FirstEnergy Energy Efficiency 2016 Schaedler Yesco Expo. April 26 & 27, 2016
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1 FirstEnergy Energy Efficiency 2016 Schaedler Yesco Expo April 26 & 27, 2016
2 Disclaimer The information contained in this presentation material is intended to provide generally descriptive or summary information and is subject to verification. The Companies actual Energy Efficiency results will be included as part of the Program Portfolio Reports filed with the PA PUC. 2
3 Agenda PA ACT 129 Phase II An Overview of Act 129 Critical Dates Phase III Update Q&A 3
4 FirstEnergy s Pennsylvania Utilities 4
5 PA Act 129 : How it works? PA Public Utility Commission (PA PUC) sets energy efficiency goals, rules & penalties for non compliance Spending Cap Set Utilities Develop and Submit Plans to PUC PUC Reviews and Approves Plans Copyright 2014 CLEAResult. All rights reserved
6 PA Act 129 : How is this funded? Funded by Surcharges on Electricity Bill Surcharges are set by Rate Class Program Budgets are Finite Copyright 2014 CLEAResult. All rights reserved
7 PA Act 129 : Timeline PA Act 129: Timeline Phase II : Ends May 31, 2016 Phase III: 5-Yr Plan Starts June 1, 2016 Ends May 31, 2021 Copyright 2014 CLEAResult. All rights reserved
8 PA Act 129 Phase II Ending Soon! IMPORTANT DATES May 31, 2016: PA Act 129 Phase II Ends A. FirstEnergy s Pennsylvania utilities will accept Phase II applications until June 30, 2016, for qualifying projects that have been completed and made operational no later than May 31, 2016 B. Applications for projects completed after May 31, 2016, will be evaluated as Phase III applications and subject to Phase III program guidelines and requirements Copyright 2014 CLEAResult. All rights reserved.
9 PA Act 129 Phase II Ending Soon! IMPORTANT DATES June 30, 2016: Deadline for Phase II Applications and Documentation A. All supporting documentation for Phase II projects, including invoices, specification sheets, W-9s, letters of attestation (LOA), and all other supplementary information must be submitted via the online portal no later than June 30, 2016, to be eligible to receive Phase II incentives. B. Phase II applications that are missing required documentation after June 30, 2016, will be retired and will be ineligible to receive Phase II incentives. Copyright 2014 CLEAResult. All rights reserved.
10 Program Resources Website = Calculators and link to Application Portal Solutions by Facility Type Program Ally Resources Eligibility and Documentation Requirements Copyright 2014 CLEAResult. All rights reserved
11 Phase III Update 11
12 PA Act 129 Phase III What to Expect? For Phase III, Companies filed a full suite of Residential, Low-Income, Commercial and Industrial Programs In March 2016, PA Commission issued the Order regarding the Companies Phase III EE&C Plans Accepted the terms of the settlement with parties in the proceeding Accepted the majority of the Companies Plans Copyright 2014 CLEAResult. All rights reserved.
13 Phase III Plan Overview 5-Year Timeline: June 1, 2016 May 31, 2021 Budget: 2% of 2006 revenue, each year, same as Phase I & Phase II Low Income target: 5.5% of energy savings targets Government/Non-profit/Institution target: 3.5% of energy savings targets EEC/DR Targets: EDC Savings (MWh) Demand Reductions (MW) Portfolio Budget ($Millions) Met-Ed 599, $124.3 Penelec 566,168 N/A $114.9 Penn Power 157, $33.3 WPP 540, $117.8 TOTAL 1,863, $
14 Phase III Plan Overview (cont d) Key Plan Design Takeaways DR programs include large C/I interruptible programs and small Residential Behavioral DR program tied to Smart Meter deployment Continued use of incentive ranges to allow for implementation flexibility Significant expansion of Low-Income Programs to meet Phase III requirement with dedicated programs 14
15 PA Act 129 Phase III Incentives Variable Rebates Rebates per kwh saved Prescriptive Rebates HVAC / Specialty Equipment / LED Exit Signs LED Traffic Signals / Lighting Controls Incentive caps: Lighting: Projects Capped at cost of materials Custom Projects: Capped at 50% of total project cost Copyright 2014 CLEAResult. All rights reserved.
16 PA Act 129 Phase III Eligible Projects Interior Lighting Equipment & Controls Exterior Lighting Equipment & Controls Lighting Updates: T12 Phased out effective June 1 st, 2016 LED Lighting PA State Requirement (Energy Star or Design Lights Consortium) HVAC Systems & Controls (i.e. heat pumps, PTAC unit, hotel room HVAC controls, dual enthalpy economizers, building automation systems, etc.) Kitchen Equipment (i.e. convention ovens, pre-rinse sprayers, ENERGY STAR steam cookers, fryers, etc.) Copyright 2014 CLEAResult. All rights reserved.
17 PA Act 129 Phase III Eligible Projects Refrigeration (i.e. ECM motors, ENERGY STAR doors, refrigerators, freezers & anti-sweat controls) Buildings Program Renovations New Construction Buildings Automation & Controls Custom Program Industrial Process Chiller Replacement Variable Frequency Drives ( non HVAC Applications ) Compressed Air Systems Copyright 2014 CLEAResult. All rights reserved.
18 Apply online via FirstEnergy Online Portal Pre-approval (highly recommended) Submit within 180-days of Installation & Operability Signed letter of attestation Documentation Measure & verification Post-Installation Data Monitoring for: Lighting Projects greater than 500 MWh All other projects greater than 250 MWh Copyright 2014 CLEAResult. All rights reserved. PA Act 129 Phase III Application Requirements
19 Small Commercial Existing & New Programs 19
20 Large C/I Existing & New Programs 20
21 Government Existing & New Programs 21
22 Recent & Upcoming Activities The Companies are pursuing implementation of the Phase III programs to begin June 1, 2016 RFPs have been issued to potential Conservation Service Providers (CSPs) for the following Phase III programs/services: Residential Programs: EE Equipment, Appliance Turn-In, School Education, Audits, EE Kits, New Construction and Behavioral, Low Income WARM Plus/Multi-Family Commercial/Industrial Programs: C&I Energy Solutions for Business Programs, Small & Large Demand Response Programs Other: EMV Consultant, Tracking & Reporting System Contracts have been awarded to CSPs for the EMV Consultant and Tracking & Reporting System (both CSPs approved by Commission) CSP selection and proposed CSP contract development are in process for the balance of the RFPs that have been issued Proposed CSP contracts require Commission approval Additional RFPs are planned to be issued for the Behavioral component of the C&I Energy Solutions for Business Program Small Act 129 Energy Efficiency and Conservation Plan Stakeholder Meeting Report for PY7Q3 filed on April 15,
23 Questions & Answers Closing Remarks 23
24 Appendix 24
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