Serving our customers
2016-17 CONSERVATION plan
Table Of
Contents
01
Introduction from Steve Bicker
02
Differences between 2014-15 and 2016-17
04
Conservation at Tacoma Power
08
Conservation Resources 2016-17
09
Planned 2016-17 program activity
10
Commercial/industrial programs
18
Residential programs
27
Northwest Energy Efficiency Alliance
28
Other sources of energy savings
29
Community solar and net metering
30
Measurement and verification
Introduction from Steve Bicker
Dear Reader:
I’d like to recognize my
Thank you for your interest in Tacoma Power’s
staff in Conservation
2016-2017 Conservation Plan.
Resources Management
(CRM). To bring our
Tacoma Power takes energy conservation very
customers this most
seriously. As communities grow, their utility is
affordable of all power resources, these leaders,
usually faced with needing to acquire additional
analysts, engineers, product and market experts,
power generation like solar, wind or natural
office assistants and administrative assistants
gas generation. In recent years, Tacoma Power
work as a close knit team to help customers
has worked very hard to avoid these expensive
understand their energy options and our programs.
acquisitions, which invariably require utilities to
raise their rates. To help postpone or reduce future
rate increases and maintain a clean power portfolio
of almost entirely renewable hydropower, we have
focused on conserving energy. This, together with
retailers and mom and pop shops, to engineering
firms, wholesalers and other regional program
serving customers wishing to reduce their energy
contributed to Tacoma Power customers enjoying
some of the lowest electricity rates in the country.
use and make the energy of the future cleaner and
more secure. In additional to thanking CRM, we owe
special thanks to individuals in some key sister
This plan is written with many audiences in mind.
It is a report to Senior Management and our Public
Utility Board, a detailed program implementation
departments such as Energy Resource Planning and
Evaluation, Community and Media Services, Market
Development and Government Relations. They
roadmap for our staff and a tool for developing
have been incredibly helpful and true partners in
our 2017-2018 budget. For government officials
assisting us with planning and evaluation, market
and staff, it is an explanatory document outlining
how Tacoma Power intends to meet its obligations
under the law. For other utilities and program
research, advertising, public relations and public
policy objectives. This is not a complete list of all
who contribute to our success, both inside and
implementers, it may serve as a benchmarking
tool. We have tried to be cognizant of these various
audiences in our writing, but realize you may still
have questions after reading it. If so, we are happy
to further discuss our programs with you.
outside the City of Tacoma, and our gratitude
extends to others too numerous to name who help
us save our customers energy and money.
I hope you enjoy reading our Conservation Plan.
If you read earlier Conservation Plans, you will note
that this plan has been condensed from previous
plans. This was intended to make the Conservation
variety of readers.
from equipment dealers and installers, to big box
implementerss — to partner in a common vision of
our low cost hydro resources, has significantly
Plan more readable and accessible to a wider
They also work with many trade allies — ranging
I would be happy for feedback on any part of this
plan you might care to offer.
Steve Bicker
Assistant Power Section Manager / CRM Senior
Manager
[email protected]
TACOMA POWER 2016/17 Conservation Plan
1
differences between
2014-15 and 2016-17
Integrated Resource Plan
Changes to Assumptions and Baselines
The 2013 Integrated Resource Plan (IRP) indicated that annual
During the 2014-2015 biennium, the Bonneville Power
supply would not be adequate to meet customer loads beginning
Administration (BPA) made two major changes to savings
in 2025 under critical water conditions. It also showed significant
assumptions used by Tacoma Power. These changes impact
gaps between supply and demand in the fall and winter quarters
what measures we offer, the incentives we pay to customers and
beginning in the early 2020s under low water conditions. Since
program design.
that analysis, Tacoma Power has significantly reduced the load
forecast to reflect the observed reduction in retail load growth.
This reduction, coupled with other changes, led to the 2015 IRP’s
conclusion that Tacoma Power will not need to acquire new
resources beyond energy conservation during the next 20 years.
Weatherization
The Regional Technical Forum (RTF) reduced unit energy savings
estimates for all residential weatherization measures. The change
was based on an updated Simplified Energy Enthalpy Model
(SEEM) with data from the Residential Building Stock Assessment
Increased Target
(RBSA) and results from an Energy Trust of Oregon study.
Tacoma Power’s 2016-2025 Conservation Potential Assessment
Energy savings were reduced for all residential weatherization
(CPA) identified more economically achievable energy savings
measures. However, window and attic insulation had the largest
than the 2014-2023 CPA, resulting in a 15% larger target. This
reduction. BPA adopted the lower energy savings in October 2015.
increase occurred despite a lower price forecast and fewer cost
effective residential measures. The increase is driven by lower
cost LED lighting
within all sectors
and new data from
a recent commercial
building stock
assessment. This
chart illustrates
how the target
has increased
and how some of
the conservation
potential has
shifted from
residential to
commercial.
2
TACOMA POWER 2016/17 Conservation Plan
The reduced energy savings, combined with a lower wholesale
power forecast, caused several popular weatherization measures
to fail our cost effective test. As a result, Tacoma Power
is removing the following measures from our Residential
Weatherization, Low-Income and Multifamily programs in
2016:
•Single-pane windows (5+ unit multifamily buildings only)
•Double-pane windows (all building types)
•Attic R19-R49 insulation (all building types)
Commercial Lighting
In July 2012, the Energy Policy Act (EPACT) and Energy
Independence and Security Act (EISA) prohibited the
manufacture and import of certain inefficient light bulbs.
After reviewing regional sales data, BPA determined EPACT
and EISA had transformed the commercial lighting market.
BPA has revised calculation methods to assume future retrofits
will be made using EPACT- and EISA-complying products. This
is counter to our observation that many inefficient products
continue to reside in commercial buildings within our service
territory. However, to comply with BPA reporting requirements,
we have adopted the new commercial lighting baseline change,
which results in lower reportable energy savings and lower
incentives paid to our customers.
Community Solar and Net Metering
Tacoma Power is implementing a new community solar program.
Under this program, customers may purchase a unit of Tacoma
Power’s new solar installation. Tacoma Power will leverage our
experience in project management and programs delivery to
ensure the new program is successful. The project is expected to
begin service by June 2016. Community Solar and Net Metering
are supported by CRM staff and budget. (Cost of non-resource
acquisition programs such as community solar are not included
Trade Allies
Starting in 2015, CRM reinvigorated efforts to enlist third-party
companies and contractors who design, sell or install highefficiency equipment or offer solutions that qualify for our
incentive programs. By partnering with these companies, known
as “trade allies,” Tacoma Power will reach a larger portion of our
customers than staff could alone. In 2015, CRM allocated a staff
member to managing Tacoma Power’s network of trade allies. We
are making the following improvements to make our programs
more trade-ally friendly:
• Modifying our program rules and messaging to be
consistent across all programs
• Using the latest technology to exchange information with
trade allies
• Develop, track and share performance indicators with
trade allies
• Develop and implement joint marketing
in the economic analysis.)
TACOMA POWER 2016/17 Conservation Plan
3
conservation
at Tacoma Power
Business Case for Conservation
While the IRP determines conservation’s role in Tacoma
The business case for energy conservation is compelling.
Assessment (CPA) determines the potential for cost-effective and
Providing incentives to use energy more efficiently is the
cheapest, cleanest way to fulfill our obligation to serve our
customers.
Power’s resource portfolio, the ten-year Conservation Potential
achievable conservation acquisitions within our service territory.
In 2015, Applied Energy Group (AEG) conducted a CPA for Tacoma
Power. The CPA examined more than 7,000 unique conservation
Load Resource Balance
Conservation plays a key role in meeting our future energy needs
by deferring acquisition of costly new resources. Conservation
is Tacoma Power’s first resource — it’s available today and costs
measures to determine our economic and achievable potential.
AEG’s methodology is consistent with the Northwest Power and
Conservation Council (NWPCC) and fulfills our obligations under
the Energy Independence Act (RCW 19.285).
less than other resource alternatives*. The chart below contrasts
The CPA identified 46.8 aMW of achievable cost-effective
conservation resources cost with alternatives from Tacoma
conservation in our service territory during 2016-2025. CRM’s 2016-
Power’s 2015 Integrated Resource Plan.
