Redesigning Your Residential Portfolio · with all utilities, WAP partners, and other stakeholders. Contracts with single nonprofit to administer program funds. Provides oversight

www.esource.com

Redesigning Your Residential PortfolioHighlights from the 2019 E Source Next-Gen Residential DSM Workshop

Web conference

August 13, 2019

Andrea SalazarAssociate Director, Customer Energy Solutions,

E Source

Action

Kate MersonDirector, Customer Energy Solutions, E Source

https://www.esource.com/DSM-RB-24/CSM-Filings

© 2019 E Source | www.esource.com 2

Goal of this web conference

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E Source DSM Insights

www.esource.com/dsminsights


Topical focus of the workshop

Behavioral programs

Low-income programs

Future of low- or no-cost programs

Emerging measures

Emerging technologies and trends


2020 Next-Gen DSM Workshops

Next-Gen DSM Commercial Workshop (Summer)

Next-Gen Demand-Response Workshop (Spring)

If you or a colleague would like more information about attending one of these events, please contact [email protected]

mailto:[email protected]


LYNDSEY to Insert Polling in Ready TalkOn a scale of 1 to 5, how confident are you in achieving your energy-savings targets in the next few years?


Current portfolio trends


Targets are still going up


More than 75%

51% to 75%

26% to 50%

11% to 25%

Less than 10%

None

For electric and dual-fuel utilities, what percentage of your residential portfolio savings currently come from LEDs?

© E Source© E Source

11%

A shift in lighting savings is underway

33%

17%

33%

6%

0%


Lighting savings still buoying portfolios

0.82

0.34

0.21

0.92

0.42

0.23

0.84

0.5

0.25

0.580.5

0.21

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Low income Multifamily Residential

Spen

ding

per

kilo

wat

t-hou

r ($

actu

al)

Sector

Spending per kilowatt-hour, by sector, 2014 to 2017

2014 2015 2016 2017

© E Source (DSM Insights)


Could we recreate this poll Lyndsey?


States enforcing their own legislation


Gas program cost-effectiveness varies by sector

13.32

4.045.08

11.25

5.76 5.32

12.02

7.43 7.81

12.18

8.74

7.24

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Low income Multifamily Residential

Spen

ding

per

ther

m($

act

ual)

Sector

Spending per therm, by sector, 2014 to 2017

2014 2015 2016 2017



E Source’s next-gen gas DSM series

Regular peer sharing calls

Next-gen gas resource center

Next-gen gas measures (soon!)

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Water heating is the 3rd most energy-

consuming residential end use

Broad range of opportunities: peak shaving, thermal energy storage,

ancillary services

Minimal impacts on customer comfort

Opportunities during

electrification

Great things are done by a series of small things

brought together.—Vincent Van Gogh


What are your top strategies for maintaining cost-effective savings within your residential portfolio? (Multiple responses are okay.)


Behavioral

Upstream

Connected homes

Localized DSM

Emerging tech

Online market-places

Serving the hard-to-reach

Customer-centric design

www.esource.com© 2019 E Source | www.esource.com 19

Next-gen low-income programs


Resource acquisition costs for low-income programs

$0.95 $16.05

Average$/kilowatt-hour

Average$/therm


What are the biggest challenges you face within your low-income portfolio?


Strategies to scale low-income DSM

Use statewide single point of contact to coordinateUse non-weatherization assistance program (WAP) partners to address niche segments

Expand eligibility to moderate-income customers

Create a WAP LLC

Scale neighborhood blitzes in target areasOffer workforce development and training for new contractors

Add new measures to your offering


Use a single entity to coordinate efforts

Coordinates with all utilities, WAP partners,

and other stakeholders

Contracts with single nonprofit

to administer program funds

Provides oversight of program and

addresses challenges

Ensures funds are distributed

and all requirements are adhered to

Massachusetts Low-Income

Energy Affordability

Network (LEAN)


