HomeMy WebLinkAboutStaff Report 6715
City of Palo Alto (ID # 6715)
City Council Staff Report
Report Type: Informational Report Meeting Date: 4/18/2016
City of Palo Alto Page 1
Summary Title: Annual Utilities Efficiency Programs Report for FY 2015
Title: Informational Report on the City of Palo Alto Utilities Demand Side
Management Annual Report for Fiscal Year 2015
From: City Manager
Lead Department: Utilities
This memo and the attached report present the achievements of Demand Side Management
(DSM) programs implemented by the City of Palo Alto Utilities (CPAU) during Fiscal Year (FY)
2015. This is for the Council’s information and no action is required.
Executive Summary
The FY 2015 DSM Annual Report provides updates on the achievements of CPAU’s electric,
natural gas, and water efficiency programs, as well as locally-sited solar photovoltaic (PV), solar
water heating program and green power programs. The DSM Report also provides updates on
various customer outreach and research and development initiatives that are related to
achieving savings in electric, gas and water.
CPAU exceeded its electric, natural gas and water efficiency goals for FY 2015. Savings are
attributable to the expansion of CPAU’s energy efficiency program portfolio through third-party
administered programs. For water conservation programs, CPAU partners with Santa Clara
Valley Water District to provide both water audits and rebates to encourage water savings. In
response to the California drought, customers focused on water efficiency in FY 2015 and
savings were 240% higher than in FY 2014.
Background
As a municipal utility that delivers electric, gas and water utility services to customers in its
service territory, CPAU is subjected to state laws that govern resource conservation and related
expenditures. Key legislation that affects CPAU includes:
Assembly Bill (AB) 1890 (1996) requires publicly owned electric utility (POUs) to establish a
public benefit charge of 2.85% of revenue to fund any or all of the following “public benefit”
programs:
• Cost-effective, DSM services to promote energy-efficiency and energy conservation.
City of Palo Alto Page 2
• New investment in renewable energy resources and technologies consistent with
existing statutes and regulations that promote those resources and technologies.
• Research, development and demonstration programs in the public interest which
advance science or a technology not being adequately provided for by competitive and
regulated markets.
• Services for low-income electricity customers such as targeted energy-efficiency
installations.
Senate Bill (SB) 1037 (2005) requires each POU, in procuring energy, to first acquire all available
energy efficiency and demand reduction resources that are cost-effective, reliable and feasible.
AB 2021 (2006), as amended by AB 2227 (2012), requires POUs to develop annual electric
efficiency targets over ten years based on all potentially achievable cost-effective energy
savings, update the goals every four years, and provide annual reports to their customers and
the California Energy Commission. CPAU adopted its first ten-year electric and gas efficiency
targets in 2007 and has since updated these goals twice with the last update completed in
December 2012.
SB 1 (2006) requires all POUs to adopt, implement and finance a solar initiative program to
encourage the installation of residential and commercial solar energy systems.
AB 1470 (2007) requires each POU providing gas service to retail end-use gas customers to
adopt, implement and finance a solar water heating system incentive program.
SBx7-7 (2009) requires water suppliers to reduce the state average per capita daily water
consumption by 20% by December 31, 2020. This requirement is incorporated in the 2010
Urban Water Management Plan, adopted by California’s urban water suppliers including Palo
Alto.
Discussion
CPAU offers incentive programs to customers to encourage energy and water efficiency as well
as installation of customer-owned renewable generation. During FY 2015, CPAU exceeded its
electric, gas, water efficiency goals. CPAU’s Solar PV program is also on track to meet its
program goal of installation of 6,500 kilowatts (kW) by 2017. CPAU’s Solar Water Heating (SWH)
Program made slight progress in achieving its goal of 30 installed systems per year since low gas
prices make the return on investment for SWH systems unattractive. The table below
summarizes CPAU’s FY 2015 goals and achievements.
City of Palo Alto Page 3
Goals versus Achievements
Resource
FY 2015
Savings Goals
(% of load)
FY 2015
Savings Achieved
(% of load)
FY 2015
Savings Achieved
Electricity 0.60% 0.65% 6,063 MWh
Gas 0.50% 0.92% 229,373 therms
Water 0.91% 1.54% 68,227 CCF
Customer side
Renewable Program Goal FY 2015
Achievement
Cumulative Achievement
through FY 2015
Solar Electric (PV)* 6,500 kW, by 2017 814 kW 5,877 kW since 2008
Solar Water Heating 30 systems/year 15 systems 58 systems since 2008
* Solar PV System goal is over a 10-year period (2008-2017)
In addition to customer incentives, CPAU runs a variety of customer outreach campaigns and
educational workshops to promote conservation and efficiency programs. Ongoing activities
include utility bill inserts, home energy and home water reports, email newsletters, and training
workshops on numerous energy and water efficiency topics. CPAU also uses social media
(Twitter/Facebook/NextDoor) to promote its programs and services to customers.
CPAU has a number of pilot programs in place, including: the linkAges Connect program,
partnering with the Palo Alto Medical Foundation Innovation Center, uses passive signals in the
home, such as electricity, gas, and water data from advanced metering infrastructure, to allow
family caregivers to remain updated on the well-being of their senior family members; a
Commercial Benchmarking pilot program to assist 22 businesses with using the US EPA’s
Portfolio Manager online energy management tool; and the Program for Emerging
Technologies, which provides opportunities for local businesses to partner with CPAU or its
customers to pilot test new technologies.
The attached DSM Report provides details about CPAU’s FY 2015 DSM programs including costs
and resource savings by program and by end use, description of customer outreach efforts, and
research and development initiatives that are underway.
Attachments:
Attachment A: Demand Side Managment Report for FY2015 (PDF)
Demand Side Management
Annual Report
Resource Efficiency and Sustainable Energy Programs
ATTACHMENT A
The City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates its
own utilities including electric, fiber optic, natural gas, water and wastewater services. We
have been providing quality services to the citizens and businesses of Palo Alto since 1896.
MISSION:
To provide safe, reliable, environmentally-sustainable and cost effective services.
VISION:
We deliver extraordinary value to our Customers.
VALUES:
Honesty/Integrity: We exhibit honesty and integrity when we model good behavior and a
strong work ethic; communicate with honesty, sincerity and respect for one another; share
all knowledge and create transparency; and follow-through at all levels.
Teamwork: We promote teamwork at CPAU by communicating clearly and respectfully
while proving to be dependable and respectful and exhibiting a positive attitude.
Accountability: We demonstrate this value by taking responsibility for our actions; being
clear about our vision, direction and expectations; following through on work tasks; and
being a results-oriented and accountable employee.
Quality of Service: We each contribute to achieving quality of service by being responsive to
customers’ needs and customer-focused, having a can-do attitude, and striving for
excellence by operating a safe and reliable system.
Fiscal Year 2015
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FY 2015 Demand Side Management Annual Report
TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................................................... 4
1 ELECTRIC EFFICIENCY PROGRAMS ......................................................................................... 10
2 GAS EFFICIENCY PROGRAMS ................................................................................................. 13
3 WATER EFFICIENCY PROGRAMS ............................................................................................. 16
4 SUSTAINABLE ENERGY PROGRAMS .............................................................................................. 19
5 CUSTOMER OUTREACH & COMMUNICATIONS ....................................................................... 23
6 RESEARCH, DEVELOPMENT AND INNOVATION ....................................................................... 27
7 FUTURE PLANS ...................................................................................................................... 30
APPENDIX A: PROGRAM DESCRIPTION ........................................................................................... 33
APPENDIX B: FY 2015 ACHIEVEMENTS BY DSM PROGRAM ............................................................. 39
APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES ............................................................. 40
APPENDIX D: FY 2015 SMART ENERGY RESIDENTIAL PROGRAM RESULTS ........................................ 41
APPENDIX E: FY 2015 LOW INCOME RESIDENTIAL ASSISTANCE PROGRAM (REAP) RESULTS ............. 42
APPENDIX F: SB 1037 ELECTRIC DSM REPORT TO CEC...................................................................... 43
APPENDIX G: EXAMPLES OF CUSTOMER OUTREACH EVENTS .......................................................... 44
APPENDIX H: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS AND
IMPLEMENTATION ........................................................................................................................ 46
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FY 2015 Demand Side Management Annual Report
EXECUTIVE SUMMARY
The City of Palo Alto Utilities (CPAU) is pleased to present the Demand Side Management (DSM)
Report for Fiscal Year (FY) 2015. CPAU is committed to supporting environmental sustainability through
efficient consumption of electric, gas and water resources, promoting distributed renewable
generation, and modifying consumer demand through incentives and education. CPAU accomplishes
these goals by delivering a wide range of customer programs and services described in this report.
This annual report provides updates on:
Electric and natural gas energy efficiency (EE) program achievements and expenditures
Water conservation program achievements and expenditures
Locally-sited solar photovoltaic and solar water heating program achievements and
expenditures
Voluntary green energy programs
Customer outreach initiatives
Research and development-related initiatives
Future plans
DSM GOALS and ACHIEVEMENTS
CPAU offers incentives and education programs for customers to encourage energy and water
efficiency, customer-owned renewable generation and enrollment in voluntary green energy
programs. Table ES.1 summarizes the FY 2015 goals and achievements. As shown, the
achievements for electricity, gas and water efficiency all exceeded the goals set for FY 2015. The solar
photovoltaic (PV) program is on track to meet its goal, but the solar water heating achievements are
short of the goal since the cost of a solar water heating system is difficult to cost justify, especially with
low natural gas prices.
Table ES.1: Goals versus Achievements
Resource
FY 2015
Savings Goals
(% of load)
FY 2015
Savings Achieved
(% of load)
FY 2015
Savings Achieved
Electricity 0.60% 0.65% 6,063 MWh
Gas 0.50% 0.92% 229,373 therms
Water 0.91% 1.54% 68,227 CCF
Customer side
Renewable Program Goal FY 2015
Achievement
Cumulative Achievement
through FY 2015
Solar Electric (PV)* 6,500 kW, by 2017 814 kW 5,877 kW since 2008
Solar Water Heating 30 systems/year 15 systems 58 systems since 2008
* Goal over a 10-year period 2008-2017
DSM PROGRAM EXPENDITURES
Table ES.2 summarizes the total DSM program expenditures over the last three years.
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FY 2015 Demand Side Management Annual Report
Table ES.2: Electric, Gas, Water DSM Program Expenditures
FY 2013 FY 2014 FY 2015
Electric DSM programs $3.2 million $3.2 million $2.4 million
Gas DSM programs $0.7 million $0.7 million $0.59 million
Water DSM programs $0.4 million $0.4 million $0.81 million
PV Partners $1.0 million $1.3 million $1.1 million
Solar Water Heating Program $62,000
44,00062,000
$67,000 $190,000
TOTAL PROGRAM EXPENSES $5.4 million $5.7 million $ 5.1 million
ENERGY AND WATER EFFICIENCY AS A RESOURCE
CPAU is committed to identifying and achieving all cost-effective energy and water efficiency measures
(i.e. those that are less expensive than supply-side resources). Since the adoption of the electric
Carbon Neutral Plan starting in 2013, electric EE no longer contributes to the community’s greenhouse
gas (GHG) emissions reduction. However, many electric EE measures still remain a cheaper resource
than carbon-neutral electric supplies. Table ES.3 summarizes the cost of efficiency1 to the utility over
the last three years compared to the projected cost of supply resources. The projected future supply
cost of gas dropped 36% in FY 2015 from a projected supply cost of $0.69 in FY 2014 as gas supply
costs decreased. Concurrently, there was a drop in large commercial gas projects in FY 2015. This
resulted in less gas savings, resulting in a higher cost per therm saved. The cost of water efficiency
measures increased in FY 2015 due to a desire to increase water savings during the ongoing drought
and the State-mandated urban potable water use reduction. In order to meet local water restrictions,
CPAU and the Santa Clara Valley Water District (SCVWD) doubled the landscape rebates, resulting in a
program that was very popular, but cost slightly more than the cost of future water supplies.
