2016 Third Party RFP Planning Stakeholder Presentation · 2016 Third Party RFP Planning Stakeholder Presentation Karen Zelmar Director, EE Programs . Welcome and Safety Message 2

2016 Third Party RFP PlanningStakeholder Presentation

Karen Zelmar Director, EE Programs

Welcome and Safety

Message

2

Agenda

Time 15 min

Topic Context Setting

Presenter Karen Zelmar Director, CES EE Programs

45 min 2016 3P RFP Information Dina Arellanes Manager, CES Sourcing

15 min Break

90-120 min Program Review Sector Manager Sector Supervisor

3

Meeting Objective - Why we are here

Two key objectives in today’s meeting Communicate upcoming third party program contracting timeline and process

• Planned opportunity announcement and RFP release dates

• Changes in Contract and Program Management

Gain your feedback on planning for 2016+ third party programs • Review sector priorities

• Review existing core and third party programs

• Share draft plans for 2016 third party program solicitations

Your insights are important as we move forward • Want to ensure you have no surprises as we move forward in our 2016 proposal cycle

• Want your feedback to ensure we are designing programs that achieve high impact, cost effective energy savings

• Ask that you provide brief comments during our meeting today

• Ask that you provide more detailed input as written feedback over the next week - Provide written comments to Alice Miller, EE Policy ([email protected], 415.973.8010)

4

mailto:[email protected]

Organizational Structure

Third party programs were recently merged into sector market teams to accomplish two goals

• Manage energy efficiency strategy at the market portfolio level

• Drive appropriate channel and program execution decisions

Karen Zelmar Director

Energy Efficiency Programs

Core Third Party

Partner ships

Third Party Core Third

Party

Prog

ram

Exec

utio

n Po

rtfo

lio

Man

agem

ent

Cha

nnel

Man

agem

ent

Felicia Harris Supervisor

3P Programs

Chrissy Crowell Jessica Waggoner

Supervisors

Jane Jansen Sr. Program Mgr

3P Programs Joanne O’Neil

Supervisor

Derek Fletcher Supervisor

Core Programs

Jane Kruse Manager

Commercial Programs

Leif Christiansen Manager

Government and Community Partnerships

Dave Poster Manager

Residential Programs

Siva Sethuraman Manager

Industrial, Agriculture, Water Programs

Core Third Party

Elisa Brossard Supervisor

3P Programs

5

Exemplifyingoperationalexcellence

hi

' Embracing the art of the possible

Wiselypursuing change

Standing for I our customers

Building trust through transparency

„ a n d collaboration

Energy 2.0 Efficiency

Our purpose is to inspire and empower our customers to eliminate unnecessary

energy use

Our Purpose – Energy Efficiency 2.0

6

DRAFT Energy Efficiency Program Innovation

California’s energy action plan directs the investor-owned utilities to help promote new cost effective energy saving technologies

PG&E intends to incorporate Third Party innovation as a standard business process • Allow for the introduction of innovative ideas and technologies by drawing from the skill, experience

and creativity of the EE community

• Provide third-party providers a mechanism to propose programs during EE program cycles

• Create a mechanism for competitive solicitations for third-party programs that will improve cost effectiveness and help achieve deeper retrofit savings

Innovation process in design stage, but expected to be in place within the next year • Annual budget set-aside for innovation

• Process for periodic review of innovative ideas through open/rolling RFP beginning Q4 2015 or Q1 2016

• Shorter duration contracts to demonstrate the program concept

• Potential PG&E-hosted Innovation forums with industry

7

Additional opportunities

In addition to third party programs, there are many ways to partner with PG&E

• Emerging Technology Contracts

• Workforce Education and Training Contracts

• Codes and Standards Contracts

• Evaluation, Measurement, and Verification Contracts

• Marketing Contracts

• Tools and Technologies Contracts

• Engineering and Consulting Support Contracts

• Core / Statewide Programs

Sales Channel & PM Partner

(Implementation) Contracts, 44%

Marketing Contracts, 11%

Other Contracts*, 11%

Engineering & Consulting

Support Contracts,

EM&V Contracts , 9%

WE&T, ET, C&S Contracts, 9%

Tools & Technology

Contracts, 9%

7%

2012 Contracts Expenditures = $180M

Monitor pge.com for bid announcements

8

Other Contracts*, 11%

2016 Third Party RFPs

SOURCING TIMELINE AND INFORMATION

9

Agenda

General Overview

RFP Process

RFP Schedule

RFP Scoring Criteria

Contract and Program Management Changes • Overview

• Proposal Pricing Transparency

• Program KPIs, Scorecard and Management Process

10

General Overview

2016 RFPs for many existing and new third party programs

• Roughly 30 programs are expected to be competitively bid

Cost is an important element, but not the only element

• Proposals will be scored by a set of “best value” criteria which we will share today