Go beyond WAP for niche needs

CenterPoint Energy

offers six different low-income

programs and utilizes multiple

contractors

Idaho Powercreated a for-profit

LLC at a community action program

agency to augment its program

Xcel Energy contracted with a nonprofit to target

multifamily and nonprofits that weren’t being

served


Duke’s Neighborhood Energy Savers program

Used census and state income data to qualify neighborhoods Held a kickoff with community

leaders 95,000 served in 156 communities

since 2006 Average savings: 7% Customer satisfaction: 95%

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TVA expands partners to broaden reachMatched contributions

Targeted urban areas

Created digital platform for contractors and reporting

Invested in workforce development

Focused on home upgrades and education

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4

5


Options to serve moderate-income customers

Expand eligibility beyond 200% federal poverty line (Ameren IL)1

2

3

4

5

Direct install (Southern California Gas Co., Columbia Gas of Pennsylvania)

Tiered or enhanced incentives (OUC, National Grid, Energy Trust of Oregon)

Financing (Public Service Electric & Gas Co.)

Energy kits (Ameren IL)


Coming soon for members of the E Source Demand-Side Management Service

Scaling Low-Income

Programs: Success Stories

Making Your Low-Income

Programs Cost-Effective

Top-Performing

Low-Income Programs

Quarterly peer sharing calls


Common low-income measuresWeatherizationAttic and wall insulation

Weatherproofing

Caulking/repairs

Water-relatedLow-flowshowerheadsFaucet aeratorsPipe wrapHot-water tank blankets

LED lightingA-typeReflectorDecorativeNight lamps

Smart homeSmart thermostatsSmart power strips

AppliancesRefrigeratorsDishwashersClothes washers/dryers


Innovative low-income measures

HVACAeroseal duct sealingHeat pumps and heat-pump controls

Water-relatedTub spout and thermostatic shut-off valvesSmart water heatercontrolsHeat recovery

LED lightingDusk-to-dawn outdoor lighting

Smart homeEnergy feedbackdevices

WeatherizationExterior insulation and finish systemAerobarrier envelope sealingCool roofsLow-e window film

Distributed energy resourcesElectric vehicle chargersSolar/thermal panels


Aeroseal

Source: Aeroseal and Lawrence Berkeley National Laboratory Develop Technology to Find and Fill Building Energy Leaks

Seals 90% to 95% of leaks

Space needs to be empty

https://www.energy.gov/eere/success-stories/articles/eere-success-story-aeroseal-and-lawrence-berkeley-national-laboratory


Aerobarrier envelope sealing


Potential for cool roofs in several states

Source: Cool Roofs, Heat Island Group, Lawrence Berkeley National Laboratory

https://heatisland.lbl.gov/coolscience/cool-roofs


Low-e window film

Source: Low-Emissivity Window Film (PDF), General Services Administration

29% HVAC savings for single-pane

windows

2-to-6-year payback period

Source: Low-e Applied Film Window Retrofit for Insulation and Solar Control (PDF), Lawrence Berkeley National Laboratory

https://www.gsa.gov/cdnstatic/GPG_Findings_032-Low-E_Film.pdf

https://www.gsa.gov/cdnstatic/GPG_-_Low-e_Solar_Film_Report_-_final_2.28.2017.pdf


Energy monitoring and feedback devices


Hungry for more? Residential Technologies to Focus On After Lighting

Electric Vehicle Resource Center

What Smart Water Heaters Are Out There and Are They Safe?

Fall 2018 Tech Roundup

How Is a “Cool Roof” Installed, and What Are the Estimated Energy Savings for This Measure?

Help Me Make My Windows More Efficient!

