HomeMy WebLinkAboutStaff Report 3191
City of Palo Alto (ID # 3191)
City Council Staff Report
Report Type: Informational Report Meeting Date: 12/3/2012
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: DSM Annual Report
Title: Informational Report on City of Palo Alto Utilities Demand Side
Management Achievements for FY 2012
From: City Manager
Lead Department: Utilities
This memo and the attached report present the FY 2012 achievements of gas, water and
electric efficiency programs implemented by the City of Palo Alto Utilities (CPAU). This is for the
Council’s information and no action is required. The report was also presented to the Utilities
Advisory Commission as an informational item on November 7, 2012.
SUMMARY:
CPAU exceeded its electric, natural gas and water efficiency goals for FY 2012. In both the
electric utility, a one-time, extremely large project at an industrial site resulted in uniquely large
accomplishments not expected to be duplicated in the near term. For natural gas, over half of
the savings are attributed to the behavior-based OPower Home Energy Reports program.
While this program provides significant savings, the lifetime savings for this program area are
conservatively expected to last only one year. The reported energy program annual results are
currently being evaluated by independent review and may be amended.
BACKGROUND:
State law (Assembly Bill 1890; 1996) requires utilities to fund and maintain energy efficiency
programs targeting specific functional areas. These “public benefit” programs may include the
following:
• Cost-effective, demand-side management services to promote energy-efficiency.
• New investment in renewable energy resources and technologies consistent with
existing statutes and regulations that promote those resources and technologies.
City of Palo Alto Page 2
• 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 including, but not limited to, targeted
energy-efficiency installations and rate discounts.
To meet State and local goals, the City Council approved the long-term Electric Energy Efficiency
(EE) Plan in May 2010. Long-term natural gas efficiency goals were approved in April 2011. The
2010 Urban Water Management Plan, with significantly increased water savings goals, was
approved in June 2011. Updated electric and gas EE program goals were presented to the UAC
in October and will be proposed to the City Council later this fiscal year. The goals aim to meet
state mandates requiring that cost-effective efficiency remain the first priority resource option
for each utility. The goals were also designed to comply with the City’s environmental and
sustainability policies, which include: the Climate Protection Plan, the Long-term Energy
Acquisition Plan (LEAP), the Gas Utility Long-term Plan (GULP), and the State mandate to reduce
potable water use by 20% by 2020.
DISCUSSION:
The attached report provides details about CPAU’s Demand Side Management (DSM) programs
for FY 2012. A summary of CPAU’s achievements compared to the goals for FY 2012 is shown in
the figure below.
City of Palo Alto Page 3
City of Palo Alto Utilities Efficiency Programs
Goals vs. Achievements
CPAU exceeded all goals in FY 2012. In the electric and water utilities, one large customer
project (a different one in each utility) resulted in a large fraction of the total savings. Natural
gas savings were primarily due to the OPower Home Energy Reports.
In the electric utility, one large project at a single data center in town created nearly 50% of the
savings for this year. Projects like this are rare and such savings are unlikely to be consistently
replicable. Programs in the future are expected to have reduced levels of efficiency
achievements, primarily due to continuing upgrades in building codes and appliance and
equipment standards. Efficiency savings attributable to codes and standards cannot count
towards CPAU efficiency reporting.
In the water utility, a single large Water Efficient Technology rebate created a lot of efficiency
savings for the utility. Additional savings are attributed to an increase in business conservation
programs, due to intensive direct marketing by Key Account Representatives. Staff is looking
hard to find other similar programs for future years, but it is possible that, due to the type of
efficiency gains seen in the project and the process involved, that this may also be a
nonreplicable project and level of savings.
The OPower Home Energy Reports accounted for just over half of the natural gas efficiency
savings. Gas savings by business customers accounted for about 30% of the total, with the
majority of the savings accruing from heating, ventilating and cooling equipment upgrades.
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Although the overall natural gas savings goal was exceeded, the Solar Water Heating (SWH)
Program did not meet its goal. The SWH Program is not currently cost-effective for either CPAU
or its customers, but it is required to be implemented by State law (AB 1470; 2007).
The attached comprehensive report contains details about CPAU’s FY 2012 DSM programs
including costs and resource savings by program and by end use, evaluation of results,
descriptions of each program, description of outreach efforts, and a compendium of the policy
and regulatory drivers.
Attachments:
Appendix A to DSM Info Report for FY 2012 (PDF)
Demand Side Management Programs In Palo Alto
Achievements in Fiscal Year 2012
(July 1, 2011 to June 30, 2012)
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Table of Contents
TABLE OF CONTENTS 2
EXECUTIVE SUMMARY 6
HIGHLIGHTS OF THE PAST YEAR 6
GOALS VERSUS ACHIEVEMENTS 6
Electric 6
Figure 1: Electric Savings versus Goals 6
Gas 7
Figure 2: Gas Savings versus Goals 7
Water 7
Figure 3: Water Savings versus Goals 7
ENERGY AND WATER EFFICIENCY AS A RESOURCE 7
Table 1: Supply and Efficiency Costs 7
PLANS FOR THE FUTURE 7
DEMAND SIDE MANAGEMENT PROGRAM PORTFOLIO 8
OVERALL PORTFOLIO GOALS 8
PROGRAM DEVELOPMENT GUIDELINES 8
PROGRAM PERFORMANCE 9
DSM GOALS AND ACHIEVEMENTS 9
Table 2: Goals versus Achievements 9
GREENHOUSE GAS EMISSIONS REDUCTION 9
Table 3: Greenhouse Gas Emissions Reduction 10
ENERGY AND WATER EFFICIENCY AS AN ALTERNATIVE SUPPLY RESOURCE 10
Table 4: Supply and Efficiency Costs 10
EFFICIENCY POTENTIAL, REPORTED SAVINGS & VERIFICATION 10
Efficiency Potential Development 11
Energy Program Potential: 11
Figure 4: Impact of Codes & Standards on CPAU’s cumulative market potential for electric efficiency 12
Water Program Potential 12
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Electric Efficiency Program Savings 13
Figure 5: “Top 12” POU Electric Efficiency Achievements and Goals, prepared for CEC; July 2011 14
Table 6: Electric Savings versus Goals 14
Gas Efficiency Program Savings 15
Table 7: Gas Savings versus Goals 15
Water Savings 15
Table 8: Water Savings versus Goals 15
Verifying Program Results (Independent Evaluation) 15
CUSTOMER-SIDE RENEWABLE GENERATION 16
Figure 6: Customer-Side Photovoltaic Energy Program Achievements versus Goals 16
Figure 7: Solar Water Heating Program Achievements versus Goals 17
INCENTIVE PROGRAM EFFICIENCY ACHIEVEMENTS 17
Table 9: Efficiency Achievements by Program 17
ELECTRIC EFFICIENCY SAVINGS & PROGRAM COSTS 18
ELECTRIC SAVINGS IN PALO ALTO BY END USE 18
Figure 8: Palo Alto Percentage of Electric Efficiency in 2012 by End Use 18
Table 10: Expenditures in Electric Efficiency by Funding Source and Type of Expense 19
GAS EFFICIENCY SAVINGS & PROGRAM COSTS 19
NATURAL GAS SAVINGS BY END USE 19
Figure 9: Percentage of Natural Gas Efficiency for FY 2012 by End Use 20
Table 11: Expenditures in Gas Efficiency by Funding Source and Type of Expense 20
WATER EFFICIENCY SAVINGS & PROGRAM COSTS 21
WATER SAVINGS BY END USE 21
Table 12: Expenditures in Water Efficiency by Funding Source and Type of Expense 21
CURRENT CUSTOMER DSM PROGRAMS 22
RESIDENTIAL CUSTOMERS 22
Educational Programs and Workshops 22
Green@Home 22
Home Energy Reports 22
Loan Program 22
Residential Energy Assistance Program (REAP) 22
Smart Energy Program 22
Water Programs 23
Residential New Construction Rebate Program 23
BUSINESS CUSTOMERS 23
Commercial Advantage Program 23
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Commercial and Industrial Energy Efficiency Program 23
Commercial and Industrial Water Program 23
Keep Your Cool 23
Hospitality Program 24
Labs Efficiency 24
New Construction Assistance 24
Palo Alto Clean 24
Right Lights+ Program 24
Vending and Cool Miser Direct Installation 24
Water Efficient Technologies (WET) Direct Install Program 24
Zero Interest Loan Program 25
ALL CUSTOMERS 25
Green Building Program 25
PaloAltoGreen 25
PV Partners 25
Solar Water Heating 25
PROGRAMS IN DEVELOPMENT FOR NEAR-TERM IMPLEMENTATION 26
Customer Connect 26
ENERGY STAR® Profile Manager Building Automatic Upload for Rating 26
Operational Performance Reviews 26
IDEAS UNDER EVALUATION FOR POTENTIAL IMPLEMENTATION 26
Multi-Family Incentives 26
Point of Property Sale Efficiency Requirements 26
Thermal Energy Storage Systems 27
APPENDIX A: PORTFOLIO DETAILS 28
EXPENDITURE HISTORICAL COMPARISON 28
Figure 11, DSM Expenditures for all 3 Utilities by Year and by Function 28
FY 2012 ELECTRIC DSM PROGRAM EXPENDITURES 29
Table 13: Electric Expenditures by Program by Type of Expense (Includes Efficiency, Low Income and Renewable
Programs) 29
Figure 12: CPAU 2012 Electric Efficiency Expenditures by Program Area 30
Figure 13: Investor-Owned Utility (IOU) 2010-12 Energy Efficiency Expenditures by Program Areas
NATURAL GAS ENERGY EFFICIENCY PROGRAM EXPENDITURES 31
Table 14: Natural Gas Expenditures by Program by Type of Expense 31
Figure 14: CPAU Gas DSM 2012 Spending by Program Area 32
WATER CONSERVATION PROGRAM EXPENDITURES* 33
Table 14: Water Expenditures by Program by Type of Expense 33
Programs delivered by 3rd party administrators are in bold and italics; those delivered by in-house staff are not. Other
expenses are estimated by program. 33
Figure 15: CPAU Water DSM 2012 Spending by Program Area 33
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APPENDIX B: PROGRAM GOALS 34
ELECTRIC EFFICIENCY GOALS 34
NATURAL GAS EFFICIENCY GOALS 34
WATER EFFICIENCY GOALS 34
CLIMATE PROTECTION PLAN GOALS 34
APPENDIX C: OTHER IMPLEMENTATION ISSUES 35
HOME ENERGY REPORT SAVINGS DEVELOPMENT AND FUTURE POTENTIAL 35
How Savings are Estimated in Palo Alto 35
INCENTIVE LEVELS FOR REBATE PROGRAMS 37
INNOVATION 37
CUSTOMER OUTREACH 38
PARTNERSHIPS 39
SCHOOL EDUCATION 39
RETAIL STORES 40
INTER-UTILITY COORDINATION 40
OTHER CITY DEPARTMENTS AND PROGRAMS 40
OUTREACH CALENDAR FOR CALENDAR YEAR 2012 41
ONGOING PROGRAM IMPROVEMENT AND EVALUATION 41
APPENDIX D: ELECTRIC DSM REPORT TO CEC 42
Table 15: CEC Required Submission on Electric Energy Efficiency Results 42
APPENDIX E: STATE AND CITY MANDATES CONTROLLING PROGRAM GOALS AND
IMPLEMENTATION 43
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Executive Summary
The City of Palo Alto Utilities (CPAU) is pleased
to issue this annual report of the energy
efficiency and water conservation activities,
also called Demand Side Management (DSM),
completed in Palo Alto during the Fiscal Year
ending June 30, 2012 (FY 2012). CPAU is
committed to supporting environmental
sustainability through reduced consumption of
electric, gas and water resources. This is
accomplished through the ongoing delivery of
innovative cost-effective customer programs,
services and incentives.
