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PPL Electric Utilities
Act 129 Phase 3
Business Rebate Program
April 27, 2016
2
Background
• ACT 129 was signed into law in November 2008
• Energy efficiency programs help customers
manage their electric consumption and reduce
their electricity costs
• Programs are available to default supply and
shopping customers on a voluntary basis
• Program costs are recovered from customers– Budget is ~$62 million per year
– “Pass through” (rider); PPL makes no profit
• No cross subsidization
3
Phases of Energy Efficiency Programs
• Phase 1: November 2009 - May 2013
• Phase 2: June 1, 2013 – May 31, 2016
• Phase 3: June 1, 2016 – May 31, 2021– Energy Efficiency Plan filed on November 30, 2015
– PaPUC approval on March 17, 2016
– Programs launch June 1, 2016
4
Status of Phase 2 Business Rebates
• Waitlist implemented on May 20, 2015 for all
sectors and programs
• Program closed to new pre-applications on
April 22, 2016
• Customers and contractors with waitlisted
projects will be contacted over the next several
weeks to advise status of funding
• Final applications for all completed Phase 2
projects are due by June 15, 2016
5
Phase 3 Overall Energy Reduction Target
• 1,443,035 MWh/yr
• Equivalent to a 3.8% reduction in overall
consumption– Phase 1 (~3.5 years) was 1,146,431 MWh/yr; 3% reduction
– Phase 2 (3 years) was 821,072 MWh/yr; 2.1% reduction
• Compliance targets for Phase 1 were set in
the legislation
• Compliance targets for Phase 2 and Phase
3 were set by the PaPUC
6
Compliance Targets
• Low-Income – 5.5% of the total energy savings target
– 79,367 MWh/yr
– Entirely from income-qualified programs
• Government, non-profit, education (GNE)– 3.5% of the total energy savings target
– 50,507 MWh/yr
• Peak Load Reduction– 92 MW
7
Other Requirements
• Portfolio of energy efficiency programs must be cost-effective
• Demand reduction must be cost-effective
• Cost-effectiveness is determined by the Total Resource Cost
test
• Equitable distribution of programs across customer sectors
• EDCs must hire Conservation Service Providers (CSPs) to
deliver programs– EDCs must competitively bid all CSP contracts
– Cannot reuse Phase 2 CSPs without competitive bids
– PaPUC must approve all CSP contracts
8
Process for Designing Programs
• Market potential study and other research
• Results from previous phases
• A lot of input from stakeholders June - October 2015: OCA,
OSBA, SEF, CAUSE/PULP, PPLICA, KEEA, CEO, and others
• Establish savings and cost budgets for each customer sector
(residential, low-income, small C&I, large C&I, GNE)
• Many iterations
• File EE&C Plan November 30, 2015
• Comments, testimony, reply testimony, reply comments, and a
hearing before an Administrative Law Judge
• PaPUC approval on 3/17/16
9
Phase 3 Business Rebate Program
• Efficient Equipment Program
– Lighting, lighting controls, refrigeration, HVAC, motors,
variable frequency drives and more
– Rebates based on $/annual kWh saved
• Custom Program
– Complex energy efficiency measures requiring
measurement and verification
– Compressed air, motors/VSDs, industrial process
improvements, building management systems, combined
heat and power (CHP), other technologies
– Rebates based on $/annual kWh saved
10
Other Program Highlights
• Mid-Stream lighting rebates for distributors
– Program rebates given at Point-of-Sale
– Encourages trade allies to purchase more-efficient lighting products
– Easier program participation
• Direct Discount rebates for qualified trade allies (Fall 2016)
• Rebates for Behavioral measures (targeting GNE sector)
11
Efficient Equipment Rebates
• Performance-based
rebates at:
$0.05/annual kWh
• Up to 50% of project
cost or $500,000
• Comprehensive list of
measures
• Savings determined
by 2016 PA TRM
12
Custom Rebates
• Performance-based
rebates at:
$0.06/annual kWh
• Up to 50% of project
cost or $500,000
• Complex measures
requiring measurement
and verification
• Projects must pass TRC
to be eligible
13
Combined Heat and Power (CHP)
• Performance-based
rebates at:
$0.03/annual kWh
• Up to 50% of project
cost or $500,000
• Projects must pass
TRC to be eligible
14
Midstream Lighting Rebates
• Prescriptive-based
rebates vary by product.
• Rebates provided at the
Point-of-Sale (POS)
through participating
distributors.
• Customer information
must be given by
contractor at POS to
verify eligibility.
15
Direct Discount Rebates
• Starts Fall 2016
• Rebates paid directly
to participating trade
allies.
• Requires reenrollment
• Details and eligibility
requirements to
follow.
16
Online Application Portal
• Phase 3 project applications can be completed and submitted online starting June 1.
• Project documentscan be also be submitted through the portal.
• Project status updates will be displayed in the portal.
17
RECAP: Phase 3 Business Rebate
Program
PY8 PPL Business Rebates
Efficient
Equipment$0.05/kWh
Custom $0.06/kWh
CHP $0.03/kWh
Additional program services provide based on your individual needs:
Technical Assistance
– Help identify efficiency opportunities that are specific to your business
– Review efficiency design specs and provide recommendations
Energy Benchmarking and Master Planning:
– Learn where and how your facilities are wasting energy
– Educate on best practices that finance, facilities and administrative staff can employ to maximize long-term savings
18
Phase 3 Trade Ally Kickoff Events
Dates Venue Times
Thurs., 6/2Red Lion East Harrisburg
4251 Lindle Road, Harrisburg, PA
7:30 Breakfast
8-9:30 am
Tues., 6/7Hilton Conf. Ctr.
100 Adams Ave. Scranton, PA
7:30 Breakfast
8-9:30 am
Wed., 6/8Genetti/Best Western
1345 North Church Street, Hazleton, PA
7:30 Breakfast
8-9:30 am
Thurs., 6/9 Lehigh University, Iacocca Hall7:30 Breakfast
8-9:30 am
Fri., 6/10Hampton Inn
140 Via Bella St, Williamsport, PA
7:30 Breakfast
8-9:30 am
*Webinar of the Trade Ally Kickoff presentation will be available for those that cannot attend in person, details will be provided.