• Expect realistic estimates of program energy savings expectations, not the “best case” – we count on you to deliver what you say you can do

• Expect program efficiencies to be realized through the competitive bid process

We will be sharing draft sourcing schedules and timelines

• These are our current estimates and subject to change

• Monitor the PG&E business opportunities website weekly for updates

Peer Review Group (PRG) consisting of ED and non-financially interested parties will provide external process oversight

11

RFP Process

12

RFP Process

Contract Opportunity Announcement (COA) • Implementer Interest • Implementer Qualifications • Implementer Experience • Safety Record

RFP Release

Only to those implementers that pass COA screen

Proposal Receipt and Evaluation

Part I Screen • Proposal Responsiveness • Cost Effectiveness • Licence and Insurance • Financial Information

Part II Bid Eval • Program Feasibility • Cost Efficiency • Skill and Experience • Supplier Diversity • Sustainability

Initiatives • Safety Program

Winning Proposal Approvals

Line of Business Approval

Sourcing Approval

Legal Approval

Vendor Negotiations

• Price, scope, and terms/conditions negotiations begin with highest scoring proposal

• If mutuality of contract cannot be reached, negotiations move to the next highest scoring implementer proposal

Pre

-RFP

Prop

osal

Eval

uatio

n In

tern

al

Appr

oval

s

13

Contract Opportunity Announcement

Bid opportunities will be announce on the PG&E website • Navigate your computer browser to www.pge.com

• Click on the Business-to-Business tab

• Hover the mouse/pointer over the Purchasing tab and click on Bid Opportunities, or click on bid opportunities in the bottom right corner of the web page

• http://www.pge.com/en/b2b/purchasing/bidopportunities/index.page

Bid invitations will be released following a review of COA responses • All proposal documents must be uploaded to Power Advocate or completed in Power

Advocate templates

14

http://www.pge.com/en/b2b/purchasing/bidopportunities/index.page

http://www.pge.com

DRAFT Contract Opportunity Announcement

Opportunity Announcement (example)

Company Info (Additional Excel Template)

Past Performance (Additional Excel Template)

15

DRAFT Program RFP

The RFP will require several submissions from implementers submitting proposals

All required proposal submissions and data must be uploaded to Power Advocate

RFP Section Notes

1 General Instructions • Program scope and requirements • Program approach • E3 Calculator • Implementer Qualifications • Implementer Past Performance • Section page limitations and proposal format • Proposal due date

2. Pricing Data • Pricing data requirements uploaded to templates in Power Advocate

• Cost effectiveness (E3) reviewed and scored

3. Certificates and Forms • Validated by Sourcing

4a Supplier Diversity • Reviewed by Supplier Diversity

4b Sustainability (Green) Questionnaire • Reviewed by Supplier Sustainability

4c Safety Questionnaire • Reviewed by Contractor Safety

16

RFP Schedule

17

DRAFT

2016 RFP Schedule R

esid

entia

lPo

rtfo

lio

Com

mer

cial

Port

folio

Pu

blic

Sec

tor

/ DI P

ortfo

lio

Agric

ultu

rePo

rtfo

lio

Indu

stria

l &

Wat

erPo

rtfo

lio

Activity

COA

RFP Release

Vendor Bids Received

Internal Bid Evaluation and Vendor Negotiation

COA

RFP Release



COA

RFP Release



COA

RFP Release



COA

RFP Release



2015 Jan Feb Mar Apr May Jun Jul Aug Sep

1/26/15

2/27/15

3/27/15

3/30/15 - 6/26/15

2/9/15

3/13/15

4/10/15

4/13/15 - 7/17/15

2/23/15

4/3/15

5/1/15

5/4/15 - 7/31/15

3/9/15

4/17/15

5/15/15

5/18/15 - 8/21/15

3/23/15

5/1/15

5/29/15

6/1/15 - 9/11/15

18

DRAFT

2016 RFP Execution Project Gantt Chart

2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Activity

Public Sector DI

Commercial

Procurement System Uploads

Industrial

Supplier Risk Management

Internal PG&E Contract Approvals

Final Contract Negotiations

Contract Execution

Residential

Agriculture

Appr

oval

s So

urci

ngEv

ents

19

RFP Scoring Criteria

20

Proposal Screen (Part 1)

Proposals must pass Part 1 screen in order to move to review by the proposal evaluation team (Part 2)

Proposal Screen (0=Fail, 1=Pass) Score Pass/Fail

A

B

Proposal Responsiveness

The bidder’s proposal response included all the required sections as outline in the instructions