This annual report provides:
Electricity and natural gas energy
efficiency (EE) program goals, savings
and expenditures;
Locally-sited solar photovoltaic and
water heating system generation totals
and program expenditures;
Mandated water efficiency program
goals, savings and expenditures;
Brief update on the efficiency potential
and goal setting process;
Energy and water program descriptions;
and
Electric efficiency results submitted to
the California Energy Commission
(included as Appendices).
HIGHLIGHTS OF THE PAST YEAR
When the DSM goals were last set, there was a
substantial increase in the electric, natural gas
and water savings goals. Programs were
added and marketing efforts increased to meet
these goals. Highlights for FY 2012 include:
Completion of a significant industrial
project at the one large data center in
town, resulting in major electric savings.
Unfortunately, these savings are not
easily replicable, as there are no other
similar facilities in Palo Alto.
Continued delivery of the Home Energy
Reports to about 19,000 residential
customers. Each customer received a
mailed and/or online report comparing
individual electric and natural gas usage
with a group of 100 similarly sized,
occupied homes.
Addition of a loan program for
residents installing efficient home
comfort equipment.
Continued promotion and education
about innovative technologies, such
as various types of ENERGY STAR
certified LED lights.
GOALS VERSUS ACHIEVEMENTS
Electric
The Ten-Year Electric EE Plan adopted in 2010
set a cumulative goal to reduce electric
consumption by 7.2% as a direct result of utility
programs by 2020. Only savings that are above
the minimum efficiency level required by
building codes and appliance standards can be
counted towards the utility EE goals. In FY
2012, in addition to the increased level in both
quantity and quality of programs, there was a
once-in-a-lifetime very large EE project
implemented at a major customer site, resulting
in achieved electric EE savings that are more
than double the annual goal.
Figure 1: Electric Savings versus Goals (FY
2012 is Gross Savings)
0.00%
0.50%
1.00%
1.50%
2.00%
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012*FY 2013
Electric Annual Savings Goal Savings Achieved
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Gas
The Ten-Year EE goal for natural gas is a
reduction in expected gas use of 5.5% by 2020.
This reduction is program-driven and must
come on top of what reductions may naturally
occur. The new Hospitality program helped to
increase the level of participation in programs
by hotels. In addition, Home Energy Reports
contributed to significantly greater gas savings.
Figure 2: Gas Savings versus Goals
Water
The 2010 Urban Water Management Plan
includes water reduction goals of 20% by 2020,.
Water programs were much more successful
this year. Intensive direct marketing by Key
Account Representatives helped many more
businesses take advantage of conservation
programs, such as water audits, process
improvements and plumbing retrofits.
Figure 3: Water Savings versus Goals
ENERGY AND WATER
EFFICIENCY AS A RESOURCE
CPAU is committed to identifying and achieving
all cost-effective energy and water efficiency
that are less expensive than supply-side
resources. The table below summarizes
purchase costs for supply and efficiency on a
unit basis by commodity.
Table 1: Supply and Efficiency Costs
Per Unit Costs
FY 2010 FY
2011
FY
2012 Future
Effic. Effic. Effic. Supply
Water $/CCF $ 3.07 $3.83 $3.89 $ 4.77
Gas $/therm $0.408 $0.73 $0.56 $ 0.70
Electric $/kWh $0.0638 $0.058 $0.037 $ 0.09
PLANS FOR THE FUTURE
During FY 2013, current contracts for the
administration and delivery of the Solar Water
Heating Program, the Home Energy Reports
and PaloAltoGreen will end. Staff is reviewing
innovative ways to continue to promote
customer voluntary involvement in DSM
Programs. Also, per legislative mandate, the
Ten-Year Electric and Gas EE goals for 2014 to
2023 will be updated during FY 2013.
0.00%
0.20%
0.40%
0.60%
0.80%
FY
2008
FY
2009
FY
2010
FY
2011
FY
2012
FY
2013
Gas Annual Savings Goal Savings Achieved
0.00%
0.50%
1.00%
1.50%
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Water Annual Savings Goal
Savings Achieved
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DEMAND SIDE MANAGEMENT PROGRAM PORTFOLIO
Demand Side Management (DSM) programs help customers reduce water, natural gas and
electricity usage by providing incentives for efficiency improvements, promoting behavior
modifications and promoting on-site renewable generation.
OVERALL PORTFOLIO GOALS
o Meet or exceed Council-approved usage reduction goals.
o Encourage all customer classes to reduce resource use in cost-effective, convenient ways.
o Promote testing, evaluation and implementation of innovative technologies and program
designs through demonstration projects and pilot programs.
o Enhance program marketing to harder-to-reach customers, such as small businesses,
renters and low-income residents.
o Engage in ongoing program evaluation and incorporate identified improvements.
o Provide comprehensive programs through increased coordination with the requirements,
programs and services of other City departments and outside agencies.
PROGRAM DEVELOPMENT GUIDELINES
Evaluate overall cost-effectiveness--program cost-effectiveness may be based on savings
from a single commodity or on the combined impact of multiple commodity savings. Less
cost-effective promotions can be appropriate for limited times as a means to expose
customers to more expensive emerging technologies (e.g. LED lighting).
Design program parameters to be as compatible as possible with those in surrounding
communities—regional design similarity lessens confusion for customers and contractors.
Target low-income customers—encourage greater involvement with services, such as free
direct installations.
Do not offer incentives for equipment which solely adds to the resource load—e.g. no rebates
are offered for new air conditioners installed where none existed previously.
Balance program funding for residential and non-residential customer classes in proportion to
their relative consumption levels. However, all customer classes should be offered some level
of financial incentives, psychological motivation and education on technology benefits.
Screen programs for effectiveness and adjust budgets annually to optimize methods for
achieving goals. Reassess long-term efficiency potential every three years.
Monitor and evaluate developing technologies and external market activities, which promote
efficiency and incorporate them into program design, as appropriate.
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PROGRAM PERFORMANCE
DSM GOALS AND ACHIEVEMENTS
As shown in Table 2, achievements in all three utilities are above targets. The electric utility
benefited from a very large datacenter upgrade from the one such facility in town. This
achievement is not easily replicable due to the unique nature of the savings. The natural gas
utility gained over 50% of its savings from high residential response to the Home Energy Reports.
Water programs benefited from increased water audits, one large process improvement and
plumbing retrofits.
As has been the case for the past few years, the Solar Water Heating program is not meeting the
program target of 500 residential systems and 100 pool heating systems. CPAU is mandated by
California law (AB 1470; 2007) to offer this program, but solar water heating is still not cost-
effective due to depressed natural gas prices in the past few years. State law also disallows utility
rebates for solar pool systems. Solar electric (or PV) programs, on the other hand, remain on
target, particularly for residential installations. The residential portion of the program reached the
end of its original 10 blocks this year; however, since small commercial customers were not
installing PV systems at a high rate, some of this funding was transferred to the residential group
to allow two additional rebate blocks.
Table 2: Goals versus Achievements
Commodity Goals- Savings
% of Load
FY 2012 Gross
Achieved
Savings
Gross
Achieved %
of Load
Electricity 0.65% 14,807,235 kwh 1.52%
Natural Gas 0.45% 220,883 therms 0.73%
Water 0.91% 55,607 ccf 1.09%
Renewable FY 2012
Solar Electric/PV 7,000 kW for
10 years 3,435 kW since 2001 388 kW
Solar Water Heating 30 Systems 41 systems since 2008 7 systems
GREENHOUSE GAS EMISSIONS REDUCTION
The City’s Climate Protection Plan counts on CPAU’s electric and natural gas efficiency goals to
meet its sustainability goals. As seen in the table below, CPAU significantly exceeded the electric
efficiency goal, but made more limited progress in other areas, primarily because natural gas
upgrades are more expensive and have longer payback periods. This is particularly the case for
solar water heating.