Table ES.3: Actual Efficiency Costs versus Projected Supply Costs
Cost of Efficiency Cost of Future
Supply FY 2013 FY 2014 FY 2015 3-yr average
Water $/CCF $ 2.97 $3.12 $4.61 $3.57 $4.55
Gas $/therm $ 0.40 $0.43 $0.72 $0.53 $0.44
Electric $/kWh $0.061 $0.043 $0.042 $0.049 $0.069
1 The cost of efficiency to the utility includes the administration cost of the program as well as any rebates paid out. When
measures are selected to be included in CPAU’s efficiency portfolio, cost-effectiveness is evaluated using the “Total
Resource Cost” test that compares the cost of the measure, any installation costs and the administrative cost of the
program to the cost of new supplies.
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FY 2015 Demand Side Management Annual Report
HIGHLIGHTS OF THE PAST YEAR
In Spring of 2015, Utilities Marketing Services* which had been a part of the Utilities Customer
Support Services Division, became a part of the Utilities Resource Management Division. The
goal for this merger was to enhance integrated portfolio planning which includes purchasing
electric, water and natural gas commodity and providing demand-side management services.
This reorganization allows more effective and efficient incorporation of energy efficiency, water
conservation, and program management into CPAU’s resource portfolios.
*Utilities Marketing Services (UMS) renamed Utility Program Services (UPS) on January 1, 2016
Third-party EE programs account for a significant portion of CPAU’s reported energy savings.
Most of these third-party EE program contracts are awarded for a 3-year term. CPAU issued a
Request for Proposal (RFP) for third-party EE Programs in June 2014 to solicit EE
implementation and management services from vendors to administer and implement
innovative and cost-effective energy efficiency programs targeting residential and commercial
customers. Seven contracts were approved by Council in May 2015 (Staff Report 5707):
1. ClearResult Consulting, Inc. for the administration of the Home Efficiency Genie program
which provides residential in-home energy assessment and phone-based energy efficiency
advisory services;
2. Eagle Systems International, Inc. DBA Synergy Companies in a not-to-exceed amount of
$540,000 for the administration of the Residential Energy Assistance Program, which
provides no cost, direct installation EE services to prequalified residential customers that
are eligible based on financial or medical needs;
3. Eagle Systems International, Inc. DBA Synergy Companies in a not-to-exceed amount of
$450,000 for the administration of the MultiFamily Residence Plus+ Program, which
provides no cost, direct installation of EE measures to multifamily residences with 4 or
more units;
4. Ecology Action of Santa Cruz, in a not-to-exceed amount of $1,950,000 for the
administration of the SMB (Small & Medium Business) Energy Edge Program, which
provides turnkey direct installation of EE measures to commercial customers;
5. Ecology Action of Santa Cruz, Enovity, Inc. and BASE Energy, Inc. in a combined not-to-
exceed amount of $2,775,000 across a total of three contracts), to provide building energy
performance optimization services to large commercial and industrial customers.
In April 2014, the City announced its intent to compete for the Georgetown University Energy
Prize, a national competition that aims to challenge communities across the U.S. to dramatically
rethink their energy use. On January 14, 2015 CPAU was selected as one of the 50 communities
in the U.S. to compete in the semi-final round. The competition stretches over a two year
period between January 2015 and December 2016, with a $5 million prize to be awarded to the
winner of the competition.
The Home Water Report and Home Energy Report programs were delivered to 13,000 water
customers and 20,000 energy customers during FY 2015. Participants in these comparison
programs saved over 27 million gallons of water, along with 1.6 million kWh and 146,000
therms.
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FY 2015 Demand Side Management Annual Report
In January 2015, CPAU launched PaloAltoGreen Gas (PAGG) which provides an opportunity for
residential and commercial participants to reduce or eliminate GHG emissions related to their
natural gas usage. PAGG is the first Green-e Climate certified gas offset program offered by a
municipal utility, and the first to be offered to individual community members. Since the launch
of the program, PAGG has grown to over 900 participants.
The Peninsula SunShares program was launched in May 2015. This group-buy program was
initiated by Foster City and included 12 other cities located in San Mateo County. Vote Solar,
the program administrator, facilitated the selection of two qualified solar contractors for
residential solar installations through a competitive selection process. The program offered
discounted PV installations that were 25% lower than Palo Alto’s average residential before-
rebate price and 13% lower than the after-rebate price. The enrollment period ended in August
2015. The entire program resulted in over 800 kilowatts (kW) in new solar installations across
the Bay Area. Palo Alto led the region in the number of enrollments with an estimated 28% of
total participation. Fifty-four Palo Alto residents signed contracts to install 236 kW of solar
systems. Installations will continue into the spring of 2016. Program results will be included in
the FY 2016 DSM report.
During FY 2014 and 2015, CPAU completed installation of advanced electric, gas and water
meters at 375 residential customers’ homes as part of the CustomerConnect pilot program.
Participating customers have access to the CustomerConnect Portal, a web-based platform
which displays hourly interval data for gas, water and electric consumption. As part of this pilot
program, 150 homes will be on a Time-of-Use (TOU) electricity rate. This pilot is scheduled to
continue through 2016.
During FY 2015, CPAU launched a Commercial Benchmarking pilot program with GreenTraks,
Inc. to assist 22 businesses with using the US EPA’s Portfolio Manager online energy
management tool. Each building is benchmarked against similar buildings based on its energy
usage using an Energy Star rating of 1 to 100. The goal of the pilot is to help a mixture of small,
medium and large commercial customers benchmark their building and determine the best
ways to remove barriers and encourage more customers to use Portfolio Manager.
CPAU provides a grant to the Palo Alto Unified School District (PAUSD) of $50,000 each year for
the implementation energy and water efficiency educational programs from Public Benefits
funds. During FY 2015, this CPAU grant supported various activities including:
Canoeing in the San Francisco Bay to teach students about its water ecosystem
Installation of rain barrels at an elementary school
The Lawrence Hall of Science presented their “Engineer and Invent” assembly to a middle
school
Theatreworks went to an elementary school to teach students about “Playing with
Science”
A Green Team at a middle school purchased a bicycle blender to make pedal powered
smoothies
During summer 2015, five large commercial customers participated in the Summer Peak
Demand Response (DR) Pilot Program. Through this program, CPAU offers monetary incentives
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FY 2015 Demand Side Management Annual Report
to key account customers to reduce their electric usage when called upon by CPAU during high
load periods in the summer. Total demand reduction ranged between 0.6 MW to 1 MW per
called event.
CPAU completed a report2 documenting results from the advanced lighting system pilot project
in the Palo Alto City Hall underground parking garage, which was carried out from January
through March 2014 through the Program for Emerging Technologies. The report estimated
energy savings potential of up to 72%, with an estimated payback of within a decade for
retrofitting the entire Palo Alto Civic Center parking garage using advanced lighting
technologies.
EXPECTED HIGHLIGHTS FOR FY 2016
In February 2016 CPAU launched a new residential online energy and water portal with Nexant
(replacing the Home Energy Report (Opower) and Home Water Report (WaterSmart) where
customers can log in and view their gas, electric and water consumption, see how they are
doing compared to similar homes and have access to all efficiency and savings programs, in one
location. Also starting spring 2016, as part of the Georgetown University Energy Prize
competition, the City is hosting a behavioral science energy savings lottery among all residents.
Each resident that reduces gas or electric use compared to the previous year will be eligible for
lottery tickets. At the end of the competition, winners will be drawn from the lottery.
In October 2014, City Council approved and accepted a total of $75,000 in funds from SCVWD
under the 2014 Safe, Clean Water Priority Grant Program (Staff Report 5025). The funds will
used by CPAU to support its Business Water Report Pilot Program and Real Time Water Use
Monitoring Pilot Program. Staff issued RFPs for the two pilot program’s marketing,
administration and implementation and in June 2015, WaterSmart was selected as the vendor
for the Business Water Reports Pilot Program and National Meter & Automation, Inc. (NMAAI)
was selected for the Real Time Water Use Monitoring Pilot Program. Both pilots are expected to
launch in early 2016.
On November 13, 2015 CPAU hosted the Building Carbon Zero California Conference at Lucie
Stern Community Center. Palo Alto was selected as the site for Passive House California’s 5th
Annual Conference, as Palo Alto is home to the largest California cluster of Passive Houses –
considered to represent today’s highest energy standard, reducing a building’s energy
consumption by up to 80%. Combined with renewable energy systems such as solar, passive
homes make zero net energy buildings one step closer to reality.
In August 2015, City Council approved an Electrification Work Plan (Staff Report 5961). The goal
is reduction of GHG Emissions through switching from natural gas using appliances to electric
appliances. Installation of Heat Pump Water Heaters (HPWH) has been selected as a good
candidate for single family homes. A pilot program designed to facilitate the installation of
HPWHs will be launched in early 2016.
2 http://www.cityofpaloalto.org/civicax/filebank/documents/44783
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FY 2015 Demand Side Management Annual Report
CPAU is working on ways to leverage distributed energy resources (DER) such as electric
vehicles (EVs), EV chargers, thermostats, PV systems, and storage systems already at customer
homes and businesses. A pilot program to enable grid connectivity of such DER systems is
planned to commence in 2016.
CPAU is currently developing two solar program offerings: a community solar program and a
solar donation program. Community solar programs (aka shared solar) typically enable an
electric utility’s customers to buy or lease solar panels in a centralized solar PV array and
receive regular credits for electric output via their utility bills. In a solar donation program,
participants would contribute funds towards building solar PV systems on schools and other
non-profit facilities. These two program offerings will allow many more members of the
community to “go solar” and to help achieve the goal of meeting 4% of the City’s energy needs
from local solar by 2023.
Staff is working with the Palo Alto Medical Foundation (PAMF) Innovation Center to deploy a
research pilot called "linkAges Connect" on Palo Alto's utility distribution systems. "linkAges
Connect” uses passive signals from advanced utility metering infrastructure to allow family
caregivers to remain updated on the well-being of their senior family members. Changes in
daily routines of seniors are often an indication of shifts in health status and regular utility
usage patterns can be an additional mode of communication that signals whether all is well
with a senior family member who is living alone.
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FY 2015 Demand Side Management Annual Report
1 ELECTRIC EFFICIENCY PROGRAMS
1.1 Electric Efficiency Savings versus Goals
City Council approved CPAU’s first Ten-Year Energy Efficiency Portfolio Plan in April 2007,
which included annual electric and gas efficiency targets between 2008 and 2017, with a 10-year
cumulative savings target of 3.5% of the forecasted energy use. As mandated by California law,
the electric efficiency targets were updated in 2010, with the ten-year cumulative savings goal
doubling to 7.2% between 2011 and 2020. Since then, increasingly stringent statewide building
codes and appliance standards have resulted in substantial energy savings (e.g. as of January 1,
2013, incandescent bulbs between 40W to 100W can no longer be sold). However, energy
savings in these “codes and standards” improvements are excluded from meeting CPAU’s EE
program goals. An updated set of Ten-Year Electric Efficiency Goals, adopted by City Council in
December 2012, revised the ten-year cumulative electric efficiency savings to 4.8% between 2014
and 2023.