Cost Effectiveness

1

1

Pass

Pass

TRC and PAC > 1, unless otherwise specified in RFP

C Bidder’s License and Insurance Information 1 Pass

The proposal includes a response to each license and insurance item

D Bidder Financial Information 1 Pass

The proposal includes a response to each financial item and question

E Safety

The proposal includes a response to the contractor safety questionnaire

1 Pass

21

DRAFT Proposed RFP Scoring Criteria (Part 2)

Proposals will be evaluated against the following criteria

Category Scoring Comments A Program Feasibility and

Implementation 1 Feasibility of Program

2 Comprehensiveness and Innovative Approach

3 Reliability of Program Savings

B Cost Efficiency 1 Cost per kwh / Therm

2 Total Resource Cost (TRC)

3 Program Administrator Cost (PAC)

C Skill and Experience

D Supplier Diversity

E Supplier Sustainability (Green)

F Safety

Total

22

Contract and Program Management Changes

23

Overview Contract and Program Management Changes

Contract durations (Base and Option) ranging one-to-five years • Considered and negotiated based upon approach, pricing, experience, and potential

savings

Claw-back strictly enforced on unfulfilled commitment payments • Commitment payments that do not result in energy savings will be taken back

• Program termination may result if significant claw-back is required

Volume discounts expected for multiple program administration awards • Will likely be taken based on cumulative spend in excess of a prescribed volume of spend (TBD)

Reporting on actual performance against CPUC budget category caps and targets may be required in future

• Administrative costs (10% Cap)

• Marketing costs (6% Target)

• Direct Implementation Non-Incentive costs (20% Target)

Cost and Price Transparency See following slides

KPIs and Scorecard reporting 24

Performance Payment Element of Cost Breakdown Required in Proposal

Example Rate Card and

estimated hours for

program level of effort

1

2

3

Supports a fully burdened price

analysis

Which builds to an appropriate

pay for performance rate

Labor Category Rate Hours -KwH

Hours -Therm

Dollars -kWh

Dollars -Therm Total

Officer/Principal $186 - - $ - $ - $ -Director $185 $ - $ - $ -Sr Technical Program Manager $181 - - $ - $ - $ -Technical Program Manager $132 $ - $ - $ -Senior PM $143 - - $ - $ - $ -Experienced PM $112 1,000.00 150 $112,000 $16,800 $128,800 Entry Level PM $80 - - $ - $ - $ -Senior Engineer $133 - - $ - $ - $ -Experienced Engineer $106 1,000.00 150 $106,000 $15,900 $121,900 Entry Level Engineer $89 - - $ - $ - $ -Senior Energy Analyst $142 $ - $ - $ -Experienced Energy Analyst $115 $ - $ - $ -Entry Level Energy Analyst $100 $ - $ - $ -Senior Mktg $72 80 40 $5,760 $2,880 $8,640 Experienced Mktg $54 - - $ - $ - $ -Entry Level Mktg $36 - - $ - $ - $ -Senior Admin $72 - - $ - $ - $ -Experienced Admin $54 600 200 $32,400 $10,800 $43,200

Entry Level Admin $36 - - $ - $ - $ -

$256,160 $46,380 $302,540

Savings Target kWh 1,516,391 Therm 55,160

Savings Type Direct Labor Direct

Material Overhead Total

kWh $256,160 $10,000 $10,238 $276,398 Therms $46,380 $2,500 $1,854 $50,734 Total Performance Payment $327,132

Savings Energy Savings Price Projected Performance Type Target Estimate Labor Hrs Payment KwH Therms Kw

1,516,391 55,160

500

$276,398 2,680 $50,734 540

-

$0.182273 $0.919760

$0.000

Program Performance Payment 18.23 ¢ / kWh x 1,516,391 kWh savings = $276,438*

91.98 ¢ /Therm x 55,160 Therm savings = $50,736*

Non-Incentive Contract Value = $327,174 Incentive Contract Value = $172,826

Total Contract Value = $500,000

* Numbers may not multiply exactly due to rounding

25

Cost Plus Incentive Fee Potential pilot Pricing Model in 2016 and beyond

Cost Management Incentive (Share Line)

Contract Value

Forecast Accuracy Incentive

Key Elements of Cost Management Incentive • Limitation of costs capped at Target Cost

• Not to exceed contract value controlled quarterly

• Cost management incentive capped at 15-20% of Target Cost

• Determine appropriate share of savings (share line) with implementer below Target Cost

• Incentive awarded at end of year reconciliation when final indirect cost rates are approved

Key elements of Forecast Accuracy Incentive

• Forecast energy savings minus actual energy savings determine margin award percent (award fee) each quarter

• Cost of actual energy savings times margin award percentage equals value of implementer incentive

• Incentive calculated and paid quarterly

26

Implementer Collaboration High Level Overview

KPIs and Scorecard Implementer Collaboration Program

Key Performance Indicators (KPIs) • Leading & Lagging Measures • Tied to business objectives • Identify data sources • Determine reporting format