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Table 3: Greenhouse Gas Emissions Reduction
Program 2020 Goal
CO2 Tonnes Reduced
2012 Cumulative Actual
CO2 Tonnes Reduced
Electric Efficiency 15,800 13,376
Solar Electric (PV) 3,800 1,568
Natural Gas
Efficiency (includes
Solar Water Heat)
8,800 3,269
ENERGY AND WATER EFFICIENCY AS AN ALTERNATIVE SUPPLY
RESOURCE
Improved efficiency can be considered an alternative “supply resource” because, by reducing the
demand for a commodity, the cost of buying expensive additional supplies can be avoided. In FY
2012, based on the projected program budget and savings, CPAU’s levelized cost for electric and
gas energy efficiency was just under 3 cents/kWh and 60 cents/therm, respectively. Energy
Efficiency will become more expensive in the future, particularly on the electric side, as building
codes and appliance standards increase the “baseline” technology used for counting efficiency
savings. In previous years, business lighting upgrades made up at least 40% of overall electric
efficiency portfolio, for example. By 2023 this extremely cost-effective program will be removed
as the baseline for utility efficiency programs. New technologies coming into the market remain
expensive and do not have the wide reach and benefit that business lighting has had. However,
by comparison to new renewable energy purchases, energy efficiency remains a cheaper
alternative for the City. Table 7 shows how efficiency has historically compared to expected
future supply. Note that costs for efficiency are very low this year, particularly for electricity and
water, due to the extremely high savings from one customer project in each utility.
Table 4: Supply and Efficiency Costs
Per Unit Costs
FY 2010 FY 2011 FY 2012 Future
Efficiency Efficiency Efficiency Supply
Water $/CCF $ 3.07 $3.83 $3.89 $ 4.77
Gas $/therm $0.408 $0.728 (adj) $0.56 $ 0.70
Electric $/kWh $0.0638 $0.056 $0.037 $ 0.09
EFFICIENCY POTENTIAL, REPORTED SAVINGS &
VERIFICATION
Palo Alto has provided efficiency services for decades to local residents and businesses.
However, the portfolio has become increasingly complex, broad based and well documented
since the 1990’s. After SB1037 was passed in 2005, CPAU began enhancing its tools for
identifying efficiency potential, reporting program savings and verifying these savings. Due to
state law and available joint action groups’ capabilities in this area, the electric utility has the most
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sophisticated models for reporting; however, all three utilities have carefully developed goals and
thoroughly reviewed results for reporting. On the electric side, KEMA, Inc. (KEMA) and Energy
and Environmental Economics (E3) have provided public power with the expertise to develop
resources that allow all California publicly owned utilities (POUs) to measure energy efficiency
program effectiveness and to report program savings in a consistent and comprehensive manner.
The E3 Reporting Tool is a sophisticated Excel spreadsheet model used to report the results of
utility electric energy efficiency programs. The model contains a database of around 250 unique
energy savings measures. The 2010 E3 Reporting Tool was used to report program results for
this year.
Efficiency Potential Development
Energy Program Potential:
The California Energy Efficiency Resource Assessment Model (CalEERAM) is an energy
efficiency potential model developed to estimate the technical, economic and market electric and
natural gas efficiency potential for a utility’s service area. CalEERAM was developed by Navigant
Consulting under contract with Northern California Power Agency (NCPA) in 2009 and was used
to establish the 2011 to 2020 electric and gas efficiency goals by NCPA members. The model
forecasts electric and natural gas savings, as well as the demand reduction potential within the
residential, commercial and industrial sectors for the next 10 years.
CalEERAM accounts for energy efficiency measure impacts and costs, utility customer
characteristics, utility load forecasts, historical adoption of efficient technologies, utility avoided
costs and rate schedules. The model utilizes a “bottoms-up” approach in that the starting points
are the study area building stocks and equipment saturation estimates, forecasts of building stock
decay and new construction, energy efficiency technology data, past energy efficiency program
accomplishments and decision maker variables that help drive the market scenarios. CalEERAM
estimates energy efficiency potential for three perspectives for electricity and natural gas:
Technical Energy Efficiency Potential represents the amount of energy efficiency
savings that could be achieved when not considering economic and market barriers, such
as customers’ lack of awareness or willingness to install energy efficiency measures.
Technical energy efficiency potential estimates, while not realistically obtainable, are used
to establish the outer boundary of what could be achieved through energy efficiency
programs.
Economic Energy Efficiency Potential represents the portion of the technical energy
efficiency potential that is “cost-effective,” from a societal perspective, as defined by the
Total Resource Cost (TRC) test. Economic potential does not consider market barriers
that limit a voluntary utility efficiency program’s success in encouraging customers to
install energy efficiency measures.
Achievable Energy Efficiency (Market) Potential is an estimate of the portion of the
economic energy efficiency potential that could be attributed to a utility energy efficiency
program, recognizing the effect of a limited set of market barriers. Market energy
efficiency potential is modeled to vary with specific parameters, such as the magnitude of
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measure incentives and customer awareness and willingness to adopt energy efficient
measures.
Staff is currently working with Navigant Consulting to update the CalEERAM to revise the ten-year
electric and gas efficiency goals for 2014 to 2023. The new model explicitly accounts for the
efficiency savings attributed to Building Codes and Appliance Standards (Codes & Standards)
upgrades, beginning in 2014. Upgrades to Codes & Standards prior to 2014 are also accounted
for in the technical potential, but are not shown in the model results. Changes to federal standards
as mandated in the Energy Independence Act of 2007 for room air-conditioners, dishwashers,
clothes washers and water heaters will take effect between 2013 and 2015. Within California, AB
1109 (2007) has a phased-in schedule for lighting efficiency, requiring reduction in lighting energy
usage for indoor residential application by no less than 50%, as well as a 25% reduction for
commercial facilities by 2018. Energy savings attributed to Codes & Standards are excluded from
the energy efficiency potential for CPAU. Figure 4 below shows the impact of Codes & Standards
on the market potential. In the absence of Codes & Standards, the market potential for electric
efficiency in year 2023 would be approximately 85,000 MWh. Given the reality that Codes &
Standards change the benchmark baseline for efficiency savings calculations, the actual market
potential in 2023 is estimated at 60,000 MWh.
Figure 4: Impact of Codes & Standards on CPAU’s cumulative market potential for electric efficiency
Water Program Potential
It is the goal of the City to continue to look for opportunities, innovative technologies, and cost-
effective programs that best utilize the water conservation budget. The City has been working with
other Bay Area Water Supply and Conservation Agency (BAWSCA) members, the Santa Clara
Valley Water District (SCVWD) and other water agencies in the Bay Area to investigate methods
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for regional implementation of certain Best Management Practices (BMPs). In 2002, the City
entered into an agreement with SCVWD to cost-share the development and implementation of
water conservation programs. Prior to 2002, the City offered several of the conservation programs
in-house, or encouraged residents and businesses to participate in the programs offered county-
wide by SCVWD. As part of the overall efforts to comply with the California Urban Water
Conservation Council’s BMPs, the City and SCVWD have partnered over the last ten years to
promote and cost-share water conservation programs for Palo Alto customers. The City also
continues to evaluate opportunities for program partnership opportunities with BAWSCA and other
regional alliances.
These water efficiency measures were evaluated as a group for effectiveness towards achieving
the water reduction goals necessary for compliance with State law mandating a 20% reduction in
water use by 2020 (SBx7‐7). Table 5 below shows the actual savings in 2010 and forecasted
savings until 2030. Implementation costs include per unit and administrative costs to CPAU and
any of its cost-sharing partners.
Table 5: Water Demand Management Measure Savings from 2010 Urban Water Management Plan
2010 2015 2020 2025 2030
Total Water Savings in Millions of
Gallons Per Day (MGD) 0.37 0.97 1.47 1.62 2.02
Cumulative Savings as a Percent of
Water Demand 2% 7% 10% 11% 13%
Utility implementation costs are expected to decline over time as the number of new participants
in current conservation and efficiency programs decreases. Participation is expected to decrease
with market saturation of efficient devices that will become the standard option for consumers. As
with electricity and natural gas, state and local building and plumbing codes continue to mandate
increased efficiency standards for indoor and outdoor water use in new construction and
renovated properties. For these reasons, a number of conservation incentives will either become
unnecessary or will no longer be cost-effective to implement. While participation in the water
efficiency programs is expected to decline over time, staff will annually evaluate conservation
program offerings, including the introduction of new measures that will assist in meeting State and
City water reduction goals.
Electric Efficiency Program Savings
Report to California Energy Commission (CEC)—CPAU annually prepares a report for the CEC
detailing electric efficiency program success compared with other publicly owned utilities’ (POUs).
In 2011, KEMA prepared a summary of the medium-sized POUs—in other words, the largest 12
in the state except for Los Angeles and Sacramento. Historical electric efficiency achievements
and future goals are shown in Figure 5 below. Unfortunately, this information is not available for
natural gas and water utilities. Palo Alto’s electric efficiency achievements and goals are
relatively similar to most other utilities. Note that two utilities—Pasadena and Truckee—had
community-wide blitzes promoting CFLs (Compact Fluorescent Lights) that skewed their results.