CPAU’s electric efficiency savings goals and achievements as a percentage of the City’s energy
usage are shown in Table 1 below. The increasing electric savings in the past few years is
attributed to the expansion of CPAU’s electric efficiency program portfolio through third-party
administered programs. In FY 2015, CPAU achieved electric savings of 0.65% of load through its
customer efficiency programs, which is slightly below the previous year due to the startup of
new programs and the focus on water efficiency during the California drought. These savings
exclude electric savings from transformer upgrade projects and the City’s LED streetlight
conversion, which reduced energy usage by another 0.09%, or 796 MWh. Cumulative EE savings
since 2006 are about 6.5% of the FY 2015 electric usage.
Table 1: Electric Savings versus Goals
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(MWh)
FY 2008 0.25% 0.44% 4,399
FY 2009 0.28% 0.47% 4,668
FY 2010 0.31% 0.53% 5,270
FY 2011 0.60% 0.58% 5,497
FY 2012 0.65% 1.31% 12,302
FY 2013 0.70% 0.85% 8,074
FY 2014 0.60% 0.86% 8,218
FY 2015 0.60% 0.65% 6,063
1.2 FY 2015 Electric Efficiency Savings by End Use and Customer Segment
Non-residential customers account for 81% of CPAU’s electric sales, and non-residential efficiency
program savings represent about 76% of CPAU’s total electric efficiency savings, as shown in
Figure 1. Non-residential comprehensive energy savings covers a variety of EE measures including
variable speed pumps on fans, chiller upgrades, air handler unit optimization, and other system
fine-tuning such as updating HVAC system schedule and temperature setbacks. The energy
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FY 2015 Demand Side Management Annual Report
savings estimation methodology for the Home Energy Report program has been updated,
resulting in a slightly higher average per household savings. In FY 2015, the Home Energy Report
program accounted for 22% of the total electric EE savings.
Figure 1: Composition of Net Electric Efficiency Savings in FY 2015
(Total saving of 6,063 MWh, 0.65% of annual load)
1.3 FY 2015 Electric Efficiency Program Expenditures
The largest fraction of expenditures in the electric efficiency budget is for third-party
administered contracts and rebates. Other expenses include in-house salaries, marketing, and
customer education. Funding for electric efficiency programs came primarily from the
mandated Public Benefit (PB) Charge, which is set at 2.85% of the customer retail rate. The
majority of the PB funding is spent on efficiency programs; however, some also goes to
renewable energy projects, research and development projects and low income efficiency
programs. Supplemental funding for efficiency programs comes from supply funds. The bottom
of Table 2 below shows the funding split for electric EE programs between PB charges and
supply funds for FY 2015. Table 2 also shows the split of electric efficiency program
expenditures by customer rebates, third-party contract administration, and other expenses,
which include in-house staffing, marketing and communication expenses. State law requires
evaluation, measurement and verification (EM&V) of the reported electric efficiency savings by
an independent consultant. The EM&V contract cost is included in Table 2.
Appliances
0.72%
Res. Lighting
1.02%
Home Energy
Report
22.31%
Res. Others (Pool
Pump, Water
heater, etc.)
0.69%
Res. Refrigeration
0.91% Non-Res. Cooling
31.18%
Non-Res.
Processes
0.49%
Non-Res.
Comprehensive
7.19%
Non-Res. Lighting
35.49%
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FY 2015 Demand Side Management Annual Report
Table 2: FY 2015 Electric Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual
Cost
Programs delivered by CPAU staff
Residential Smart Energy Rebates $35,000 - $40,000 $75,000
Residential New Construction $22,000 - $20,000 $42,000
,000 Non-Residential Com. (CAP) Rebates $125,000 - $80,000 $205,000
Non-Residential Schools Grant - $45,000 $2,000 $47,000
All EM&V, Marketing & Other - $79,000 $230,000 $309,000
Programs delivered by third-party administrators
Residential Refrigerator Recycling* $3,000 $12,000 $2,000 $17,000
Residential Low Income (REAP)* $61,000 $18,000 $30,000 $109,000
Residential Home Energy Reports - $58,000 $25,000 $83,000
Non-Residential Enovity Large Business $222,000 $280,000 $60,000 $562,000
Non-Residential Hospitality* $164,000 $22,000 $15,000 $201,000
Non-Residential Right Lights Plus $174,000 $400,000 $58,000 $632,000
Non-Residential New Construction $95,000 $32,000 $20,000 $147,000
TOTAL $901,000 $946,000 $582,000 $2,429,000
Sources of Funds
Public Benefit Charges $1,828,000
Supply Funds $599,000
* These are “direct-install” programs, whereby the program administrator installs efficient equipment at the customer site at no cost to low income
residents or with small co-pays from small business customers. Direct install programs typically target hard-to-reach customers. For direct install
programs, payments to the third-party vendor are assumed to be 80% direct customer rebate and 20% contract administration.
Figure 2 shows the historical annual electric efficiency savings and annual electric efficiency program
expenditures. Note that in FY 2012 a large commercial customer completed a significant EE project.
Figure 2: FY 2008 to FY 2015 Electric Efficiency Savings and Expenditure
-
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1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
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0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2008 2009 2010 2011 2012 2013 2014 2015
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a
d
EE program expenditures ($)Net EE savings achieved
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FY 2015 Demand Side Management Annual Report
2 GAS EFFICIENCY PROGRAMS
2.1 Gas Efficiency Savings versus Goals
In parallel with the development of ten-year electric goals, the City Council adopted CPAU’s
first set of gas efficiency targets in 2007 to reduce gas consumption by 3.5% between 2008
and 2017. In 2010, Council increased the gas efficiency targets to reduce use by 5.5% between
2011 and 2020. Similar to the electric side, the potential for gas efficiency savings has been
reduced due to recent changes to California’s appliance standards and building codes. The ten-
year gas efficiency goals were last updated in December 2012, with a cumulative gas efficiency
target to reduce gas use by 2.85% between 2014 and 2023.
CPAU’s gas efficiency savings goals and achievements as a percentage of sales are shown in
Table 3. CPAU has continued to expand its gas efficiency program portfolio in the past several
years, with the majority of gas savings delivered through third-party administered programs.
Gas efficiency savings in FY 2015 exceeded the annual savings goal. Cumulative gas efficiency
savings since 2006 is about 2.8% of the FY 2015 gas usage.
Table 3: Gas Savings versus Goals
Year Annual Savings Goal
(% of load)
Savings Achieved
(% of load)
Savings Achieved
(therms)
FY 2008 0.25% 0.11% 35,057
FY 2009 0.28% 0.29% 146,028
FY 2010 0.32% 0.35% 107,993
FY 2011 0.40% 0.55% 164,640
FY 2012 0.45% 0.74% 220,883
FY 2013 0.50% 1.13% 327,077
FY 2014 0.50% 1.20% 337,079
FY 2015 0.50% 0.92% 229,373
2.2 FY 2015 Gas Efficiency Savings by End Use and Customer Segment
Non-residential customers account for 55% of the CPAU’s gas sales, and in FY 2015 gas efficiency
savings in the non-residential segment represent about 24% of CPAU’s total gas savings. The
energy savings estimation methodology for the Home Energy Report program has been
updated, resulting in a slightly higher average per household savings. In FY 2015, the Home
Energy Report program accounted for 65% of the total gas savings. Figure 3 shows the
breakdown of gas savings in FY 2015 by end use.
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FY 2015 Demand Side Management Annual Report
Figure 3: Composition of Natural Gas Efficiency Savings in FY 2015
(Total saving of 229,373 therms, 0.92% of annual load)
2.3 FY 2015 Gas Efficiency Program Expenditures
The largest fraction of expenditures for gas EE in FY 2015 is for third-party administered
contracts and rebates. Gas efficiency programs are primarily funded from the Gas Public Benefit
charge, which is set at 1% of the gas utility’s revenue. Additional funding is provided from supply
funds if needed. As reflected in Table 4 below, gas efficiency programs in FY 2015 were funded
only from PB charges. Table 4 also shows the split of gas efficiency program expenditures by
customer rebates, third-party contract administration, and other expenses, which include in-
house staffing, marketing and communication expense. Although not required by state law, CPAU
conducts EM&V of its gas efficiency savings through an independent consultant. The EM&V
contract cost is included in Table 4.
Home Energy
Report
64.9%
Res. Clothes
Washers
3.6%
Res. Measures
3.3%
Res. Insulation (SF
& MF)
6.4%
Non-Res.
Insulation
8.4%
Non-Res.
HVAC/Controls
13.5%
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FY 2015 Demand Side Management Annual Report
Table 4: FY 2015 Gas Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual Cost
Programs delivered by CPAU staff
Residential Smart Energy Rebates $13,000 - $20,000 $33,000
Residential New Construction $22,000 - $15,000 $37,000
Non-Residential
ReResidential
Com. Rebates (CAP) - - $10,000 $10,000
All EM&V, Marketing & Other - $28,000 $50,000 $78,000
Programs delivered by third-party administrators
Residential Low Income (REAP)* $86,000 $18,000 $20,000 $124,000
Residential Home Energy Report - $58,000 $15,000 $73,000
Non-Residential Enovity Large Bus $30,000 $28,000 $10,000 $68,000
Non-Residential Hospitality* $133,000 $20,000 $10,000 $163,000
Non-Residential Right Lights Plus - - - -
Non-Residential
Residential
New Construction - - $5,000 $5,000
TOTAL $284,000 $152,000 $155,000 $591,000
Sources of Funds Public Benefit Charge $591,000
Supply funds $0
* These are “direct-install” programs, whereby the program administrator installs efficient equipment at the
customer site at no cost or with a small co-payment from the customer.
Figure 4 compares annual gas efficiency savings and annual gas DSM expenditures. Gas efficiency
savings have been on an upward trend, with a slight dip this year due to low gas prices, as CPAU
continues to expand its gas efficiency portfolio through third-party program administrators.
Figure 4: FY 2008 to FY 2015 Gas Efficiency Savings and Expenditures
-
200
400
600
800
1,000
1,200
1,400
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2008 2009 2010 2011 2012 2013 2014 2015
$
Th
o
u
s
a
n
d
s
Ac
h
i
e
v
e
d
E
E
s
a
v
i
n
g
s
a
s
%
o
f
L
o
a
d
EE program expenditures ($)Actual EE savings as % of load
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FY 2015 Demand Side Management Annual Report
3 WATER EFFICIENCY PROGRAMS
3.1 Water Efficiency Savings versus Goals
The 2010 Urban Water Management Plan includes a per capita water use reduction goal of
20% by 2020 from a historical benchmark period (average use between years 1995 and 2004).
CPAU’s water savings goals and achievements as a percentage of sales are shown in Table 5.
Note that participation in water efficiency rebate programs during FY 2015 increased
dramatically due to the California drought and the Governor’s Executive Order (B-36-15)
mandating water conservation.
