How Strategic Energy
Management boosts
customer service
Webinar | Wednesday, May 18, 2016
Presenters
Michelle Cross, PE, CEM, PMP
CEI Program Manager, AEP Ohio
Rick Sullivan, PE, CEM, CEP
CEI Program Manager, AEP Ohio
Mark Farrell, SEM Program Manager
CLEAResult
© 2016 CLEAResult. All rights reserved. 2
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AEP Ohio Energy Efficiency Programs
Why Continuous Energy Improvement (CEI)?
CEI Results
CEI Today
Lessons Learned
How to Structure SEM
About AEP
AEP Service Territory
Energy Efficiency in Ohio
• Ohio’s Senate Bill 221 passed in 2008
– Mandated kWh and kW savings beginning 2009
– Affected AEP, Duke, First Energy and DP&L in the
state of Ohio
• Programs approved by PUCO through Utility
Plans submitted every 2-3 years
• Utility mandates were “frozen” for further review
in 2015 by SB 310
• Legislative activity regarding mandates
continues
2015 EE Programs
• Annual energy savings achieved approximately
539 GWh (business and residential programs)
– Enough to power 47,600 homes for 10 years*
• Paid an estimated $20 million in incentivesbusiness programs
* Numbers assume the average household energy consumption of 11,000 kWh per
year and a 10yr measure life
EE Programs
…for AEP Ohio Business Customers
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Prescriptive Programs
Custom Program
New Construction Program
RetroCommissioning Program (RCx)
Self-Direct Program
Express Program for Small Business Customers
Data Center Program
Continuous Energy Improvement Program (CEI)
“CEI” is our brand name for Strategic Energy Management
Why CEI?
CEI is a Strategic Energy Management approach
to achieve low/no cost energy savings
Traditional
Programs
CEI
Program
Capital intensive
for customers
“One and Done”
concept
Holistic
overview of
energy savings
opportunities
Focused on
operations and
maintenance
activities
Catalyst for Capital Projects
Identifying
Opportunities
Engaging
Employees
Building
an Energy
Team
Measuring
the Results
25% increase in capital
projects for CEI participants
Improved Customer Satisfaction
• Customer service engineers fully involved
– Positive interaction with CEI participants
– Technical training opportunity (10-12 workshops)
– Connect with all aspects of customer organization
• Peer networking
– Collaborative learning and sharing of ideas
• Energy Model – a popular, versatile tool
– Statistical regression model to track site-wide energy
usage
Building Better Relationships
Monthly customer contact
meetings
– Keep focus on energy
efficiency
Positive feedback from
Customer surveys – score of
4.4 out of 5
– Written materials
– Presentations
– Workshop usefulness
Your Trusted Energy
Advisor
Customer Testimonials
“CEI has also given us metrics we have not had
before. In past all we had is our bills and now
we have a model to predict our usage.”
“Looking forward to working with
AEP on engaging management & staff
to realize additional energy savings.”
“I appreciate the discussion from
different companies. Very open,
and we all realize we are on the
same journey.”
“ A great process for developing our
Energy Management Program.”
2014 CEI Results
37 Participants Cohorts 1-4
Paid $804,460
incentives
Realized
40.2 GWh
saved in
first year
130%
above our
target
savings
(@ 2 cents/kWh)
$3,217,835
annual electric
bill savings
(@ 8 cents/kWh)
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2015 CEI Results
37 Participants Cohorts 1-4
Paid $1,091,106
incentives
(@ 2 cents/kWh)
Additional
14.5 GWh
saved in
Year 2
35%
increase
over Year 1
$4,377,240
annual electric
bill savings
(@ 8 cents/kWh)
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2016 Status Report
100 Total CEI Participants*
- Manufacturers
- Hospitals
- Universities
Cohorts 1-4
37 companies
projecting
3.3 GWh
*75% are manufacturers
Cohorts 5-8
63 companies
projecting
47 GWh
Projecting
50.3 GWh
savings
CEI Program
• Slightly higher utility program costs are offset by
minimal or zero customer capital costs
• Fits well with customers that have exhausted their
capital project budgets
Measure
2014
2015
Total Resource Cost
2.7
1.5
Utility Cost Test
1.6
1.3
Ratepayer Impact Measure
0.5
0.6
2015 CEI Program
Total Costs for Cohorts 1-8
$2,664,144
Allocated Costs
$260,223
Customer Incentives
$1,091,106
Implementation
$1,312,814
Additional kWh for Cohorts 1-4*
14,592,358
*Cohorts 5-8 kWh savings will be credited in 2016
How CEI Builds Success