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Figure 5: “Top 12” POU Electric Efficiency Achievements and Goals, prepared for CEC; July 2011
CPAU’s EE goals have historically continued to increase, and, to date, programs have kept up
with these higher targets. The 2010 Ten-Year Electric EE Plan’s cumulative objective of saving
7.2% by FY 2020 must be reached as a direct result of utility programs. As discussed above,
these active savings are on top of the substantial savings that occur when consumers buy code-
compliant equipment.
In developing the upcoming efficiency potential for the period 2014 through 2023, a fairly large
percentage of energy savings is no longer reportable by the utility, but is attributed to Codes &
Standards. This does not include the significant impact of previous changes to Codes &
Standards, such as the requirements to phase out 100 watt incandescent light bulbs or the long
history of increasing appliance efficiencies.
CPAU’s savings goals and achievements as a percentage of sales are shown in Table 9 below.
Table 6: Electric Savings versus Goals
Year Annual Savings Goal Savings Achieved
FY 2008 0.25% 0.56%
FY 2009 0.28% 0.47%
FY 2010 0.31% 0.55%
FY 2011 0.60% 0.58% (adj.)
FY 2012 0.65% 1.52% (Gross) 1.37% (Net)
FY 2013 0.70% In progress
Electric Energy Efficiency Savings as % of Annual Electric Sales
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Anaheim Burbank Glendale IID Modesto Palo Alto Pasadena Riverside Roseville SVP Truckee Turlock
% o
f
T
o
t
a
l
S
a
l
e
s
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Solid colors indicate historical data.
Hatches on the bars are future goals.
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Gas Efficiency Program Savings
CPAU’s ten-year energy efficiency goal for natural gas is reduce gas use by 5.5% by 2020. Again,
this reduction goal is program-driven and must come on top of reductions that may naturally occur.
CPAU’s savings goals and achievements as a percentage of sales are shown in Table 7 below.
The future potential for gas EE savings is also being affected dramatically by increases to federal
and state codes and standards, so future years are likely to have lower savings achievement to
report.
Table 7: Gas Savings versus Goals
Year Annual Savings Goal Savings Achieved
FY 2008 0.25% 0.11%
FY 2009 0.28% 0.28% (adj.)
FY 2010 0.32% 0.35%
FY 2011 0.40% 0.55%
FY 2012 0.45% 0.73%
FY 2013 0.50% In progress
Water Savings
The 2010 Urban Water Management Plan includes a per capita water use reduction goal of 20%
by 2020 from a historical benchmark year (average use of years 1995 to 2004). CPAU’s savings
goals and achievements as a percentage of sales are shown in Table 8 below. Note that water
savings were high this year due to a one-time process improvement at a major customer site and
greater involvement in programs by local businesses.
Table 8: Water Savings versus Goals
Year Annual Savings Goal Savings Achieved
FY 2008 0.34% 0.72%
FY 2009 0.34% 0.98%
FY 2010 0.34% 1.35%
FY 2011 0.90% 0.47%
FY 2012 0.91% 1.09%
FY 2013 0.91% In progress
Verifying Program Results (Independent Evaluation)
State law (AB 2021; 2006) requires all POUs to report annually on the results of an independent
evaluation, measurement and verification (EM&V) of electric energy efficiency results. CPAU has
completed numerous independent EM&V studies since 2008. Documents are available for review
at http://www.ncpa.com/energy-efficiency-m-v-reports.html, with new reports posted to the same
URL as they become available. Latest reports are also on the City’s website at
http://www.cityofpaloalto.org/gov/depts/utl/about/reports.asp
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Results from the EM&V studies (both impact and process) provide staff with feedback to improve
program effectiveness. These evaluations are not required for natural gas or water programs;
however, CPAU does complete natural gas EM&V studies along with the required electric
analyses. These reports are also used to assist in program updating and improvement.
CUSTOMER-SIDE RENEWABLE GENERATION
CPAU offers programs which provide incentives for customers to install both solar photovoltaic
(PV) and solar water heating (SWH) systems. Both programs are governed by state law in regard
to development, implementation and administration. These customer-side generation systems
are not included in the utility’s Renewable Portfolio Standard (RPS) supply requirements. As
Table 12 indicates, the number of SWH systems installed has been consistently below target,
especially during the last two fiscal years, when the recession meant that fewer customers were
able to make large capital improvements to their homes and/or businesses. This reduced level
has continued even though the cost to actually install systems, especially PV, continues to fall and
payback periods improve.
Figure 6: Customer-Side Photovoltaic Energy Program Achievements versus Goals
Total KW Goal is 7,000 kW; Achievements to date are 3,435 kW
0
500
1000
1500
2000
2500
3000
PV Goal KW PV Systems PV Generation kW
FY2012
FY2011
FY2010
FY2009
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Figure 7: Solar Water Heating Program Achievements versus Goals
Total Goal is 300 Systems; 41 to date
INCENTIVE PROGRAM EFFICIENCY ACHIEVEMENTS
FY 2012 achievements for selected CPAU incentive and educational programs are in Table 13.
Table 9: Efficiency Achievements by Program
EE Savings by Program
Gross Annual
Energy Savings
(kWh) % Therms % CCF %
COM-Com. Advantage 2,311,377 15.61% 23,701 10.73%
COM-Right Lights 3,381,531 22.84% 0.00%
RES-Home Energy Report 955,000 6.45% 110,764 50.15%
RES-REAP Low Income 167,564 1.13% 12,295 0.00%
RES-Smart Energy 405,858 2.74% 18,383 13.89%
RES-Water Programs 91 0.00% 0.00% 12,662 23%
GEN-Gen T&D 367,000 2.48% 0.00%
COM--Water Programs - 0.00% 6,514 2.95% 42,405 77%
COM-Enovity* 6,434,592 43.46% 40,223 18.21%
COM-Keep Your Cool 165,196 1.12% 0.00%
COM-Hospitality 619,027 4.18% 9,004 4.08%
Total 14,807,235 100% 220,883 100% 55,067 100%
Net of Free Riders (Electric) 12,668,792
*Note that the Enovity savings about are three times expected due to the one-time and unique large project at a major
customer site.
0
20
40
60
80
100
120
140
SWH System Goal SWH System Achieved
FY2012
FY2011
FY2010
FY2009
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ELECTRIC EFFICIENCY SAVINGS & PROGRAM COSTS
ELECTRIC SAVINGS IN PALO ALTO BY END USE
Business customers use the vast majority of electricity in Palo Alto, so it is no surprise that
business efficiency program savings represent about 90% of CPAU’s total electric efficiency
savings.
The programs with the greatest impact this year came from three sources: business lighting
(about 31% of the total), business process (primarily the datacenter project at 22% of total
savings) and business heating, ventilation and air conditioning or HVAC (also primarily from the
datacenter project at 19% of total savings).
The residential programs with the greatest impact include the Home Energy Reports (HERs), at
about 8% of total savings and residential lighting, at 2% of the total portfolio savings. More
information on the HERs, including implementation and savings verification, is detailed in
Appendix D.
Figure 8: Palo Alto Percentage of Electric Efficiency in 2012 by End Use
ELECTRIC EFFICIENCY EXPENDITURES
The largest fraction of expenditures in the electric efficiency budget are for third party
administered contracts and rebates. Some of these contracts, particularly for those targeting
Res.
Appliance
1%
Res. Light
2% Res. Other
2%
Bus.
Comprehensi
ve
28%
Bus. Process
29% Bus.
Refrigeration
3%
Bus. Shell
3%
Bus. HVAC
24%
Home Energy
Report
8%
FY2012 Electric Savings in kWh
by End Use
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hard-to-reach groups (Residential Energy Assistance Program and Right Lights+), include rebate
payment as a part of the program administration. This arrangement tends to make the contract
costs appear more costly than CPAU-administered custom incentive payments. Costs, for in-
house salaries, marketing, customer education and other types of expenses, are the smallest
segment of program budgets. Three programs, Solar Water Heating, Right Lights+ and the
Business Zero Interest Efficiency Loan Program, were partially paid for out of supply funds. The
contractor for Evaluation, Measurement and Verification (EM&V) was also paid from supply
funding. The remainder of the funding for electric efficiency programs came from the mandated
Public Benefit Charge, which is set at 2.85% of the customer retail rate. The majority of the Public
Benefit funds are spent on efficiency programs; however, some funding also goes to renewable
energy projects, researching innovative technologies and low income efficiency programs.
By Funding Source and Expense Type
Table 10: Expenditures in Electric Efficiency by Funding Source and Type of Expense
FY 2012 Direct Rebates 3rd Party
Contracts
Other
(Includes
EM&V and
Other)
Total*
PBC Portion $1,873,259 $1,259,775 $925,000 $4,058,034
Supply Portion $484,141 $329,225 $ 0 $813,366
Total $2,357,400 $1,589,000 $925,000 $4,871,400
*Includes about $1,000,000 in PV rebates.
GAS EFFICIENCY SAVINGS & PROGRAM COSTS
NATURAL GAS SAVINGS BY END USE
Home Energy Reports produced 51% of CPAU’s reported gas efficiency program savings. It is
likely that gas savings are easily achieved by customer behavioral changes, such as increasing
thermostat set points. These savings are not expected to continue from year to year and are
given an expected useful life of only one year. In its first year of implementation, the Home
Energy Report (HER) program resulted in average savings of 2.1% of all recipients, which is
rounded to 2% conservatively, as reported by the program contractor (Opower). More
information on the HER program implementation and energy savings verification process is
detailed in Appendix C.
