1 pg&e’s 2006-2008 portfolio performance december 11, 2006 duane larson senior manager...

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PG&E’s 2006-2008 Portfolio PerformanceDecember 11, 2006

Duane Larson Senior Manager

Customer Energy EfficiencyPacific Gas and Electric Company

DFL2@pge.com

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Today’s Update

Portfolio Performance – Are we on track? 2006 Additional Measures

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Megawatts Paid

0

20

40

60

80

100

120

140

160

2006 Achieved Projected Target Annual Goals

Achieved 106.9% of Annual Goal as of

11/30/06 or 141.04 MW (132.3% of the November

cumulative target)

November Target equals 22 MWAchieved 132.7% as of 11/30/06

or 29.19 MW

2006 Goal132 MW

includes Low Income and Codes & Standards Savings

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0

100

200

300

400

500

600

700

800

900

2006 Achieved Projected Target Annual Goals

Achieved 118.6% of Annual Goal as of 11/30/06 or 802.71 GWH

(149.3% of the November cumulative target)

November Target equals 120.17 GWH

Achieved 162.4% as of 11/30/06 or 195.19 GWH

2006 Goal677 GWH

includes Low Income and Codes & Standards Savings

Gigawatt-hours Paid

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Million Therms Paid

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2

3

4

5

6

7

8

9

10

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2006 Achieved Projected Targets Annual Goal

Achieved 53.9% of Annual Goal as of 11/30/06 or

5.48 MM Thm(64.2% of the November

cumulative target)

November Target equals 1.68 MM Thm; Achieved 22.5% as of 11/30/06 or .38 MM Thm

2006 Goal10.1 MM

Thm

includes Low Income and Codes & Standards Savings

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Megawatts Committed

72.3

0

25

50

75

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

PEAK M

W

TOTAL FORECAST COMMITTED

TOTAL ACTUAL COMMITTED

Achieved 39.4% of annual committed goal as of 11/30/06

or 28.49 MW (48% of the November cumulative target)

Includes Mass Market actual commitments

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Gigawatt-hours Committed

382

0

100

200

300

400

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

Ann

ual G

WH

TOTAL FORECAST COMMITTED

TOTAL ACTUAL COMMITTED

Achieved 50.6% of annual committed goal as of 11/30/06 or 193.41 GWH (61% of the November cumulative target)

Includes Mass Market actual commitments

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Million Therms Committed

18.86

0

5

10

15

20

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

Ann

ual M

M T

herm

s

TOTAL FORECAST COMMITTED

TOTAL ACTUAL COMMITTED

Achieved 43.3% of annual committed goal as of 11/30/06 or 8.17 MM Thm (50% of the November cumulative target)

Includes Mass Market actual commitments

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Summary

Achieved 2006 MW and GWH goals Achieving Therm goal is going to be close

at year end All delivery channels are now producing

savings Increasing numbers of paid calculated

savings projects Program staff are analyzing 2006

performance and developing forecasts and goals for 2007

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Targeted Markets Core

Greydon H. HicksManager Targeted Markets

Pacific Gas and Electric CompanyGHH1@pge.com

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-

1

2

3

4

5

6

31 Ja

n 06

28 F

eb 0

6

31 M

ar 0

6

30 A

pr 0

6

31 M

ay 0

6

30 Ju

n 06

31 Ju

l 06

31 A

ug 0

6

30 S

ep 0

6

31 O

ct 06

30 N

ov 0

6

31 D

ec 0

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Projected Targets 2006 Achieved Annual Goals

4 MWGoal for 2006

Achieved 136% of Annual Goal as of

11/30/06 or 5.45 MW

Megawatts Paid

TM contribution to 11/30/06 YTD Core Mass Market Paid Accomplishments:

25.71 MW or 22% of total

Ag41%

Retail10%

Fab31%

Schools2%

Lodging1%

Res New Constr0% High Tech

3%

Lg Comml12%

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-

6

12

18

24

30

31 Ja

n 06

28 F

eb 0

6

31 M

ar 0

6

30 A

pr 0

6

31 M

ay 0

6

30 Ju

n 06

31 Ju

l 06

31 A

ug 0

6

30 S

ep 0

6

31 O

ct 06

30 N

ov 0

6

31 D

ec 0

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Projected Targets 2006 Achieved Annual Goals

