The Solution - Issue 21

The Solution The Quarterly Publication of Edison Energy's Demand Solutions Team

Issue 21 • April 2018

A quarterly publication highlighting relevant industry and Demand team news - keeping subscribers ahead on trends, upcoming events, industry leaders, and more.

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The Solution | Quarterly | April 2018

this issue 4

Edison Eye On: California Incentives

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Featured Project

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Energy Procurement

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Spotlight On

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Who's Who & What's New

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What's Next

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Edison Eye On California Investor Owned Utilities Save money on energy and achieve sustainability and optimized production goals through retro-commissioning incentives Energy efficiency costs money.

But doing nothing costs even more money and sacrifices performance in the long run.

Luckily, in the state of California, utility incentives and funding for energy efficiency programs have been available since 1996. In 2014 over $1.7 billion was budgeted for energy efficiency programs throughout the state.

Southern California Edison (SCE), San Diego Gas and Electric (SDG&E) and Pacific Gas & Electric (PG&E), are three of the major investor owned utiliteis (IOUs) that offer energy programs and incentives to businesses within the state. These programs were created to incentivize rate payers to reduce the financial burden of the first cost associated with implementing energy efficiency projects.

Edison Energy is a trusted Trade Professional in each program and has successfully obtained millions in incentives for our clients over the last 10 years across the country. Our diverse team has 4

The Solution | Quarterly | April 2018

experience and background in both the regulated and non-regulated side, with deep understanding of the facilities environment and the merger with utility services and incentives.

Each program contains prescriptive (pay per unit installed) rebates that are meant to be applied to “one off” projects.

Often times the prescriptive rebates are meant to reduce the overall premium cost of the efficient project, and are not specifically meant to address holistic improvements.

By providing an energy analysis from a systems perspective, making recommendations and helping implement them to reduce energy spend, we help facility owners reap the benefits of improved sustainability, and energy resiliency. Our team can work on an individual system, a whole building, or across a national footprint of facilities.

RETRO-CX PROGRAMS GENERAL INFORMATION Candidate buildings typically meet the following criteria: ›› Over 50,000 square feet of conditioned space ›› Direct digital Control; often partial-pneumatics ›› Equipment is considered to be in good condition (does not require major repair or replacement) ›› While Central plants with chillers are typically better candidates, this is not a requirement Incentives are subject to capping, generally at 50% of total cost, including labor.

The below information lists a summation of the custom incentives available for three regional retrocommissioning programs where Edison Energy would serve as the RCx provider:

SCE Incentives include:

PG&E $150/kW

Incentives include:

$150/kW

$0.08/kWh

$0.08/kWh

$1/therm (for SoCalGas customers)

$1/therm

SDG&E ›› Customer is expected to complete any measures that have under a 2 year payback (total expenditure capped at 5% of annual electricity bill) Incentives include*:

$0.08/kWh $1/therm

*Incentives apply to measures that are between a 2 year and an 8 year payback Contact us today at information@edisonenergy.com to find out how your organization can benefit from a California utility incentive program.

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Featured Project Naval Support Activity Monterey Retro-Commissioning Project

The Edison Energy team was contracted to perform a detailed Retro-Commissioning project on Buildings 246, 304, 305, 330 & 339 of the Naval Support Activity Monterey (NSAM) campus located in Monterey, CA. The campus totaled 237,460 square feet of various type building spaces, including offices, data centers, conference areas, library, and classrooms.

BUILDING INFORMATION: Campus Size:

Check out some more of our California-based retro-commissioning projects here.

Equipment/System Deficiencies Identified: Energy Conservation Measures:

237,460 sq. ft.

130 60 935,900 kWh

Annual Savings:

3,780 Dekatherms $154,750.00

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The Solution | Quarterly | April 2018

Simple Payback:

2.26 years

IRR:

42.9%

Energy Procurement Short Term Energy Outlook* A Snapshot of Electricity, Natural Gas & Renewables ELECTRICIT Y For the summer cooling season (June–August), EIA forecasts that the average U.S. household will spend $426 on electricity bills, which would be an increase of more than 3% from last summer. EIA forecasts average household electricity use will be 1% higher this summer compared with last summer, based on a forecast of slightly warmer temperatures, and that retail electricity prices will be 2% higher than last summer.