Business Heating, Ventilating and Air Conditioning (HVAC) resulted in an additional 31% of
savings. Residential heating provided 3% of total savings, and residential water heating provided
2% of total program savings. While residential water heating has a high gas savings potential,
actual savings are typically low primarily because residents are reluctant to pull permits when
replacing water heaters, so CPAU cannot count the savings. As a City department, CPAU must
require permits for rebate payment. Also, there are a very limited number of models of high
efficiency water heaters available through retail channels and contractors. CPAU continues to
review ideas to improve the residential uptake of efficient furnaces and water heaters, including
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adding an interest-free loan program this year. The program is managed through the Electric and
Gas Industries Association and is coordinated with local contractors.
Figure 9: Percentage of Natural Gas Efficiency for FY 2012 by End Use
GAS EFFICIENCY PROGRAM COSTS
The majority of gas savings during FY 2012 came from residents who participate in the Home
Energy Reports (HERs). For rebate programs, the highest level of savings came through a large
business efficiency program administered by Enovity.
By Funding Source and Expense Type
Table 11: Expenditures in Gas Efficiency by Funding Source and Type of Expense
FY 2012 Direct Rebate
Contracts
(includes
Direct Install
Low Income)
Other
(Includes
EM&V and
Other)
Total
PBC Portion $95,103 $393,077 $125,000 $613,180
Supply Portion 0 $60,923 0 $60,923
Total $95,103 $393,077 $125,000 $613,180
Res. Appliance
1%
Res. Boiler/Heat
1%
Res. Shell
4%
Res. Water Heat
1%
Bus. HVAC
15%
Bus. Water Heat
54%
Res. Home Energy
Reports
24%
FY 2012 Gas Savings in Therm by End Use
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WATER EFFICIENCY SAVINGS & PROGRAM COSTS
WATER SAVINGS BY END USE
Business programs made up the largest percentage of water use efficiency savings for FY 2012.
In particular, one large process project at a major industrial site accounted for 77% of the total
savings in this fiscal year.
Figure 10: Percentage of Water Efficiency for FY 2012 by End Use
WATER EFFICIENCY EXPENDITURES
By Funding Source and Expense Type
Table 12: Expenditures in Water Efficiency by Funding Source and Type of Expense
FY 2012 Direct Rebates Third Party
Contract*
Other (Includes In-
house Admin) Total
Public Benefits $77,000 $120,000 $178,000 $375,000
Supply Resources $0 $0 $0 $0
Total by Type $77,000 $120,000 $178,000 $375,000
*Includes rebates paid by SCVWD program directly to customers (numbers are rounded)
Res. Appliance
7% Res. Audit
6% Res. Landscape
3%
Res. Plumbing
7%
Bus. Audit
27%
Bus. Landscape
1%
Bus. Plumbing
24%
Bus. Process
25%
FY2012 Water Savings in CCF by End Use
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CURRENT CUSTOMER DSM PROGRAMS
The programs offered by CPAU are designed to assist all customer groups 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
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.” Facility manager workshops are held about three times per year
for large business customers. In addition, customers receive monthly emailed newsletters on a
variety of efficiency matters.
Green@Home
CPAU offers free in-home audits through a program coordinated by Acterra, a local, non-profit,
volunteer environmental organization. At the end of the audit, participants receive personalized
efficiency tips along with simple efficiency-improvement items including CFLs, faucet aerators and
home energy monitors (for larger consumption customers).
www.acterra.org/programs/greenathome
Home Energy Reports
CPAU provides City residents with individualized reports comparing their home energy use with
that of 100 similarly sized homes with the assistance of the contractor OPOWER. A web portal
also offers tips and suggestions on reducing electric and natural gas usage.
www.cityofpaloalto.org/HomeEnergyReports
Loan Program
Coordinating with industry leader, Electric and Gas Industries Association (EGIA) and local
contractors, CPAU began offering interest free loans to residents installing qualifying efficiency
and home comfort measures. The program began in January 2012, and EGIA worked extensively
with contractors to get them signed up in the program and trained on its processes. The first loan
was not completed until August 2012. It was to a low income housing provider for circulating
pumps in the hot water system. www.egia.org/PaloAlto
Residential Energy Assistance Program (REAP)
The City provides low-income residents---at no cost---home lighting and heating system upgrades
as well insulation for walls and roofs and weather-stripping for doors and windows.
www.cityofpaloalto.org/LowIncome
Smart Energy Program
The City gives financial rebates to residents who install energy efficient appliances and equipment
in their homes or on their property. Among these are home heating and cooling systems (HVAC),
insulation, water heaters, pool pumps and power strips. Palo Alto pays rebates to customers who
have their older model, inefficient refrigerators and freezers recycled through a City program.
Additionally, the City sponsors various time-sensitive programs to encourage consumers to install
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Compact Fluorescent Light (CFL) and Light Emitting Diode (LED) bulbs and fixtures, including
LED holiday lights. www.cityofpaloalto.org/SmartEnergy
Water Programs
Through a partnership with the Santa Clara Valley Water District (SCVWD), Palo Alto provides
residents with programs to improve their water use efficiency. These programs include free
indoor and outdoor home water surveys, as well as rebates for toilets, clothes washers, landscape
conversions, irrigation hardware upgrades and weather-based irrigation controllers.
www.cityofpaloalto.org/ResiWater
Residential New Construction Rebate Program
CPAU offers a financial incentive to encourage residents to exceed minimum building efficiency
codes when constructing a new home. Rebates are available for exceeding Title 24 energy
efficiency standards by at least 20%.
BUSINESS CUSTOMERS
Commercial Advantage Program
Business customers are offered rebates for many types of equipment, including the following:
installing lighting upgrades, wall and ceiling mounted motion sensors, LED exit signs, 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
Large businesses can get assistance with building commissioning services from the contractor
Enovity. This assistance includes reviewing lighting and heating/cooling systems and their
operating specifications. Customers are then helped in obtaining rebates for replacing chillers,
controls, linear fluorescent lighting, occupancy sensors, boilers and insulation.
www.cityofpaloalto.org/CIEEIP
Commercial and Industrial Water Program
CPAU partners with the SCVWD to provide non-residential customers with free landscape
irrigation audits and direct installation of high-efficiency toilets. Rebates are available for clothes
washers, facility process improvements, landscape conversions, irrigation hardware upgrades and
weather-based irrigation controllers. CPAU also offers a free indoor water survey
program.www.cityofpaloalto.org/ComWater
Keep Your Cool
Commercial kitchens can receive a free, no-obligation, inspection of commercial refrigerators and
coolers to evaluate their efficiency. Generous cash incentives are available to make efficiency
upgrades affordable for a variety of motors, lighting and process equipment.
www.cityofpaloalto.org/CommercialPrograms
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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.
www.cityofpaloalto.org/CommercialPrograms
Labs 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.
www.cityofpaloalto.org/CommercialPrograms
New Construction Assistance
Architects and businesses are trained in how to achieve efficiency savings in Palo Alto.
Businesses going through the permitting process get assistance from the contractor BASE Energy
with making upgrades to their systems and obtaining rebates for this energy savings.
www.cityofpaloalto.org/CommercialPrograms
Palo Alto Clean
This is a program for large solar installations to sell solar generated electricity directly to the utility
at a fixed price over a long term. This is called a “CLEAN” or Feed In Tariff (FIT) program.
http://www.cityofpaloalto.org/gov/depts/utl/business/sustainability/clean.asp
Right Lights+ Program
Through this program provided by the third party administrator, Ecology Action, small businesses
receive extra assistance in implementing efficient equipment. Small business customers can
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. www.rightlights.org
Vending and Cool Miser Direct Installation
SBW Consulting, Inc. installs vending and cooler misers at no charge on cold beverage vending
machines located at businesses in Palo Alto.
Water Efficient Technologies (WET) Direct Install Program
Through SBW Consulting, Inc., CPAU also offers direct installation of low-flow shower heads,
faucet aerators and pre-rinse spray valves free of charge to businesses in Palo Alto.
www.cityofpaloalto.org/ComWater
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Zero Interest Loan Program
This program provides businesses with no-interest loans to install electric energy efficient
equipment. Loans can be up to 5 years in length and for between $5,000 and $50,000. The
program is provided in partnership with QUEST. Five loans have been given out to date, for a
total of $85,000. www.cityofpaloalto.org/CommercialFinancing
ALL CUSTOMERS
Green Building Program
The Green Building Program places requirements on getting a building permit issued based on a
project’s scope of work. The program mandates that all new construction achieve 15% energy
savings beyond that required by the state energy code, and provides financial incentives to
achieve additional savings for projects that exceed those minimum requirements.
The program requires all non-residential renovation costing more than $100,000 to obtain an
ENERGY STAR® Portfolio Manager Rating from the U.S. EPA, allowing an owner or property
manager to track future energy and water consumption of the building project. The applicant inputs
utility data and receives an energy score on a scale of 1 to 100, relative to similar buildings
nationwide.
The program requires all residential renovations with a cost of more than $100,000 to obtain a
California Whole-House Home Energy Rating (HERS II) developed by the California Energy
Commission. This rating provides on-site evaluation of the energy performance of the home and
offers analysis of the cost-effectiveness of potential energy efficiency improvement projects. Both
residential and commercial utilities customers who exceed Green Building Program requirements
when going through the permit process for new construction are eligible to receive incentive
payments. The Planning and Utilities Departments coordinate the customer application and
payment processes. www.cityofpaloalto.org/GreenBuilding
PaloAltoGreen
Residents and businesses that are willing to pay a small price premium can offset their own home
or business electric use with 100% renewable energy. This program is currently being reviewed
for a major overhaul, with an emphasis on local solar installations, as the City moves toward a
climate neutral electric portfolio. www.cityofpaloalto.org/PAGreen
PV Partners
This program provides rebates to businesses and residents who install solar electric (or
photovoltaic/PV) systems and then “net meter” their usage. www.cityofpaloalto.org/PVPartners
The City also has a program for large solar installations to sell solar generated electricity directly
to the utility at a fixed price over a long term. This is called Palo Alto CLEAN, a Feed In Tariff
(FIT) program. http://www.cityofpaloalto.org/gov/depts/utl/business/sustainability/clean.asp
Solar Water Heating
Incentives are provided to businesses and residents installing solar water heating for domestic
use. Solar water heating systems for pools, spas, or space heat are not eligible. The contract for
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this program provider ends early in Calendar 2013, and staff is looking at longer term options to
deliver a program that is perhaps more cost-effective, thus enabling more customers to install
systems. www.cityofpaloalto.org/SWH
PROGRAMS IN DEVELOPMENT FOR NEAR-TERM IMPLEMENTATION
These programs are all in development for implementation in the next year, pending funding and
staffing constraints.