28 GWHGoal for 2006

Achieved 105% of Annual Goal as of

11/30/06or 29.49 GWH

Gigawatt-hours Paid

TM contribution to 11/30/06 YTD

Core Mass Market Paid

Accomplishments: 705 GWH or 13% of total

Ag24%

Schools1%

Retail5%

Fab49%

High Tech5%

Lodging1%

Res New Constr0%

Lg Comml15%

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-

1

2

3

4

31 Ja

n 06

28 F

eb 0

6

31 M

ar 0

6

30 A

pr 0

6

31 M

ay 0

6

30 Ju

n 06

31 Ju

l 06

4 Aug

06

30 S

ep 0

6

31 O

ct 06

30 N

ov 0

6

31 D

ec 0

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Projected Targets 2006 Achieved Annual Goals

3.7 MM ThmGoal for 2006

Achieved 47.3% of Annual Goal as of

11/30/06 or 1.75 MM Thm(59% of the November

cumulative target)

Million Therms Paid

The TM contribution to 11/30/06 YTD Core Mass Market Paid

Accomplishments:1.63 MM Thm or 21% of total

Ag17%

Fab81%

High Tech1%

Lg Comml1%

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72.3

0

25

50

75

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

PEAK

MW

TOTAL FORECAST COMMITTED TOTAL ACTUAL COMMITTED

Achieved 29.6% of annual committed goal as of 11/30/06

or 21.37 MW (36.2% of the November cumulative target)

Megawatts Committed

Ag15%

Schools6%

Fab49%

Res New Constr

6%Lodging0%

Lg Comml12%

Medical1%

High Tech8%

Retail3%

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382

0

100

200

300

400

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

Ann

ual G

WH

TOTAL FORECAST COMMITTED TOTAL ACTUAL COMMITTED

Achieved 42.5% of annual committed goal as of 11/30/06 or 162.42 GWH (51% of the November cumulative target)

Gigawatt-hours Committed

Ag11%

Schools1%

Retail2%

Fab60%

High Tech13%Res New Constr

1%

Lodging1%

Lg Comml10%

Medical1%

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Million Therms Committed

18.86

0

5

10

15

20

- 1 2 3 4 5 6 7 8 9 10 11 12

MONTHS

Ann

ual M

M T

herm

s

TOTAL FORECAST COMMITTED TOTAL ACTUAL COMMITTED

Achieved 39.5% of annual committed goal as of 11/30/06 or 7.45 MM Thm (46% of the November cumulative target)

Ag23%

Schools1%

Fab65%

Medical0%

High Tech3%

Lg Comml1%

Lodging1%

Res New Constr

6%

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What’s new in Targeted Markets?

Server Farm Virtualization Software and High Efficiency Servers – High Tech

Pumping Efficiency Program – Ag/Food Wine tartrate removal using electrodialysis -Ag/Food PG&E Core Retro-Commissioning Offering – Retail,

Medical, Large Office, Private Colleges Building Commissioning - Retail, Medical, Large Office,

Private Colleges LED case lighting demonstration– Retail, Hospitality California Solar Initiative Coordination – All segments Federal Tax Credits Coordination – All Segments

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What is working in Targeted Markets?

High Tech Ag and Food Processing Industrial/Fabrication Retail Large Office Building

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Challenges in Targeted Markets

Schools - Emphasis on deemed measures and streamlining new construction

Hospitality – focus on deemed for dispersed smaller motels, and concentrate TM resources on greater Bay Area larger hotels

Medical – emphasis on deemed measures, new construction for pipeline development and retro-commissioning

BioTech – develop new construction for long-term pipeline

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Targeted Markets

Questions/Comments/Suggestions

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PG&E Core - Mass Markets

Keith ReedManager Mass Markets

Pacific Gas and Electric CompanyKNR3@pge.com

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Megawatts Paid

2006 Core Mass Market Performance (Net Peak MW)

115118

-

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12

Months

2006 Projections

2006 Actual Paid

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Gigawatt-hours Paid

2006 Core Mass Market Performance (Net GWH)

594

705

-

100

200

300

400

500

600

700

800

1 2 3 4 5 6 7 8 9 10 11 12

Months

2006 Projections

2006 Actual Paid

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Million Therms Paid

2006 Core Mass Market Performance (Net MM Therms)

4.53

1.63

0.00

1.00

2.00

3.00

4.00

5.00

1 2 3 4 5 6 7 8 9 10 11 12

Months

2006 Projections

2006 Actual Paid

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Incentives Paid2006 Core Mass Market Performance (Incentives - Million $)

64.37

42.68

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

1 2 3 4 5 6 7 8 9 10 11 12

Months

2006 Projections

2006 Actual Paid

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Core MM Channel MW Comparison