2017 target, a pro-rata share of the 2016-2025 potential,
Tacoma Power uses an integrated resource planning process
to decide how much conservation to acquire over our planning
is 9.4 aMW.
horizon. The IRP compares available supply-side and demand-
Customer Benefits
side resources to identify an optimal resource mix for the
While CRM’s programs keep all customers’ energy bills low in
future that minimize our costs and risks. Tacoma Power’s Energy
the long run, program participants receive immediate financial
Resource Planning and Evaluation team found that energy
savings. The 2016-2017 Conservation Plan has a program for
conservation is the only resource we need to acquire for 20 years.
everybody in our service territory. Customers can save between
5 to 30 percent of their electricity costs by participating in our
energy conservation programs.
* Conservation resource costs are
calculated using Acquisition Cost
Analysis (ACA). The ACA looks at
Tacoma Power’s cost to acquire
energy savings, including all costs
incurred by the utility (incentives,
staff overhead and marketing). ACA
does not include costs assumed
by the customer. These values may
differ from estimated TRC values
found in the CPA and IRP.
4
TACOMA POWER 2016/17 Conservation Plan
It is well known within the industry that energy efficiency
Because failing to meet the EIA target is not an option, Tacoma
programs improve customer satisfaction. J.D. Power reports that
Power establishes program goals and budgets to achieve more
simply offering energy conservation programs raises customer
than our target. Planned energy savings beyond our 9.4 aMW
satisfaction scores by about 100 points on a thousand point
target for 2016-2017 is a risk reduction strategy.
scale. Tacoma Public Utilities has begun building new internal
market research capabilities and will do more tailored and
Conservation Budget Risk Mitigation
specific research to better understand how Tacoma Power
The 2016-2017 Conservation Plan is aligned with the state’s
customers prefer to learn about and use CRM’s conservation
regulatory EIA biennium. However, Tacoma Power’s 2015-2016
programs.
budget biennium is based on City of Tacoma budget cycles.
This strategy supports an accurate planning process, but is
Environmental Stewardship
somewhat constrained by our approved 2015-2016 budget.
In addition to load resource balance and customer satisfaction,
References to 2017 expenditures and budget allocations are
Tacoma Power feels a strong obligation to make the best
estimates. The actual budget will require Public Utility Board
use of our hydro resources. Energy conserved through our
approval of Tacoma Power’s 2017-2018 Capital and O&M budget.
conservation programs allows Tacoma Power to meet future
energy demand from our current sources of clean, renewable
hydropower.
Legislative Mandate
In 2006 Washington State voters voiced their desire for utilities
Currently CRM has an approved 2015-2016 budget of
$32,640,000. Additionally, $1,880,000 is budgeted for workgroups
outside of CRM: Community and Media Services (marketing) and
Energy Resource Planning and Evaluation. Tacoma Power’s total
conservation budget is $34,520,000.
to provide more energy conservation by passing Initiative 937,
Conservation incentives paid to Tacoma Power customers are
the Washington Energy Independence Act (EIA) (RCW 19.285).
the largest expense category, accounting for approximately 62%
While primarily a renewable portfolio standard, the EIA requires
of planned expenses. Program labor, marketing and contracted
mid- and large-sized utilities of 25,000 customers or more
implementation account for approximately 15% of planned
to acquire all “cost-effective and achievable” conservation.
expenses. The remaining 23% is shared between overhead,
This has been interpreted as a pro-rata share of the 10-year
research/evaluation costs and marketing labor.
economic achievable potential identified by our CPA.
Policy for Conservation Target and
Budget Setting
Target Setting and Reporting
The EIA makes two key points governing how we set
conservation targets.
1. Targets set under RCW 19.285 apply to the compliance
biennium and not to individual years.
2. RCW 19.285 / WAC 194.37 do not require individual
programs or sectors to account for any particular part of
the overall target.
Conservation programs are sensitive to overspending:
• Large commercial and industrial projects can have lead
times up to several years, with timetables that change
rapidly.
• It is difficult to predict which efficient products will be
popular and what new technology will be available in the
market.
• Economic drivers beyond our control may drive
participation above historical levels.
To manage these risks, Tacoma Power has developed a
conservation budget reservation system to ensure funds are
reserved and not promised to more than one customer. The
While Tacoma Power’s Conservation Plan must use program-
system tracks program funding allocations to determine how
specific assumptions, including unit energy savings and
much has been spent, how much reserved and how much is
numbers of units, there is no requirement for these
forecast to be spent. Projects under contract and expected
assumptions to carry though to implementation. We regard
to be completed within the budget biennium will have funds
our portfolio mix as a tool to manage risk. This is important,
reserved to ensure incentives are available and avoid the
as individual programs may over- or under-perform due to the
potential for over commitment.
unpredictable nature of the energy efficiency market.
TACOMA POWER 2016/17 Conservation Plan
5
Sensitivity Analysis
Tacoma Power uses a Monte Carlo approach, which examines multiple program outcomes across the conservation portfolio to ensure
planned acquisitions and budgets are adequate to meet regulatory and load/resource needs. Managers and supervisors predict program
performance using past experience, current participation levels and market knowledge. This knowledge is modeled using probability
distributions to test the impact on budget and energy savings acquisitions for a variety of program outcomes. The table below illustrates
the probability of outcomes given program variability for 10,000 combinations of program performance factors.
Analysis shows our portfolio met or exceeded targets in more than 90% of model runs. Based on this analysis, absent a radical policy
change or market shift, CRM is confident its portfolio will meet Tacoma Power’s acquisition needs.
The next table illustrates that Tacoma Power needs to increase CRM’s capital budget to meet the 9.4 aMW target. Based on the analysis,
the current capital budget of $21,100,000 would meet our needs in only 57% of the model runs. A budget above $22,100,000 would be more
suitable given the larger target identified by the IRP and CPA.
6
TACOMA POWER 2016/17 Conservation Plan
Finally the chart below shows which programs in our portfolio have the most significant performance variability. NEEA energy savings
has the most variability, but use of conservative assumptions minimizes risk. In these scenarios, NEEA is an upside risk. Large C/I
programs have the most downside risk due to the unpredictable nature of large projects and long lead times.
Portfolio Design Principles
CRM uses three key principles to design the conservation
portfolio:
1. Conservation is IRP driven
2. Conservation programs must satisfy customers
3. Conservation spending must be equitably distributed
Development of the portfolio requires careful balancing of
these sometimes competing portfolio design principles.
• Total Resource Cost Test (TRC) – The EIA requires that
utilities use a TRC test to determine if a conservation
measure is cost effective. Tacoma Power believes the
TRC test best ensures that rate funds are used properly
for energy efficiency, avoiding subsidy of technologies
that are not in the best of interest of the region. The
TRC compares the present value of total benefits to the
present value of total costs paid by Tacoma Power and
program participants. All conservation programs offered
by Tacoma Power must pass the TRC test.
• Utility Cost Test (UCT) – The UCT projects the financial
Conservation is justified in Tacoma
Power’s IRP
Tacoma Power’s IRP helps make the business case for the
conservation planning process. The “Smooth Sailing” scenario
from the IRP provides the price curve to analyze resources
in the CPA. These price forecasts favor measures that reduce
load during heavy load hours, typically during the winter
when Tacoma Power’s customers use electricity for heating.
Finally, the IRP sets the EIA conservation target approved by
the Public Utility Board and submitted to the Washington State
Department of Commerce.
In addition, we use several cost effective models to test
programs within the conservation portfolio. Each of these
models reflects a different economic perspective on energy
efficiency.
impacts of conservation programs on Tacoma Power,
specifically how a program’s cost impacts electric
revenues. The UCT compares the costs of offering a
program, including utility-paid program costs and lost
retail revenues, to the benefit of avoided power supply
costs. Tacoma Power works to maximize energy savings
from programs with a low UCT, but must also balance
equity concerns, as these programs are primarily focused
on large industrial customers.
• Participant Test (PT) – The PT ensures program
participants are better off participating in our energy
conservation programs. The PT uses a simple comparison
of costs to benefits to measure the attractiveness of a
program to a customer. Tacoma Power uses the PT to
determine if customers would likely participate in a given
program.