Customer Connect
This program is a pilot project to test customer response to time of use rates and regular, instant
feedback on energy use.
http://www.cityofpaloalto.org/gov/depts/utl/residents/programs/customer_connect_pilot/default.asp
ENERGY STAR® Profile Manager Building Automatic Upload for Rating
To make it easier for business customers to monitor and evaluate their building’s energy use, this
program would allow owners and tenants to request that their energy usage be automatically
uploaded from the utility billing system to the Profile Manager database. The most efficient
buildings can then receive recognition from ENERGY STAR for performance excellence. This
program is being developed and should be available by early 2013. Data is already available to
businesses who participate in the program, but data is currently not automatically uploaded into
Portfolio Manager.
Operational Performance Reviews
Following the adoption of the state Green Building Code (CALGreen), the City Planning and
Utilities departments are reviewing options for a program to monitor and track the energy and
water use of residential and business structures after the completion of construction/permitting
processes, to ensure that facilities are operating at their optimal performance level.
IDEAS UNDER EVALUATION FOR POTENTIAL IMPLEMENTATION
These programs are currently in review for possible implementation in the next two to three years.
After review, not all programs will be recommended for approval. Some programs may begin as a
pilot project and possibly expand throughout the utility after a period of implementation and review.
Multi-Family Incentives
This program concept would target apartment and condominium owners or tenants by offering
rebates and other assistance to install efficiency improvements.
Point of Property Sale Efficiency Requirements
This initiative involves researching the legal requirements, administrative process and market
acceptance of providing incentives for installation of efficient and water and energy-using
equipment at the time of building sale. Such programs are known throughout the state as either
Residential or Commercial Energy Conservation Ordinances (also well known as RECO or CECO
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programs). This program would require significant coordination with other agencies and City
departments and is still in early review due to many implementation issues.
Thermal Energy Storage Systems
Staff is reviewing several options to provide incentives to install the installation of Thermal Energy
Storage (TES) systems at commercial facilities in Palo Alto. TES systems allow customers to
reduce their energy use at the peak periods by storing energy in ice or chilled water that is made
at night.
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APPENDIX A: PORTFOLIO DETAILS
EXPENDITURE HISTORICAL COMPARISON
The chart below is a comparison showing how expenditures by type of DSM program (efficiency,
key account, research, renewable, etc.) have increased and varied over the years the Public
Benefit Fund has been in place. Overall, spending on efficiency has continued to increase, while
expenditures on low income programs, administration and key accounts have remained more
stable. Renewable energy has varied the most, as customers have taken advantage of rebates
more often when the economy has been good and all state, federal and local benefits are greatest.
In FY 2012, several hundred thousand dollars were taken from the Public Benefit Reserve
(unused funds collected in previous years), for rebates and program administrator fees on a very
large efficiency project at the one large datacenter in Palo Alto.
Figure 11, DSM Expenditures for all 3 Utilities by Year and by Function
Expenditures are outlined in greater detail by utility below. Rounded (and in the case of in-house
program costs—estimated) costs are reported by program, differentiating those that pay customer
rebates directly versus administrator contract costs (which includes the cost of the efficient
DSM Program Expenditures
-1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000
2011-2012
2010-2011
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
2004-2005
2003-2004
R&D Efficiency Renewable Energy Low Income Admin Key Accts
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equipment in the case of direct install programs identified with a plus [+] sign). Other expenses
are combined and shown separately from program costs.
FY 2012 ELECTRIC DSM PROGRAM EXPENDITURES
Table 13: Electric Expenditures by Program by Type of Expense (Includes Efficiency, Low Income
and Renewable Programs)
Customer
Class Program Name Direct Rebates Contract Other Exp.** Annual Cost
Residential Smart Energy Rebates $74,000 $0 $100,000 $174,000
Residential Green@Home $0 $45,000 $5,000 $50,000
Residential Refrigerator
Recycling+ $0 $25,000 $15,000 $40,000
Residential Lighting Programs $38,000 $10,000 $25,000 $73,000
Residential Low Income (REAP) $0 $94,000 $25,000 $119,000
Residential New Construction $1,400 $25,000 $15,000 $41,400
Residential Home Energy
Reports $190,000 $100,000 $290,000
Residential PV Partners $241,000 $15,000 $75,000 $331,000
Residential Solar Water Heating $4,000 $35,000 $15,000 $54,000
Business Com. (CAP) Rebates $223,000 $35,000 $125,000 $383,000
Business Direct Install
Measures $0 $80,000 $15,000 $95,000
Business Enovity Large
Business $658,000 $280,000 $90,000 $1,028,000
Business Hospitality $51,000 $45,000 $10,000 $106,000
Business Keep Your Cool $22,000 $27,000 $10,000 $59,000
Business Labs $0 $55,000 $25,000 $80,000
Business Loan Program $85,000 $25,000 $10,000 $120,000
Business Right Lights Plus
Small Business $365,000 $335,000 $80,000 $780,000
Business New Construction $0 $25,000 $25,000 $50,000
Business Schools Grant $35,000 $5,000 $40,000
Business PV Partners $595,000 $20,000 $75,000 $690,000
All EM&V, Marketing
Other $188,000 $80,000 $268,000
Totals $2,357,400 $1,589,000 $925,000 $4,871,400
PBC Portion $1,873,259 $1,259,775 $925,000 $4,058,034
Supply Portion $484,141 $329,225 $813,366
The legend for numbers above--Programs delivered by 3rd party administrators are in bold and italics, while those
delivered by in-house staff are not. Includes PV rebates.
**Includes in-house staff, marketing and communication, and all other program delivery expenses. Splits between
programs in this area are estimates.
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For comparison purposes two charts showing expenditures in FY 2012 by program area for CPAU
and a chart from the California Public Utilities Commission showing where the investor owned
utilities expended funds by program area during the period 2010 to 2012.
Figure 12: CPAU 2012 Electric Efficiency Expenditures by Program Area
Res Audits
1% Res Rebates
7%
Res Low
Income
3%
Res HER
6%
Res Ren
Energy
8%
Bus Rebates
32%
Bus Direct
Install
24%
Bus Loan
3%
Bus Grants
1% Bus Ren
Energy
15%
CPAU
Spending
in Electric
DSM by
Program
Agricultural
5%
Commercial
31%
Codes and Standards
1%
Emerging
Technologies
1%
Integrated Demand-Side
Management
1%
Market Education Outreach
3%
New Construction
3%
On-bill Financing
1%
Retrofit
14%
Workforce Education and
Training
3%
Industrial
12%
Residential
25%
Figure 13: Investor-Owned Utility (IOU) 2010-12 Energy Efficiency Expenditures by Program Areas
Source: Energy Efficiency Groupware Application (EEGA) Expenditures through May 2012 (data download)
http://eega.cpuc.ca.gov/Documents.aspx
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NATURAL GAS ENERGY EFFICIENCY PROGRAM EXPENDITURES
Table 14: Natural Gas Expenditures by Program by Type of Expense
Customer
Class Program Name Direct
Rebates Contract Other
Exp.** Annual Cost
Residential Smart Energy Rebates $66,675 $0 $10,000 $76,675
Residential Low Income (REAP)+ $0 $83,000 $25,000 $108,000
Residential New Construction $0 $0 $0 $0
Residential Home Energy Report* $188,000 $60,000 $248,000
Residential Solar Water Heating $4,315 $35,000 $5,000 $44,315
Business Com. Rebates (CAP) $2,370 $0 $0 $2,370
Business Enovity Large Bus $4,022 $95,000 $10,000 $109,022
Business Hospitality $17,721 $0 $0 $17,721
Business Right Lights Plus
Small Business+ $0 $3,000 $0 $3,000
All EM&V and Other $0 $50,000 $15,000 $65,000
Total $95,103 $454,000 $125,000 $674,103
Public Benefit Charge
Portion $95,103 $393,077 $125,000 $613,180
Supply Portion $60,923 $60,923
Programs delivered by 3rd party administrators are in bold and italics; those delivered by in-house
staff are not.
+Third-party administered program includes the delivery of rebates to customers by administrator.
**Includes in-house staff, marketing and communication and all other program delivery expenses.
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Figure 14: CPAU Gas DSM 2012 Spending by Program Area
Res Rebates
15%
Res Low Income
22%
Res HER
50%
Res Ren Energy
9%
Bus Rebates
0%
Bus Direct
Install
4% CPAU
Spending
in Gas
DSM by
Program
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WATER CONSERVATION PROGRAM EXPENDITURES*
Table 14: Water Expenditures by Program by Type of Expense
Customer
Class
Program Name Direct
Rebates
Contract Other
Exp.**
Annual Cost
Residential Audits $17,000 $7,000 $24,000
Residential High Efficiency Toilets+ $18,700 $6,000 $24,700
Residential Washing Machines $27,000 $0 $90,000 $117,000
All Landscape and Irrigation Audits $38,600 $10,000 $48,600
Business Indoor Audits $26,000 $20,000 $46,000
$0
Business High Efficiency Toilets+ $19,500 $10,000 $29,500
Business Washing Machines+ $200 $0 $200
Business Direct Install Measures+ $0 $10,000 $10,000
Business Water Efficient Technology+ $50,000 $0 $25,000 $75,000
Total $77,000 $120,000 $178,000 $375,000
Programs delivered by 3rd party administrators are in bold and italics; those delivered by in-house
staff are not. Other expenses are estimated by program.
