EDISON INTERNATIONAL® SM October 2012 Project Management Technical Services Customer Generation Team SCAP Energy Management Committee Meeting October 23,

EDISON INTERNATIONAL®

SM

October 2012

Project Management Technical ServicesCustomer Generation Team

SCAPEnergy Management Committee Meeting

October 23, 2012

Page 2 EDISON INTERNATIONAL®

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Overview

• Customer Generation Team Introduction• Interaction with Account Managers/Account Executives and

Customers• Generation Technologies Workshop• Recap

October 2012


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October 2012

Customer Generation Team

• Project Managers

– Bob Sliwoski (Lead) - Pax 42631

– Eugene Sedeno - Office 1(760) 951-3132

– Russ Lieu - Pax 43045


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Customer Generation Team Activities

• Provide education on alternate technologies and associated rules and tariffs to employees, customers, and community groups.– Perform engineering economic analyses on customer generation projects, at customer request. – Provide presentation support to clients and customers.– Provide technical expertise and engineering economic analyses for internal SCE programs and

organizations, such as Customer Energy Efficiency & Solar (CSI, SGIP and NEM programs), Renewable and Alternative Power (RAP), and Energy Supply & Management (ES&M).

• Provide technical expertise on regulatory and legislative proceedings to help shape outcomes that may impact our customers and/or the company.– Identify regulatory/legislative impacts and educate clients and customers.

October 2012


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October 2012

Account Manager/Executive Role

• Identify and monitor customer generation interest and activity

• Facilitate exchange of information • Assist customer’s decision process• Track progress by creating and updating Customer Care

Self-Generation Opportunity in CRM (Customer Relationship Management) system


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October 2012

Customer Generation Team Role

• Meet with customers to identify needs

• Obtain copy of generation proposals, and Power Purchase Agreements

• Perform Engineering & Economic Analysis

• Meet with customer and Account Mgrs/Execs to present analysis, risks, and benefits


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October 2012

When Should Account Management Contact Us?• Examples of when Account Management should contact us:

– Does the customer have significant interest in Self Generation?– Does the customer have a corporate initiative to “go green” by installing

renewable generation?– Is the customer discussing Self Generation with vendors?– Is the customer inquiring about rebates (Self Generation Incentive Program and

California Solar Initiative)?– Is the customer receiving proposals for self-generation?

• Important Reminders:– The Customer Generation team cannot perform Engineering Economic Analyses

if the customer has a signed contract or letter of intent (LOI)– Customer must provide a copy of the generation proposal before work can begin


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October 2012

Customer Meeting with Self-Generation Decision Makers• Provides Opportunity to Discuss:

– Current customer needs and issues– Details of customer’s operation – Tariff changes/issues– Generation costs, risks, and benefits– Energy Efficiency programs and incentives

• More Important Reminders:– SCE is neutral overall regarding Self Generation– SCE does not promote or discourage Self Generation– SCE recommends that customers pursue EE/DR first


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October 2012

Results of Engineering & Economic Analysis

• Identify economics of generation • Detail generation alternatives• Facilitate customer decision process• Reveal underlying issues and needs• Dispel misleading information

EDISON INTERNATIONAL®

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October 2012

Generation Technologies Workshop


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October 2012

Overview

• Introduction• Generation Technologies

– Applications– Economics– Performance

• Incentive programs


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October 2012

UtilityDistribution

System

Natural Gas

Electricity

Self Generation

• Electric generation with no heat recovery


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October 2012

Cogeneration

• Electric generation plus heat recovery

Natural Gas

ElectricitySteam orHot Water

UtilityDistribution

System


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October 2012

Distributed Generation Technologies

• Internal Combustion Engines• Small Gas Turbines • Microturbines• Fuel Cells • Photovoltaics• Wind Turbines • Waste Heat Recovery-Generation


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October 2012


• Internal Combustion Engines • IC Engines are derived from industrial diesel and automotive type engines

• Most mature of all DG technologies• Range in size from 100 kW to 3,000 kW• High potential for emergency standby• Easily fueled by diesel, natural gas, or

biogas• Installed costs range

$1,500-$2,500/kW• Heat Rate at full capacity

9,400-14,000 Btu/kWh


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October 2012


• Small Gas Turbines• A small gas turbine is essentially a small jet aircraft engine• Range in size from

1,200 kW to 10,000 kW• Installed costs range

$1,300-$1,800/kW• Heat Rate at full capacity 10,000-15,000 Btu/kWh


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October 2012


• Microturbines• Same principle as small gas turbines • Range in size from

30 to 250 kW• High potential for cogeneration• Installed costs range

$2,500-$3,000/kW• Heat Rate at full capacity 11,500-15,000 Btu/kWh


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October 2012


• Fuel Cells• Operating principle is conversion of chemical energy to electrical energy• Energy conversion using fuel such as hydrogen and natural gas without a

combustion process• Environmentally benign• Range in size from 200 to 2,800 kW (typical installation – may be stacked to

configure any desired size)• Potential for cogeneration• Installed costs range

$6,000-$8,500/kW• Heat Rate at full capacity

8,000-9,500 Btu/kWh(most efficient DG Technology)