TACOMA POWER 2016/17 Conservation Plan
7
Conservation must be marketed
In the marketplace, energy conservation investments such as
Conservation must be distributed
equitably among customer groups
home insulation compete for consumer dollars against other
Conservation programs at Tacoma Power are funded through
home investments such as granite countertops. Tacoma Power
power rates. Because all customers pay rates, it is important all
must market programs to capture customers’ attention, motivate
customers have access to our energy conservation programs.
them to take action and ensure their satisfaction with the
While most low-cost energy savings come from large commercial
experience, the products and the energy savings. Residential
and industrial customers, it is important to provide programs
marketing that promotes home comfort as well as reduced
for residential customers who have uncomfortable homes with
energy costs are effective to motivate customers to participate.
high energy bills but may be unable to afford home efficiency
Commercial/industrial programs marketing is effective when
improvements.
promoting reduced overhead and maintenance costs, which help
make companies more profitable.
Low-income customers pay a significant share of their household
budget to heat older, poorly-insulated homes. Providing energy
We are marketing even in our choice of which programs Tacoma
conservation assistance enables these customers to lower their
Power will offer. Efficient products that delight customers
utility bills, which in turn improves the likelihood they pay their
will, over the long run, boost involvement in energy-efficiency
bills on time.
programs and reduce our promotional expenses. This is true even
if the measure delivers slightly lower energy savings than an
alternative product that saves more but annoys the consumer.
ConservatioN
resources
2016-17
CRM proposes to acquire 9.55 aMW of
conservation resources at a cost of $34,841,000
for the 2016-2017 biennium. The table below
details economic analysis of proposed programs.
Metric
Portfolio
C/I
Residential
NEEA
Projected energy savings
9.54 aMW
5.30 aMW
2.64 aMW
1.60 aMW
Acquisition cost
$31/MWh
$22/MWh
$40/MWh
$11/MWh
TRC benefit/cost ratio
1.3
1.5
1.1
4.1
2017-18 capital budget*
$22,097,000
$10,389,000
$11,242,000
$466,000
* Budget numbers estimated using 2017 assumptions. Actual budget will be
8
TACOMA POWER 2016/17 Conservation Plan
approved through Tacoma Power’s biennial budget process.
0.04
0.37
0.22
Custom Projects
Low-Income
Multifamily
NEEA [12]
-$1,360
-$1,559
-$1,552
-$3,899
-$108
-$202
-$1,129
-$11
--
-$34
-$56
-$20
-$45
-$34
-$24
-$33
-$40
--
-$10
-$18
-$30
-$36
-$20
-$22
-$22
--
-$31
100 : 0
--
74 : 26
100 : 0
58 : 42
100 : 0
61 : 39
40 : 60
88 : 12
74 : 26
--
100 : 0
69 : 31
100 : 0
100 : 0
54 : 46
53 : 47
58 : 42
--
65 : 35
Cost
Shares [8]
(Utility :
Customer)
$3
1.1
1.7
1.0
1.4
1.1
1.3
1.1
--
4.0
2.1
1.6
1.3
1.6
1.3
1.5
--
1.3
$3,521
$83
$92
$695
$1,400
$3,315
$10,395
--
$278
$1,600
$358
$212
$3,868
$3,942
$10,257
--
$21,118
Program
Incentives
(000s)
0.0
2.3
0.0
5.6
6.3
0.5
--
--
0.0
1.9
0.0
0.0
5.3
3.1
--
--
--
Payback
(years)
-$5,558
-$230
-$304
-$2,003
-$3,578
-$7,085
-$22,976
-$1,273
-$194
-$2,100
-$1,137
-$585
-$1,977
-$7,174
-$14,439
-$5,105
-$46,743
Utility
Cost Test
(000s)
-$80
-$42
-$68
-$60
-$46
-$56
-$63
--
-$3
-$20
-$55
-$62
-$8
-$32
-$22
--
-$40
Levelized
Utility Cost
Test ($/MWh)
Rates [4]
$3,521
$86
$97
$695
$1,400
$4,150
$11,242
--
--
$1,971
$538
$212
$3,588
$4,080
$10,389
--
$22,097
Capital
(000s)
$426
$26
$75
$439
$413
$300
$3,478
$1,436
$600
$314
$84
$130
$845
$1,048
$4,456
$3,215
$11,423
O&M
(000s)
$19
utility.
1.4
$1,290
3.0
-$2,697
-$59
$1,294
$278
--
--
--
-$1,519
--
--
$1,521
4.1
$466
--
-$4,223
-$34
$466
$274
plan development the 2015-2016 budget is sufficient to cover planned 2016 expenses.
5. TPU budget and I-937 reporting beinniums do not align. The 2017-2018 budget request will be twice estimated 2017 expenses. At time of
12. Analysis includes funds paid by BPA from Tacoma Power wholesale rates.
incentives and acquire savings over three or five years. All program metrics for (except Projected Savings) are for the appropriate program life.
11. Strategic Energy Management includes the High Performance Energy Manager (HPEM) and Track & Tune industrial behavioral programs. These programs pay
Marketing and Energy Resource Planning) are included at the Portfolio level.
10. Totals and averages include sector and portfolio administrative costs not included in program level ACA. Additionally, costs for workgroups outside CRM (TPU
include the effect of BPA High Water Mark on resource options.
9. Programs must have a B/C ratio above 1.0 to be considered cost effective.
4. Rates analysis (also known as the RIM test) looks at the total cost to Tacoma Power (including lost rate revenue). Calculations do not
8. Cost Share based on incremental cost. Ratio is estimated and will vary by measure and may change over time.
7. Present Value (PV) ACA includes the cost of money for programs that offer customers loans. PV Program Costs differ from program budgets.
6. Projected Savings based on first year project savings (except Strategic Energy Management; savings based on estimated reportable savings for 2016 and 2017).
2015 savings).
5. Projected Savings based on first year savings for projects completed in 2014 and 2015 (except Strategic Energy Management which is based on estimated 2014 and
on resource options or costs.
$34
Utility Cost calculations include all program costs, retail energy impact, and wholesale energy impact. Calculations do not include the effect of High Water Mark
4. Utility Perspective (sometimes referred to as the RIM test) represents the impact to utility revenue and operating costs to acquire the conservation resource.
--
3. Participant Perspective represents customer benefits relative to costs.
2. Total Resource Cost (TRC) represents the impact to society. TRC calculations include all quantifiable benefits and costs to the utility and customer.
$740
--
--
--
--
--
--
--
--
$14,720
--
--
--
--
--
--
--
$14,845
--
$33,520
Total
(000s)
2017-18 Budget Request [5}
CRM Budget
1. Program Cost Analysis (PCA) represents the cost to acquire the conservation resource. PCA considers costs incurred by the utility and actors on behalf of the
Notes
$23
$0
$20
$3
$11
$6
--
$30
$27
$18
$11
$18
$11
$16
--
$11
TRC B/C
Ratio [9]
Participant [3]
Cost Effective Analysis
3. Participant Perspective looks at customer benefits and costs.
pass-through costs.
2. Total Resource Cost (TRC) looks at the societal impact of acquiring energy savings. TRC includes all benefits and costs and excludes
including incentives, staff overhead and marketing.
$4,180
-$1,559
$888
$235
$124
$1
$671
$253
$1,420
$2,034
-$1,273
$1,925
$2,881
$372
$106
$4,382
$2,426
$10,820
-$5,105
$11,929
TRC
Levelized
($/MWh)
Total Resource Cost [2]
TRC NPV
(000s)
1. Acquisition Cost Analysis (ACA) looks at Tacoma Power’s cost to acquire energy savings. ACA includes costs incurred by the utility,
Notes
1.60
0.06
Distribution
Residential Non-Program Costs
0.12
-$1,853
-$4,245
Weatherization
-$644
0.51
0.40
Strategic Energy Management [11]
-$1,881
Heating Systems
0.80
New Construction
-$613
1.32
0.20
Energy Smart Grocer
-$337
Retail
0.10
Equipment Rebates
-$4,675
-$14,546
1.70
Custom Retrofit
-$4,994
2.64
2.10
Bright Rebates
-$14,417
Residential
Totals / Weighted Averages [10]
5.30
Commercial/Industrial
Totals / Weighted Averages [10]
-$5,105
-$1,273
--
Portfolio Non-Program Costs
-$35,428
PV ACA [7]
(000s)
PV ACA
Levelized
($/MWh)
Acquisition Cost [1]
C/I Non-Program Costs
9.54
CRM Sector Totals
/ Weighted Averages [10]
Projected
Savings [6]
(aMW)
Savings
Program Savings and Costs
PLANNED 2016-17 Program Activity
commercial/industrial
programs
* Budget numbers estimated using 2017 assumptions. Actual budget will be
10
TACOMA POWER 2016/17 Conservation Plan
approved through Tacoma Power’s biennial budget process.