Tech Roundup February 2018

Emerging Technology Resource Center

https://www.esource.com/tas-1700030-001/emerging-technology-resource-center









Next-gen behavioral programs


Behavioral programs capture significant share of portfolio savings

4.26.5 8.0

11.8 11.1 12.7

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10

20

30

40

50

2012 2013 2014 2015 2016 2017

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Year© E Source (DSM Insights)


0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45AEP Ohio

United Illuminating Co.KCP&L

Arizona Public ServiceBGE

Rocky Mountain Power - IDBlack Hills Energy - CO

Eversource (formerly NSTAR)MidAmerican Energy - IL

Otter Tail Power CompanyNational Grid - Niagara Mohawk

Georgia Power Co.Hydro One Networks

National Grid - RICity of Roseville Electric

PepcoPG&E

AVERAGEDelmarva Power

Xcel Energy - ColoradoSouthern California Edison

FortisBCToronto Hydro-Electric System

Cost per kilowatt-hour ($)

Cost-effectiveness



0 2 4 6 8 10 12 14 16 18 20

MidAmerican EnergyNational Grid - RI

Connecticut Natural GasAmeren Illinois

National Grid - MANational Grid - Niagara Mohawk

Eversource (formerly NSTAR)Xcel Energy - MinnesotaXcel Energy - Colorado

MidAmerican Energy - ILMEDIAN

Berkshire Gas CompanyCenterPoint Energy - MinnesotaYankee Gas (Northeast Utilities)

BGEPG&E

AVERAGEPuget Sound Energy

SoCal GasTucson Electric Power

UniSource Energy ServicesLiberty Utilities - NH

Cost per therm ($)

Cost-effectiveness



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Make HER programs opt-out

Test wording and frequency

Use social norms instead of rewards

Cross-promote

Use email and paper reports

Home energy report (HER) best practices


Focus of next-gen HER programs

Targeting specific customer segments

in unique ways

Integration with other program offerings

Proving persistenceCreating a better

customer experience


What new program types are emerging?

Prepayment billing for DSM Digital engagement and gamification Community-based pledges and

competitions Online marketplace nudges


Prepay produces 5% to 14% savings


Customers want prepay

46%of customers between the

ages of 18 and 34 say they are very or somewhat likely to participate in prepay if offered

© E Source


DTE Insight app

Bill estimates, goals, usage info, tips Weekly challenges and

rewards Deemed 1.6% savings per

download Feedback, goals, norms,

convenience, competitionSource: DTE Energy


Marketplace purchase nudging

Recent news: California can claim behavior savings Information, convenience,

norms, framing


BC Hydro’s Team Power Smart

Started in 2007, now

over 130,000 customers

enrolled

25.6 gigawatt-

hours between 2009 and

2013

12-month challenge to

reduce energy by

10%

$50 reward

plus other perks

One of most successful behavioral programs

Reward-based

program to drive

behavior changes


Want more info from E Source?

Recent research: HER Programs: Best

Practices and Savings HER Programs: Design

and Implementation HER Programs: Reducing

Customer Calls

Upcoming: HER Programs: Natural

Gas Savings E-commerce series Behavioral DSM Programs:

Peer Sharing Call E Source Forum


Next-gen low- and no-cost programs


Most cost-effective residential categories in 2019

Cost per kilowatt-hour Program category$0.01 Codes and standards support$0.04 Emerging technology development$0.06 Loan/financing$0.07 Behavior change/feedback$0.10 Prescriptive rebate$0.15 Education and awareness$0.17 Tune-up$0.21 Custom rebate$0.22 Energy management assistance$0.22 Conservation kits

Cost per therm Program category$0.01 Prescriptive rebate$0.03 Direct install$0.07 Behavior change/feedback$0.18 Codes and standards

support$0.82 School education kits$1.01 Loan/financing$1.20 Conservation kits$1.28 Education and awareness$1.42 Custom rebate$2.02 Retrocommissioning

Gas programsElectric programs


Plans to phase out lighting

After 202076%

In 202012%

By 20206%

We have already removed lighting products

6%

By when are you planning to phase out lighting from your direct-install and/or kit program?

