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SCE HVAC Optimization

Program Overview December 13, 2011 1


Objectives • Describe how HVAC Optimization is different from previous programs • Provide overview of program incentives and eligibility criteria • Convey the value proposition of the program • Review ‘How it works’ • Introduce Contractor Portal and Web Application

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What is different? How HVAC Optimization differs from past programs


Commoditization of the HVAC Industry Unclear value proposition

Inconsistent credentialing/workforce development

Lack of consistency in services provided

Erosion of HVAC Service Industry

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California Utilities Support New Standard

Industry standard as basis for HVAC market transformation 5


Previous HVAC Programs Ignores system interdependencies.

Condenser Coil Cleaning

Refrigerant Charge Adjustment

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HVAC Optimization Comprehensive. Properly Sequenced. Customized. Refrigeration Control Panel Testing And Calibration

Cooling Coil Cleaning

Condenser Coil Cleaning

Fresh Air, Return, And Exhaust Air Dampers Checked For Obstruction And Lubrication

Return Air Fan/Motor & Supply Fan/Motor Checked And Lubricated

Filter Replaced With Proper Media

Electrical Connections Checked

Condenser Fan/Motor Checked & Lubricated

Burner Section Combustion And Draft Tests Refrigerant And Refrigeration Compressor Adjustments

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Eligibility & Incentives Requirements for program participation


Customer and Unit Eligibility • SCE electric customer • Eligible Units o o o

Rooftop HVAC units Heat Pump Units Split Systems

• Non-Qualifying Units o o

Chilled/hot water fed units Variable speed compressor units

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Incentive Overview Step 1: Create Maintenance Plan & Sign Maintenance Agreement • Contractor: • Contractor Program Incentive - $75 Per Eligible Unit

Maintenance Agreement Incentive - 20% of Total Upfront

Step 3:

Bring Units to Baseline

Maintain Performance Level

• Contractor: • CSA Incentive - $ Varies by Unit •

• Customer:

Step 2:

Baseline Incentive - $50 Per Eligible Unit

• Minimum performance levels reached

• Customer: • Maintenance Agreement Incentive (remainder) - 25% End of Year 1 - 35% End of Year 2 - 20% End of Year 3

within 6 months of MA signing.

Units Must Be Maintained at Baseline for Customers to Receive Incentives Each Year

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Customer Maintenance Incentive Calculator $ $ $ $

Payment upon signing Maintenance Agreement Anticipated Payment at the end of Year 1 Anticipated Payment at the end of Year 2 Anticipated Payment at the end of Year 3 Total Anticipated Payment

RTU Number RTU 1 RTU 2 RTU 20

SCE Sticker Number Eligible Unit Y Y

$

Tonnage Over 25 Tons Over 25 Tons

1,535 1,918 2,685 1,535

20% 25% 35% 20%

This calculator is to be used to calculate anticipated incentive amounts. Final incentive amounts will be determined by SCE program staff. Incentives will be paid pending customer qualification and unit verification.

7,673

Payment upon signing Total Estimated Maintenance Compressors Age Econo Payment Agreement 4 Over 12 Y $ 3,836 $ 767 4 Over 12 Y $ 3,836 $ 767 $ $ Total Eligible Units 2 Total Anticipated Incentive $ 7,673 $ 1,535

Anticipated Payment at the end of Year 1 $ 959 $ 959 $ $

1,918

Anticipated Payment at the end of Year 2 $ 1,343 $ 1,343 $ $

2,685

Anticipated Payment at the end of Year 3 $ 767 $ 767 $ $

1,535

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Cooling Service Analysis (CSA) Incentive Calculator (one time per unit to address deferred maintenance)

TASK & INCENTIVES

1-5 TONS

6-25 TONS

OVER 25 TONS

Coil Cleaning

$110

$130

$150

Air Flow Adjustment

$25

$35

$45

Refrigerant System Test

$25

$35

$45

Refrigerant System Service

$120

$200

$260

Economizer Functional Test

$25

$35

$45

Integrate economizer wiring

$165

$175

$185

Replace damper motor

$460

$510

$575

Replace controller/sensor

$320

$370

$415

Renovate linkage & other components

$180

$245

$310

Decommission Economizer

$100

$130

$170

Replace T-Stat

$200

$200

$200

Adjust T-Stat Schedule

$25

$25

$25 12


Incentive Examples Small Commercial Building •32,000 sq ft •15 Units; 4 tons average •Units average 15 years old •No economizers •Customer Maintenance Incentives expected to be $8,445 •Contractor Program Incentive is $75 per unit •Contractor CSA Tasks Incentives range from $300 to $480 per unit, depending on needed repairs •Contractor Baseline Incentive is $50 per unit