CRM offers a variety of programs to help businesses save money by reducing their
energy usage. Some programs pay an incentive for products across a technology class,
such as Bright Rebates that focuses on lighting technology. Other programs offer a suite
of incentives targeting specific businesses, such as our Energy Smart Grocer program
that works with grocery and convenience stores.
Metric
C/I
Projected energy savings
5.30 aMW
Acquisition cost
$22/MWh
TRC benefit/cost ratio
1.5
2017-18 capital budget*
$10,389,000
TACOMA POWER 2016/17 Conservation Plan
11
C/I program
Bright Rebates
$4,994,000
planned Capital and O&M expenditures
$22 / MWh
planned levelized costs
22%
1.3
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
2.1 aMW
energy savings
“The difference was clear right
away. We just didn’t know what we
were missing until we had something
to compare it to.”
Program overview
The Bright Rebates program encourages customers to improve their facilities and
reduce energy usage by retrofitting their lighting equipment. Types of lighting
equipment typically include:
• Interior and exterior lighting
• Lighting controls
Gary Mullan
• Street lighting
Mullan’s Collision Center
Incentives
How Customers participate
Tacoma Power pays $0.17 per kWh* for energy savings from the Bright Rebates
Commercial and industrial customers typically work
program. In the 2016-2017 biennium we may explore increasing incentives to
directly with Tacoma Power’s lighting trade allies.
keep customers engaged and reach new customers. Additionally, the program
Electrical contractors, distributors, energy service
offers technical design assistance to help customers meet lighting needs while
companies (ESCOs) and manufacturers’ representatives
reducing energy consumption.
allied with our program promote and assist our
customers with program documentation.
New challenges for 2016-2017
Recent changes to BPA’s baseline calculations have lowered energy savings for
Additionally, some projects come from direct customer
customers with T12 linear fluorescent lighting. This may limit some projects as
contact with CRM staff or Tacoma Power’s Account
the baseline change reduces payable incentives despite offering significant kWh
Executives.
savings.
Tacoma Power is looking at several strategies to mitigate this issue, including
a midstream distributer buy down and a direct install program aimed at small
businesses.
*Payments are based on first year savings, with a maximum payment of
70% of project cost. Savings calculated using the BPA Lighting Calculator,
12
TACOMA POWER 2016/17 Conservation Plan
which provides a combination of rebates for deemed measures and custom
calculations for complex projects.
C/I program
Custom Retrofit
$4,675,000
planned Capital and O&M expenditures
18%
$20 / MWh
planned levelized costs
1.6
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
1.7 aMW
energy savings
“We would not have made the
Program overview
The Custom Retrofit program encourages customers to purchase and install
change had it not been for the Tacoma
energy efficient equipment in existing commercial and industrial facilities.
Power Incentive.”
The program is very flexible and may be used on a variety of projects, ranging
from complex industrial retrofits to relatively simple HVAC projects. Types of
Lenny Becraft
equipment commonly paid for under this program include:
Rainier Veneer
• Compressed air systems
• Heating, ventilation and air conditioning (HVAC)
• Motors, pumps, fans, controls
• Industrial process
How Customers participate
Commercial and industrial customers work through a
Incentives
trade ally or CRM staff. Staff provides technical review,
Tacoma Power pays an incentive of $0.23/kWh* for energy savings from the
suggests efficient options and assists customers with
Custom Retrofit program. During the 2016-2017 biennium, Tacoma Power is
program documentation. For industrial projects, Tacoma
researching whether to increase incentive levels. Additionally, the program funds
Power also leverages BPA’s EnergySmart Industrial
energy conservation audits and studies for complex projects. Incentives are
Program to provide additional technical support and M&V
limited to 50% of the approved study cost and must be performed by a qualified
assistance.
engineering firm.
New challenges for 2016-2017
Tacoma Power plans to expand communication, develop resources and enhance
tools for trade allies, enabling them to extend the reach of the Custom Retrofit
program.
*Payments are based on first year savings, with a maximum payment of
70% of project cost. Savings calculated by CRM using standard industry/RTF
methods.
TACOMA POWER 2016/17 Conservation Plan
13
C/I program
Energy Smart Grocer
$613,000
planned Capital and O&M expenditures
$30 / MWh
2%
planned levelized costs
1.6
TRC B/C ratio
0.2 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
“There’s no downside to these
changes. They help us become a better
community partner, and it’s great for
the environment.”
Program overview
Tacoma Power participates in the EnergySmart Grocer program offered by BPA.
This program encourages restaurants, grocery and convenience stores to adopt
new energy efficiency measures. Types of equipment typically include:
• Food preparation equipment
• Grocery refrigeration equipment
Mike Hargreaves
• Refrigerated case lighting
Stadium Thriftway
Incentives
How Customers participate
Tacoma Power pays a flat incentive rebate for installation of new energy efficient
Restaurants, grocery and convenience store customers
equipment within the grocery sector. No-cost energy audits are also offered to
work directly with CLEAResult, a BPA implementation
our customers through a third-party contract with CLEAResult.
contractor working on behalf of Tacoma Power.
CLEAResult assists our customers with program
documentation and pays the incentive directly to the
customer upon completion.
New challenges for 2016-2017
BPA is scheduled to end the EnergySmart Grocer program in early 2016. Tacoma
Power will explore alternative options to continue meeting this sector’s
needs, including transitioning customers to other Tacoma Power programs or
participation in a regional version of the current program.
14
TACOMA POWER 2016/17 Conservation Plan
C/I program
Equipment Rebates
$337,000
planned Capital and O&M expenditures
1%
$36 / MWh
planned levelized costs
1.3
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
0.1 aMW
energy savings
“Working with Tacoma Power to
Program overview
The Equipment Rebates program encourages customers to reduce energy by
get the rebate was a quick and easy
purchasing and installing qualifying products. Types of equipment include:
process.”
• Engine block heaters
Anna Soderstrom
• Office equipment
• Air conditioners and heat pumps
Port of Tacoma Container Terminal
• Food preparation equipment
Incentives
Tacoma Power pays fixed incentives per unit and does not require custom energy
How Customers participate
calculations to determine the incentive amount. Tacoma Power will review and
Retailers assist Tacoma Power’s Commercial and
adjust qualifying products and incentives to meet changing customer needs in
Industrial customers by providing education on efficient
2016-2017.
equipment and promoting our Equipment Rebate
program. Customers who purchase new equipment that
New challenges for 2016-2017
meets or exceeds our energy efficiency specifications
Tacoma Power plans to expand the program’s customer outreach in 2016-2017.
Staffing changes have been made within CRM to leverage retail experience from
the residential sector and expanded marketing efforts will be used to increase
and submit required program documentation receive an
incentive upon completion of their projects.
program awareness.
TACOMA POWER 2016/17 Conservation Plan
15
C/I program
New Construction
$1,881,000
planned Capital and O&M expenditures
$18 / MWh
8%
planned levelized costs
2.1
TRC B/C ratio
0.8 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
“That we’re saving energy and
doing something for the environment
— it means a lot to the people who
work here.”
Rick Elliot
Program overview
The New Construction program offers incentives and design assistance for new
construction and major remodel projects. This program provides incentives to
Tacoma customers, developers and design professionals involved in multiple
design phases of new construction projects. Incentives provided are focused on
three major building systems:
• Interior and exterior lighting
Penske Logistics at Whirlpool
• Heating, Ventilation and Air Conditioning (HVAC)
• Windows and insulation
How Customers participate
Commercial and industrial customers with new
Incentives
construction projects work through their architecture and
Tacoma Power pays an incentive of $0.20/kWh for energy savings that exceed the
engineering firms or through direct contact with Tacoma
Washington State Energy Code.* The program also provides design incentives
Power staff. CRM Staff provides technical review, suggests
to engage our customers early on in the design process. In 2016-2017 Tacoma
efficiency options and assists customers with program
Power will research if higher incentive levels are needed to offset the impact of
documentation. New Construction program requirements
Washington State’s new energy code.
are designed to be straightforward and flexible, allowing
our customers to participate at all stages of design.
New challenges for 2016-2017
A new Washington State Energy Code will take effect in July 2016. The new
code features stricter baselines, which reduces claimable energy savings and
incentives.