© E Source© E Source


Direct-install recommendationsCombine smart thermostat direct-install with enrollment in a demand-response program 1

2

3

4

5

Segment multifamily customers and incorporate learnings into program design

Offer bonus incentives for bigger-ticket items or a more detailed assessment

Offer free multifamily common-area and in-unit options

Add cost-effective, nonlighting measures


School kit recommendations

Offer subprograms tailored to different grade levels1

2

3

4

5

Account for participants that plan to install measures later

Offer cash rewards to families, students, and teachers for meeting specific installation goals

Allow participants to give unused kit measures to family members or neighbors

Consider making the program opt-in to minimize uninstalled measures


Next-gen direct-install and kit measuresWeatherizationAerobarrier air sealingStorm windowsLow-e window film

Water-relatedTub spout & thermostatic shut-off showerhead/valve

LED lightingReflectorDecorativeNight lampsDusk-to-dawn outdoor lightingSmart home

Energy monitoringSmart power stripsSmart thermostatsSmart LEDs

HVACAir conditioning/ furnace tune-upAeroseal duct sealing


Smart LEDs

How Does Tunable Lighting Affect Productivity?

Save Energy and Improve Health with Tunable Lighting

Smart LED Bulbs

What Color Temperatures Are Available for LEDs and Are There Any Related Health Concerns?

https://www.esource.com/10308-001/how-does-tunable-lighting-affect-productivity

https://www.esource.com/tas-1700015-001/save-energy-and-improve-health-tunable-lighting

https://www.esource.com/iv-tech-answer-265/smart-led-bulbs

https://www.esource.com/iv-tech-answer-284/what-color-temperatures-are-available-leds-and-are-there-any-related-health


E Source Measure Insights

CompilesTechnical reference manual (TRM) data

into astructured online database

of measure-specific assumptions and inputs to base

DSM program calculations on


Do you need to know …

… the expected useful life for low-flow showerheads?

… the installation rate of low-cost measures?

… the annual energy savings for LED lamps?

… the annual hours of operation for furnaces?


Want more info from E Source?

Recent research: Best Practices for Collecting

Baseline Data for Direct-Install LED Programs Utility School-Kit Programs:

Best Practices and Trends Evolve ShowerStart

Programs

Upcoming: New Measures for Direct-

Install Programs New Measures for Kit

Programs Small Business Programs:

Peer Sharing Call E Source Forum

https://www.esource.com/10402-001/what-are-best-practices-collecting-and-using-baseline-data-direct-install-led-programs

https://www.esource.com/10316-001/utility-school-kit-programs-best-practices-and-trends

https://www.esource.com/dsm-1700010-010/evolve-showerstart-programs


Emerging technologies and

trends


New construction helping to hit targets

Within our high performance new construction program, we are piloting rebates at design stage and offering an online listing of energy ratings.” —Efficiency Nova Scotia

Using a performance-based incentive approach, our new construction program has enabled us to achieve half of our gas savings. —Energy Trust of Oregon

Our Energy Star New Homes Program surpassed our retail lighting savings. A key focus has been creating a competitive environment among home builders. —SRP


Streamlining processes

We are using a photo documentation process for all building envelope work to reduce program costs. —Platte River Power Authority

We’re doing video inspections using Face Time and Skype. Contractors love it and it cuts down on home visits. —Tacoma Power

Our instant rebates for smart thermostats have been good for program uptake and customers love it. —Puget Sound Energy


The smart home

Smart Home Pilots and Programs

Voice Control Changes Everything: Why Utilities Should Care About Virtual Assistants

Choosing an HEM Platform: A Comparison of Systems That Provide Residential Energy Information and Automation

https://www.esource.com/10026-001/smart-home-pilots-and-programs

https://www.esource.com/10059-001/3/voice-control-changes-everything-why-utilities-should-care-about-virtual-assistants

https://www.esource.com/10083-001/choosing-hem-platform


Heat pumpsSome utilities have had success; other have struggled

• Trade Ally Networks Resource Center• Incorporating Emerging Technologies into Your Programs

Cold-climate heat pumps and variable-capacity heat pumps haven’t performed well

• How Do You Coordinate Minisplit Heat Pump and Backup Heat Operation?