• Total possible incentives are $14,820 to $17,520

Large Office Building •64,000 sq ft •2 Units; 80 tons average •Units are 13 years old •Both units have economizers •Customer Maintenance Incentives expected to be $7,673 •Contractor Program Incentive is $75 per unit •Contractor CSA Tasks Incentives range from $570 to $2,230 per unit, depending on needed repairs •Contractor Baseline Incentive is $50 per unit

• Total possible incentives are $9,063 to $12,383 13


What is not covered by incentives? • Larger repairs and replacement parts not covered o

o

o

Customer is responsible for additional repairs required to get units to baseline to qualify for incentives Contractor and customer are expected to establish protocols for executing this work under their Maintenance Agreement No incentives for units that do not meet Baselines

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Value Proposition Re-establishing the value of HVAC maintenance


Value Proposition to the Contractor • Differentiation in the Market o

o

o

Offer “HVAC Optimization” backed by industry standard and SCE Promote long-term relationships with customers through Maintenance Agreements Program offerings and customer data position you to be your Customer’s trusted “HVAC Energy Efficiency Advisor”

• Program Support o

SCE marketing materials

o

Training and support

o

IT tools for customer data management

• Level Playing Field o

Clear scope of services tied to the Standard 180

• Additional Revenue o

o

Creates “fresh start” and leverage for additional work Revitalizes service business

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Value Proposition to the Customer: Financial • Incentives paid directly to the customer to reduce or eliminate the additional costs of premium HVAC Optimization maintenance o

Up to $3,836 per unit available

• Fewer unit failures threatening business operations and income • Decreased need for costly “urgent” repairs • Improved life of HVAC equipment reduces capital costs • Energy savings from maintained equipment = reduced operating expense

Improved Total Cost of Ownership 17


Evaluating TCO: Savings Forecast Tool

Estimated Total Annual Average Cost Savings

No. of RTUs

15 2

Avg Tonnage

Economizer

4 80

N Y

$21,245.20

Bldg Type

Small_Office Large_Office

Climate Zone

10 10

Avg RTU Condition

Average Average

Ele. Cost $/kWh

0.15 0.15

Gas Cost $/thrm

0.45 0.45

Estimated kWh Savings Low Range

21,945 83,949 0

Estimated kWh SavingsHigh Range

36,575 139,915 0

Estimated Estimated Therm Estimated Annual Therm Savings Savings Average Cost Savings High Range Low Range

30 81 0

50 $ 134 $ 0 $

4,407 16,838 -

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Value Proposition to the Customer: Operational • Decreased “comfort calls” that often consume building operator resources • Energy and Environmental Benefits o

Improved company or building status relative to sustainability goals and “Green” image

o

Maintain LEED Qualifications, reduce carbon footprint

• Build Contractor/Customer relationship o

Program requirements, database and reporting facilitate an understanding of equipment maintenance activities completed, as well as accumulated benefits over time

Improved Perceived Value 19


How it works Program sequence and processes


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Offer Program: • Eligibility • Value • Relationship

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Capture Inventory • Calculate incentives

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Service Agreement • •

Condition Indicators Performance Objectives

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Submit customer incentive application •

Signed service agreement

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Perform Initial Inspection •

Discuss required repairs

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Complete Cooling Service Assessment •

Bring to baseline

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Contractor CSA Incentive •

Submit Application

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Perform ongoing maintenance •

Per service agreement

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Demonstrate Value •

Report cumulative impact

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Web Application and Contractor Portal Using the Maintenance Planning System (MPS)


Maintenance Planning System

Web Application Reports (Contractor & Customer)

Program Database Platform: Force.com

Incentives

Contractor Portal

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Questions?

Website: www.hvacoptimization.com Brian Van Buskirk BvBuskirk@peci.org


Appendix Additional support slides


RTU1 Over 25 TonsY RTU2 Over 25 TonsY RTU20 Y Y Y Y

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RTU Number

To nn

Contractor CSA Tasks Incentive Calculator

Example

Y Y Y Y N N N Y Y N N N $ 985 $ 1,320 $ Incentive Total $ 2,305 N Y Y

- You must enter the unit tonnage before any other task incentives can be calculated.

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Marketing Support Sample Collateral

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HVAC_SCE Program Overview  

Program Overview December 13, 2011 1 •Convey the value proposition of the program •Review ‘How it works’ •Introduce Contractor Portal and We...

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