*Payments are based on first year savings that exceed the Washington State
Energy Code. Tacoma will pay up to 100% of the incremental cost of the
16
TACOMA POWER 2016/17 Conservation Plan
project above a code baseline solution. Savings calculated by Tacoma Power
using standard industry/RTF methods.
C/I program
Strategic Energy Management
$644,000
planned Capital and O&M expenditures
4%
$10 / MWh*
planned levelized costs
4.0
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
0.4 aMW
energy savings
Program overview
Incentives
Tacoma Power leverages BPA’s Energy Smart Industrial initiative to offer a variety
Current HPEM program participants receive payments
of resources for industrial facilities, including Strategic Energy Management and
based on operations and maintenance energy savings
Energy Project Manager co-funding. These resources provide customers with
over five years. Future programs will pay incentives and
assistance on how to save energy, assess opportunities and create an energy
acquire energy savings over a two-year period.
management team. Three program variants are currently offered:
• High Performance Energy Management (HPEM): Targets large industrial
customers seeking ways to save energy through system-wide operations
and maintenance improvements. A structured network of participants
is established to share best practices and learn in a group setting. The
program includes monthly group meetings facilitated by HPEM coaches
where participants learn from peer experience. Incentives are based on
operations and maintenance energy savings below a baseline model
developed for each facility.
• Track & Tune: Targets operations and maintenance improvements
achievable through a “tune-up” process requiring little or no capital
investment. Track & Tune can be applied to an entire plant or targeted
sub-systems within an industrial facility. Good candidates use either more
than 1 million kWh per year in a sub-system or more than 4 million kWh
per year plant-wide. Incentives are based on operations and maintenance
energy savings below a baseline model.
• Energy Project Manager: Provides co-funding to large industrial
customers who hire an “energy champion” to identify energy savings
opportunities. The energy champion must manage capital projects that
result in at least 1,000,000 kWh of energy savings. Incentives are paid
based on kWh saved for implemented energy conservation measures.
New challenges for 2016-2017
BPA is considering expanding their SEM program to
include large commercial customers. In the event that
BPA develops a large commercial SEM offering, Tacoma
Power may choose to expand our program and engage
this customer class. In absence of a BPA offering, Tacoma
Power may pilot a large commercial SEM offerin
How Customers participate
BPA establishes program criteria through the Energy
Smart Industrial initiative (ESI). ESI focused on large
industrial customers due to cost of training and program
implementation, as well as complexity of engineering
calculations..
* All program metrics for (except projected energy savings) are for over a
five-year program life.
TACOMA POWER 2016/17 Conservation Plan
17
Residential
programs
* Budget numbers estimated using 2017 assumptions. Actual budget will be
18
TACOMA POWER 2016/17 Conservation Plan
approved through Tacoma Power’s biennial budget process.
Tacoma Power offers a variety of energy conservation programs that help our residential
customers save money and keep their homes comfortable. Our residential programs
are organized by market channel, such as weatherization installers, allowing Tacoma
Power to leverage residential trade allies to help promote program participation. Two
sector-specific programs, low income and multifamily, focus on helping customers who
pay for conservation but lack the means to participate due to their financial or housing
situation.
Metric
Residential
Projected energy savings
2.64 aMW
Acquisition cost
$40/MWh
TRC benefit/cost ratio
1.1
2017-18 capital budget*
$11,242,000
TACOMA POWER 2016/17 Conservation Plan
19
Residential program
Retail
$4,245,000
planned Capital and O&M expenditures
$33 / MWh
planned levelized costs
14%
1.3
TRC B/C ratio
1.32 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
“If customers are on the fence
about LEDs and the cost before the
incentive, the incentives make it work!”
Program overview
The Retail Program leverages retailers’ experience selling products to the mass
market and conservation incentives to encourage customers to choose efficient
products. The program relies on retailer and manufacturer participation to stock,
promote, sell and report the sale of efficient products. Products include:
Chris
• Lighting (LED, CFL and light fixtures)
Home Depot sales staff
• Showerheads
• Appliances (clothes washers, refrigerators, freezers)
How Customers participate
Residential customers visit participating retailers within
our service territory and purchase products at the point
of sale. CRM’s point of purchase material (POP) directs
customers to incentivized products. Retailers discount
products at the register, making the experience seamless
for customers – no rebate forms to fill out and mail in.
Tacoma Power contracts with a third-party expert,
CLEAResult, to deliver the program within our service
area. CLEAResult provides field support to ensure POP
material is properly displayed, enters into promotion
agreement with retailers and manufacturers on behalf
of Tacoma Power, pays incentives to retailers and
manufacturers and reports units sold to CRM.
Additionally, CLEAResult assists CRM by advising on
product incentives, introducing new technologies,
identifying participating locations, ensuring products are
on the shelf, maintaining POP and training sales staff.
20
Incentives
Tacoma Power pays incentives relative to product price and the amount of
reportable energy savings. Instant rebate incentives, ranging from $1.00 for
inexpensive CFLs up to $15.00 for expensive showerheads, help create price parity
between inefficient and efficient products.
New challenges for 2016-2017
LEDs have matured in the residential market place, gaining superior customer
acceptance to CFLs. CRM staff expects LEDs to achieve price parity with CFLs in
the near future. As a result, the program will shift its residential lighting focus
from CFL to LED lighting products in the 2016-2017 biennium.
CRM will explore opportunities to acquire energy savings by participating in
BPA’s Simple Steps program for appliances, thermostats and possibly smart
power strips. CRM currently participates in this program and claims allocated
energy savings for lighting sales in non-CRM retail locations. The program may
expand to offer incentives directly to retailers for the sale of appliances and
electronics at top efficiency tiers. Energy savings will be allocated to utilities
using BPA’s Retail Sales Allocation Methodology. CRM’s participation is contingent
on a program design that meets our needs and passes Tacoma Power’s standard
cost effective tests.
TACOMA POWER 2016/17 Conservation Plan
Residential program
Heating Systems
$1,853,000
planned Capital and O&M expenditures
5%
$24 / MWh
planned levelized costs
1.1
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
0.51 aMW
energy savings
Program overview
The Heating Systems program encourages home owners and property managers
of single-family homes to install more energy efficient heating systems. Products
and services include:
“We’ve seen $40 to $80 in savings
on each bill since we had our DHP
installed. I expect to see even more ...
now that we really understand how to
effectively use it.”
• Ductless heat pumps (DHP)
• Duct sealing and duct repair
David S.
Heating Systems program customer
Incentives
Tacoma Power offers our customers incentives up to $800 for ductless heat
pumps and $450 for duct sealing. Our program may temporarily increase
How Customers participate
incentives, using special promotions to encourage customer participation during
Residential customers contact preferred trade allies for
seasonal lulls or counteract negative market conditions. Tacoma Power also
a project bid. Once they select a trade ally, the trade ally
offers qualifying customers zero interest seven-year loans to help cover the cost
walks customers through the process and assists with
of installation and make major investments in home energy conservation more
project documentation. The trade ally typically deducts
affordable.
our incentive from the customer invoice after customers
assign their incentive payment to the trade ally, offering
New challenges for 2016-2017
customers an instant rebate.
The RTF’s SEEM engineering model has de-rated ductless heat pump energy
savings. Tacoma Power’s recent Custom DHP project with Habitat for Humanity
involving new construction found higher energy savings than the RTF SEEM
model indicates. Tacoma Power and several other regional utilities believe the
RTF’s SEEM model underestimates energy savings for DHPs. Tacoma Power is
leading a regional study to analyze ductless heat pump energy savings in existing
homes.
TACOMA POWER 2016/17 Conservation Plan
21
Residential program
Weatherization
$1,129,000
planned Capital and O&M expenditures
$34 / MWh
planned levelized costs
1%
1.4
TRC B/C ratio
0.12 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
“Your program helped me afford
to make my home more efficient and
save money.”
Program overview
The Weatherization Program encourages qualifying home owners and property
managers of older single-family homes in our service area to upgrade their
home’s weatherization. Upgrades include:
• Attic, wall and floor insulation
Randy R.
• Air sealing
Weatherization customer
• Pipe insulation
• Single-pane windows
Incentives
How Customers participate
Tacoma Power provides a fixed incentive per weatherization measure installed.
Residential customers contact preferred trade allies for
Incentives typically cover 20-60% of project cost. Our program may temporarily
a project bid. Once they select a trade ally, the trade ally
increase incentives, using special promotions to encourage customer
walks customers through the process and assists with
participation during seasonal lulls or counteract negative market conditions.
project documentation. The trade ally typically deducts
our incentive from the customer invoice after customers
assign their incentive payment to the trade ally, offering
customers an instant rebate.