Table 5: Water Savings versus Goals
Year Annual Savings
Goal
(% of load)
Savings
Achieved
(% of load)
Savings
Achieved
(CCF) FY 2008 0.34% 0.72% 39,323
FY 2009 0.34% 0.98% 52,983
FY 2010 0.34% 1.35% 68,948
FY 2011 0.90% 0.47% 23,409
FY 2012 0.91% 1.09% 55,067
FY 2013 0.91% 0.53% 26,513
FY 2014 0.91% 0.64% 32,325
FY 2015 0.91% 1.54% 68,227
3.2 FY 2015 Water Efficiency Savings by End Use and Customer Segment
During FY 2015, residential savings represented almost 85% of total water savings, with the
majority of these savings attributed to the Home Water Reports and the Landscape Rebate
Program. Plumbing upgrades such as the installation of faucet aerators, low-flow showerheads
and high efficiency toilets also contributed to these savings. The commercial water rebates
offered to customers include water efficient landscape conversions, irrigation hardware
replacements, weather-based irrigation controllers and clothes washers. Similar rebates were
also offered on the residential side.
In response to California’s drought conditions, Palo Alto joined the SCVWD in April 2014 to
double the rebate available for converting turf grass to low water using landscape through the
end of 2014. Figure 5 shows the breakdown of water savings achieved in FY 2014 by end use.
Note that savings customers achieved due to behavioral changes or appliance upgrades
prompted by CPAU’s drought awareness messaging by customers who did not seek a rebate
are not accounted for in these achievements.
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FY 2015 Demand Side Management Annual Report
Figure 5: Composition of Water Efficiency Savings in FY 2015
(Total saving of 68,227 CCF, 1.54% of annual load)
3.3 FY 2015 Water Efficiency Program Expenditures
CPAU partners with the SCVWD to provide residential and commercial water conservation
programs which include free water audits to residential customers, landscape surveys, rebates
for landscape conversions, irrigation hardware, clothes washers, high efficiency toilets and
urinals. The payment to SCVWD includes customer rebates as well as various program
expenditures. CPAU also offers an additional energy efficiency rebate to customers for high
efficiency clothes washers.
Table 6 shows program expenditures by customer rebates, third-party contract administration
and other expenses, which includes in-house staffing, marketing and communication expenses.
Res Showerheads &
Aerators
7%
Res Clothes Washers
3%
Residential
Landscapes
20%
Res High Efficiency
Toilets
4%
Home Water Report
55%
Non-Res. High
Efficiency Toilets
1%
Non-Res. Other
(Clothes
Washers,Urinals)
0.1%
Non-Residential
Landscapes
10%
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FY 2015 Demand Side Management Annual Report
-
100
200
300
400
500
600
700
800
900
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2008 2009 2010 2011 2012 2013 2014 2015
Th
o
u
s
a
n
d
s
$
Ac
h
i
e
v
e
d
w
a
t
e
r
s
a
v
i
n
g
s
a
s
%
o
f
l
o
a
d
Water efficiency program expenditures ($)Actual water savings as % of load
Table 6: FY 2015 Water Efficiency Program Expenditures
Customer Class Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual
Cost
Programs delivered by CPAU staff
Residential Washing Machines* $1,000 - $5,000 $6,000
$ 14,000
$ 14,000
14,000
All Marketing & Other - - $150,000 $150,000
Programs delivered by Santa Clara Valley Water District
Residential High Efficiency Toilets - $16,000 $5,000 $21,000
Residential Landscape Rebates - $120,000 $25,000 $145,000
Residential Water Wise House Calls - $19,000 $10,000 $29,000
All Irrigation Hardware
Upgrade
- $8,000 $10,000 $18,000
Non-Res High Efficiency Toilets** - $8,000 $5,000 $13,000
Non-Res Washing Machines - $200 - $200
Non-Res Landscape Rebates - $266,000 $40,000 $306,000
Programs delivered by WaterSmart
Residential Home Water Reports - $72,000 $45,700 $117,700
TOTAL $1,000 $509,200 $295,700 $805,900
Notes:
* For washing machine rebates, the customer receives $75 from water, $25 from gas, and $25 from electric budgets. The SCVWD
reimburses CPAU 50% for the water portion of the residential washing machine rebates. The reported figure represents CPAU’s share of
the water portion of the rebate.
** This is a direct install program, whereby the program administrator installs efficient equipment at the customer site at no cost to, or with a
small co-pay from, the customer.
Figure 6 compares the historical annual water efficiency savings and annual water efficiency
program expenditures.
Figure 6: FY 2008 to FY 2015 Water Efficiency Savings and Expenditures
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FY 2015 Demand Side Management Annual Report
4 SUSTAINABLE ENERGY PROGRAMS
4.1 Overview of Sustainable Energy Programs
CPAU offers a variety of programs to encourage residents and non-residents to improve the
environmental impacts associated with their gas and electric consumption. Customer-side
renewable generation programs are available to support the installation of both solar electric
photovoltaic (PV) and solar water heating (SWH) systems. Voluntary green energy programs
support investments in renewable electricity and carbon offsets that reduce greenhouse gas
emissions.
4.2 Solar Photovoltaic (PV) System Installation Achievements versus Goals
CPAU has offered customer incentives for local solar PV since 1999, and increased the PV rebate
budget in 2007 as mandated by SB 1. These customer-side generation systems are not included in
CPAU’s Renewable Portfolio Standard (RPS) supply requirements. Table 7 shows the number of
PV systems installed and the capacity in kilowatts (KWs) from FY 2008 through FY 2015.
Table 7: Customer-Side Photovoltaic (PV) Systems Program Achievements
Year PV Systems
Installed
Achieved PV Installations in kW
Res Non-Res Res Non-Res
FY 2008 112 6 326 217
FY 2009 43 9 152 1,037
FY 2010 52 2 205 15
FY 2011 44 3 187 298
FY 2012 48 4 186 248
FY 2013 47 4 203 54
FY 2014 104 7 498 1,357
FY 2015 93 9 436 378
CPAU offers incentives for PV system installations through the PV Partners Program. Palo Alto’s
share of the state-wide goal established by SB1 is 6.5 MW of PV between 2008 and 2017. Prior to
2008, 185 PV systems were installed for a total of 665 kW. As of June 30, 2015, the total capacity
of all Palo Alto PV systems was 6.5 MW, generating about 1% of the City’s annual energy needs.
The residential PV rebate funds were fully reserved in August 2014. Residents continue to install
solar without the rebate largely due to the continued decrease in solar installation costs and the
recent extension of the 30% Federal Tax Credit.
4.3 Solar Water Heating (SWH) System Installation Achievements versus Goals
CPAU began offering rebates to residential and commercial customers to install SWH systems in
2008. The SWH rebate program was mandated by AB 1470 (2007) and is administered by the
Center for Sustainable Energy, which also administers SWH rebate programs in the San Diego
area. As shown in Table 8, the number of SWH systems installed has been consistently below
target, especially since FY 2013 when the retail gas rate decreased 20% from the previous
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FY 2015 Demand Side Management Annual Report
year, which reduced the cost-effectiveness of SWH systems. Unlike PV systems, the cost for
SWH systems has not decreased over time. This is partly because there are fewer SWH system
installers than PV installers. The SWH equipment is most cost effective in multi-family buildings
where most of the installations in FY 2015 occurred.
Table 8: Customer-Side Solar Water Heating Systems Program Achievements versus Goals
Year SWH Systems Goal SWH Systems Installed
FY 2009 30 7
FY 2010 30 17
FY 2011 30 10
FY 2012 30 1
FY 2013 30 1
FY 2014 30 11
FY 2015 30 15
TOTAL 58
4.4 FY 2015 Customer Renewable Program Expenditures
The PV Partners program is administered by CPAU staff, whereas the SWH program is
administered by the Center for Sustainable Energy. CPAU contracts with third-party vendors to
conduct PV system inspections. CPAU also contracts with a third-party vendor to maintain an
online PV rebate application system. Table 9 lists the customer renewable program expenses by
customer rebates, contract administration, and other expenses, which include in-house staffing,
marketing and communication expenses.
Table 9: FY 2015 Customer Renewable/Sustainable Energy Program Expenditures
Program Name Customer
Rebates
Contract
Costs
Other
Expenses
Annual Cost
PV Partners (Res) $189,000 $28,000 $50,000 $267,000
PV Partners (Bus) $983,000 $3,000 $50,000 $1,036,000
Solar Water Heating (Res) $129,000 $30,000 $5,000 $164,000
Solar Water Heating (Bus) $18,000 $10,000 $5,000 $33,000
PaloAltoGreen (Electric)* - $11,000 $10,000 $21,000
PaloAltoGreen Gas* - $3,000 $25,000 $28,000
Marketing & Other - - $200,000 $200,000
Total $1,319,000 $85,000 $345,000 $1,749,000
* Note: PaloAltoGreen (Electric) and PaloAltoGreen Gas program expenses do not include the costs to
purchase the electric Renewable Energy Credits (RECs) and gas offsets which are paid by the program
participants.
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FY 2015 Demand Side Management Annual Report
4.5 PaloAltoGreen
The PaloAltoGreen (PAG) program was launched on Earth Day 2003 to give customers the
option to voluntarily reduce GHG emissions associated with their electricity use. Participants paid
an additional charge per kWh to cover the purchase of Renewable Energy Certificates (RECs) so
that their electric use would be supplied with 100% renewable energy. In June 2014, City
Council terminated the PAG program for residential customers since the electric supply
became 100% carbon neutral and customers no longer needed the program to eliminate the
GHG emissions associated with their electricity use or to receive 100% renewable energy
supplies. PAG is still available for commercial customers who wish to be recognized under the
U.S. EPA Green Power Leadership program or to earn Leadership in Energy and Environmental
Design (LEED) Green Power credits. Non-residential customers can choose to participate at 100%
renewable energy for $0.002 kWh or purchase monthly increments of 1,000 kWh blocks for $2
per block.
4.6 PaloAltoGreen Gas
In April 2014, City Council approved the establishment of the voluntary PaloAltoGreen Gas
(PAGG) program. PAGG provides the opportunity for residential and commercial customers to
reduce or eliminate the impact of GHG emissions associated with their gas usage, through the
purchase of certified environmental offsets. In December 2014, the City soft launched PAGG by
first inviting all historical PAG (electric) customers via direct mail to be the first to have the
opportunity to enroll. In January 2015, the City fully launched PAGG to all non-residential and
residential customers. PAGG is the first Green-e Climate certified gas offset program offered by a
municipal utility, and the first to be offered to individual community members. In April 2015,
Council approved new program goals as part of the Earth Day Report. The program’s goal for
2020 is to achieve subscription of 20% of natural gas customers, representing approximately 10%
of gas load and 16,000 metric tons of GHG emission reduction. As of December 2015, PAGG has
grown to over 900 participants. Figure 7 shows the number of PAGG program participants and
fraction of the City’s gas load that they represent since the program was launched through the
end of 2015. Note that City-owned facilities contribute the largest proportion of the program’s
participation in terms of volume of sales.
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FY 2015 Demand Side Management Annual Report
Figure 7: PaloAltoGreen Gas Participation
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FY 2015 Demand Side Management Annual Report
5 CUSTOMER OUTREACH & COMMUNICATIONS
Utility Program Services and Utilities Communications develop a range of marketing outreach pieces
and implement campaigns to promote the gas, electric, and water efficiency programs and services
offered to all CPAU customers. Promotional methods include community outreach events, print ads in
local publications, utility bill inserts, messaging on the bills and envelopes, website, email blasts, videos
for the web and local cable television channels, Home Energy Reports, Home Water Reports and the
use of social media (Twitter/Facebook/NextDoor/Videos). While print materials such as bill inserts,
local magazine ads and webpages still feature prominently, CPAU is turning its outreach emphasis to
social media, the Web, online videos and cable TV for more engaging and dynamic content. Regular
email newsletters are delivered to residents and non-residents, as well as targeted emails and
outreach for specific groups, such as neighborhood and youth organizations. Educational materials and
brochures are regularly developed and updated for distribution at outreach events in new customer
welcome packets and for the general public at City facilities such as the Development Services Center,
libraries and community centers. CPAU provides fun and practical promotional items such as
keychains, night lights, sponges, shower timers, pens, magnets and sunglasses to the public to spread
awareness about resource efficiency and renewable energy.