Figure 15: CPAU Water DSM 2012 Spending by Program Area
Res Audits
7% Res Plumbing
7%
Res Appliances
36%
Landscape
15%
0%
Bus Plumbing
9%
0%
Bus Direct
Install
3%
Bus Process
23%
CPAU
Spending
in Water
DSM by
Program
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APPENDIX B: PROGRAM GOALS
ELECTRIC EFFICIENCY GOALS
To meet both State-mandated and locally-desired goals, in May 2010 the City Council approved
the Ten-Year Electric Energy Efficiency (EE) Plan with a goal to reduce electric use by 7.2% by
2020. By law, the Ten-Year Electric EE Plan must be updated and submitted to the CEC every
three years. The next update is currently in review by the Utilities Advisory Commission and City
Council and is expected to be approved in early 2013.
NATURAL GAS EFFICIENCY GOALS
The Council approved 10-year Gas Energy Efficiency Proposal on April 4, 2011. This goal was to
reduce gas usage by 5.5% by 2020. The next update is currently in review by the Utilities
Advisory Commission and City Council and is expected to be approved in early Calendar 2013.
WATER EFFICIENCY GOALS
The guiding document for the water utility efficiency programs is the 2010 Urban Water
Management Plan (UWMP), which establishes goals for calendar rather than fiscal years. This
UWMP was approved by City Council on June 13, 2011. The UWMP is updated every five years
and outlines the long-term supply and demand-side issues and policies impacting the water utility.
The 2010 UWMP includes a per capita water reduction target of 20% by the year 2020 and
interim 10% water reduction target by 2015. The UWMP details the measures CPAU will take to
reach its water reduction goals. In 2010 the estimated savings from DSM programs as a percent
of water demand was 2%. The current goal leading up to the 2015 UWMP is a cumulative
savings of 7% over projected water use.
CLIMATE PROTECTION PLAN GOALS
Separately from therm reduction, the projected greenhouse gas reductions based on these 2007
gas efficiency targets were incorporated into the 2007 Climate Protection Plan. That plan requires
the City to reduce its greenhouse gas emissions to 90% of the 2005 level by 2020 and CPAU’s
gas efficiency programs are accountable for 7,300 metric tonnes of CO2 reduction in 2020.
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APPENDIX C: OTHER IMPLEMENTATION ISSUES
HOME ENERGY REPORT SAVINGS DEVELOPMENT AND FUTURE
POTENTIAL
OPOWER’s Home Energy Reports (HER) begin mailings to customers in November 2010. These
reports show residents how their electric and natural gas consumption compares with 99 other
occupied homes of similar size and heating type in a close area. Recipients included most
residents, but customers with very low usage, including net metering or solar PV installations, low
income participants and a 1,000 member control group did not receive reports. Due to the small
size of Palo Alto’s residential customer base, the control group was smaller than is the case for
most of the utilities using HERs.
HERs have been used for a number of years at utilities across the country. The utilities
implementing HERs typically compare a control group of about 25,000 customers with a
“treatment” group of recipients. Differences in usage between these groups during the same time
period are compared. The smaller control group resulted in a confidence rate of 90%, as opposed
to the more typical confidence rate for HERs of 95%. This approach has been well analyzed
throughout the social science field, and the results have been accepted in a number of states at
the Public Utilities’ Commission level as verified energy savings. Typically, the savings have
ranged between 1.5% to 3% of recipient use. Savings are considered to last between one and
three years, depending on the utility.
At the end of the first twelve months of the program, Palo Alto usage was analyzed both by
OPOWER and by a third party evaluator (Navigant). After the analysis was reviewed extensively,
we can say that with a 90% probability the HERs provided just less than 1 million kilowatt hours
and just over 100,000 therms in savings for the fiscal year ended June 30, 2012. This is about
6.5% of the total electric savings and 50% of the natural gas achievements for this Fiscal Year
which included some extremely large electric projects. It should be noticed that these results are
very important in achieving efficiency goals, particularly for the natural gas utility.
In developing the future potential for further efficiency savings, the programs become even more
important. This is especially the case as current and upcoming state and federal codes and
standards upgrades are reducing the ability to count savings from many cost-effective
technologies. Since these technologies will be the baseline for sale and installation, CPAU will
not in the next few years be able to count savings for a variety of technologies. Others, such as
lighting, which have had excellent savings potential, will see major reductions as the baseline
models change from incandescent to CFL, T12 to T8 and so on. In the future, expectations are
that behavioral programs, such as the Home Energy Report, will be the largest part of our
efficiency potential, particularly in the natural gas utility.
How Savings are Estimated in Palo Alto
Savings from the HERs are determined in a couple of different ways. For the first year, Palo Alto
had a 1,000 member control group. The “difference of differences” in energy use between the
treatment group and the control group was compared statistically to get estimated savings
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percentages. Based on the fact that this number fits in very well with documented savings in
other California utilities over the long-term and the fact that there was an expressed desire to
include as many customers as possible in the program, the control group was eliminated in
November 2011. For FY 2012 savings, the savings percentage levels obtained through this study
were used. Since natural gas savings in Palo Alto were found to be higher than in the
surrounding utility, CPAU plans to use the even more conservative statistical estimates obtained
by PG&E in similar, but larger studies for future potential studies and achievement statistics.
It should also be noted that when studies are developed to show savings from recipients of the
HERs, these verified savings are then further reduced by an “attribution factor.” This factor means
that, according to studies done by the CPUC at investor owned utilities in California, about 1/3 of
the electric savings (20% from natural gas) from OPOWER recipients is actually attributed to
rebate programs, and thus are not included in the Home Energy Report savings estimates. The
remaining savings is attributed to the behavior changes, and these are attributed to the HER
Program.
Electric Reported Savings
Using the 1.46% electric savings rate (as confirmed in the FY11 evaluation of the OPOWER
program for CPAU), and the forecasted single family electric sales of 162,687 MWh for FY 2012,
with a 67% attribution (adopted by the CPUC), and applying a recipient rate of 0.6 (of the 25,000
households in Palo Alto, electric savings are about 955 MWh
Natural Gas Reported Savings
For the gas side, the usage difference rate between participants and the control group was 2.10%.
This is higher than is usually seen in OPOWER programs. As the FY 2012 gas sales forecast for
residential households with individual meters was 10,988,507 therms, and applying a gas
attribution rate of 80% (as adopted by the CPUC) and the estimated recipient rate of 0.6, the FY
2012 gas savings for the HERs is estimated to be 110,764 therms. In future years, with the
control group ended, CPAU will use the lower rate found by PG&E in its study.
Report Recipients
The Home Energy Reports are being sent to 19,056 customers as of August 2012. This includes
residential customers minus net metered customers, low income customers and those who are
new to the Utilities Department since last November, when the comparison groups were
“recharged” at the end of the control group period. Through August 2012, there have been 283
opt-outs (or less than 1.5%). Only 170 customers have elected to receive the reports by email,
even though this option has been advertised extensively in press releases, bill inserts, brochures
mailed directly to homes, the Facebook page and so on. According to OPOWER, it is the rule,
rather than the exception, that very few customers will sign up for emailed reports. In utilities
where all customers get emailed reports, with only a few reports being mailed, very few customers
actually access the information available online. Customers can switch to the email reports or
opt-out of the program by logging online at www.cityofpaloalto.org/homeenergyreports
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Program Cost
For the fiscal year ended June 30, 2012, the Home Energy Reports cost $125,000 for the
licensing fee, plus a quarterly print management fee between $25,000 and $30,000 (depending
on recipients). The total program cost of about $225,000 per year is split between the electric and
natural gas efficiency budgets.
INCENTIVE LEVELS FOR REBATE PROGRAMS
Incentive levels are set at a level that should encourage customer participation, maintain program
cost-effectiveness and sustain relatively level rate impacts while including a consideration for
customer equity. In general, rebates are set at about 50% of the incremental cost for increasing
to the more cost-effective technology. For some groups, particularly low-income, very small
commercial or other hard-to-reach customers or where programs need to be ramped up
dramatically, incentives are set at higher rates.
INNOVATION
An Innovation Program and associated funding mechanism was established to promote the
testing, evaluation and deployment of new technologies or innovative applications that could be
used for the benefit of CPAU customers. These technologies can be in the area of energy
renewable generation, energy/water efficiency and conservation or process improvement. The
technologies or programs that are deployed will be evaluated based on their ability to provide
direct benefits to customers, return positive cost to benefit for the investment and provide
environmental benefits.
As a utility in the heart of Silicon Valley, CPAU staff has long been involved in supporting and
advising many companies on the viabilities and markets for their early stage technologies. Such
examples include:
o Geothermal heat pump systems,
o Small wind generation on roof tops,
o Boiler-burner based cogeneration applications for large buildings;
o In-home display devices of real-time energy consumption of equipment at homes;
o Smart-meter based, predictive models of home appliance characteristics to
incentivize inefficient appliance replacement;
o Distribution feeder line monitoring and predictive maintenance algorithms;
o Small micro-turbines for electricity generation utilizing pressure differentials in the
City’s water distribution pipeline systems;
o Distributed energy storage systems;
o Optimization of electric vehicle charging and utilization;
o Cost-effective cloud-based deployment utility back end systems;
o Integrated tracking system of corporate GHG emissions; and so on.