Scorecard / Dashboard Development • 3P Portfolio • By Sector • By Sub-program

Post Contract Award Integration Process • Meeting with implementer upon contract

award - Review performance expectations - Confirm reporting requirements - Answer questions, as needed

Monthly: Data Review • Implementer submission of KPIs • Ensure timeliness • Review and validate data • Implementer conference calls, as required

Quarterly Review Meetings • Data Aggregation (Cost & Energy Savings) • Scorecard Review • Implementer questions and discussion

- Current results. vs. expectations - Key challenges - Project schedule update - Business forecast - Business perspective on market potential - Customer satisfaction

• Action items

Annual Implementer Assessment • Review implementer annual performance • Assess measure mix (deemed vs.

calculated) • Highlight key non weighted KPIs for each

subprogram and implementer • Communicate annual assessment results to

implementers

27

High level Category KPIs Assigned according to relevance and impact

Category KPI/Metrics KPI Weight* Energy Savings • Energy savings performance to target

• Energy savings (kW, Therms and kWh) 100% None

Cost Management • TRC ratio • TRC performance to filed target • Projected non-incentive savings target • Projected incentive savings target

40% 40% 10% 10% None

Schedule Adherence • Committed project volume performance to target • Installed project volume performance to target

50% 50%

Customer Satisfaction and Safety

• Customer satisfaction ratings • Safety ratings

50% 50%

Market Potential and Flexibility

• Project pipeline target • Market savings potential • Subprogram flexibility

100% None None

Market Participation • Market participation ratio None Velocity • Energy savings cycle time target None Engineering Quality • Engineering quality (custom)

• Central process inspection quality (deemed) 50% 50%

Total N/A N/A

* Grey KPIs are not scored

28

• Spend/kWh

1

Commercial Program:Stakeholder Engagement

Presentation OVERVIEW

Jane Kruse Felicia Harris

2

Agenda

Existing Commercial Program Overview - Sector Overview - Commercial Vision & Objectives - Commercial Energy Savings Analysis - 2015 Third Party and Core Programs

Opportunity Findings

2016 Commercial Energy Efficiency Savings Goals

Commercial Third Party Portfolio Review & Analysis - Savings by Geography and Customer Segments - Key Program Actions

Appendix

3

Commercial Sector Overview

Quick Facts PG&E Service

• PG&E serves nearly 16 million Territory

people in 70,000 square miles over 9 climate zones

• Commercial sector accounts for 38% electric and 25% natural gas usage statewide

• In 2013, Commercial Programssaved: • 319.5 GWh • 9 million Therms • 54.7 MW reduction

4

Commercial Sector Overview Commercial Consumption by End Use

Top End Uses for Electric Top End Uses for Gas

35%

15%

13%

12% Lighting 36%

32%

7%

Space Heating Cooling

Water Heating Refrigeration

Cooking Ventilation

Top Commercial Facility Types for Gas and Electric Usage

Offices Restaurants Schools & Colleges Source: California End Use Survey, 2006

5

Commercial Sector Vision and Strategy California Long Term Energy Efficiency Strategic Plan

Vision: “Commercial buildings will be put on a path to zero net

energy by 2030 for all new and a substantial proportion of existing buildings.”

Key Program Intervention Strategies

• Targetcomprehensive interventions in new and existing buildings

Buildings

• Apply social and behavioral science principles to drive savings

• Leverage intelligentefficiency concepts

Behavior

• Financing • Better Access to

Information • Codes & Standards

Policies & Tools

6

Historical 3P Program Savings (2013 – May 2014) Key Takeaways:

• Top 5 programs account for 81% Savings

• Bottom 4 programs account for 2% Savings

• CPEEP/SCCR/MBPCx to expire

Key Takeaways: • Top 3 programs account

for 81% Savings • CPEEP/SCCR/MBPCx to

expire

Data Source NAICS Savings Data IDEEA programs not included in analysis(Data Analytics PG&E) as data is NA

Commercial Program Savings Relative toUsage (FY 2013 – May 2014)

7

Electric Energy Savings % of Usage (GWh) Gas Energy Savings % of Usage (MM Therm)

0.6% 0.5%

0.7%

1.5%

0.8%

1.4%

0.0%

0.3%

0.6%

0.9%

1.2%

1.5%

1.8% 7,500

6,000

4,500

3,000

1,500

0 Schools Healthcare Hospitality High Tech Retail Offices

Savings % of Usage ANNUAL_GWH_USAGE

1.4 %

1.7 %

0.0 %

0.5 %

1.0 %

1.5 %

2.0 % 300

200

100

0 High Tech Retail

0.6 %

Healthcare

0.4 %

Schools Offices

0.7 %

Hospitality

0.5 %

Savings % of Usage ANNUAL_MMTHM_USAGE

Office & Retail Customer Segments have large savings potential

GwH = 10^9 Watt Hours, MThm = 10^6 Thm Data Source : NAICS Usage LTM (Data Analytics PG&E) LTM savings pro-rated based on FY 2013 – May 2014 Savings Data