Much of Communication’s focus and marketing efforts in FY 2015 centered around California’s severe
drought. CPAU was tasked with adopting water use restrictions in response to the State’s emergency
drought regulations. To assist with customer education and enforcement of these water use
restrictions, CPAU developed bill inserts, ads for the local newspapers and magazines, a new drought
video to air on local Comcast channels and specific materials for customer groups like hotels and
restaurants. Staff participated in many community tabling events as well as neighborhood, school, and
business group meetings to talk with the public about the drought regulations and opportunities for
water use efficiency. Additionally, CPAU’s continued free water use efficiency workshops, which focus
predominantly on sustainable landscaping, were tailored to address specific drought conditions.
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FY 2015 Demand Side Management Annual Report
5.1 Drought Related Marketing Materials
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FY 2015 Demand Side Management Annual Report
5.2 Drought Related Marketing Materials
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FY 2015 Demand Side Management Annual Report
5.3 Marketing Materials for Some of Our New Programs:
PaloAltoGreen Gas Efficiency Programs and Rebates
TimeBank Peninsula Sunshares Georgetown University
Energy Prize
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FY 2015 Demand Side Management Annual Report
6 RESEARCH, DEVELOPMENT AND INNOVATION
6.1 Demand Response Pilot Program
The Demand Response (DR) Pilot Program is designed to help participating large commercial
customers reduce their electricity use on days when demand is high, which helps reduce Palo
Alto’s annual peak electricity demand. Through the program, CPAU offers monetary incentives to
participating customers who are able to reduce their electrical usage when called upon by CPAU
during high load periods in the summer months (between May 1st and October 15th.) The DR
Pilot Program’s incentive payments share the savings between the utility and program
participants. The participants were able to reduce their aggregated demand between .6 to 1 MW
per event and a total of 10,312kWh were saved during the four DR events.
Though a relatively small program, over the past 3 years, this voluntary demand response
program has become an integral part of the CPAU’s effort to reduce the reliance on fossil fuel
generation and to lower purchase cost. This program also helps participating customers meet
their corporate sustainability goals. The program was approved by Council to run until the end of
summer of 2015, but CPAU hopes to seek Council approval to continue to offer this program on a
permanent basis.
CPAU is also working on ways to leverage distributed energy resources (DER) such as EVs, EV
chargers, thermostats, PV system, and storage systems already at customer homes and
businesses. A pilot program to enable grid connectivity of such DER systems in planned to
commence in 2016.
6.2 Program for Emerging Technologies
The CPAU Program for Emerging Technologies (www.cityofpaloalto.org/UTLInnovation) provides
the opportunity for local businesses to submit proposals to CPAU for review and potential pilot
testing. The goal is to find and nurture creative products and services that will manage and better
use electricity, gas, water, and fiber optic services. From its inception in June 2012 through July
2014, the Program for Emerging Technologies received 45 applications. Here are several PET
pilot programs which began in FY 2015:
linkAges Connect: Using Utility Data to Help Seniors and their Caregivers
Staff has been working with the Palo Alto Medical Foundation (PAMF) Innovation Center to
evaluate the technical feasibility of deploying a research pilot called "linkAges Connect" on
Palo Alto's utility distribution systems. "linkAges Connect” uses passive signals in the home,
such as electricity, gas, and water data from advanced metering infrastructure, to allow
family caregivers to remain updated on the well-being of their senior family members. Since
changes in well-established daily routines of seniors are often an indication of shifts in health
status, regular utility usage patterns can be an additional mode of communication that signals
all is well with a senior family member who is living alone. Staff is currently working with two
volunteer households to test the technical feasibility of the PAMF proposal, which, if
successful, will lead to a pilot scale deployment.
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FY 2015 Demand Side Management Annual Report
Enabling High Penetrations of Renewables on the Electric Distribution System
A research team from the SLAC National Accelerator Laboratory and Stanford University
submitted an application for federal funding for a proposed research program developing an
open-source unified data analytics platform that will enable the integration of high
penetrations of renewables on the electric distribution system. Through PET, CPAU submitted
a letter of support for their application and this area of research, the outcomes of which
would facilitate the City reaching multiple strategic sustainability goals, including meeting 4%
of our energy needs from local solar by 2023.
Energy Efficient Software for Data Centers
Staff is currently working with TSO Logic to identify a third-party host site to demonstrate
their energy efficiency software for data centers. Their software solution focuses on IT
workload and creating visibility into the server environment, application performance, and
energy consumption. Past case studies have demonstrated up to 50% energy savings.
Advanced Lighting Systems for Retrofitting Parking Garages
Staff completed a report documenting results from the advanced lighting system pilot project
in the Palo Alto Civic Center underground parking garage, which was carried out from January
through March 2014. The pilot project was a partnership with Enlighted Inc and Next Lighting.
The report quantified the energy savings potential demonstrated in the pilot, along with
providing an estimated lifetime cost/benefit analyses for retrofitting the entire Palo Alto Civic
Center parking garage. Results from the pilot project strongly support retrofitting the Civic
Center underground parking garages with LED lamps and advanced lighting controls. The
demonstrated energy savings from the pilot was 72% in the most energy efficient scenario,
which led to an estimated payback period of within a decade. Furthermore, stakeholders
representing parking garage users strongly supported the City's efforts to modernize the
lighting system and increase efficiency in municipal buildings.
Distributed Solar on Street Light Poles
Staff conducted a 6-month pilot project in partnership with Petra Systems to demonstrate
their solar-on-a-light-pole technology in Palo Alto. In November 2014, Solar photovoltaic (PV)
modules were installed on nine City-owned street light poles along El Camino Real and
connected with CPAU's distribution grid to deliver clean renewable energy to the community.
Additional benefits of the system include providing a platform for monitoring the solar
production and street light operations with real-time data posted online. The community is
encouraged to submit any feedback about the pilot systems to CPAU. At the conclusion of the
pilot, the vendor’s PV modules will be removed and CPAU staff will provide a summary report
of findings.
Carbon Calculator and Reporting Tools for Cities and Small Businesses
The City is currently finalizing two pilot projects with Measurabl using their innovative "Turbo-
Tax-style" software tools for easy calculating, reporting, and benchmarking of sustainability-
related information. One pilot will focus on the City government, and the second will focus on
small businesses in Palo Alto.
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FY 2015 Demand Side Management Annual Report
Product for Customer-Side Demand Management
Staff validated a customer-side demand management product from AutoGrid and its potential
to benefit CPAU and our customers. CPAU and AutoGrid presented the product, which
forecasts customers' monthly peak demand, giving them a chance to shave energy
consumption during a few peak hours each month, at a Key Account facilities managers
meeting. AutoGrid is currently soliciting participation for a solar project.
6.3 Pilot Project for Building Energy Management System in Small/Medium Commercial Buildings
Staff has been coordinating with the Omaha Public Power District to implement an energy
efficiency/demand response pilot program which has been funded by a grant through the
American Public Power Association’s (APPA’s) Demonstration of Energy Efficiency Developments
(DEED) Program. The purpose of the pilot program is to gain hands-on experience and validate
the cost, ease of installation and usability while assessing the energy efficiency savings and
demand response functionalities of a building energy management system for small to medium-
sized commercial buildings. The building energy management system allows building owners to
monitor and control building heating, ventilation and air conditioning (HVAC) equipment through
a web-based application. Energy usage data has been logged for two downtown commercial
buildings since summer 2014. Pilot results from multiple APPA member utilities participating in
this DEED project will be compared to better estimate the energy savings potential from such
building energy management systems.
6.4 CustomerConnect Advanced Meter and Time of Use Rate Pilots
The CustomerConnect Pilot Program is designed to evaluate changes in energy and water use for
residential customers provided with advanced meters and equipment to view their energy and
water consumption through an online portal. The objectives of the pilot are to:
• Gauge residential customer interest in and experience and satisfaction with using
advanced meters and associated engagement tools;
• Quantify the change in residential customer energy and water use through efficiency and
conservation measures as a result of the customer engagement tools;
• Evaluate the impact of the programs on utility costs and revenues;
• Quantify residential customer bill impacts; and
• Gain insight into the costs and benefits of implementing full-scale advanced meter-based
residential customer services.
During FY 2014 and FY 2015, CPAU successfully installed advanced meters at over 375 residential
customer homes. These customers now have access to the CustomerConnect Portal, a web-based
platform which displays hourly interval data for gas, water and electric consumption. As part of
this pilot program, 150 homes will be on a Time-of-Use (TOU) pilot electricity rate which is
designed to encourage residential customers, particularly those with electric vehicles (EVs), to
shift electric usage to less expensive night hours. The CustomerConnect pilot program will
continue through 2016 at which time a full evaluation will be conducted.
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FY 2015 Demand Side Management Annual Report
7 FUTURE PLANS
In FY 2016, CPAU will engage in several new campaigns and programs and will continue to promote
energy efficiency, water conservation and renewable energy generation through a variety of
marketing and media channels.
7.1 Georgetown University Energy Prize (GUEP)
In April 2014, the City announced its intent to compete for the Georgetown University Energy
Prize. The Georgetown University Energy Prize is a two-year energy saving competition
amongst communities with a population between 5,000 and 250,000 residents for a chance to
win a $5 million prize. Palo Alto was selected as a semifinalist in December 2014 and is currently
competing with 50 other communities to reduce electric and natural gas consumption in the
residential, multi- family, municipal, and schools sectors for two years (January 2015 through
December 2016) compared to the baseline years of 2013-2014. As of December 2015, CPAU was
ranked 17th. Final judging will be based on reductions in energy use, innovation of approach,
quality of community outreach, sustainability and replicability.
Complimentary to GUEP, in February 2016, CPAU is launching a new residential online energy and
water portal with Nexant (replacing OPower and WaterSmart) where customers can log-in and
view their gas, electric and water consumption, see how they are doing compared to similar
homes and have access to all efficiency and savings programs. Also starting in spring of 2016, as
part of GUEP, the City is hosting a behavioral science energy savings lottery among all residents.
Each resident that reduces gas or electric use, compared to CY2013 and CY2014, will be eligible
for lottery tickets. At the end of the competition, winners will be drawn from the lottery. The
portal will host each customer’s lottery ticket accruals as well as show individual reduction goals,
savings tips and efficiency program information. Both the Natural Resources Defense Council
(NRDC) and the Duke University Data Analytics Research Department are assisting CPAU with the
experimental design and evaluation for the lottery competition. This program is expected to have
a significant impact on energy savings and meets one of the attributes that the GUEP judging is
based on—innovation of approach. More information about the lottery and the Georgetown
competition can be found at www.cityofpaloalto.org/Georgetown.
7.2 Water Grants and Water Pilots
CPAU received grant funding from the SCVWD to pursue two water conservation pilot
programs targeting commercial customers. The programs have been selected through an RFP
process with an expected program start date in the third quarter of FY 2016.
Real-Time Water Use Monitoring Pilot for Commercial Customers
In 2012, the City implemented a Real-Time Water Use Monitoring pilot with select large
commercial customers to actively engage them in water reduction and minimize water loss.