NATURAL GAS U.S. dry natural gas production averaged 73.6 billion cubic feet per day (Bcf/d) in 2017. EIA forecasts dry natural gas production will average 81.1 Bcf/d in 2018, establishing a new record. EIA expects natural gas production will rise by 1.7 Bcf/d in 2019.

EIA estimates that natural gas inventories ended March (typically considered the end of the winter heating season) at almost 1.4 trillion cubic feet (Tcf), which was 19% lower than the previous five-year average. Based on a forecast of rising production, EIA forecasts that natural gas inventories will increase by more than the five-year average rate of growth during the injection season (April–October) to reach almost 3.8 Tcf on October 31, which would be 2% lower than the previous five-year average.

*Information from eia.gov

RENEWABLES In 2017 EIA estimates that wind generated an average of 697,000 megawatthours per day (MWh/d). EIA projects that will rise to 735,000 MWh/d in 2018 and to 779,000 MWh/d in 2019. If factors such as precipitation and snowpack remain as forecast, conventional hydropower is projected to generate 732,000 MWh/d in 2019, making it the first year that wind generation would exceed hydropower generation in the United States.

After declining by 0.7% in 2017, EIA forecasts that energy-related carbon dioxide (CO2) emissions will increase by 0.9% in 2018 and by another 1.0% in 2019. Energy-related CO2 emissions are sensitive to changes in weather, economic growth, and energy prices.

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We're Live!

We are excited to share the relaunch of our website, EdisonEnergy.com.

With the relaunch of our website, we wanted to showcase how we’re helping market leaders quantify energy risk and design portfolio solutions to protect shareholder value threatened by complex energy policies, technological advancements, and new products.

The site is organized around three key content blocks: ›› Solutions – promoting our core advisory services and respective offerings ›› Insights – case studies, news & events, our blog, and perspectives ›› Company – highlighting our difference and our leadership team The new site captures information from all prior company websites in one centralized location. As such, our old website EneractiveSolutions.com will now redirect to the Demand Solutions landing page. You can also find our construction and implementation services on the Installations landing page. We are still the same team, offering the same best-in-class comprehensive consulting, engineering, and implementation services, just in a new home.

Click here to explore our new website!

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The Solution | Quarterly | April 2018

Edison Energy creates a competitive advantage for market leaders by quantifying this risk and designing the portfolio solution to protect shareholder value threatened by complex energy policies, technological advancements and new products. Collectively, our team is able to deliver comprehensive expertise from across energy disciplines to bear on client's energy operations:

Managed Portfolio Solution (MaPS) ›› Strategic Planning

›› Capital Optimization & Playbook

›› Enterprise Risk Profiling

›› Compliance & Executive Reporting

Renewables & Sustainability (formerly Altenex) ›› Strategy & Goal Setting

›› REC & Offset Management

›› Onsite / Offsite PPA & Ownership

›› Reporting & Communications

Supply Solutions (formerly Delta Energy Services) ›› Strategic Supply Program Development

›› Supply Advisory & Procurement ›› Data & Invoice Solutions

Demand Solutions (formerly Eneractive Solutions) ›› Energy Program Consulting ›› Commissioning ›› Retro-Commissioning

›› VEM / Monitoring, Fault Detection & Diagnostics ›› Audits

Installations (formerly Eneractive Solutions) ›› Retrofits & Optimization

›› Turnkey Design/Build

›› Owner's Representative

›› Funds Disbursement

›› Construction Management

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Spotlight On Energy Stars of 2018 Congrats to the winners of this year's Energy Star Partner of the Year for Sustained Excellence in Energy Management. We are honored to have done business with you!

Bristol-Myers Squibb NEW YORK, NEW YORK Key Achievement: ›› Achieved an annual energy intensity improvement of more than four percent globally, contributing to an 11.3 percent reduction in energy consumption since 2013.

General Motors Company DETROIT, MICHIGAN Key Achievement: ›› Invested $22 million in energy efficiency projects throughout its North American facilities.