8

2015 Commercial Portfolio Overview

Statewide Core Programs Commercial Calculated Incentives

Commercial Deemed Incentives

Commercial Energy Advisor

Commercial HVAC

Savings by Design

Continuous Energy Improvement (Non Resource – NR)

Third Party Programs Energy Smart Grocer Program

Furniture Store Program

Boiler Program

Private Schools Program

Air Care Plus

LED Accelerator

Health Energy Efficiency Program

Embedded Data Center Program

Commercial Mid Market Program

Laboratory Fume Hood Program

Commercial Property Owner Outreach (NR)

Bridges to Energy (NR)

Commercial Whole Building (Demonstration)

9

Opportunities

• Optimize program delivery channels for small and medium businesses

• Refresh commercial portfolio to address new savings opportunities

• Improve customer experience by allowing technology or segment specific programs to access additional savings opportunities

• Partner with Implementer to promote other energy efficiency and financing programs

• Showcase Implementer’s niche market expertise

10

1

2016 Commercial Savings Targets Projected Sector Savings Targets for Commercial Programs in 2016 RFP

Sector kWh kW Thm Overall Commercial 48,530,000 6,675 2,050,000

2 Program Savings Targets

Program Type Program kWh kW Thm

Existing Third Party Programs

Grocery 32,000,000 3,600 N/A

Lodging 3,000,000 875 90,000

Healthcare 5,000,000 1,000 250,000

Boiler 30,000 N/A 700,000 Commercial Real

Estate N/A N/A N/A Advanced Lighting

Design and Controls TBD TBD N/A

New Third Party Programs

Large Data Centers TBD TBD TBD

Bio Tech TBD TBD TBD

Third Party SubTotal 40,530,000 5,475 1,050,000

Core HVAC 8,000,000 1,200 1,000,000

Core + Third Party Grand Total 48,530,000 6,675 2,050,00

Data Source 2015 PG&E Budget Tables(Data Analytics PG&E)

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Commercial Third Party Portfolio Review & Analysis

12

Grocer Program

Key Actions

• Focus on customers with multiplex systems

• Propose providing base 3 year contract toallow for building pipeline and follow up withup to a 2 year extension based onimplementer performance

Proposed Program Summary

2015 2016 (Proposed)

Segment Served Grocers Grocers

Customer Size Multiplex systems (≥70 kW) Multiplex systems (≥70 kW)

Region All All

Measures Lighting , HVAC, Refrigeration Lighting , HVAC, Refrigeration

Program Type Retrofit Retrofit

13

Lodging Program

Key Actions

• Focus on large customers (≥ 200 kW)

• Propose providing base 3 year contract to allow for building pipeline and follow up with up to a 2 year extension based on implementer performance

Proposed Program Summary 2015 2016 (Proposed)

Segment Served Lodging Lodging

Customer Size All ≥200 KW

Region All All

Measures Lighting, HVAC, Pool Pumps,

Refrigeration, Controls, Retrocommissioning

Lighting, HVAC, Pool Pumps, Refrigeration, Controls,

Retrocommissioning

Program Type Retrofit and Retrocommissioning Retrofit and Retrocommissioning

14

Healthcare Program

Key Actions

• Focus on healthcare facilities

• Propose providing base 3 year contractto allow for building pipeline and followup with up to a 2 year extension based on implementer performance



Segment Served Healthcare Healthcare

Customer Size All All

Region All All

Measures Lighting, Commercial Process, HVAC and Retrocommissioning

Lighting, Commercial Process, HVAC and Retrocommissioning


15

Boiler Program

Key Actions

• Propose providing base 2 year contracts to build pipeline and follow up with 1 year extension based on implementer performance



Segment Served Multiple Multiple


Region All All

Measures

Process Boiler, High Efficiency Boilers, Pipe/Tank Insulation, Control Adjustments, Heat Recovery, Some

Repair Measures

Process Boiler, High Efficiency Boilers, Pipe/Tank Insulation, Control Adjustments, Heat Recovery, Some

Repair Measures


Data Source: Measure_TRC_SProgram (PG&E Product)

16

Commercial Real Estate Outreach

Key Actions

• Expanding program in 2016

• Propose providing base contract for 1 year and extend for additional year based on market potential and implementer performance



Segment Served Commercial Real Estate Building Portfolio

Commercial Real Estate Building Portfolio


Region All All

Measures N/A N/A

Program Type Non-Resource Non-Resource

Data Source : NAICS Usage LTM (Data Analytics PG&E)

17

Advanced Lighting Design & Controls Program

Key Actions

• Propose providing base contract for 2 years and consider extensions for additional year based on market potential and implementer performance



Segment Served Targeted Retail, Banks & Medical office Buildings All

Customer Size Large All

Region All All

Measures Lighting Advanced Lighting

Program Type Retrofit Retrofit and New Construction

18

Large Data Center Program

Key Actions

• New program to launch in 2016, covering datacenters ≥ 5000 Square Feet

• Propose providing base contract for 2 year andextend for additional year based on marketpotential and implementer performance



Segment Served

No Program

Data Centers > 5000 Sq. Ft.

