www.peakload.org

AOG/OG&E Weatherization Program and the Arkansas Consistent

Weatherization Approach

John Ware (AOG) & Ryan Lee (OG&E)12th Rocky Mountain Utility Exchange

Thursday, September 20, 2018

www.peakload.org

• Held by Summit Utilities, Inc.• Operations in AR, OK, CO, MO & ME

• 400 Employees• 100,000 customers

• 45,000 in Arkansas

• 5,400 miles of pipeline• Focus on underserved areas

www.peakload.org

• OG&E Energy Corporation• 116 Years Old• 2,300 Employees• 843,000 Customers

• 90,000 in Arkansas

• Serve 276 Cities and Towns• 6,600 MW Generation Capacity

www.peakload.org

AOG/OG&E Weatherization Program• Program was launched in 2011• Recognized an opportunity for cross-fuel coordination due to our

overlapping service territories in western Arkansas• Measure costs are shared based on the energy savings of each measure• Has become the cornerstone of our residential program offerings

• 64% of AOG’s total portfolio ($)• 38% of OG&E’s total portfolio ($)

www.peakload.org

Who Qualifies?• No income restrictions• Home must be at least 10 years old, or• Have highest month electric cost > $0.10/ft2 ($0.05/ft2 for gas)• AOG or OG&E customer• Single family, multi-family (up to 4-plex) or manufactured home • Home must be currently occupied (with 12mo billing history)• Have not previously received weatherization services• Disqualifiers:

• Fails CAZ Testing• Knob & Tube Wiring (not eligible for attic insulation)• Unvented gas space heating• Home unsafe or in need of structural repair

www.peakload.org

The Process• Customer signs up via either utility’s website or call center• Exchange between the utilities to verify the customer account numbers• Customer is entered into the database (EnerTrek – Frontier Energy, Inc.)• Customer is assigned to one of three weatherization contractors• Contractors schedule the audits, complete the work, and enter the

measures into the database• EnerTrek calculates energy savings using the Arkansas TRM and pays the

contractors• Utilities conduct 10% QA/QC• Independent Evaluator (ADM Associates)

www.peakload.org

What We Offer• Comprehensive Energy Audit

• Blower Door• Duct Blast

• Attic Insulation• Air Sealing• Duct Sealing• LED Lighting• Advanced Power Strips• Low-Flow Shower Heads

• Faucet Aerators• Health & Safety

• Smoke Detectors• CO Detectors• Brochures

• $3,800 soft cap

All qualifying measures are installed at no cost to the customer!

www.peakload.org

The Gas Perspective (PY2017)• Participants = 1,149• Expenditures = $1,514,740• Net therms = 291,328• Burn Rate = $5.20/therm• Average 253.5 therms/home ($250/yr)• TRC = 2.26• We claim kWh savings when

weatherizing a home served by a non-participating electric utility

• Water NEBs = 918,789 gallons

36%

33%

29%

1%

PY2017 Net Therms Source

Air SealingAttic InsulationDuct SealingLow Flow

www.peakload.org

The Electric Perspective (PY2017)• Participants = 1,662• Expenditures = $2,459,385• Net kWh = 4,593,060• Net kW = 1,165• Burn Rate = $0.535/kWh• TRC = 3.29• Water NEBs = 541,025 gallons

38%

20%

15%

15%

11% 1%

PY2017 Net kWh Source

Attic InsulationDuct SealingAir SealingAPSLEDLow Flow

www.peakload.org

What have we learned?• Builds good will with our customer base

• Improves comfort • Reduces energy costs

• It is easy to give away free stuff! (requires minimal advertising)• 33% learn about the program from word-of-mouth

• Customers would not do it on their own• 90% say they did not plan on having an assessment

• But 49% of participants are interested in doing more!• Energy inefficiency is not just a low income issue• Cross-fuel coordination can work!

www.peakload.org

AR Consistent Weatherization Approach• Parties Working Collaboratively (PWC) established in 2006

• 7 Investor-Owned Utilities (Electric & Gas)• EM&V Contractors• Program Implementers• Intervenors:

• Arkansas Attorney General’s Office• Arkansas Advanced Energy Association• The National Audubon Society• The Sierra Club

• September 2013 – APSC ordered the PWC to develop a recommendation for a Consistent Weatherization Approach

www.peakload.org

AR Consistent Weatherization Approach• Our goals were to:

• Eliminate duplication of services• Standardize program offerings across the state• Establish consistent contractor requirements• Establish joint funding opportunities between electric and gas utilities

• So the PWC:• Engaged the IEM (Dr. Katherine Johnson) to facilitate the Wx Collaborative• Examined and compared existing weatherization program offerings• Reviewed recent EM&V reports to identify strengths and weaknesses• Conducted a gap analysis to identify gaps in the existing programs• Identified industry best practices

www.peakload.org

• It was an in-depth and lengthy process (1 year)• Had to ask the Commission for more time• It was a collaborative and cooperative effort• We ultimately reached a consensus• The Recommended Approach:

• The PWC identified that the AOG/OG&E model successfully demonstrated the inter-utility/cross-fuel coordination that the program should be based upon

• Incorporated elements and best practices from other successful utility weatherization programs

AR Consistent Weatherization Approach

www.peakload.org

AR Consistent Weatherization Approach• October 2014 – Joint Motion to Approve the PWC's Recommended

Weatherization Approach to Provide Consistent Weatherization Programs Across all Utilities in Arkansas

• General Staff of the APSC• Attorney General of Arkansas• All (7) Investor-Owned Utilities• Arkansas Community Action Agencies Association• Arkansas Advanced Energy Association• The National Audubon Society• The Sierra Club

• December 2014 – the Commission unanimously approved the PWC’s recommended statewide approach and directed all IOU’s to begin implementation in January 2016

www.peakload.org

Thank you!

www.peakload.org

Contact Us

John WareDirector – Energy Efficiency ProgramsArkansas Oklahoma Gas Corporationjware@aogc.com(479) 424-4688

Ryan LeeLead Program ManagerOklahoma Gas & Electric Companyleesr@oge.com(479) 649-2849