Lots of developments in new heat pump technologies

• New developments in gas heat pumps: Gas Technologies and Programs Resource Center• Top 20 Technologies and Trends of 2018• Emerging Technology Resource Center

https://www.esource.com/RES-RC-1/Trade-Allies-Resource-Center

https://www.esource.com/es-1700007-099/incorporating-emerging-technologies-your-programs

https://www.esource.com/136191acha/how-can-i-coordinate-minisplit-heat-pump-and-backup-heat-operation

https://www.esource.com/10165-001/gas-technologies-and-programs-resource-center

https://www.esource.com/10270-001/top-20-technologies-and-trends-2018



Smart line-voltage thermostats 13 to 120 kilowatt-hour savings per

thermostat Top 20 Technologies and Trends of 2017 Are There Any Programmable

Thermostats on the Market That Could Work for Customers Who Use Electric Resistance Heating? E Source DSMdat E Source DSM Evaluation Library

https://www.esource.com/tas-1700031-002/top-20-technologies-and-trends-2017

https://www.esource.com/iv-tech-answer-155/are-there-any-programmable-thermostats-market-could-work-customers-who-use

https://www.esource.com/dsmdat

https://www.esource.com/dsm-evaluation-library


Conservation voltage reduction

Improving Power Distribution with Voltage Optimization

https://www.esource.com/members/IGS-AskES-41/Ask_ESource/Voltage_Optimization


Improved org structures

Evolving the DSM Org Structure to Accommodate DERs How DSM

Departments Are Evolving Into Customer Energy Solutions Teams

https://www.esource.com/10143-001/evolving-dsm-org-structure-accommodate-ders

https://www.esource.com/10303-002/how-dsm-departments-are-evolving-customer-energy-solutions-teams


Improved processes DSM Department Evolution:

Implications for New Measure Development Why Tech-Transfer Efforts Aren’t

Working, and What to Do About It Utilities in an Age of Disruption Innovative Techniques for Taking

Emerging Technologies from Discovery to Implementation

https://www.esource.com/10303-004/dsm-department-evolution-implications-new-measure-development

https://www.esource.com/tas-1700026-001/why-tech-transfer-efforts-arent-working-and-what-do-about-it

https://www.esource.com/tas-rb-101/utilities-age-disruption

https://www.esource.com/members/TAS-RB-78/Research-Brief/Emerging-Technologies


How to leverage the E Source Technology Assessment Service to fill your pipeline with next-gen measures

Measure Development Maturity Assessment

Cleantech Roadmap

E Source Roadmap Template

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NEW! Cleantech roadmapping for members of the E Source Technology Assessment Service

Review technologies

Review technologies

Define desired end state

Recommend tactical interventions to achieve outcomes

On-demand support from E Source


Cleantech roadmap example


Next steps to evolve your portfolioJoin next-

gen working group

meetings

Attend a next-gen workshop

in 2020

Submit a question to

Ask E Source

Get a demo of a service or database or

attend a training


QuestionsKate MersonDirector, Customer Energy Solutions, E Source303-345-9145 [email protected]

You're free to share this document in its entirety inside your company. If you'd like to quote or use our material outside of your business, please contact us at [email protected] or 1-800-ESOURCE (1-800-376-8723).

Have a question? Ask E Source!Submit an inquiry: www.esource.com/question

Andrea SalazarDirector, Customer Energy Solutions, E Source303-345-9215 [email protected]



http://www.esource.com/question


Documents

Redesigning Your Residential Portfolio · with all utilities, WAP partners, and other stakeholders. Contracts with single nonprofit to administer program funds. Provides oversight