• Structure
• Accountability
• Celebration
Delivered in a format that encourages
participatory learning…
Management Involvement
Assign Executive Sponsor
Assign Energy Champion
Energy Policy & Goals
Form Energy Team
Employee Engagement
Events
Employee ideas
Communications
Training
Improvement Process
Opportunity Register
Prioritizing projects
Energy Scans
Energy Audits
Energy
Team
Planning
Energy Plan
Master Calendar
Team reports
Assessment
Measurement
Baseline data
MT&R model
Analysis
Communications
Workshop Schedule
Workshop
Title
Format
Timing
WS 1
CEI Kick Off & Building a Foundation
Combined group session - Half Day
04/01/2015
WS 2
Energy Inventory & Initial Opportunity Assessment
Individual on-site session - Half Day
Apr – Jun 2015
WS 3
Quick Strike Assessment
Individual on-site session - Half Day
May – Jul 2015
WS 4
Modeling Energy Use and Tracking Savings
Combined group session - Half Day
06/24/2015
WS 5
MT&R Process
Individual on-site session - Half Day
Jun – Sep 2015
WS 6
Quick Strike Implementation
Individual on-site session - Half Day
Jun – Sep 2015
WS 7
Engaging Employees in Energy Saving
Combined group session - Half Day
11/04/2015
WS 8
Employee Engagement Event
Individual on-site session - Half Day
Nov 2015 – Jan
2016
WS 9
Sustaining Energy Savings
Individual on-site session - Half Day
Jan – Mar 2016
WS 10
Report Out Celebration
Combined group session - Half Day
05/18/2016
CEI Roadmap
Low / No Cost Measures
• Turning equipment off when not needed
– Difficult to change behavior, but this is the #1 opportunity
• Fixing compressed air leaks
• Compressed air system optimization
• Production scheduling optimization
– Maximize operational equipment efficiency
• Formalizing equipment shutdown procedures
– During low production periods, weekends, and evenings
• Improving process yield
• Delamping
Performance Tracking Using Energy Model
Customer Recognition
Customer Recognition
Crown Battery receives the AEP Ohio Sustained Excellence Award for their sustained
energy efficiency. Left to right: Mark McCullough (AEP EVP Generation), Karen
Sloneker (AEP Ohio Director of Customer Services & Marketing), Matt Culbertson
(Crown Battery), Julie Sloat (AEP Ohio President and COO), Alberto Ruocco (AEP VP
and CIO).
Make it Fun!
Case Studies
Biggest Hurdles
• Need buy-in from Executive Sponsor
– Top management support is the key to success
• Energy Champion needs to spread the
responsibilities
– Diverse team should include maintenance, operations,
financial, engineering, marketing, HR
– 3-5 person core team with subject matter experts on
hand
• Maintain focus
– 15-minute pulsing meetings every other week or
monthly are quite effective
Hidden Gems
• Improved work environment
– Typically achieve noise reductions and safety
improvements
• Team building across departments
• Piggyback on other programs
– Tie-in to existing Lean, Quality, Safety, Sustainability,
Green Team, and GHG programs
• Positive aspects for utility
– Improves utility / customer relationship
AEP Ohio Residential Programs
In-home Energy Program
LED and CFL Discounts
Efficiency Crafted New Homes
Online Energy Profile
Visit AEPOhio.com/ItsYourPower for a list of all
residential programs and more information.
How to structure SEM
 Select a provider that has coaching and
technical expertise
 Behavioral and culture change are challenging
 High level of expertise builds credibility
 Two-year program is preferable
 Provides time to develop Energy Team
 Spreads costs and kWh savings more evenly
 Quality of interactive workshops is crucial
 Participatory learning
 Engage customers
© 2016 CLEAResult. All rights reserved. 32
How to structure SEM
 Target a minimum size for participation
 Cohorts 1-4 had 10 GWh annual use threshold
 Cohorts 5-8 had 3 GWh minimum
 Smaller companies typically have limited resources
 Highlight total bottom line dollar savings
 Incentive ($0.02/kWh) is only portion of savings
 Electricity bill savings can be 4-5 times greater
 Focus on customer satisfaction
 Energy savings becomes side benefit
 Many additional intangible benefits
© 2016 CLEAResult. All rights reserved. 33
Q&A
Please submit your
questions via Chat panel
© 2016 CLEAResult. All rights reserved. 34
Rick Sullivan
AEP Ohio
CEI Program Manager
[email protected]
Michelle Cross
AEP Ohio
CEI Program Manager
[email protected]
Thank you!
Mark Farrell
CLEAResult
Director, SEM Midwest
[email protected]