March 22 & 23, 2006

Salt Lake City

Utah

Utah Geological SurveyGround Source Heat Pumps &

Geothermal Direct Use Workshop Energy FinAnswer & FinAnswer

Express Programs Trig Soleim – Project Manager

© 2

000

PA

CIF

ICO

RP

| P

AG

E 2

Today

– Energy Resources – where are those kWhs? - “IRP”

– New ownership on the horizon

– Energy FinAnswer Program

– FinAnswer Express Program

– Self-Direction Program

© 2

000

PA

CIF

ICO

RP

| P

AG

E 3

Why Energy Efficiency?

– To Utah Power, energy efficiency is a resource Just like a generating plant (savings need to be there) Utah Power has goals/targets for acquiring energy

efficiency – part of a ten-year least-cost resource plan Traders, schedulers, originators, analysts and economists

(and DSM) working together to keep the lights on

– In addition, energy efficiency programs Benefit customers’ bottom line - help local businesses in

Utah Power’s communities remain competitive Have positive customer service impacts for Utah Power Are part of a sustainable energy portfolio

© 2

000

PA

CIF

ICO

RP

| P

AG

E 4

How Much Do We Need – The “IRP”

– IRP is an Integrated Resource Plan – Planning model – how much new generation, how much

DSM, etc. – 10 year plan highlights:

The least-cost, risk-adjusted approach proposed in a diverse portfolio of resources includes renewables, thermal baseload peaking units, and large quantities of DSM:

• 2600 MW of baseload capacity• 1400 MW of renewables (not counted towards

capacity requirements)• 1200 MW of peaking capacity• 1200 MW of shaped resource contracts• Up to 450 MWa of DSM and 117 MW of direct load

control

© 2

000

PA

CIF

ICO

RP

| P

AG

E 5

New Ownership

– Pending sale to Mid American Energy Holding Company (MEHC)

– Mid-American Energy (the utility) has robust suite of DSM programs for all customer sectors

– Many of the same program types, prescriptive incentives, custom/ comprehensive, new construction focus, load management, etc.

– Know the MEHC counterparts, exchange information. Continue the process, meet, exchange more specific information, collaborate on best practices, etc.

– Both are local utilities with solid local DSM plans and results!

© 2

000

PA

CIF

ICO

RP

| P

AG

E 6

Overview Of New Enhancements

– Recommissioning Designed to optimize building energy use Designed to complement existing incentive programs

– Load Lightener Lighting load controller Free installation

© 2

000

PA

CIF

ICO

RP

| P

AG

E 7

Energy FinAnswer

– Targets customers interested in comprehensive new construction or retrofit projects

– Utah Power pays for energy engineering services Identify energy efficiency options with high likelihood of

implementation Vendor neutral, investment-grade, independent assessment

– Measure incentives based on energy savings and customer costs Sign incentive agreement before signing purchase orders Commissioning required for some measures

– Most measures that save energy qualify – lighting limited to 50% of savings

© 2

000

PA

CIF

ICO

RP

| P

AG

E 8

Energy FinAnswer - Commercial Baseline

– Pre-set baseline for commercial new construction/major renovation Pre-set baseline = current energy code Code version dictated by building permit application date Beat code by 10% on a whole building electric basis to

qualify for incentives Incentives based on savings and costs compared to

baseline (code) Major renovations – code applicability? Consultants tells

us if code applies

– Industrial (code doesn’t apply) remains the same. Baseline checklist + plans determine the baseline No 10% for industrial

© 2

000

PA

CIF

ICO

RP

| P

AG

E 9

Energy FinAnswer – Design Team Honorarium– Design team honorariums for early involvement -

designed to increase new construction activity– Honorarium of $1,500 - one honorarium per project– Requirements for honorarium payment

For project where we don’t already have a signed Letter of Intent. Get our Letter of Intent signed

Apply before completion of schematic design New construction or major renovation project Applicant has contract with owner for design services –

paid even if not built

– See handout

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

0

FinAnswer Express – New Construction

– For lighting Beat code by 10% to qualify for new construction

incentives Lighting Power Density (LPD) for all areas of facility

covered by code Certain measures not eligible for new const: LED exit

signs, regular T-8s, de-lamping, screw in CFLs

– Consultant determines if code compliance required

– For motors and HVAC

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

1

FinAnswer Express Lighting - New Measures

– New prescriptive category/incentive

• Premium T-8s

» Lamps with initial lumens ≥ 3100 or wattage ≤ 30

» electronic ballasts with BF ≤ 0.8.