Core MM Channel MW Comparison

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49

73

22 23

118

-

20

40

60

80

100

120

140

Net

MW

Res

Nres

Up

Mid

Down

Total

Res Nres Up Mid Down Total

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Core MM Channel GWH Comparison

Core MM Channel GWH Comparison

446

259

558

44103

705

-

100

200

300

400

500

600

700

800

Ne

t G

WH

Res

Nres

Up

Mid

Down

Total

Res Nres Up Mid Down Total

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Core MM Channel MM Therm Comparison

Core MM Channel MM Therms Comparison

1.26

0.38

-

0.21

1.42

1.63

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Net

MM

Th

erm

s

Res

Nres

Up

Mid

Down

Total

Res Nres Up Mid Down Total

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Mass Market: What’s New?

LED Refrigerator Case Demo Report Regional Vendor Meetings Trade Professionals Newsletter Direct Mail Campaigns Water Agencies Steam Traps Advertising (Appliances/Summer) Cool Roofs

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Mass Market: What’s working?

Upstream Channel Midstream Channel Refrigerant Charge & Airflow Duct Test & Seal Increased interest from upstream

distributors/manufacturers – (Lighting, Appliances, etc)

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Mass Market: Challenges

Therm Savings

Vendor Participation

Downstream participation slow statewide

Commercial Pool System expansion

Double Dipping monitoring

SBEE (Small Business Energy Edge)

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Mass Market: Program Design Changes

Revamp evaporative cooler delivery E-rebate to allow vendors to submit

electronically Bundled Building Performance Incentive

– HVAC installation/design, lighting, windows, insulation, etc.

Midstream HVAC Distributors Delivery –Out

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Questions/Comments/Suggestions

Mass Market:

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Third Party Program Update

Misti Bruceri / Mona YewSupervisors Third Party ProgramsPacific Gas and Electric Company

M1BT@pge.com / MxY9@pge.com

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Third Party Program Status

All 32 RFP I programs are underway

– Audits and marketing in progress for nearly all programs

– 21 programs are accepting applications and/or conducting direct implementation activities

– Savings through October:

• 1.0 MW, 6.01 GWh, 0.18 MTherms

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Third Party Program – RFP II

RFP II completed

– 17 programs selected

– 12 contracts signed to-date

• 21.8 MW

• 83.9 GWh

• 4.37 MTherms

– 5 contracts in final stages of completion

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Third Party Programs – RFP II

Ag and Food Processing

– Light Exchange Program (Richard Heath and Associates)

Fabrication, Process and Heaving Manufacturing

– AIM Compressed Air Efficiency (Air Power USA)

– Value Energy Stream Mapping Advantage Plus (California Manufacturing Technology Consulting)

– Compressed Air Program (Ecos Consulting)

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Third Party Program – RFP II

High Technology

– Laboratory Airflow Control Systems Re-Commissioning Program (Newmatic Engineering)

Large Commercial

– Energy Efficiency Partnership Program for California State-Leased Facilities (Enovity)

– Boiler Energy Efficiency Program (Enovity)

– Retrocommissioning Program (Portland Energy Conservation Inc.)

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Third Party Program – RFP II

Mass Market

– Heatwise (Energy Solutions)

– Fan Time Delay Relay Program (Proctor Engineering Group)

Retail

– Big Box Cool and Light (Energy Solutions)

Schools, Colleges and Universities

– California Preschool Energy Efficiency Program (Low Income Investment Fund)

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PG&E Residential New Construction

Cece BarrosCEE Solar Integration Coordinator

CABE1@pge.com

Shagun BoughenSupervisor/Program ManagerResidential New Construction

SXBQ@pge.com

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Background

CSI – March 2, 2006 CPUC opened a proceeding to develop rules and procedures for the California Solar Initiative (CSI)

SB 1 - August 21, 2006, Governor signed Senate Bill 1, which directs the Commission and the CEC to implement the CSI program

NSHP - CEC manages a $350 million program to encourage solar installations in new home construction through its NSHP

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Challenges in RNC

ENERGY STAR Market Slow down Homes not selling Solar new and costly

Purpose: To align with NSHP to encourage solar

in residential new construction Encourages builders to exceed minimum

EE requirements when installing solar by offering increased incentives

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What’s new in RNCExisting:

ES New Homes– 15% better than T-24

– QII/TBC Mandatory

– $400 Coastal

– $500 Inland

Prescriptive - measure based

Proposed: ES New Homes

– 15% better than T-24

– QII/TBC Mandatory

– $400 Coastal

– $500 Inland

Prescriptive - measure based NSHP Tier II:35% better than T-24

40% cooling reduction

ES Appliances

$2,000

Solar Only

NSHP Tier I:15% better than T-24

ES Appliances

$400 or $500

Solar Qualified

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RNC continued Cost Effectiveness

Existing• TRC: .83

• PAC: 1.54

Proposed• TRC: .88

• PAC: 1.40

Energy Savings:

15% = 375kWh; 137Therms – 2006 Program

35% = 699kWh; 225Therms Energy Calculations:

State approved software for Res Energy Standards and Tax credits – Micropas

Includes distribution of housing stock by CZ

Weighted average for PG&E for Tier II

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Residential New Construction

Questions/Comments/Suggestions

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PG&E’s 2006-2008 Water-Embedded Energy Pilot

December 11, 2006

Bill MillerPrincipal Regulatory AnalystCustomer Energy Efficiency

Pacific Gas and Electric CompanyWCM2@pge.com

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The Water-Embedded Energy Pilot

CPUC announced consider of W-E energy in R. 06-04-010

Summer 2006: Workshop and Comments ACR Ruling directing an Application for

a W-E Energy Pilot be filed January 15, 2006

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ACR Issues in the W-E Pilot Ruling

Issues raised in the Pilot Ruling– Will counting embedded energy savings related to

water conservation now produce real new benefits or simply give credit for savings that would have occurred anyway

– “Another matter of considerable discussion is that the amount of energy needed to produce, convey, and treat water differs dramatically form place-to place”

– Pumped water often moves through more than one service territory

– Reducing water usage may produce benefits in the service territory of a water-upstream electric utility

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ACR Directive on W-E Pilot

To be filed January 15, 2006 One-year pilot programs to begin by July 1, 2007 Partner with one (or more) large water provider to jointly

fund programs Funding separate from 2006-2008; suggest limit to total of

$10 million No credit for savings toward 2006-2008 risk/reward; count

to better understand program benefits Encouraged to be innovative! Workshop in 2007 2nd quarter to prepare for full

incorporation for water-related programs for 2009-2011 Workshop also addresses: savings determination

methods; EM&V; procedural guidelines; outreach; training

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What Can the Pilot Accomplish

What actually needs to be resolved to introduce W-E energy saving programs into 2009-2011 programs?

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Pilot Design

Demonstrate how to calculate embedded water-energy intensity (kWh/gallon) for specific program activity

Demonstrate how to calculate net embedded water-energy savings (kWh)

Identify the sources contributing to the embedded water-energy for specific program activity

Demonstrate the potential for future embedded water-energy savings programs

Work toward sample EM&V protocol (work with ED)

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How will PG&E achieve objectives?

Partner with strategic water utilities Focus on measurement and verification Target market segment that will best

accommodate objectives

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Current Thinking: Partner with strategic water utilities

Work with:– East Bay Municipal Utilities District (EBMUD)– Santa Clara Valley Water District (SCVWD)– Sonoma County Water Agency (SCWA)

Because each:– Have good baseline embedded water-energy data– Have significant experience with water conservation

programs, coupled with budget and staff– Have strong relationship with PG&E

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Focus on M&V

Data exists on:– Water conservation programs & potential– Programs that save water and onsite energy– EM&V protocol for water savings, and for

energy savings

But what we don’t know:– What is the embedded water-energy intensity for a

specific region?– How do you measure embedded water-energy?– Who’s energy is it?– What is this energy worth?– What is suitable embedded energy protocol?

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Target market segments:

CI&I– Water districts identify as opportunity for

water savings– PG&E has good contacts within segment– Significant potential water savings, coupled with

better ability to meter water & energy, will provide best set of data/experience for EM&V development

Multi-region– Will have set of diverse embedded water-energy

intensity data– Will have set of diverse embedded energy supply

source data

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CI&I Market Opportunities

Schools Food Processing Food Service Laundries Biotech Health Services

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Detailed Example: Water Savings In Schools

Boiler blow down & condensate return Process lines Food steamers Evaporative coolers Cooling towers Ice machines Dishwashers Fixtures

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Detailed Example: Food Processing

Rinse / wash process lines Scalding / cooking processes Recycling process water Boiler blow down & condensate return

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Detailed Example: Food Service

Food steamers Evaporative coolers Ice machines Dishwashers Process lines Cooling towers

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Discussion

The Water-Embedded Energy Pilot