The pilot deploys a simple, relatively low cost technology that enables standard water meters
to track consumption similar to a smart water meter. A wireless device attached to the water
meter transmits real-time data to a cloud-based software platform. Customers securely log
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FY 2015 Demand Side Management Annual Report
into a web portal to view water usage data on a minute interval basis and can find out about
water leakage or other anomalies in water use and address these issues before they become
maintenance and billing misfortunes. Over a two-year period, the total water use among pilot
participants was reduced by approximately 8%.
Through grant funding from SCVWD, the City will launch a larger Real-Time Water Use
Monitoring pilot covering 100 city facility meters and 24 business customer sites. Pilot
customers will be able to access real-time water consumption data through wireless sensors
installed on the water meters. The pilot is expected to launch in early 2016 and will run for
two years.
Business Water Reports Pilot Program
Through grant funding from SCVWD, the City will launch a Business Water Reports pilot to
engage small to medium businesses in the hospitality and food service industries to actively
manage water use. The key objectives of the Business Water Reports are to communicate
water use and potential ways to reduce water consumption, and to motivate behavior
change. The pilot is expected to launch in early 2016 and will run for two years.
7.3 2015 Update to the Urban Water Management Plan
CPAU is required to update its Urban Water Management Plan (UWMP) every five years under
the California Urban Water Management Planning Act. The UWMP describes the City’s water
system, supply sources, and demand-side (water efficiency) measures. The UMWP must include
a plan for compliance with the Senate Bill x7-7 (2009) that mandates a statewide per capita
water use reduction of 20% by the year 2020. The 2010 UWMP was approved by Council in June
2011. The 2015 UWMP is due to the California Department of Water Resources by June 30, 2016.
7.4 Drought Awareness and Water Conservation Campaigns
Continued drought conditions beyond FY 2015 mean that a great deal of outreach will focus on
water use efficiency, particularly in areas where customer water use tends to be the highest,
such as in landscape irrigation. Marketing materials will promote the landscape turf grass
conversion and irrigation hardware rebates while reminding customers to protect the health of
trees, which represent a long-term investment in the City’s urban canopy.
7.5 Capturing Additional Energy Savings through the new Palo Alto Green Building Ordinance
In April 2015, City Council approved revisions to the City’s Green Building Ordinance, which
includes the Local Energy Efficiency Reach Code requiring new construction projects to exceed
California’s building energy efficiency standards (“2013 Title 24 Standards”) by 15%, i.e. a
building’s energy consumption must be 15% less than standard design. The Energy Efficiency
Reach Code took effect in September 2015. CPAU will coordinate with Development Services to
report the energy savings attributed to the Green Building Ordinance. CPAU is currently
investigating different ways to educate, assist and encourage residents and non-residents to
adopt green building principles and energy efficient systems when planning remodeling or new
construction projects.
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7.6 Local Solar Plan
In April 2014, Council approved the Local Solar Plan with a goal to increase the installation of
local solar PV systems to provide 4 percent of the City’s total energy needs by 2023. The plan
identifies a set of strategies and initiatives to promote solar in a cost-effective and sustainable
manner by accelerating solar adoption in Palo Alto. Specifically, the plan includes the
development of: (a) a Community Solar Share program that targets customers who do not
have good solar access or cannot support solar at their own premise due to size or
home/business ownership status, (b) a Community Solar Donation program that targets
customers who want to contribute toward solar for the benefit of a community-based
organization, such as local schools, and (c) a Solar Group Discount program designed to drive
down the cost of local solar ownership by leveraging the purchasing power of the community.
Staff is working to develop the new programs in the Local Solar Plan, but the timelines for
implementation depend upon negotiations with vendors who will administer the programs.
Supporting strategies include developing community education and demonstration projects,
reducing internal system and institutional barriers to lower the “soft” costs associated with the
adoption of PV systems, and supporting innovative solar technologies through CPAU’s Program
for Emerging Technologies.
7.7 Smart Grid Pilots and Next Steps
Smart grid related pilot programs will continue through FY 2016. Staff plans to develop
recommendations on next steps on smart grid implementation by the end of 2016. One such
smart grid pilot is Conservation Voltage Regulation (CVR). Based on the voltage sensing
technology of the advanced electric meters in the 375 homes participating in the
CustomerConnect pilot, staff is exploring the feasibility of how to optimally operate the
distribution feeders by lowering service voltage to save energy. A system is being evaluated to
monitor the voltages at the end of electrical feeder lines until the end of 2016, which will help
develop implementation and operating strategies to harness the conservation potential of CVR.
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APPENDIX A: PROGRAM DESCRIPTION
The programs offered by CPAU are designed to assist all customer groups to achieve savings on
electricity, natural gas and water in cost-effective manners. Programs are designed to achieve results
through a wide variety of both common and more innovative, harder to reach technologies.
RESIDENTIAL CUSTOMERS
Smart Energy Program
This program is a comprehensive energy efficiency incentive program for residential customers.
The City gives rebates to residents who install energy efficient measures and equipment in
their homes or on their property. Among these are insulation, water heaters, clothes washers,
refrigerators, pool pumps and power strips. Due to federal minimum manufacturing standards
for appliance efficiency, the number of appliances meeting rebate qualifying standards dropped
significantly during FY2015. Compared to FY 2014, CPAU paid out 45% less in rebates under the
Smart Energy Program. CPAU projects that this downward trend will continue.
www.cityofpaloalto.org/SmartEnergy
Educational Programs and Workshops
A variety of educational programs and workshops are held throughout the year. Typically,
residential workshops on water and energy programs occur in the spring near Earth Day and in
the “Summer Workshop Series.” Due to the continuing drought, many of FY 2015’s workshops
focused on water efficiency on topics such as Tree Care in a Drought, Designing and Installing a
Native Garden, and Greywater Systems. These workshops drew record high attendance of
approximately 100 attendees per event. In addition, customers receive timely E-newsletters on
a variety of efficiency matters. www.cityofpaloalto.org/workshops
Home Energy Reports
CPAU provides City residents with individualized reports comparing their home energy use with
neighbors in similarly sized homes with the assistance of the contractor Opower. Approximately
20,000 residents receive the Home Energy Report by mail once every quarter. A web portal
also offers tips and suggestions on reducing electric and natural gas usage. This program ended
in the summer of 2015 and will be replaced with a new portal where residents can have access
to all water, gas and electric usage data, programs and reports in one location.
Refrigerator Recycling Program
Palo Alto offers a $35 rebate to residents who recycle old, operational refrigerators with our
partner JACO Environmental which offers free pick-up and proper recycling services. In late
November 2015, JACO Environmental went into receivership and shut down its operations.
Utilities staff is looking for a new program vendor and is working with the City Attorney’s office
to terminate this contract.
Residential Energy Assistance Program (REAP)
The City provides weatherization and equipment replacement services to low-income residents,
at no cost. The program provides LED lighting, heating system upgrades as well insulation for
walls and roofs and weather-stripping for doors and windows.
www.cityofpaloalto.org/LowIncome
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Residential New Construction Rebate Program
CPAU’s Residential New Construction Program has offered financial incentives to residents
exceeding both the State and local building energy standards when constructing a new home.
Rebates were offered to projects exceeding Title 24 energy efficiency standards by at least 20%.
This program was terminated on July 1, 2014 when the Title 24 2013 Standards became
effective. However, due to the slow nature of construction projects, for projects permitted
prior to July 1, 2014, CPAU has continued to pay rebates as projects reached completion.
Currently, CPAU is collaborating with the City’s Development Services Department and is
looking into developing an updated Residential New Construction Program which is aligned
with the City’s Green Building Ordinance and Electrification Work Plan.
PAMF TimeBank
CPAU and ZeroWaste joined forces with the Palo Alto Medical Foundation to offer a free
neighbors helping neighbors become more energy and water efficient and reducing waste
program which utilizes PAMF’s existing TimeBank portal. Palo Alto has trained some residents
to be CPAU Ambassadors to share information about our programs and offer free services such
as installing faucet aerators and LED lightbulbs. This program replaced the free audits offered to
CPAU customers by volunteers through the Green@Home Program with Acterra.
Home Efficiency Genie
Launched in June 2015, CPAU now offers a comprehensive home energy and water assessment
with the assistance of contractor ClearResult. Residents can call the ‘Genie’ to get free utility bill
reviews and phone consultations. For a fee, residents also have the option to receive an in-
depth home assessment which includes air leakage testing, duct inspections, insulation analysis,
energy modeling and a one on one review of assessments reports with an energy expert. This
package is also followed up with guidance and support throughout home improvement
projects.
Water Efficiency Programs
Since 2002, the City has partnered with SCVWD to promote and cost-share in a wide range of
water conservation programs to encourage residents and businesses to reduce water usage.
These programs include free indoor and outdoor water audits, as well as rebates for a wide
range of water conservation measures (including toilets, urinals, clothes washers, laundry to
landscape graywater systems, landscape conversions, irrigation hardware upgrades, weather
based irrigation controllers and commercial ice machines.) CPAU also offers free workshops on
water efficient landscaping and indoor water use efficiency throughout the year. In the spring
and summer of 2015, free drought related workshops drew in attendance of over 100
participants per class. Staff frequently presents to schools and neighborhood and community
groups about Palo Alto’s water resources and best practices for water efficiency.
http://www.cityofpaloalto.org/Water
o Water Wise House Call
Through SCVWD, the City has been offering this free water audit to residential customers
in both single‐family and multi‐family dwellings. The survey includes a review of
customer water use history, water meter check for leak detection assistance, and
thorough evaluation of indoor and outdoor water use. A technician provides each
customer with free low‐flow showerheads, faucet aerators, toilet dye tablets, and/or
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FY 2015 Demand Side Management Annual Report
toilet flappers when needed. The landscape survey includes an evaluation of the entire
irrigation system, catch‐can test for distribution uniformity, and site‐specific
recommendations including changes to the irrigation schedule. Over 300 customers
participated in this program in FY 2015.
o The Landscape Rebate Program (LRP)
Provides rebates for various irrigation hardware upgrades, including rain sensors, high
efficiency nozzles, dedicated landscape meters, and weather-based irrigation controller,
as well as landscape conversion rebates that encourage residential and commercial
customers to replace high water using landscape with low water using landscape. In
response to the severe drought conditions, in 2014 the City and SCVWD doubled the LRP
rebate for a limited time period, resulting in a spike in the number of LRP applications
during FY 2015. Between commercial and residential customers, a total of 365,236 sq.
feet of turf was removed through the LRP program in FY 2015 – ten times the previous
year.
o Home Water Report
Launched in the November 2013, single family residents began receiving Home Water
Reports with the assistance of contractor WaterSmart. This program is similar to the
Home Energy Report but focuses on a home’s water usage and how a customer’s
usage compares to neighbors with similar lot sizes and family demographics. A control
group of approximately 3,000 residential accounts has been established to benchmark
results of the program and to date, approximately 13,000 homes receive a water report
by mail once per quarter. Annual water savings is estimated at approximately 1.9%. This
program ended in the summer of 2015 and will be replaced with a new portal where
residents can have access to all water, gas and electric usage data, programs and reports
in one location.
Peninsula SunShares
The Peninsula SunShares program was launched in May 2015. This group-buy program was
initiated by Foster City and included 12 other cities located in San Mateo County. Vote Solar,
the program administrator, facilitated the selection of two qualified solar contractors for
residential solar installations through a competitive selection process. The program offered
discounted PV installation prices that were 25% lower than Palo Alto’s average residential
before-rebate price and 13% lower than the after-rebate price. The enrollment period was
scheduled to end in August 2015. Solar system installations were expected to start in the fall of
2015 and continue into spring 2016. Program results will be included in the FY 2016 DSM
report.