Customer Size All

Region All

Measures Comprehensive

Program Type Retrofit and New Construction


19

Biotechnology Program

Key Actions

• New program to launch in 2016

• Propose providing base contract for 2 year and extend for additional year based on market potential and performance



Segment Served

No Program

Biotechnology Labs & Buildings

Customer Size All

Region All

Measures Comprehensive

Program Type Retrofit and Retrocommissioning


20

Core HVAC Program

Key Actions

• Consolidate Third Party and Core programs into single Core HVAC quality maintenance program

• Propose providing base 3 year contracts tobuild pipeline and follow up with 2 yearextension based on implementerperformance

Proposed Program Summary 2015 2016 (Proposed)

Segment Served Multiple Multiple


Region All All

Measures HVAC Tune-Up Measures and Quality Maintenance Services

HVAC Tune-Up Measures and Quality Maintenance Services

Program Type Maintenance Maintenance

Data Source: Measure_TRC_SProgram (PG&E Product)

21

Appendix

22

2015 Commercial Third Party Programs Third Party Program Program Description Energy Smart Grocer Program

Provides grocers with energy audits, rebates and information about efficient technology, operations and management.

Furniture Store Program Provides energy audits and no/low cost implementation of energy efficiency measures to qualifying retail furniture stores.

Boiler Program Provides no-cost technical services and rebates to identify and implement boiler energy efficiency projects.

Private Schools Program

Provides comprehensive energy efficiency services to private preschools and K-12 schools, private colleges and universities and trade/technical schools.

Air Care Plus Provides a low cost operating assessment of rooftop HVAC units (3 - 60 tons) and basic maintenance and equipment services.

LED Accelerator Focuses on bridging gaps between manufacturers of new LED lighting technology and major customers that can install a high volume of LED technology.

Health Energy Efficiency Program Provides support services including energy audits, engineering analysis, consulting, financial incentives, and retro-commissioning assistance to medical facilities.

Embedded Data Center Program Data Center Airflow and Temperature Optimization Program offers technical support and incentives to Customers with small to medium data centers, up to 5,000 square feet.

Commercial Mid Market program Commercial Mid-Market Program is focused primarily on commercial mid-market customers with peak demand between 199kW and 500kW, promoting controls and building automation systems (BAS).

Laboratory Fumehood Program Program installs variable air valves to efficiently control air flow through fume hoods in universities and research laboratories.

Commercial Outreach Provides comprehensive analysis of multiple buildings within property ownership or management and originates energy efficiency retrofit projects (non resource).

Bridges to Energy Provides training to selected students for work in the energy efficiency industry and supports job placement (non resource).

23

2015 Commercial Core Programs

Core Program Program Description Commercial Calculated Incentives Provides customized incentives for non- residential energy efficiency

retrofit and new construction projects involving the installation of high-efficiency equipment or systems


Provides rebates for the installation of new energy efficiency equipment/measures that have been identified through standard utility energy efficiency audits.


Provides customer education and encourages participation in energy efficiency, demand response, self- generation programs and promotes awareness of greenhouse gas and water conservation activities

Savings by Design Statewide program offered by PG&E to encourage high-performance new building design and construction for commercial buildings

HVAC Program Program to ensure HVAC technology, equipment, installation and maintenance are of the highest quality installation and maintenance practices are easily recognized and requested by customers.

Commercial Continuous Energy Improvement

Provides consultative service which targets long-term and strategic energy planning (non-resource program)

2016 Commercial Third Party Programs (Proposed)

24

Third Party Program Program Description Grocery Program Provide grocers with energy audits, rebates and information about efficient technology,

operations and management. Lodging Provide comprehensive energy efficiency surveys, direct installations, and recommisioning to

medium and large lodging facilities (>200 kW). Healthcare Program Provide support services including energy audits, engineering analysis, consulting, financial

incentives, and retro-commissioning assistance to healthcare facilities. Boiler Program Provide technical services and rebates to identify and implement boiler energy efficiency

projects. Commercial Real Estate Outreach

Provide comprehensive analysis of multiple buildings within property ownership or management and originates energy efficiency retrofit projects.

