ATTACHMENT 4
UTILITY STATEWIDE PROGRAM DESCRIPTIONS
2004 2005 UTILITY STATEWIDE PROGRAMS
1. Statewide Residential Appliance Recycling Program (RARP) - 1114-04, 1157-04, 1232-04, 1348-04
PROGRAM DESCRIPTION:
This program targets residential customers' older, energy inefficient refrigerators and freezers for recycling and offers a $35 rebate to customers in exchange for appliances that are in working condition at the time of pick-up. The programs will operate until the funds are spent, or until the end of the calendar year 2005, whichever comes first.
PROGRAM MODIFICATIONS (PGC):
For 2004-05, utilities plan to offer $35 cash incentive only. Utilities offered the option of $35 or a five-pack of compact fluorescent lamps (CFLs) in 2002 and 2003. Since the offering of the CFL option, the customer demand for this option has declined dramatically. We agree with utilities' $35 cash incentive only.
In computing energy saving, IOUs shall rely on the soon-to-be-finalized PY 2002 EM&V report by Kema-Xenergy which derives new NTG and UEC figures that result in significantly lower per-unit savings. The remaining uncertainty surrounding lab-vs. in-situ metering is expected to be resolved through the EM&V design approved for 2004-05.
To maximize program energy savings, refrigerator collection and recycling shall be limited to inefficient models manufactured prior to 1990. Federal refrigerator energy efficiency standards, which went into effect in that year, reduce the expected kWh-differential between the recycled unit, and the new refrigerator or freezer( below the threshold we believe justifies collection and recycling. Ineligible models manufactured after 1989 feature stickers inside the refrigerator compartment, which list the model year for easy customer verification.
Because the majority of recent program participants do not well understand the energy efficiency rationale of this program, as partially reflected in the rather low NTG ratio of 0.35, we hereby direct the IOUs - in cooperation with the program vendors (presently ARCA & JACO) - to realign the messages conveyed in the marketing and outreach materials with the energy efficiency objectives of the program. Specifically, they shall (a) emphasize reasonable anticipated customer energy savings over the $35 rebate; (b) substitute the phrase "turn-in" for "recycling" to minimize confusion about the fate of the relinquished refrigerators or freezers; and (c) emphasize all eligibility criteria as important to the program's success.
We agree with IOU requests for permission to administer the portion of the statewide RARP in their respective service territories, and further grant the SDG&E request that the IOUs be given the option of issuing a new RFP for this program, if they wish to exercise that option.
PROGRAM MODIFICATIONS (PROCUREMENT):
This is a well-subscribed program. However, SCE should address in its program implementation plan how it would account or monitor the program to address the issues surrounding both saturation and age of models being picked up. With approximately 70,000 refrigerators per year recycled in SCE area alone, saturation may be achieved sooner rather than later. As with the PGC funded programs, refrigerator recycling and collection should be limited to inefficient models manufactured prior to 1990. The same size restrictions in the PGC-funded program (14-27 cubic feet) shall apply to procurement funded recycling program.
PROGRAM BUDGETS AND TARGETS:
Program Budget |
Energy Reduction Targets (kWh) |
Demand Reduction Targets (kW) |
Energy Reduction Targets (Therms) |
Other Targets (# of refrigerators/# of freezers recycled) | |
SCE |
$12,000,000 |
69,871,755 |
10,715 |
0 |
72,188/8,020 |
SDG&E |
$2,700,000 |
12,800,766 |
1,937 |
0 |
13,794/1,086 |
PG&E |
$3,728,782 |
19,339,736 |
3,461 |
0 |
20,456/1,900 |
Total PGC |
$18,428,782 |
102,012,257 |
16,113 |
0 |
106,438/11,006 |
Procurement |
$10,206,909 |
60,865,018 |
9,332 |
0 |
62,886/6,986 |
2. Statewide Single Family Energy Efficiency Rebate (SFEER) Program - 1115-04, 1160-04, 1220-04, 1234-04, 1349-04, 1377-04
PROGRAM DESCRIPTION:
This program targets all market actors in the residential energy efficiency retrofit and renovation products supply chain to increase market penetration of related products. It includes three components: (1) customer rebates, (2) customer information and education, and (3) marketing and outreach to manufacturers, distributors, and retailers. The rebates are provided on major home end-uses of energy, including Energy Star appliances and lighting, home improvement measures, heating, ventilation and air conditioning equipment, pool pumps and motors, and building shell measures (attic and wall insulation and windows).
PROGRAM MODIFICATIONS (PGC):
Upstream Residential Lighting Program
IOUs propose to merge SFEER and Upstream Residential Lighting Program. IOUs will offer the traditional SFEER measures as well as measures that have been previously offered in the Upstream Residential Lighting Program. IOUs state that the proposed merge will allow synergies and efficiencies in administration, materials preparation, and communications with various market actors. The proposed modification by IOUs is granted.
Incentives - IOUs propose the following incentive modifications:
Clothes Washers. IOUs propose a two-tiered incentive for clothes washers, which distinguish the highest efficient clothes with a $75 or $125 incentive.
Evaporative Coolers. IOUs propose a new set of incentives for advanced whole house evaporative coolers, and an additional $100 for installations that include exhaust dampers and a programmable thermostat. Customers can now receive as much $600 for a two-stage unit that has the dampers and thermostat installed.
Windows. IOUs propose an increased incentive for High Performance windows from $0.50/sq. ft. to $1.00/sq. ft.
Energy Star CFLs & Fixtures. IOUs propose offering new incentive for Energy Star CFL and fixtures based on lumens rather than wattage.
HVAC. For simplification, IOUs propose a two-tiered (instead of three-tiered level) incentive levels for HVAC and to categorize the products into split and package systems. The Tier I A/C and heat pump split systems will absorb the less popular Tier II products, which will now meet the minimum Energy Star Tier I standard in efficiency of 13 SEER/11 EER. The new Tier II split systems will start with a minimum efficiency rating of 14 SEER/12 EER, which includes the higher energy efficient units installed. The Tier I A/C and heat pump package systems will absorb the less popular Tier 2 products, which will now meet the minimum standard in efficiency from 12 SEER/10.5 EER. The new Tier 2 will start with a minimum of 13 SEER/11 EER and include the higher energy efficient units installed in this tier. This change reinforces the demand for higher efficiency products. The higher incentive level for the Tier 2 products will be retained to continue participation at a high level. Tier 3 will be dropped from the PGC funded program.
Ceiling Fans. Based on September 2002 RLW Analytics Study, which showed energy savings are much lower than previously claimed and due to low customer demand, IOUs will discontinue incentives for ceiling fans.
The above-proposed incentive modifications are granted.
Point-of-Sale Incentive Delivery
The lighting program utilizes the point-of-sale incentive delivery method by providing discounted lighting products to customers. To increase product demand, IOUs plan to also use this method for other measures. The application of point-of-sale incentive delivery to other measures, besides lighting, is granted.
( The overwhelming majority of units presently collected appear to be primary refrigerators or secondary units that are also replaced.
