seal only due to calibration Projected Avg Energy Savings (mo)

before monthly Haw$mart Charge $71

$7,298.23 Cost of improvements [est]: $5,338.58 Utility Contribution



$500.00 Rebates - Utility @ 3%

over 15 years

Monthly Charge



I understand that:





The Kentucky Energy Retrofit Rider [marketed as How$martKY) is a voluntary utility tariff that amortizes the cost of the efficiency improvement over the course of fifteen years or 75% of the expected life of the improvement (whichever is less) at a fixed interest rate. The expected cumulative cost to the customer over the course of the payback period of the improvements is as follows:


-- Estimate -~ Not t o Exceed

$39 $64

Capital investment $5,339



Total interest over life af payback $1,389

Total Cost aver life of payback $6,968

$8,743

$393

$44

w $11,500

Payback Periad (years) 15

Cost of Capital 3%


Date: Date:

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Grayson Rural Electric



_. _ ~ _ _ ~ _ _ _ ~ ~ ____ Install Programmable Thermostat. Replace HVAC Heating with New HVAC Heating System. Seal Duct Work to 10% of fan capacity. Replace HVAC Cooling with New HVAC Cooling System. Savinas from Baseline: Sovinas from Actuols: Conversions to Fuel Current Rotes Projected Savinas (vrl


0 kBTU (Gas) 0 kBTU (Gas) 0 therms

0 kBPU (Propane) 0 kBTU (Propane) 0 Gal

2.00 /Therm

2.50 /Gal

$0

$0

Based on savings from insulation and air seal only due to calibration. Projected Avg Energy Savings (mo) $33

before manthly HowSmart Charge



$500.00 Rebates - Utility

$2,900~00 Utility Contribution

$4,005 Not t o Exceed Amount (90% of Savings)

@J 3%

over 15 years

$21 Monthly Charge


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I understand that:



Value of the improvements (cost of work) is an estimate and will be verified with the selected contractor. Final monthly charge will be determined at the time of contractor selection. If final project cost is more than the "not to exceed" amount, then customer may opt out of the installation.




Estimate Not to Exceed

$20 $21




Total Interest over life of payback $JJ

Total Cost over life of payback $3,566

$2,895

$130

$14

$783

$3,808


Cost of Capital 3%

Account Holder: Qwner: print n a m e print n a m e

Date: Date:


~~

1. Sign Purchase Agreement 2. Select contractor a n d schedule the job 3. Energy Specialist returns to inspect completed work 4. Savings begin and installments charge appears on utility bill. If, a f ter operation, any of t he upgrades fail, the Utility will reevaluate the work.

I understand that:







Estimate Not t o Exceed

$21 $29

Capital investment $2,900



Total Interest over life of payback s755 Total Cost over life of payback $3,785

Account Holder: print name

Date:

$4,005

$180

$20

$1,083

$5,269


Cost of Capital 3%

Owner: print name

Date:

t Energy Efficiency for Everyone

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Page of 1 Witness: Big Sandy - Bruce Aaron Davis


MACED - Bill Blair Case No. 2012-00484

First Data Request -Dec. 14, 2012

9. Refer to page 6, Item No. 17 of the Application. For your particular

cooperative, provide an itemized breakdown of all funding sources, including name and

dollar amount, that will be providing funds for the program administration, sources of the

funding, and any adjustments to the revenue structure of the program.

Response:

To date, MACED has raised $7 million to cover the operating expenses associated with conducting the KER pilot program. This money does not include the lending capital MACED has raised. This funding comes from a mix of grants from private foundations and state agencies, including: blue moon fund; Chorus Foundation; Civil Society Institute; David Rockefeller Fund; F. B. Heron Foundation; Ford Foundation; Kentucky Housing Corporation; Mary Reynolds Babcock Foundation; Merck Family Fund; Mertz Gilmore Foundation; New World Foundation; Rockefeller Brothers Fund; Surdna Foundation; and William Randolph Hearst Foundation. It should be noted that, aside from three of the funders listed, KER pilot funding is drawn from grants that support other aspects of MACED’s work beyond the KER pilot. Currently, MACED has recently been approved for $300,000 in funding from a W A Environmental Mitigation Grant to be applied to KER. Going forward, MACED will continue to seek outside funding sources and will also institute a schedule of fees for the services provided under the KER program to assist with the long-term sustainability of the program. W A Environmental Mitigation Grant funds will be used to subsidize a portion of

these fees.