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BUSINESS CUSTOMERS
Commercial Advantage Program
Business customers are offered rebates for many types of equipment, including lighting
upgrades, wall and ceiling mounted motion sensors, boilers, pipe insulation, variable
frequency drives, computer power management software, night covers for refrigerated
display cases, anti-sweat heater controls for coolers/freezers, auto-closers for cooler doors,
window film, and custom electric and natural gas saving projects.
www.cityofpaloalto.org/CommercialAdvantage
Commercial and Industrial Energy Efficiency Program (CIEEP)
Designed for the large commercial customer, CIEEP offered highly effective building
commissioning services using third-party contractors Enovity and Wildan Energy Solutions. This
assistance included reviewing lighting and heating/cooling systems and their operating
specifications. Customers then obtained rebates for replacing chillers, building control
systems, linear fluorescent lighting, occupancy sensors, boilers and insulation. During its 4 year
duration (3 years + 1 year extension), the program saved 12,423,000 kWh and 1,295 kW, as
well as 120,483 therms. The program’s success rested primarily on the relationship between
the Key Account Manager and the customer. When the program ended on 6/30/2015, CPAU
rolled out another 3 year program for commercial customers, adding additional vendors to
boost participation. The goal of the revamped CIEEP is to not hinder EE efforts due to yearly
budget constraints. As a result, the program has a $2.7 million dollar budget until 6/30/2018 to
be shared by Enovity, Base Energy and Ecology Action. www.cityofpaloalto.org/CIEEP
Laboratory (Lab) Efficiency
This program, implemented by third-party administrator Willdan Energy Solutions, targets
research facilities and labs to provide assistance with reviewing systems and their operating
specifications for potential savings opportunities, as well as implementing the recommended
retrofits. This program ended December 2014. The design model of this program did not
generate enough savings to continue with the program. A revamped program model was
rolled into the new program cycle.www.cityofpaloalto.org/CommercialPrograms
Business New Construction Program
Building owners and architects who are planning a Commercial New Construction project in
Palo Alto can have their plans reviewed and modeled by an energy engineering consultant at
no charge. The consultant will look for ways to increase the energy efficiency of the project
above Palo Alto’s Green Building Ordinance and process and verify their rebate if the customer
is more efficient than the ordinance by at least 5%.
www.cityofpaloalto.org/CommercialPrograms
Hospitality Program
Rebates and assistance are offered to hotels through the third-party administrator Synergy on
a variety of efficiency measure installation, including lighting, HVAC tune-ups, exit signs and
combination occupancy sensors and system operating controls for lighting, air conditioning
and plug loads that reduce power use when rooms are unoccupied. This program ended June
2015 and was updated with a new program called Multi-Family Plus, also with Synergy, at the
beginning of FY2016. www.cityofpaloalto.org/CommercialPrograms
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FY 2015 Demand Side Management Annual Report
Right Lights+
This program, provided by the third-party administrator Ecology Action, assists small
businesses with implementing efficient measures. Small business customers were able to
request onsite audits and efficiency rebates on a variety of lighting, sensors and commercial
kitchen upgrades, in addition to door gaskets, LED exit signs, vending machine controls, strip
curtains for coolers and freezers, as well as customized projects. This program ended June
2015. Starting FY 2016 this program was upgraded into a more comprehensive small/medium
commercial program called Empower SMB. www.cityofpaloalto.org/CommercialPrograms
Commercial and Industrial Water Efficiency Program
CPAU partners with the SCVWD to provide non-residential customers with free landscape
irrigation audits, direct installation of high-efficiency toilets and urinals. Rebates are
available for clothes washers, facility process improvements, landscape conversions,
irrigation hardware upgrades and weather-based irrigation controllers. CPAU staff also
provides free indoor water use surveys and efficiency opportunity evaluation.
www.cityofpaloalto.org/water
Landscape Survey and Water Budget Program
Through SCVWD, the City provides landscape irrigation survey, water budget and customized
consumption reports for customers with large landscape sites. The service is provided by
Waterfluence. The water budget for each landscape site is derived based on the amount of
irrigated area, type of plants, type of irrigation system and real-time weather monitoring.
Monthly reports documenting a site’s irrigation performance are distributed to site managers,
landscapers, HOA board members and other relevant parties, as approved by utility account
holders. Through a web portal, customers can access site-specific recommendations, verify
water budget assumptions and request a free landscape field survey from an irrigation expert.
This program has been in place since 2012 and to date, there are 132 large landscape sites
covered under this program.
PaloAltoGreen
This highly successful program enabled residents and businesses that were willing to pay a
small premium for 100% renewable energy. In June 2014, Council terminated PaloAltoGreen
for residential customers since the City’s electric supplies are 100% carbon neutral.
Commercial customers can still participate in this program by enrolling in the PaloAltoGreen
100% option or by purchasing blocks in 1,000 kWh increments.
http://www.cityofpaloalto.org/pagbiz
Palo Alto Clean Local Energy Accessible Now (CLEAN) Program
Palo Alto CLEAN is a feed-in tariff program for local solar installations to sell local renewable
generated electricity directly to CPAU at a fixed price for a 20- or 25-year contract term.
http://www.cityofpaloalto.org/PAClean
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FY 2015 Demand Side Management Annual Report
ALL CUSTOMERS
PV Partners
CPAU has offered incentives for local solar photovoltaic (PV) installations since 1999, and
increased the PV rebate budget in 2007 as mandated by CA Senate Bill SB1. Residential rebates
were fully reserved in August 2014, but funds for non-residential PV systems remained
through June 30, 2015. This program is for systems interconnected behind the customer’s
electric meter and receive the net metering billing required by SB1.
www.cityofpaloalto.org/PVPartners
Solar Water Heating
CPAU began to offer rebates to residential and commercial customers that install solar water
heating (SWH) systems in 2008. The SWH rebate program was mandated by CA AB 1470 and is
administered by the Center for Sustainable Energy, which also administers SWH rebate
programs in the San Diego area. Incentives are limited to solar water heating for domestic
use and solar water heating systems for pools, spas, or space heat are not eligible.
www.cityofpaloalto.org/SWH
PaloAltoGreen Gas
In April 2014, City Council approved the establishment of the voluntary PaloAltoGreen Gas
(PAGG) program. PAGG provides the opportunity for residential and commercial customers to
reduce or eliminate the impact of GHG emissions associated with their gas usage, through the
purchase of certified environmental offsets. PAGG is the first Green-e Climate certified gas
offset program offered by a municipal utility, and the first to be offered to individual
community members. www.cityofpaloalto.org/pagg
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FY 2015 Demand Side Management Annual Report
APPENDIX B: FY 2015 ACHIEVEMENTS BY DSM PROGRAM
Table B.1: FY 2015 Achievements by Efficiency Program
No. of Electric savings
(gross)
Gas savings Water savings
Program Applications kWh/yr % Therms/yr % CCF/yr %
RES- REAP (low income) 84 69,409 0.9% 8,930 4.0% - -
RES – Smart Energy 1,106 92,831 1.2% 5,407 2.5%
RES- SCVWD Water programs - - - - - 23,052 34%
RES- Home Energy Report - 1,604,2
72
20.1% 146,156 66.0% - -
RES- Home Water Report - - - - - 37,287 55%
RES- New Construction 18 18,589 0.2% 8,043 3.6% - -
RES- Refrigerator Recycling 96 59,460 0.7% - -
COM- Business New
Construction
1 473,100 5.9% - - - -
COM- Commercial Advantage 12 1,128,7
56
14.1% - - - -
COM- Right Lights+ 48 1,478,8
24
18.5% - - - -
COM- Enovity Large Business 7 2,222,8
00
27.8% 30,320 13.7% - -
COM- Hospitality Program 13 44,209 0.6% 18,887 8.6% - -
COM- SCVWD Water Program numerous 91 - 3,556 1.6% 7,888 12%
GEN- T&D Upgrades 796,157 10.0% - - -
Efficiency Total
7,988,498 100% 221,299 100% 68,227 100%
Table B.2: FY 2015 Achievements by CPAU’s Solar Programs
Program Installations kW kWh/yr % Therms/yr %
PV Installations- Residential 93 436 654,150 39% N/A N/A
PV Installations - Commercial 9 378 566,850 61% N/A N/A
Solar Water Heating - Single Family
Residential 1 0 0 0 178 2%
Solar Water Heating - Multi-Family
Residential Low-Income 10 0 0 0 6,627 82%
Solar Water Heating - Commercial 4 0 0 0 1,269 16%
Solar Programs Total 117 814 1,221,000 100% 8,074 100%
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FY 2015 Demand Side Management Annual Report
APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES
The chart below shows expenditures by type of DSM program (efficiency, low-income research,
renewable, etc.) from FY 2009 through FY 2015. Expenditures in FY 2015 were lower than other years
due to third party program transitions and negotiations for numerous new contracts, as referred to in
the highlights section of the Executive Summary.
Figure C.1 DSM Expenditures for Electricity, Gas, and Water by Year and Function
0 1 2 3 4 5 6 7
FY 2015
FY 2014
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
R&D Efficiency Renewable Energy Low Income Admin
$ Millions
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FY 2015 Demand Side Management Annual Report
APPENDIX D: FY 2015 SMART ENERGY RESIDENTIAL
PROGRAM RESULTS
Measures
Number of
Measures
Installed
Total
Rebate
kWh/yr
Saved
(gross)
Therms/yr
Saved
Air Source Heat Pump 1 $200 119 0
Attic Insulation R-30 2 $450 884 282
Attic Insulation R-38 9 $1,479 4,392 1,410
Combination Space Heat/Hot Water System 3 $1,200 0 495
Clothes Washer – CEE Tier 3 239 $ 29,875 52,102 1,601
Flat Roof Insulation – R-19 1 $150
00
80 89
Gas Furnace 7 $1,400 0 308
Gas Tankless Water Heater (0.82 EF or greater 3 $450 0 141
Gas Tankless Water Heater (0.90 EF or greater) 3 $600 0 180
LED Holiday Lights 1 $0 7 0
LED Light Bulb Switch 40 Watt Equivalent 271 $0 5,149 0
LED Light Bulb Switch 60 Watt Equivalent 544 $0 15,232 0
Refrigerator 19 $1,300 3,705 0
Smart Power Strip 6 $60 144 0
Solar Attic Fan 2 $50 170 0
Variable Speed Pool Pump 6 $800 10,266 0
Wall Insulation 5 $1,000 450 720
Water Heater-Gas Storage Tier 8 $640 0 184
Whole House Fan 1 $50 131 -3
Total 1,131 $39,704 92,832 5,407
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FY 2015 Demand Side Management Annual Report
APPENDIX E: FY 2015 LOW INCOME RESIDENTIAL
ASSISTANCE PROGRAM (REAP) RESULTS
Measures
Number of
Measures
Installed
Dollars Spent kWh/yr Saved
(gross)
Therms/yr
Saved
Attic Access Weather-stripping 15 lin. ft. $407 29 15
Attic Insulation 20,061 sq. ft. $21,924 10,372 3,330
Caulking MFR Windows etc. 298 lin. ft. $8,293 298 157
Caulking SFR Windows etc.
Caulking SFR Windows etc.