Merck & Co., Inc. KENILWORTH, NEW JERSEY Key Achievement: ›› Implementing a major initiative to purchase 50 percent of its electricity from renewables by 2025 towards the goal of 100 percent renewable electricity by 2040.

Tishman Speyer NEW YORK, NEW YORK Key Achievement: ›› Benchmarking 100 percent of its portfolio in ENERGY STAR Portfolio Manager®, with 34 properties receiving ENERGY STAR Certification, representing 22.5 million square feet.

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Who's Who & What's New From new offices to new employees, we'd like to extend a welcome to all the new additions 2018 has brought thus far!

Virginia ››Steven Verdi, Director of Environmental Health and Safety ››Christopher Duffy, Project Manager ››Brian Walker, Senior Commissioning Engineer

Chicago – we've moved! ››564 W. Randolph, Suite 200 Chicago, IL 60661

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What's Next?

Catch us at these upcoming events.

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GREENTECH MEDIA SOLAR SUMMIT

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San Diego, California • 5/1 – 5/2 Colin Schofield, of our Renewables team, will be speaking at this event. → Click here to register

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TSC SUMMIT 2018 Chicago, IL • 5/1 – 5/3

We will be attending The Sustainability Consortium 2018 Summit. → Click here to register

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ADVENTIST HEALTHCARE GOLF OUTING Bowie, Maryland • 5/14

Edison Energy will be sponsoring the 18th Annual Golf Classic benefiting the brand new Adventist HealthCare White Oak Medical Center

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NORTHEAST RENEWABLES Boston, MA • 5/31 – 6/1

Richard DiMatteo, of our Renewables Team, will be speaking at this event. → Click here to register

SMART ENERGY DECISIONS RENEWABLE ENERGY SOURCING FORUM San Diego, California • 6/18 – 6/20

Edison Energy will be attending the Smart Energy Decisions Renewable Energy Sourcing Forum as a Silver Sponsor. The Renewable Energy Sourcing forum is a new and unique event where corporate and institutional renewable energy buyers learn and network. It’s an exclusive event devoted entirely to your success where you’ll be able to focus in a productive, distraction-free setting. You’ll hear from experienced executives who have successfully implemented renewable sourcing strategies during Forum conference sessions, network with peers and engage with leading suppliers at the comfortable Rancho Bernardo Inn, San Diego, CA June 18-20, for a highly productive and valuable event experience. → Learn More

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CHESC 2018 Santa Barbara, California • 7/9 – 7/12

Our team is excited to be a Community Sponsor and exhibitor at this year's California Higher Education Sustainability Conference (CHESC). CHESC is an annual conference that highlights cutting-edge research, as well as case studies with proven successes in curriculum development, operational programs, and community partnerships. This year's event will be held at the University of California - Santa Barbara. → Click here to register

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Formerly Eneractive Solutions, Edison Energy's Demand Solutions team leverages both traditional demand side strategies and newly available supply side initiatives to ensure optimum facility performance and lower operating costs. With experience ranging from large-scale power generation to both traditional and complex, integrated building and energy systems, our solutions focus on the domains of building HVAC and controls, data analytics and monitoring, new energy technologies, renewables, and energy program development and training. We partner with clients as a strategic adviser, specialty implementer—or both—to design, develop and execute complex energy efficiency and conservation projects.

By leveraging technology and years of engineering expertise, we implement innovative yet pragmatic investment plans tailored to core business objectives – proven to ensure optimum facility performance and lower operating costs.

C A LIFORNIA 17875 Von Karman Ave., Ste. 100 Irvine, CA 92617 (949) 491-1633

NE W JERSE Y 613 Bangs Ave. Asbury Park, NJ 07712 (732) 988-8850

ILLINOIS 564 W. Randolph, Suite 200 Chicago, IL 60661 (732) 988-8850

NE W YORK 39 Broadway, Ste. 1520 New York, NY 10006 (212) 269-2302

M AS SACH USE T TS 53 State St., Ste. 3802 Boston, MA 02109 (617) 209-3701

VIRGINIA 7926 Jones Branch Dr, Ste. 530 McLean, VA 22102 (732) 988-8850

Additional regional offices located in: Arkansas, Ohio, Toronto, and Wisconsin

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