Advanced Lighting Design and Controls

Provide advanced lighting design for new construction and advanced lighting controls for retrofit opportunities.

Large Data Center Program (new)

Provide technical support and incentives to customers with large data centers, greater than 5,000 square feet.

BioTech Program (new) Provide technical support, comprehensive energy efficiency solutions and incentives to the Biotechnology customer segment.

Commercial Mid Market Program (TBD)

Provide a focus primarily on commercial mid-market customers with peak demand between 199kW and 500kW, promoting controls and building automation systems (BAS).

Laboratory Fumehood Program (TBD)

Provide installation of variable air valves to efficiently control air flow through fume hoods in universities and research laboratories.

Data Centers Program (TBD)

Provide technical support and incentives to customers with small to medium data centers, up to 5,000 square feet.

25

2016 Commercial Core Programs

Core Program Program Description Commercial Calculated Incentives Provides customized incentives for non- residential energy efficiency

retrofit and new construction projects involving the installation of high-efficiency equipment or systems.


Provides rebates for the installation of new energy efficiency equipment/measures that have been identified through standard utility energy efficiency audits.


Provides customer education and encourages participation in energy efficiency, demand response, self- generation programs and promotes awareness of greenhouse gas and water conservation activities.

Savings by Design Statewide program offered by PG&E to encourage high-performance new building design and construction for commercial buildings.

HVAC Program Provides a single HVAC quality maintenance program that offers solutions to serve a range of customers sizes.

Commercial Continuous Energy Improvement

Provides consultative service which targets long-term and strategic energy planning (non-resource program).

NAICS l _INDUSTRY _GROUP kWh Savings% kWh Savings% of Usage - of Usage - 3P

Q overall Lessors of Real Estate Grocery Stores Computer and Per ipheral Equipment M anufactur ing Elementary and Secondary Schools Limited-Service Eating Places Real Estat e Uncategorized General Medical and Surgical Hospitals Trave ler Accommodation Sem iconductor and Other Electronic Component M anufacturing Telecommunications Uncategor ized Food Services and Dr inking Places Uncategorized Colleges, Universities, and Professional Schools Other General M erchandise Stores Department Stores Other Amusement and Recreation Indust r ies Int ernet Service Providers and Web Search Portals W ireless Telecommunications carriers (except Sat ellite) Outpatient Care Centers Religious Organ izations Gasol ine Stat ions Clothin.11 Stores Software Pub lishers Building Mater ial and Supplies Dealers Depository Credit Int ermediation

0.87% 1.25% 0.58% 1.22% 0.30% 0.94% 0.22% 1.21% 0.89% 0.69% 0.38% 1.74% 2.05% 1.57% 0.37% 0.82% 0.28% 1.95% 1.01% 1.95% 1.29% 0.69% 3.96% 0.24%

0.10% 0.79% 0.00% 0.50% 0.03% 0.09% 0.00% 0.64% 0.10% 0.00% 0.06% 0.06% 0.29% 0.14% 0.06% 0.00% 0.02% 0.04% 0.22% 0.51% 0.21% 0.00% 0.32% 0.00%

26

NAICS kWh Opportunities


NAICSl _INDUSTRY _GROUP

Food Services and Drinking Places Uncategorized Colleges, Universities, and Professional Schools Genera l Medical and Surgica l Hospitals Elementary and Secondary Schools Traveler Accommodation Limited-Service Eating Places Lessors of Real Estate Grocery Stores Drycleaning and Laundry Services Outpatient Care Centers Real Estate Uncategorized Full-Service Restaurants Other Amusement and Recreation Industries Scientific Research and Development Services Semiconductor and Other Electronic Component Manufacturing Nursing and Residential Care Facilities Uncategorized Computer and Peripheral Equipment Manufacturing Re ligious Organizations Junior Co lleges

Thm Savings Thm Savings % of Usage - % of Usage -

Q: Overall 3P 0.33% 0.00% 1.51% 0.28% 0.24% 0.02% 1.47% 0.34% 0.56% 0.26% 0.84% 0.00% 0.90% 0.24% 0.63% 0.13% 0.51% 0.01% 1.15% 0.12% 1.29% 0.74% 0.49% 0.00% 0.57% 0.08% 0.27% 0.05% 1.03% 0.29% 0.32% 0.12% 3.58% 1.03% 0.67% 0.09% 4.15% 0.00%

27

NAICS Thm Opportunities


1

PG&E Government and Community Partnerships Leif Christiansen Manager

UC/CSUCalifornia CommunityCollegesCalifornia Department ofCorrections & RehabilitationState of California

.

.

.

.