In the 2016-2017 biennium, we will explore increasing incentive level amount to
keep customers engaged and to reach new customers. Tacoma Power also offers
qualifying customers zero interest seven-year loans to help cover the cost of
installation and make major investments in home energy conservation more
affordable.
New challenges for 2016-2017
Tacoma Power’s Weatherization Program will be significantly revised for 2016-2017
due to energy saving reductions made by the Regional Technical Forum (RTF) and
adopted by BPA. The reduction made several popular weatherization measures
no longer cost effective, requiring the removal of attic R19-R49 insulation and
double-pane windows from our program. Additionally, heat pump heated homes
will no longer be eligible. Tacoma Power plans to keep participation similar to
historic levels through increased incentives and direct marketing.
22
TACOMA POWER 2016/17 Conservation Plan
Residential program
Distribution
$202,000
planned Capital and O&M expenditures
>1%
$45 / MWh
planned levelized costs
1.0
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
0.06 aMW
energy savings
Program overview
The distribution program provides low-cost energy saving products to customers
at no charge. This program offers Tacoma Power a unique opportunity to build
our brand and interact with customers while meeting energy conservation goals.
Types of products include:
“I think it’s a fantastic program and
a great way to encourage people [to
try energy-efficient products].”
“I was already trying to be energy
efficient and the kit helped - thanks!”
• Lighting (LED and CFL bulbs)
• Showerheads
Tacoma Power customers
Incentives
Tacoma Power provides energy savings products to customers at no charge.
How Customers participate
Residential customers receive products through
New challenges for 2016-2017
engagement with CRM staff. Engagement may be
During the next biennium program Tacoma Power’s Distribution efforts will
shift from mass market distribution, with the goal of putting large quantities of
products into the marketplace, to targeted distribution that seeks to educate
customers and introduce new technologies.
face-to-face or remote.
• Face-to-face engagement includes giveaways
at community events or information sessions.
Tacoma Power works with community partners,
such as low-income agencies, to communicate
with hard to reach customers.
• Remote engagement includes direct mail or other
outreach efforts.
TACOMA POWER 2016/17 Conservation Plan
23
Residential program
Custom Projects
$108,000
planned Capital and O&M expenditures
$20 / MWh
>1%
planned levelized costs
1.7
TRC B/C ratio
0.04 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
On Habitat for Humanity’s
partnership with Tacoma Power on an
energy study at a Habitat community:
“Our homeowners benefited with
Program overview
The Custom Projects program captures energy savings from one-time projects,
studies or other unique opportunities with our residential customers and trade
allies. Types of Residential Custom projects include:
• New construction opportunities
super-efficient heating systems that
• Complex multifamily HVAC systems
will save on their heating bills for
• Retail buy-down opportunities
years to come and Tacoma Power
gathered sound data enabling changes
to the state energy code. This synergy
has made a lasting difference —
both in the lives of our homeowners
and the future of energy efficient
construction.”
Incentives
Tacoma Power provides incentives up to $0.23/kWh for energy savings resulting
from custom projects. The Residential Custom Projects incentive structure
follows the C/I Custom Retrofit Program and M&V structure.
How Customers participate
Residential customers and trade allies contact CRM staff directly.
Gomer Roseman
Director of Site Development &
Construction — Tacoma/Pierce County
Habitat for Humanity
24
TACOMA POWER 2016/17 Conservation Plan
Residential program
Low Income
$ 3,899,000
planned Capital and O&M expenditures
4%
$56 / MWh
planned levelized costs
1.1
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
0.37 aMW
energy savings
“I was cold every winter, and as a
Program overview
The Low Income program provides financial grants to qualifying home owners
senior citizen I couldn’t afford a new
and tenants who participate in our Heating Systems and Weatherization
heating system. Now I’m warm and
programs. Low-income grants provide:
payments are affordable.”
• Insulation (attic, floor and wall)
• Air sealing
Low income program participant
• Water pipe wrap
• Windows
• Ductless heat pumps
• Duct sealing and duct repair
How Customers participate
Low-income customers contact preferred trade allies for
Incentives
a project bid on heating and weatherization projects.
Tacoma Power’s Low Income program offers grants that pay 100% of the project
Once they select a trade ally, the trade ally walks
cost*. This strategy enables low-income customers, who lack funds to make
customers through the process and assists with project
major investments in their homes, to save money on their electric bills and be
documentation and income verification. CRM staff
more comfortable in their homes.
reviews documents and completes income verification.
To qualify for a Tacoma Power low-income grant, customers must meet income
eligibility guidelines determined by the household size and income of the home’s
occupants. Property owners must meet program eligibility requirements.
New challenges for 2016-2017
The trade ally deducts the grant from the customer
invoice, resulting in no out of pocket expense for the
customer.
* Tacoma Power sets grant amounts that cover 100% of most installation
The Low Income program lost several key weatherization measures due to
reduced energy savings assumptions. Tacoma Power is striving to maintain lowincome participation at historic levels through direct marketing and coordination
between Tacoma Public Utilities low-income programs and community agencies.
costs. Additional costs related to unique site circumstances, or costs
associated with non-energy benefits, are not paid by Tacoma Power. Tacoma
Power refers customers to the Metropolitan Development Council and Pierce
County low-income advocacy groups for assistance when costs exceed Tacoma
Power grant amounts.
TACOMA POWER 2016/17 Conservation Plan
25
Residential program
Multifamily
$1,552,000
planned Capital and O&M expenditures
$34 / MWh
2%
planned levelized costs
1.4
TRC B/C ratio
0.22 aMW
Percentage of planned 2016-17
portfolio energy savings
energy savings
“The incentives make it appealing
to participate… These changes add
value to the building and make our
customers happier.”
Program overview
The Multifamily Program encourages owners and property managers of
multifamily buildings to reduce both the owner’s and tenants’ energy use.
This program uses an adaptive approach that recognizes multifamily building
diversity and establishes processes tailored for our customers ranging from
professionally managed complexes, “mom and pop” landlords and mixed use
Brian Reeder
properties. Measures include:
Reeder Management, Inc.
• Direct install lighting, showerheads and pipe wrap
• Common area lighting
• Insulation
How Customers participate
• HVAC equipment (2-4 units per building only)
Property owners contact CRM directly or work with
• Windows (2-4 units per building only)
their selected trade ally. The trade ally walks customers
through the process, assists with project documentation
Incentives
and, if applicable, assists CRM with income verification.
Tacoma Power pays either a fixed or calculated incentive depending on the
measure. Individual incentives are established to encourage participation in this
hard to reach market. Incentives typically cover 75% of project cost. Additional
incentives are available for property owners participating in direct installation
programs. Low-income grants are also available where 50% of the units meet
income qualifications.
New challenges for 2016-2017
Tacoma Power’s Multifamily program has lost several key weatherization
measures due reduced reportable energy savings. Tacoma Power is striving to
keep multifamily participation similar to historic levels through increased direct
marketing, emphasis on lighting upgrades and coordination between Tacoma
Public Utilities low-income programs and community agencies. Additionally,
CRM will offer several new direct installation measures to encourage more
participation from the multifamily sector.
26
TACOMA POWER 2016/17 Conservation Plan
Northwest Energy
EFFICIENCY ALLIANCE
$740,000
Program overview
Tacoma Power partners with other Northwest utilities
planned expenditures
to fund the Northwest Energy Efficiency Alliance (NEEA).
NEEA acquires energy savings within Tacoma Power’s
service area using two methods:
• NEEA fills the energy efficiency pipeline with new
17%
products, services, practices and approaches.
manufacturers to bring new energy efficient
options. Past efforts have included front loader
washing machines and ductless heat pumps.
planned levelized costs
4.1
Through these efforts NEEA encourages
products to market, giving consumers new efficient
$11 / MWh
TRC B/C ratio
Percentage of planned 2016-17
portfolio energy savings
1.6 aMW
energy savings
• NEEA creates market conditions that accelerate
and sustain the market adoption of emerging
energy efficiency products, services and practices.
By nurturing the market and encouraging purchase
of efficient products, NEEA gives customers access
to existing efficient products. Past efforts include
working with retailers to encourage stocking
practices that make efficient televisions the
default choice.