Item 10 Page J- of 2




10. Refer to the Application, pages 6 and 7, Item No. 18.

a. On pages 6 and 7 there is a discussion about the September 2012

United State Department of Agriculture’s Rural Utilities Service (“RUS”) Notice of

Proposed Rulemaking regarding the Energy Efficiency and Conservation Loan Program

(“Program”), which proposes to allow qualified energy-efficiency programs, the

standards to which the KER Rider programs appears to comply, to constitute an eligible

use of the program funds for active borrowers in good standing with RUS.

(1) Explain what steps your particular cooperative has taken in

an attempt to ensure the KER Rider is an eligible use of the Program funds.

(2) If known, state when Program funds will be available for your

particular cooperative for energy-efficiency programs.

(3) Identify all procedures and costs necessary to implement the

Program at your particular cooperative.

b. Explain whether any additional funding supporting the on-bill

financing program has been earmarked or received to date at your particular

cooperative.

Item Ic;h



Page 2- of


Response:

a.

I. Comments were made during the comment period that

expressed our interest in the program. As of this date a

final ruling has not been made

2.

3.

Not known at this time.

Not known at this time.

b. None

Item Page j- of -1-




11. Refer to Exhibit A of the Application. Joint Applicants describe Exhibit A

as the current KY Energy Retrofit Rider Tariff with proposed changes indicated by

striking over deletions and adding or changing text as noted. Confirm that Exhibit A is

actually the proposed tariff and Exhibit B is the tariff with changes indicated.

Response:

We confirm that Exhibit A is actually the proposed tariff and Exhibit B is

the tariff with changes indicated.

Item Page of I




12. Refer to Exhibit B, page 3, of the existing rider where there is a proposed

text change to revise the annual interest rate in the Retrofit Project Charge from the

Company’s current average cost of long-term debt to the cost of capital used by the

capital provider to finance the project.

a.

b.

Explain the basis of this proposed change.

Identify how the KER Rider would be jeopardized if this specific

change is not made to the existing program.

c. State whether this change represents an increase in the Retrofit

Project Charge.

d. State whether the terms “annual interest rate” and “cost of capital’’

are synonymous for purposes of the Retrofit Project Charge.

Response:

a. The purpose of the change is to directly tie the cost of the capital used

to the interest rate in the retrofit project charge, thus keeping the capital cost

revenue neutral.

b. If the capital costs are not revenue neutral, additional capital costs

could accrue to the customer or to the coop.

C. No

d. Yes

Item 2 Page -_I_ of 1




14. This Item is requested only of Fleming-Mason. In Case No. 2012-00369,2

Fleming-Mason Energy Cooperative Inc. is requesting a rate design change as well as

new tariffs for Time of Day Rates and Inclining Block Rates in a revenue neutral case. If

approved, describe what impacts, if any, the proposed changes will have on the

administration and costs of the KER Rider at Fleming-Mason.

Response:

These changes will have no effect on the cost of the KER Rider or the

administration.

* Case No. 2012-00369, Application of Fleming-Mason Energy Cooperative, Inc. for an Order Authorizing a Change in Rate Design for Its Residential Rate Classes, and the Offering of Several Optional Rate Designs for the Residential Rate Classes, filed Nov. 21, 2012.

item 13 Page -I- of -I-




13. This item is requested only of Big Sandy. in Case No. 2012-00030,’ Big

Sandy was granted a rate increase accompanied with a change in its rate design.

Describe what impacts, if any, the granted changes will have on the administration and

costs of the KER Rider at Big Sandy.

Response :

These changes will have no effect on the cost of the KER Rider or the

administration.

Case No. 2012-00030, Application of Big Sandy Rural Electric Cooperative Corporation for an 1

Adjustment of Rates, (Ky. PSC Oct. 31, 2012).

ral blectric Cooperative Corporation - Kentucky cases/2012-00484/20130110_Joint... · Witness: Big...

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