• Integral (with fixture) occupancy sensors

– Enhanced category/incentive for

• Metal halide

• T5 & T-8 high bay

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

2

FinAnswer Express – High Efficient Motors

– Adjust incentive levels Efficiency levels aligned for consistency with new

NEMA Premium™ Incentives: $45 for 1 HP to $630 for 200 HP

Custom incentives for larger than 200HP or explosion proof configurations

– New incentive delivery mechanism Participating dealers will provide $ credit on customer

invoices $ credit available only from participating dealers – dealer

agreement required – list of dealers available on web site

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

3

FinAnswer Express – High Efficient HVAC

– Adjust package unit incentives upward slightly - $50/ton

Meet both EER + IPLV or EER + COP (or HSPF) Using ARI data for ratings and capacity Heat pumps - pay for cooling capacity only Premium motors and VFDs in package units – no

additional incentives if required to meet EER and/or IPLV

– Add prescriptive incentives for evaporative cooling

– New incentive delivery mechanism Incentives via post purchase application

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

4

Recommissioning

– Features Designed to optimize building energy use Free analysis

– Identify low cost measures Customer commitment to spend up to $10,000 O & M measures with payback 1 year or less

– Eligibility 300 kW demand and >75,000 sq. ft. Have energy management system No major expansions or retrofits planned Commitment of staff to be involved in process

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

5

Recommissioning

– Examples Re-set discharge air temp, static pressure re-set Improved economizer operation Chiller control & sequencing Leak repair in compressed air systems Re-set control points in refrigeration systems

– Administration Nexus – who presently coordinates other UP&L programs Recommissioning Service Provider – performs study RSP may perform measurement & verification

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

6

Load Lightener

– Lighting Load Controller Eligibility - 70 kW of lighting - 16 hours/day operation Reduces lighting circuit voltage “EnergySaver” unit - free installation – no maintenance UP&L can reduce load demand up to 25% during summer

afternoon peaks – max. 4 hours day “EnergySaver” reduces kWh 3% year-round = $$ savings Lighting not reduced below customer approved levels Extended life for lamps and ballasts

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

7

Load Lightener

– Administration Program Administrator - Electric City

• Conducts site survey

• Obtains customer acceptance – light levels

• Obtains signed agreement – terms & conditions

• Installs & commissions unit Electric City owns “EnergySaver” unit 10 year ‘hosting’ commitment (or may purchase unit) 1000 installations in North America

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

8

LEED And Energy FinAnswer

– Share common goal– Energy & atmosphere – 17 Points possible– Energy study & commissioning – 11 Points possible – “LEED Certified” Rating – 26 Points required– “LEED Platinum” – 52 Points required

© 2

000

PA

CIF

ICO

RP

| P

AG

E 1

9

Self-Direction Credit Program

– Customer chooses path – FinAnswer or SD– Eligibility - 1000 kW or 5 mill. kWh – can aggregate– 3% “Customer Efficiency Services Charge”– Use 80% of eligible project costs as offset – Customer responsible for engineering – See handout - program manuals and forms available

on web site– Consistent baselines, engineering and standards

between all programs– Simple payback 1-5 years (alternative requirements

if > 5 years)

© 2

000

PA

CIF

ICO

RP

| P

AG

E 2

0

Which Program?

– FinAnswer Express Customers considering equipment upgrades only For projects or customers who don’t need energy

engineering services from Utah Power

– Energy FinAnswer Comprehensive projects Energy engineering and commissioning guidelines

necessary due to project complexity

– Self-Direction Credit - large customers can compare incentive programs Do you need energy engineering services? Will an incentive or a bill credit work better?

– Goal is to support best option for customer

© 2

000

PA

CIF

ICO

RP

| P

AG

E 2

1

Contact Information

– To receive program updates Give your card to me Email me at: trig.soleim@pacificorp.com Call me at (503) 813-5109

– Who to call regarding Utah Power energy efficiency incentive programs Trig Soleim, 503-813-5109, trig.soleim@pacificorp.com

– Who to call re the Self-Direction Credit program Matt Gibbs, 1-888-682-1234, selfdirection@utahpower.net

© 2

000

PA

CIF

ICO

RP

| P

AG

E 2

2

Wrap - up

Utah Power is long term player Big goals combined with commitment and money

make us great customer for you! We’re continuing our partner approach to delivery,

but the bar is going up! More results, faster, more diverse, more cost effective, more innovative!

Continuous improvement is key behavior Thanks for your time !!!!!