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October 2012


• Photovoltaics• Operating principle is conversion of sunlight directly to electricity• Simple off-grid systems include PV modules, batteries, mounting structure, and

associated wiring• Environmentally benign• Range in size from 10 to 1,000 kW (typical installation – modules may be linked to

configure any desired size)• No cogeneration potential• Installed costs range

$4,500-$7,500/kW


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October 2012


• Operating principle is conversion of the wind’s energy to electricity• Typically wind turbines are rotating blades installed in areas with high, steady winds• Each wind turbine range in size from 10 to 1,000 kW (individual turbines may be

connected to produce a wind farm to yield a much larger capacity)• No cogeneration potential• Installed costs range $850-$2,500/kW

• Wind Turbines


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October 2012

Distributed Generation Performance Summary


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October 2012

Combined Cycle Plant


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October 2012

Distributed Generation EconomicsMajor Factors

• Fuel Cost• Operating Hours• Capital Recovery• Thermal Recovery/Utilization• Maintenance• Utility Escalation Rates• Tax Credits & Incentives• Value of Displaced Power ($/kWh)


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October 2012

FeasibilityComparison

Distributed Generation Economics

CapitalRecovery

FuelAndO&M

Non-Bypass-

able

Bypass-able

Generation Costs Utility Tariffs

• Customer Charge• Some Demand

Charges• Non-bypassable

Charges• Standby/Backup

Charges

• Generation• Some Demand

Charges• kWh-based Delivery

Charges

CriticalFactors

Gas Prices

Installed Cost

DG Displaced Power Value

Typical 60% load factor customer displaced power value range

75 -85% of Average TOU-8 Tariff Cost


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October 2012

Distributed Generation EconomicsTypical Operating Hours

• Directly impacts generation economics– Allocation of fixed cost over the operating hours

• More Hours – Less $ per kWh• Applications

• Office Buildings 2,200 hours• Colleges, Hospitals, Prisons 8,760 hours• Community Colleges 4,000 hours• Process Industries 8,760 hours


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October 2012

Attractive Applications

• Economic factors of cogeneration and self generation – High operating hours– Coincident electric and thermal loads

• Renewable generation (wind, solar, waste fuel, etc.)– Space considerations– Appropriate weather conditions


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October 2012

Current Incentives

• Net Energy Metering Program– Available to solar, wind, and fuel cell generation using

on-site bio gas (OBG) with a maximum installed capacity of 1000 kW or less*

– Generation credit for energy produced • CPUC Self Generation Incentive Program (SGIP)• California Solar Initiative (CSI)• Other Feed-in-tariffs - AB 1613 , Water/Crest (AB 1969),

Net Surplus Compensation (AB 920) *Note - SB 489 will revise the list of eligible technologies


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October 2012

California Solar Initiative

• The California Solar Initiative (CSI) program is designed to provide incentives for the installation and operation of solar photovoltaic (PV) projects

– Authorized by the California Public Utilities Commission (CPUC) and Senate Bill 1 (SB 1)– The CSI program has a total budget of $2.165 billion to be used over 10 years (SCE has been allocated $996 million)

• Beginning on January 1, 2007, the CSI program pays:– Performance-based incentives (PBI) for solar projects equal to or greater than 30 kilowatts (kW),

• Monthly payments based on recorded kilowatt hours (kWh) of solar power produced over a 5-year period.– Expected performance-based buy down (EPBB) incentives to solar projects less than 30 kW

• An up-front incentive based on an estimate of the system's future performance• Incentives as of June 22, 2012:

1 Any size system may opt into the PBI program

SectorEPBB Incentive (per watt) for projects below 30 kW

PBI Payment (per kWh) for projects 30 kW and

larger1

Residential $0.65 $0.090Commercial $0.35 $0.044Government/Non-Profit $1.10 $0.139


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Self-Generation Incentive Program

October 2012

• The Self-Generation Incentive Program (SGIP) provides financial incentives for installing new, qualifying self-generation equipment installed to meet all or a portion of the electric energy needs of a facility.

• SGIP Incentives:


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October 2012

Recap

• Contact Customer Generation Team when customer expresses interest in Self Generation

• Ask customer if they have signed a contract, proposal or Letter of Intent

• Identify customer needs• Obtain copy of generation proposal and/or PPA• Create Self Generation Opportunity in CRM and update as needed• Meet with customer for final presentation of Engineering Economic

Analysis

Documents

EDISON INTERNATIONAL® SM October 2012 Project Management Technical Services Customer Generation Team SCAP Energy Management Committee Meeting October 23,