Incentives
Tacoma Power pays approximately $370,000 in annual
dues to NEEA. Additionally, BPA pays approximately
$315,000 on behalf of Tacoma Power. Dues are used to
Metric
NEEA
Projected energy savings
1.60 aMW
Acquisition cost
$11/MWh
fund NEEA initiatives, some of which pay incentives to
TRC benefit/cost ratio
4.1
upstream partners such as manufacturers and retailers.
2017-18 capital budget*
$466,000
Tacoma Power Participation
Tacoma Power works very closely with NEEA and is well
represented on its Board of Directors, Regional Portfolio
Advisory Committee and Sector Advisory Committees
to ensure Tacoma Power’s needs and perspectives are
represented.
* Budget numbers estimated using 2017 assumptions. Actual budget will be
approved through Tacoma Power’s biennial budget process.
TACOMA POWER 2016/17 Conservation Plan
27
Other Sources
of Energy Savings
CRM is responsible for documenting and claiming energy
conservation savings for Tacoma Power activities outside of CRM.
Transmission and Distribution Energy
Savings
The following activities are not budgeted within CRM, nor are
Tacoma Power’s Transmission and Distribution (T&D) staff have
energy savings included in the conservation plan.
been cooperating with BPA’s Energy Smart Utility Efficiency
(ESUE) program since 2011. Efforts have centered on the study
Momentum Savings
Momentum Savings quantifies energy efficiency that occurs
outside of utility and NEEA programs. These savings occur
because utility energy efficiency programs have reshaped
the marketplace. Over time, this momentum of change leads
to energy savings that are much broader than what utilities
originally providing incentives for.
BPA is currently championing Momentum Savings. It is unclear
if regulators will accept Momentum Savings towards EIA targets
without third-party verification. As a result, Tacoma Power is not
relying on Momentum Savings to meet EIA targets in the 2016-2017
Conservation Plan. However, if these energy savings
prove reliable, meet Tacoma Power’s cost effective
tests and benefit our customers, CRM intends
to report Momentum Savings as part of our EIA
accomplishments.
28
TACOMA POWER 2016/17 Conservation Plan
and implementation of distribution system improvements and
Voltage Optimization (VO). VO saves energy by more tightly
regulating voltage to the most efficient operating point for end
use consumption devices. VO improvements can include changes
such as voltage regulators, phase rebalancing or capacitors.
During 2016-2017 T&D plans to implement VO at 4-6 additional
substations with an anticipated energy savings of 0.20-0.40 aMW.
While not budgeted or managed within CRM, CRM will report these
energy savings as part of our EIA accomplishments.
COMMUNITY SOLAR
and Net Metering
Net Metering
The Renewable Energy System Cost Recovery Act expires on June
Through the Renewable Energy System Cost Recovery Act (RCW
30, 2020. Total compensation for participants is $1.12 kWh through
82.16.12 / WAC 458-20-273), Tacoma Power offers customers with
the end of the Act. At this time, Tacoma Power will estimate solar
qualifying distributed generation (DG) systems retail credit for
production for years 2021-2036 and pay participating customers a
electricity generated and delivered to the grid and access to
lump sum buyout for the value of solar energy produced.
Washington State’s renewable energy production incentives
for electricity generated through these systems. Tacoma Power
recoups renewable production incentive payments made to
customers through reduced utility taxes. Current incentives are:
• Avoided retail purchase: $0.07/kWh
• Renewable production credit: $0.12/kWh – $0.54/kWh
Total compensation ranges between $0.19/kWh and $0.61/kWh.
Community Solar
Similar to Net Metering, Washington State pays an incentive
for each kilowatt hour generated by community solar
projects. To meet customer expressed interest and to
give our customers access to these incentives, Tacoma
Interested customers will be served on a first come, first served
basis. The number of solar units will be limited per household to
allow as many customers as possible to participate.
Community Solar and Net Metering
Challenges
The state legislature has been evaluating the Renewable Energy
System Cost Recovery Act and entertaining potential changes to
the Act during the past several sessions. Most of these potential
changes would alter incentive amounts beyond 2020. However,
while most of these bills grandfather current Community Solar
and Net Metering participation, there is a risk the legislature
could change incentive levels between now and 2020.
Power is constructing several 75 kilowatt community
Additionally, several large utilities have reached their cap on
solar arrays on the roof of our warehouse in 2016. The
incentive reimbursements. This cap prevents utilities from
new resource will allow our customers to participate in
recovering incentive payments that exceed 0.005% of taxable
this state-funded program. The project will be built and
revenue. Tacoma Power is unlikely to reach that cap during the
supported solely through the sale of “solar units” to
2016-2017 time period. However, increased participation in net
participating customers.
metering could move Tacoma Power towards the payment cap in
In addition to state incentives, Tacoma Power will pay
the future.
program participants the pro-rata share of the array’s
Both challenges, as well as any change to Renewable System Cost
solar production. Solar units will be sold for $100 each
Recovery, might alter payments to customers.
and are estimated to produce approximately 28 kWh
each year.
Current incentives are:
•
State Production Credit – $1.08 kWh
•
Value of Solar Energy – $0.04 kWh
TACOMA POWER 2016/17 Conservation Plan
29
MEASUREMENT
AND VERIFICATION
The following Measurement and Verification Plan was submitted
• Energy Savings = final, verified annual kWh savings
and approved by BPA on November 10, 2015.
• Baseline Energy Use = annual kWh consumption for
the existing condition, typically based on trend data or
Purpose and Objectives
This Measurement and Verification Plan (M&V Plan) defines
project-specific measurement and verification methods for
determining energy savings resulting from Tacoma Power’s
commercial and industrial conservation incentive projects. M&V
activities help ensure that conservation projects achieve their
estimated savings and also maintain their savings over time. The
M&V Plan provides direction in verifying and documenting energy
savings that will be claimed under Initiative 937.
An M&V Plan for individual projects is required by the Bonneville
Power Administration (BPA) for participation in BPA programs.
Specific M&V activities that require metering are identified in
calculations
• Post-Installation Energy Use = verified, annual kWh energy
consumption for the proposed condition, after ECMs are
installed and M&V activities are completed
Adjustments may be made to properly account for any differences
in conditions between the Baseline Energy Use and the PostInstallation Energy Use.
M&V Plans will be written for all ECM projects or programs. The
above equation may be modified to reflect specific situations. For
example, the equation may be modified to depict more accurate
energy savings from extrapolation of monitoring data to annual
savings values. the BPA M&V Protocol Selection Guide. In general, direct energy
metering applies to projects with annual energy savings of
tacoma Power Conservation Programs
200,000 kWh or greater. For energy savings projects that meet set
Energy Conservation Measures (ECMs) and conservation incentive
criteria, BPA’s M&V protocols allow engineering calculations with
projects for commercial and industrial customers are categorized
verification without specific energy metering activities.
under specific Tacoma Power conservation programs. The
Tacoma Power projects that have annual savings of 200,000 kWh
or more (designated as “Large Projects”) will generally have
metering performed to verify energy savings. Tacoma Power
projects that have annual savings of less than 200,000 kWh
(designated as “Small Projects”) will generally have detailed
savings calculations without metering. However, when exact
current programs being offered (not including the BPA-designed
programs) are:
1. Bright Rebates Lighting Program
2. New Construction Program
3. Custom Retrofit Program
energy savings for these projects is less certain, Tacoma Power
4. Strategic Energy Management
may supplement energy calculations with metering.
5. EnergySmart Grocer Program
For the purposes of this M&V Plan, “energy savings” are defined
6. Equipment Rebate Program
by the following equation:
7. Multifamily Retrofit Program
Energy Savings = (Baseline Energy Use) – (Post-Installation
Energy Use) ± Adjustments
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TACOMA POWER 2016/17 Conservation Plan
Large conservation projects with savings of 200,000 kWh or
more will generally occur only under the first three programs
(Bright Rebates Lighting, New Construction and Custom Retrofit).
These guidelines may be modified as needed for specific projects.
• Constant load, constant operating hours
Guidelines for additional ECMs will also be developed as needed.