55 lin. ft. $1,721 55 29
Door Weather-stripping 307 $28,121 921 1,228
Duct Test & Seal 18 $7,725 2,250 432
Education 59 $4,425 0 0
Faucet Aerator 358 $2,112 0 1,432
Furnace Replacement 5 $8,700 0 220
Hourly Rate Add. Work 48 $3,114 0 0
Low Flow Showerhead 190 $7,410 0 1,444
NGAT Testing 190 $16,150 0 0
Occupancy Sensor 1 $66 144 0
Outlet Gaskets 2,283 $4,520 0 0
Programmable Thermostat 5 $366 0 380
Refrigerator Replacement 11 $9,065 2,145 0
Repair Furnace, Water Htr, Fridge 1 $1,300 30 12
Repair Minor Wall 4 $380 0 0
T8 De-lamp Conversion 1 $47 552 0
Water Heater Replacement 1 $1,800 0 23
Air Source Heat Pump 5 $21,564 595 0
LED 60 Watt Equivalent 13 $59 364 0
LED Labor Only 1,838 $8,271 51,464 0
LED R-30 28 $784 140 0
LED R-40 10 $360 50 0
Total N/A $158,684 69,409 8,702
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FY 2015 Demand Side Management Annual Report
APPENDIX F: SB 1037 ELECTRIC DSM REPORT TO CEC
The information below will be included with a California Municipal Utilities Association (CMUA) report
to the California Energy Commission (CEC). The report, required by state law (SB 1037), shows the
success of CPAU’s efficiency programs in reducing electric consumption; this report does not
include natural gas or water programs. Efficiency programs are the highest priority resource used by
the electric utility. The programs are also required to be cost-effective, which (by State definitions)
means that the programs must achieve a Total Resource Cost (TRC) score of at least 1.0. Table F.1
shows an overall TRC of 1.16. Note that these savings do not capture the gas and water savings that
the EE programs also produced (e.g. saved hot water from replacement of clothes washers and
dishwashers).
Table F.1: CEC Required Submission on Electric Energy Efficiency Results
Program Sector
(Used in CEC
Report)Category
Units
Installed
Gross
Coincident
Peak
Savings
(kW)
Gross
Annual
Energy
Savings
(kWh)
Gross
Lifecycle
Energy
Savings
(kWh)
Net
Coincident
Peak
Savings
(kW)
Net
Annual
Energy
Savings
(kWh)
Net
Lifecycle
Energy
Savings
(kWh)
Net
Lifecycle
Gas
Savings
(MMBtu)
Net Lifecycle
GHG
Reductions
(Tons)
Utility
Incentives
Cost ($)
Utility Mktg,
EM&V, and
Admin Cost ($)
Total Utility
Cost ($)
Utility
($/kWh)
Appliances Res Clothes Washers 239 52,102 573,122 16,152 177,668 $29,875 $1,281 $31,156 $0.22
HVAC Res Cooling 3 301 4,320 84 1,210 $100 $18 $118 $0.13
Appliances Res Dishwashers
Consumer Electronics Res Electronics
HVAC Res Heating 40 3,023 29,059 2,395 22,890 $200 $1,028 $1,228 $0.07
Lighting Res Lighting 2,713 73,246 731,884 58,597 585,507 $60 $20,962 $21,022 $0.04
Pool Pump Res Pool Pump 6 10,266 102,660 6,160 61,596 $800 $448 $1,248 $0.02
Refrigeration Res Refrigeration 126 65,310 379,200 45,932 268,443 $4,660 $18,367 $23,027 $0.10
HVAC Res Shell 548 36,041 560,642 25,814 388,131 $47,017 $9,748 $56,765 $0.20
Water Heating Res Water Heating
Comprehensive Res Comprehensive 57,221 1,604,272 1,604,272 1,604,272 1,604,272 $71,068 $71,068 $0.05
Process Non-Res Cooking
HVAC Non-Res Cooling 72 425 2,242,525 31,121,275 340 1,794,020 24,897,020 $227,780 $680,134 $907,914 $0.05
HVAC Non-Res Heating
Lighting Non-Res Lighting 1,095,340 304 2,552,898 30,579,314 244 2,042,318 24,463,451 $283,522 $610,818 $894,340 $0.05
Process Non-Res Motors
Process Non-Res Pumps
Refrigeration Non-Res Refrigeration
HVAC Non-Res Shell
Process Non-Res Process 2 1 35,048 525,356 1 28,038 420,285 $8,939 $13,131 $22,070 $0.07
Comprehensive Non-Res Comprehensive 2 60 517,309 6,207,708 51 439,713 5,276,552 $258,867 $79,169 $338,036 $0.08
Other Other
SubTotal 1,156,312 790 7,192,341 72,418,812 635 6,063,494 58,167,025 $861,820 $1,506,172 $2,367,993 $0.05
T&D T&D 2,291 191 796,157 12,717,323 191 796,157 12,717,323 $111,342 $111,342
Total 1,158,603 982 7,988,498 85,136,136 827 6,859,651 70,884,349 $861,820 $1,617,515 $2,479,335
EE Program Portfolio TRC Test 1.16
PAC Test 1.79
Excluding T&D
Resource Savings SummaryPalo Alto Cost Summary
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APPENDIX G: EXAMPLES OF CUSTOMER OUTREACH EVENTS
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Water Conservation
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APPENDIX H: CITY POLICIES/PLANS AND STATE MANDATES
IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION
CITY POLICIES/PLANS
Title Description
Resolution No. 9402 Local Solar Plan (April 2014)
Staff Report 3706 Program for Emerging Technology (April 2013)
Resolution No. 9322 Carbon Neutral Plan for Electric Supply (March 2013)
Staff Report 3358 Update of Ten-Year Energy Efficiency Goals for 2014 to 2023 (December
2012)
Resolution No. 9241 LEAP, the Long-term Electric Acquisition Plan (April 2012)
Staff Report 2552 GULP, the Gas Utility Long-term Plan (April 2012)
Staff Report 1688 2010 Urban Water Management Plan (June 2011)
Staff Report 1538 Approval of new and expanded efficiency programs for FY 2011-13 (May
2011)
CMR 211:07 Climate Protection Plan (2007)
STATE MANDATES
AB 802 (2015) Requires utilities to maintain records of the energy usage data of all buildings to
which they provide service for at least the most recent 12 month period and, upon
the request and authorization of the owner (or owner's agent), provide aggregated
energy usage data to the owner in the ENERGY STAR Portfolio Manager.
AB 1164 (2015) Prohibits cities and counties from enacting or enforcing any ordinance or regulation
prohibiting the installation of drought tolerant landscaping, synthetic grass, or
artificial turf on residential property.
AB 1236 (2015) Obliges cities and counties to adopt an ordinance, with certain specific elements,
creating an expedited permitting process for electric vehicle charging stations. For a
city the size of Palo Alto, the ordinance must be passed by September 30, 2017
SB 350 (2015) The Clean Energy and Pollution Reduction Act of 2015 sets targets for utilities of 50%
renewable electricity retail sales and double the energy efficiency savings in
electricity and natural gas, both by 2030. The law grants compliance flexibility for
POUs that achieve 50% or more of retail sales from certain large hydroelectric
power.
AB 2188 (2014) Requires a city and/or county to adopt an ordinance creating an expedited,
streamlined permitting process for small residential rooftop solar energy systems.
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Executive Order Due to continued water shortages, on January 17, 2014, the Governor proclaimed a
State of Emergency and directed state officials to take all necessary actions to make
water immediately available. Part of the proclamation included a 20 percent water
reduction goal. On April 1, 2015, the Governor issued an Executive Order (B-36-15)
mandating the State Water Resource Control Board impose restrictions leading to a
25 percent reduction in potable water use through February 28, 2016.
SB 1420 (2014) Added to the UWMP a reporting on distribution system water loss.
SB 73 (2013) The California Clean Energy Jobs Act, an initiative approved by the voters as
Proposition 39 at the November 2012 statewide general election, establishes a Job
Creation Fund with an annual budget of $550M to create clean energy jobs,
including funding energy efficiency projects and renewable energy installations in
public schools, universities, and other public facilities. The Job Creation Fund will
be funded for four years, beginning in the 2013-2014 fiscal year.
AB 2514 (2010) Mandates a local publicly owned electric utility to determine appropriate targets, if
any, for the utility to procure viable and cost-effective energy storage systems and
to adopt an energy storage system procurement target, if appropriate, to be
achieved by the utility by December 31, 2016, and a second target to be achieved by
December 31, 2021.
AB 758 (2009) Requires the California Energy Commission, in collaboration with the California
Public Utilities Commission and stakeholders, to develop a comprehensive
program to achieve greater energy savings in the state’s existing buildings.
SBx7-7 (2009) The Water Conservation Bill of 2009 requires water suppliers to reduce the
statewide average per capita daily water consumption by 20% by December 31,
2020. To monitor the progress toward achieving the 20% by 2020 target, the bill
also requires urban retail water providers to reduce per capita water consumption
10% by the year 2015.
AB 1103 (2007) Requires electric and gas utilities maintain records of the energy consumption data
of all nonresidential buildings to which they provide service and that by January 1,
2009, upon authorization of a nonresidential building owner or operator, an electric
or gas utility shall upload all of the energy consumption data for the specified
building to the EPA Energy Star Portfolio Manager in a manner that preserves the
confidentiality of the customer. This statute further requires a nonresidential
building owner or operator disclose Energy Star Portfolio Manager benchmarking
data and ratings, for the most recent 12-month period, to a prospective buyer,
lessee, or lender. Enforcement of the latter requirement began on January 1, 2014.
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AB 1470 (2007) Solar Water Heating and Efficiency Act of 2007. Requires the governing body of
each publicly owned utility providing gas service to retail end-use gas customers,
to adopt, implement, and finance a solar water heating system incentive program.
SB 1 (2006) The California State Legislature enacted SB 1 to encourage the installation of 3,000
megawatts (MW) of photovoltaic (PV) solar energy by the year 2017. SB 1
requires all publicly owned utilities to adopt, finance and implement a solar
initiative program for the purpose of investing in and encourage the increased
installation of residential and commercial solar energy systems. CPAU’s share of the
state goal is 6.5 MW. In 2007, CPAU increased the PV Partners program funding to
meet SB1 requirements
AB 2021 (2006) Requires the CEC on or before November 1, 2007, and every 3 years thereafter, in
consultation with the commission and local publicly owned electric utilities, to
develop a statewide estimate of all potentially achievable cost-effective electricity
and natural gas efficiency savings and establish statewide annual targets for energy
efficiency savings and demand reduction over 10 years.
AB 1881 (2006) Requires cities and counties to implement a Water Efficient Landscape Ordinance
which is “at least as effective as” the Department of Water Resources (DWR)
Model Ordinance in reducing landscape water use. Requirements include enforcing
water budgets, planting and irrigation system specifications to meet efficiency
criteria.
SB 1037 (2005) Requires each local publicly owned electric utility, in procuring energy, to first
acquire all available energy efficiency and demand reduction resources that are
cost-effective, reliable, and feasible. Also requires each local publicly owned
electric utility to report annually to its customers and to the (CEC) its investment on
energy efficiency and demand reduction programs.
AB 1890 (1996) Requires electric utilities to fund low-income ratepayer assistance programs, public
purpose programs for public goods research, development and demonstration,
demand- side management and renewable electric generation technologies
AB 797 (1983) The Urban Water Management Planning Act (AB 797) requires all California urban
water retailers supplying more than 3,000 acre feet per year or providing water to
more than 3,000 customers to develop an UWMP. The plan is required to be
updated every five years and submitted to the Department of Water Resources
before December 31 on years ending in 5 and 0.