.

any nstall & Scho

2 Pacific Gas and Electric Comp 2016 RFP for Regional Direct I ols Programs (DRAFT)

2013-2014 PG&E Partnerships

Statewide:

Pacific Gas and Electric Company 2016 RFP for Regional Direct Install & Schools Programs (DR

3 AFT) Partnerships Overview

Regional Direct Install (DI) – • Comprehensive retrofit services for underserved customers (SMBs,

non-profit organizations, and municipal customers)

Public Sector Lead • Oversee strategy and programs for cities, counties, K-12 public schools,

special districts, and higher education/state government institutions • Encourage EE upgrades through benchmarking, audits, technical

support, project management, rebates/DI and financing • Support long-term EE planning through climate action planning, codes

and standards reforms, water-energy nexus initiatives, etc.

Community-based Outreach and Support • Customized local outreach campaigns • Green jobs and youth empowerment initiatives • Local EE seminars and trainings for customers and local contractors

4

Regional Direct InstallStakeholder Presentation Moses Gastelum

January 13, 2015

5 Pacific Gas and Electric Company 2016 RFP for Regional Direct Install & Schools Programs (DRAFT)

Content • Program Objectives • Gaps and Opportunities • Proposed Regions • Program Framework • Savings Targets


Program Objectives • Holistically serve SMB customer segment • Maximize participation from underserved

customers • Maximize cost effectiveness, program quality,

energy savings, and customer satisfaction • High level of local engagement


Gaps and Opportunities • Niche Customer Segments • Water/Therm Measures • Local Workforce Development • Greater Coordination with Local Partners


Current vs. Proposed Regions


Program Overview Base 3 year contract, with potential for 2 year extension based on implementer performance.

2015 2016

Segment Served SMB, muni, non-profit, special district

SMB, muni, non-profit, special district

Customer Size <= 200 kW <= 200 kW

Measures Lighting , Refrigeration Lighting , Refrigeration , Water

Services Turnkey Turnkey

Installation Model Varies: In-house Technicians vs. External Contractors

Local Contractor Req. In-house (optional)

Incentive Structure $/kWh $/kWh, $/Therm Tiered Incentives


2016 Proposed Targets Region kWh kW Therms

Northern 7,600,000 1,400 TBD

Central Valley 24,300,000 4,350 TBD

North Bay 13,200,000 2,260 TBD

Central Coast North 24,500,000 3,560 TBD

Central Coast South 5,500,000 930 TBD

Regional Comparisons 50%

40%

30%

20%

10%

0%

32%

42%

10% 10%8%11%

33%35%

10% 7% 5% 8%

18%

10%11%

% of Goal % of Usage Participation Rate

Central Valley Northern Central Coast Central Coast North Bay North South

11

Schools ProgramStakeholder Presentation Jillian Rich

January 13, 2015

12 Pacific Gas and Electric Company 2016 RFP for Regional Direct Install & Schools Programs (DRAFT) Schools Program

Current Programs Serving Schools: 1. School Energy Efficiency (SEE) Program 2. K-12 Private School and College 3. Analytics Enabled Retrocommissioning (AERCx) 4. Air Care Plus 5. HVAC Quality Maintenance 6. Local Government Partnerships 7. SEE Bonus for Prop 39 Planning 8. Energize Schools (IDEEA 365 award)

Draft Objectives for 2016: • Consolidate school offerings to minimize customer confusion and improve cost

effectiveness • Integrate and coordinate with government partnerships including regional direct install • Tailor public school offerings to the Prop 39 application and reporting process

whenever possible

13 Pacific Gas and Electric Company

2016 RFP for Regional Direct Install & Schools Programs (DRAFT) Schools Program

Key Actions (Draft): • Territory: The Schools Program will be offered territory-wide, but the program will be

structured regionally to emphasize and improve local integration • Regional DI: Integrate with regional direct install programs according to DI customer

thresholds (<200 kW) • Customer Types: Serve public K-12 schools, private K-12, and private

colleges/universities • Note: The majority of private school projects are assumed to be served by regional direct

install according to historical savings trends • Project Types: Provide comprehensive project assistance with a combination of custom,

deemed, and retro-commissioning • Prop 39: Develop limited, non-resource, short-term Prop 39 planning offerings for

smaller (Tier 1-3) schools (e.g. Audits, benchmarking, technical assistance)

• 2016 Draft Savings Goals:

Program kWh kW Thm

Schools Program 20,300,000 1,400 600,000

14 Pacific Gas and Electric Company

2016 RFP for Regional Direct Install & Schools Programs (DRAFT)

Schools Program

Thm Savings Projected Trend

kWh Savings Projected Trend kW Savings Projected Trend

15

Thank You

Documents

2016 Third Party RFP Planning Stakeholder Presentation · 2016 Third Party RFP Planning Stakeholder Presentation Karen Zelmar Director, EE Programs . Welcome and Safety Message 2