• Constant load, variable operating hours
Tacoma Power may develop additional commercial and industrial
programs. These programs will produce conservation projects
that will require M&V activities; requirements for these projects
will be developed when the programs are nearing roll-out.
o Variable hours with a fixed pattern
o Variable hours without a fixed pattern (e.g., weather
dependent)
• Variable load, variable operating hours
M&V Methods
A recognized industry standard for M&V is the International
Performance Measurement and Verification Protocol (IPMVP)
publication (Volume 1 – Concepts and Options for Determining
o Variable hours or load with a fixed pattern
o Variable hours or load without a fixed pattern (e.g.,
weather-dependent)
Energy and Water Savings) prepared by the Efficiency Valuation
Organization. The IPMVP has four options for consideration:
• Option A – Retrofit Isolation: Key Parameter Measurement
• Option B – Retrofit Isolation: All Parameter Measurement
• Option C – Whole Facility
• Option D – Calibrated Simulation
Tacoma Power will also consider the M&V approach based on
these categories.
Uncertainty or Risk of Achieved Savings
An ECM with which the facility staff is familiar may require less
M&V rigor than ECMs that are less well known. However, an ECM
BPA has also published specific M&V protocols for its programs,
with higher risks or level of savings uncertainty may require more
including protocols for equipment and end-use metering,
M&V rigor.
modeling and new construction. Some of these publications are
written more for general guidance.
Tacoma Power will follow the general guidance provided in the
latest IPMVP and in the BPA M&V documents whenever possible
and practical. The selection of a specific M&V approach will be
based primarily on the following:
1. ECM project savings and incentive amounts
2. ECM or ECM project complexity
3. Uncertainty or risk of achieved ECM savings
ECM Project Incentive Amounts
As a general guideline, the M&V effort will be scaled to the value
of the project (in terms of annual kWh savings and incentive
amount) so that the value of the information provided by the
M&V activity is appropriate to the value of the project itself. An
approximate guideline for M&V costs is 1% - 3% of the project’s
conservation incentive amount.
ECM or ECM project Complexity
The complexity of isolating the savings is a critical factor in
General Energy Analysis Procedures
Tacoma Power has operated commercial and industrial
energy conservation programs for more than 20 years and
has substantial experience in analyzing ECMs. Tacoma Power
uses (or requires) standard and industry-accepted engineering
calculations and analysis procedures for estimating ECM energy
savings. All savings assumptions are well-documented. A basic
outline of the steps used in analyzing ECM projects and their
energy savings is presented below:
STEP 1: DEFINE ECM BASELINE CONDITIONS
Baseline conditions shall be well documented. A detailed
energy assessment of existing conditions is required. In general,
baselines will be derived using from one to two years of
documented energy consumption history. For baseline conditions
that do not exist physically (such as in new construction projects
or when existing energy-using equipment is non-functional or
at the end of its useful life), the most current Washington State
Energy Code and standard industry shall be used to determine
baseline conditions.
deciding on an M&V method. Projects can be put in the following
Metering for M&V will be conducted as required to further
categories (in order of increasing complexity):
document the baseline conditions. In general, a baseline annual
energy consumption value will be stated in the M&V Plan.
TACOMA POWER 2016/17 Conservation Plan
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STEP 2: PERFORM ENERGY ANALYSIS OF ECMS
in the customer incentive contract. Depending on the ECM,
An energy analysis of each measure will be performed using
specific operational and maintenance requirements are
standard engineering calculations and procedures. This analysis
included. For large retrofit and new construction projects, formal
produces both Baseline Energy Use and Post-Installation Energy
commissioning may be included as a requirement of funding. At
Use quantities (in annual kWh) that are used to determine annual
a minimum, the Washington State Energy Code’s commissioning
energy savings. For Bright Rebate projects, Tacoma Power uses
requirements will be part of the ECM installation requirements.
the BPA Lighting Calculator to analyze energy savings. For Custom
Retrofit and New Construction projects, spreadsheet calculator
tools or whole building energy simulation models may be used
depending on project complexity.
In order to provide the customer with complete ECM economic
information (as well as to examine ECMs for cost-effectiveness),
the analysis will also include estimates of kW demand savings
and operational savings. Extrapolation to annual savings values
Metering Equipment and Protocols
Metering Equipment
Tacoma Power maintains a variety of metering tools that will
be used for M&V activities. The following is a partial list of
equipment.
will be used. Annual hours of use from which extrapolation is
1. Foot-candle light meters
based will be documented in each specific project M&V Plan.
2. Lighting occupancy sensor/loggers
3. Motor data loggers
STEP 3: IMPLEMENT PROJECT
The ECMs are installed and M&V procedures are completed.
STEP 4: PERFORM POST-INSTALLATION ECM
INSPECTION
An inspection of the completed project is conducted. The M&V
results are reviewed and the ECM installation is examined to
ensure that ECMs are functioning as specified and that energy
savings are being realized.
4. AC current loggers
5. Power loggers
All metering equipment will be properly maintained and
checked periodically to ensure accuracy. Light meters and other
equipment will be regularly calibrated to known standards (such
as the National Institute of Standards and Technology). Power
meters will be tested periodically and compared to reference
power analyzers by Tacoma Power’s Meter Shop. Tacoma Power’s
standard power metered are the Dent ElitePro recorders. Tacoma
Power meter shop personnel have tested these meters and found
STEP 5: PERFORM ADJUSTMENTS
them to meet suggested accuracy levels.
If post-installation conditions are found to be different than
baseline conditions, the baseline and/or the post-installation
may need to be adjusted in order to accurately account for
changes in energy savings. The final energy savings would be
revised based on this adjustment. The following are common
reasons for adjusting the energy savings in ECM projects:
1. Changes in weather or occupancy data
2. Changes in hours of operation or tenant improvements
3. Changes in the actual function of the facility or process
4. For industrial plants, changes in production levels
Quality Assurance Procedures
Tacoma Power ensures that all ECMs are installed properly
and function as specified before projects are approved for
conservation incentives. In addition to M&V procedures,
completed projects must meet detailed specifications outlined
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TACOMA POWER 2016/17 Conservation Plan
Protocols
The following are general protocols for metering:
1. Raw data: all raw metering data will be compiled into
standard data formats compatible with various common
spreadsheet formats.
2. Variables measured: variables selected for measurement
shall be based on the guidelines presented in this M&V
Plan.
3. Metering duration: the time period for both baseline and
post-installation metering shall be selected based on the
guidelines presented in this M&V Plan. In addition, the
BPA M&V End Use Metering Protocol provides detailed
guidance and examples of methods appropriate for various
categories of equipment and end uses. For projects over
200,000 kWh, a minimum of fourteen continuous days
will be required, unless supplemental metering data is
Environmental Design accredited professional (LEED AP) and
available.
Building Energy Simulation Analyst (BESA). When needed, the
4. Sampling size: the number of metering points shall be
based on the guidelines presented in this M&V Plan. The
sampling size will also vary based on the individual project
characteristics.
Budget and Resource Requirements
Meter Shop provides support for conducting detailed power
logging. M&V activities may also be performed by outside
consultants and engineers. In some instances, post-installation
metering may be performed by the customer (an example
is variable monitoring from the customer’s building energy
management system). For activities performed by outside
personnel, all Tacoma Power M&V requirements must be met.
Budget
Tacoma Power has allocated funds for M&V activities as part
of the total approved funding for each conservation program.
Depending on the program, some M&V costs may be covered by
the conservation incentive paid to the customer. These costs will
generally be for post-installation M&V metering activities. For
example, a large compressed air project may incur costs for postinstallation metering using flow measurement devices or other
specialized equipment. These metering costs can be included as
part of the ECM installation costs as long as they meet the M&V
requirements.
Factors affecting M&V costs are:
1. Verification of baseline and post-installation details
2. Sample sizes (number of data points) used for metering
representative equipment
3. Confidence and precision levels specified for energy
savings analyses
4. Duration and accuracy of metering activities
5. Availability of existing data collection systems
6. Type of metering used
7. Dependency on site personnel to assist with M&V efforts
As previously mentioned, Tacoma Power uses the guideline
that M&V costs typically range between 1% - 3% of the project’s
conservation incentive amount.
resource Requirements
M&V activities may be performed by Tacoma Power’s
Conservation Resources Management field staff or Tacoma
Power’s Meter Shop. Currently, our Conservation Resources
Management staff includes lighting experts and engineers
experienced in assessing and analyzing energy savings for a
variety of commercial and industrial ECMs. Furthermore, our
staff currently possess a variety of relevant credentials including
Lighting Certified (LC) Professional, Professional Engineer
(PE), Certified Energy Manager (CEM), Leadership in Energy &
TACOMA POWER 2016/17 Conservation Plan
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