In the process, City has succeeded in deploying or assisting customers in installing a few of these
technologies.
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CUSTOMER OUTREACH
Utility Marketing Services, as a part of the CPAU and City team, promotes initiatives to all CPAU
customers. Ongoing activities include newspaper advertisements, direct mail, bi-monthly Home
Energy Reports, utility bill inserts/bill envelopes, distribution of educational materials and
brochures to libraries and other locations in City offices and participation in a wide variety of
community events and workshops. CPAU staff members worked more than 30 events during the
fiscal year, held three Facility Manager Meetings with the largest business account customers and
visited the Key Account facilities at least once per quarter. Regular workshops and training are
held for all customer classes on water and energy topics. Both print and online advertising is
used in a variety of format. Some program information and brochures are sent by direct mail to
customers. Regular monthly email newsletters are delivered to both residents and businesses,
and the PaloAltoGreen Facebook page is updated with information on most days.
This year, CPAU implemented a major campaign focusing on employees—how they work with
customers to provide programs, to deliver services and to give value. In the DSM area, these
pieces focused on water conservation, energy efficiency initiatives for residents, renewable
programs and services for low income residents. These images were used on bill inserts, bill
envelope graphics, and print advertisements and on the web. An example of the pieces is shown
below.
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Bruce Lesch for online ad in “UpToUs”
PAUSD Webpages Lindsay Joye for Renewable Programs
Leon Timmons for Low Income Initiatives Catherine Elvert on Water Conservation
PARTNERSHIPS
SCHOOL EDUCATION
CPAU staff members work with the SCVWD in providing classroom education on water
conservation for elementary schools in Palo Alto. In addition, the City grants the Palo Alto Unified
School District (PAUSD) $50,000 each year for the design, implementation, and continuation of a
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comprehensive environmental education program from Public Benefit funds. During 2011 and
2012, CPAU staff coordinated with the PAUSD’s Sustainability Committee to apply for and receive
a $35,000 grant from the American Public Power Association’s innovation fund (DEED) for the
further enhancement and delivery of an energy efficiency program to students and their families.
RETAIL STORES
Both Palo Alto Hardware (PA Hardware) and the Stanford Electric Works have developed a good
relationship with CPAU staff members and assist in promoting the residential programs. During
the winter holiday lights campaign in 2009, 2010 and 2011, one of CPAU’s programs was to
provide one free strand of LED lights in exchange for a working incandescent strand. PA
Hardware and CPAU coordinated to ensure that the Hardware store had the same lights in stock,
so UMS staff could refer residents to the store when they desired to have more than one strand.
The program is in re-development mode at this point in time, with an eye to increasing the
partnership between the City and local retail outlets.
In addition, during the spring 2011 lighting campaign, CPAU mailed residents with a coupon to get
up to four free Globe style CFLs at either store. The stores provided the lights with the
presentation of a coupon and presented the data and coupons to CPAU staff members for a
refund of the cost. This working relationship allowed residents to learn about a relatively new CFL
technology, while enhancing economic development by encouraging shopping at smaller, local
stores.
INTER-UTILITY COORDINATION
CPAU integrates efficiency programs across all three of the utilities (electricity, natural gas and
water) and with other City departments, particularly Planning and the Development Center.
Coordinated program information is provided to customers in annual brochures. The benefits of
conservation and resource efficiency are described in integrated terms to customers whenever
possible when emphasizing individual programs. For example, when talking about the benefits of
efficient washing machines, information will be included on the water, natural gas and electricity
benefits of these units.
OTHER CITY DEPARTMENTS AND PROGRAMS
Staff coordinate with the Planning Department on the Green Building Program (GBP) to ensure
that residents and businesses that exceed City requirements for construction permit on energy
and water efficiency get new construction rebates. Residents automatically apply for the new
construction rebate when they complete the GBP permit application.
Zero Waste and UMS coordinate on marketing and promotion of workshops for residents.
Programs and workshops are coordinated to ensure that they do not overlap. Bill inserts and
emails about the programs are often sent out jointly by the two divisions, thus promoting
sustainability as an entire City effort, and not that of disjointed silos.
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OUTREACH CALENDAR FOR CALENDAR YEAR 2012
CPAU has developed an annual marketing calendar of promotional activities and marketing
pieces. This calendar is updated as often as necessary to address changing conditions. The
latest updated calendar is always available for review.
ONGOING PROGRAM IMPROVEMENT AND EVALUATION
To support the continuous improvement envisioned by the adaptive management process,
ongoing evaluation of the efficiency programs is undertaken to provide timely feedback on the
effectiveness of program implementation tactics. State law also requires publicly-owned utilities
to conduct independent evaluation of their energy efficiency programs to measure and verify the
energy savings.
The goals of the Evaluation, Measurement & Verification (EM&V) effort at CPAU are to provide
unbiased, objective and independent program evaluations by giving:
o Useful recommendations and feedback to improve CPAU programs.
o Assessment of conservation program effectiveness.
o Assessment of the quality of the program data for impact evaluation purposes.
o Increased level of confidence in conservation program results through transparent
protocols.
The first goal is met through process evaluation and the latter three goals through impact
evaluation of the CPAU efficiency programs. CPAU is currently contract to and working with
Navigant Consulting as an EM&V consultant to conduct both process and impact evaluations for
electric and gas efficiency programs implemented during the period of FY 2011 through FY 2014.
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APPENDIX D: ELECTRIC DSM REPORT TO CEC
The information below will be included with a California Municipal Utilities Association (CMUA)
report to the CEC. The report, required by state law, shows the success of Palo Alto’s efficiency
programs in reducing electric consumption; this report does not include natural gas or water
programs. Efficiency programs are the first resource used by the electric utility. The programs
are also required to be cost-effective, which in state terms means that the programs achieve a
Total Resource Cost (TRC) score of at least 1.0. Palo Alto’s programs are cost-effective.
Table 15: CEC Required Submission on Electric Energy Efficiency Results
Resource Savings Summary
Category
Units
Installed
Net
Dem
Save
(kW)
Net
Peak
kW
Save
Gross
Annual
kWh
Savings
Net
Annual
kWh
Savings
Net
Lifecycle
kWh
savings
Net
Lifecycle
GHG
Reductions
(Tons)
Res Clothes
Washers 435 55 55 71,841 57,473 689,674 381
Res Cooling 11 2 2 5,767 4,621 113,219 69
Res Dishwashers 246 22 22 9,840 8,364 92,004 51
Res Lighting 3,217 69 27 268,325 216,734 2,006,654 1,071
Res Pool Pump 8 10,488 7,342 73,416 40
Res Refrigeration 424 25 25 178,112 115,633 780,720 424
Res Shell 905 22 22 29,049 20,789 404,047 242
Res Comp. (HER) 20,000 955,000 955,000 955,000 510
Non-Res Cooking 3 3 3 13,674 11,623 112,955 62
Non-Res Cooling 36 297 297 2,688,808 2,285,354 45,651,418 27,781
Non-Res Heating 1 1,020 867 17,340 11
Non-Res Lighting 50,630 614 543 4,362,225 3,648,904 37,878,323 20,994
Non-Res Motors
Non-Res Pumps 2 1 1 70,136 59,616 1,192,312 629
Non-Res
Refrigeration 1,920 35 33 299,524 254,515 1,210,134 646
Non-Res Shell 7 549,000 466,650 5,649,525 3,438
Non Res Process 2 71 71 3,152,291 2,679,443 53,588,274 32,611
Non Res Comp. 1,775,135 1,775,135 1,508,865 1,508,865 918
Other
SubTotal 1,852,982 1,217 1,101 14,440,235 12,301,792 151,923,880 89,876
T&D 2 24 24 367,000 367,000 8,448,500 4,409
Total 1,852,984 1,241 1,125 14,807,235 12,668,792 160,372,380 94,285
TRC = 2.45
TRC is Total Resource Cost Test where a score greater than 1 equals benefits are greater than costs for
society. The current TRC of 2.45 (excluding T&D) for this reporting period is mainly attributed to a large data
center project with substantial energy savings. If this project were to be excluded, the estimated TRC would be
1.12, which would be more in line with past results. The forecasted TRC for the IOUs in 2013 to 2014 is 1.36.
CPAU TRC for FY 2011 was 1.37. TRC for FY 2010 was 1.92. TRC for FY 2009 Programs was 2.45. TRC for FY
2008 Programs was 2.43. Cost-effectiveness is dropping with more third-party programs and reaching to less
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cost-effective technologies. APPENDIX E: STATE AND CITY MANDATES
CONTROLLING PROGRAM GOALS AND IMPLEMENTATION
Title Description
Staff Report 1688 2010 Urban Water Management Plan on June 13, 2011
Staff Report 1538 Approval of new and expanded efficiency programs for 2011 to 2013 cycle
Staff Report 1532 2010 Ten Year Gas Energy Efficiency; Approved April 11, 2011
Staff Report 2710 Long Term Electric Acquisition Plan (LEAP) on April 16, 2012
Staff Report 2552 Gas Utility Long Term Plan (GULP) on April 23, 2012
CMR 212:10 Approval of a Goal for 20% Reduction of Water Use by 2020
CMR 218:10 2010 Ten Year Electric Energy Efficiency; approved May 3, 2010
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.
CMR 435:07 Climate Protection Plan
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.
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
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. 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 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.
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.
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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 Urban
Water Management Plan (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.
AVING Goals & Estimated Potential Savings 6,503 7,661 12,401