ENERGY PHASE II: UNIT ENERGY SAVINGS (UES) MEASURE COMPLIANCE: RTF MEETING Navigant Presentation Presented by Mohit Singh- Chhabra, Ryan Firestone and Kevin Cooney September 18, 2012 Navigant Reference: 150283 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. D I S P U T E S & I N V E S T I G AT I O N S • E C O N O M I C S • F I N A N C I A L A D V I S O RY • M A N A G E M E N T C O N S U LT I N G Content of Report This presentation was prepared by Navigant Consulting, Inc. exclusively for the benefit and internal use of Regional Technical Forum and/or its affiliates or subsidiaries. No part of it may be circulated, quoted, or reproduced for distribution outside these organization(s) without prior written approval from Navigant Consulting, Inc. The work presented in this report represents our best efforts and judgments based on the information available at the time this report was prepared. Navigant Consulting, Inc. is not responsible for the reader’s use of, or reliance upon, the report, nor any decisions based on the report. NAVIGANT CONSULTING, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a result of their reliance on the report, or the data, information, findings and opinions contained in the report. June 21, 2012 ©2011 Navigant Consulting, Inc. All rights reserved. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. See www.navigantconsulting.com/licensing for a complete listing of private investigator licenses. Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC., Member FINRA/SIPC. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 1 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 2 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers 5 Conclusions & Next Steps ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 3 ENERGY Introductions The Navigant Team Working on Updating Measure Workbooks: Kevin Cooney Managing Director In-Charge Ryan Firestone Mohit Singh-Chhabra Project Advisor Project Manager A Angie Lee Christian Douglass Eric Shum Engineer Engineer Engineer ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 4 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers 5 Conclusions & Next Steps ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 5 ENERGY Overview Updates Required to Bring Measures Into Compliance • The Recommendation memoranda outlined updates required to bring the ten UES measures into compliance. These actions, are presented below for the first three measures completed: Priority Level Measure Category Domestic Hot Water Heater DHW 1 Freezers Appliance 1 Clothes Washers Appliance 1 Commercial Refrigerators & Freezers Appliance 2 Manufactured Housing Duct Sealing Weatherization 2 Refrigerator Recycling Appliance 2 Specialty CFL and LED Down-lights Lighting 2 Green Motor Rewind Motor 3 Dishwashers Appliance 3 Single Family Heat Pump Upgrades Space Heat 3 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 6 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 7 ENERGY Domestic Hot Water Heaters Measure Classification and Properties Market Sector Residential Market Segment All Measure Category Domestic Hot Water Measure Description Sunset Criteria Replace existing or new construction electric residential-type storage hot water heater with an efficient electric storage hot water heater New Federal Standards will be effective April 16, 2015; at this time updates should be applied to the datasets that establish the average baseline and measure EF. ProCostRTFTemplate257f_v3_9_RES_DHW 08.28.12 ESv08 FINAL POST PRESENTATION CHANGES MADE Primary Workbook PROCOST RUN.xlsm Linked Workbooks MC_AND_LOADSHAPE_6P.XLS Seven measures (Six size ranges, ranging between 25 and 120 gallons tank size, and one measure with same size Number of range (<=45gal and <55gal) but decreased efficiency) using one UES component. See Measure Identifiers for size Measures, and UES ranges. Components ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 8 ENERGY Domestic Hot Water Heaters Actions Taken to Bring Measure Into Compliance Task Update Workbook Structure and Formulae by removing references to commercial water heaters, change inactive and unused links. Documentation updates to include sourcing the AHRI (Air Conditioning, Heating, and refrigeration Institute) dataset used and document the assumed water heater input power. Task Source Reccomendation Memo Reccomendation Memo Notes Completed as per reccomendation Completed as per reccomendation The current datasets for efficient and baseline EF (Energy Reccomendation Downloaded and updated with new AHRI data. Factor) input parameters need to be reviewed and updated Memo Another sunset period should revolve around new federal standards for electric storage water heaters that will become effective April 16, 2015 Reccomendation Memo This changed measure incremental cost and UES Completed as per reccomendation Update EUL Summary Table NWPCC Completed as per guidelines Update Cost Summary Table NWPCC Completed as per guidelines ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 9 ENERGY Domestic Hot Water Heaters Savings Results Comparison Before and After Update Savings Comparison 200 180 Savings (kWh/year) 160 140 120 100 80 60 40 20 0 >= 25 gallons, <35 gallons >= 35 gallons, <45 gallons >= 45 gallons, <55 gallons >= 45 gallons, >= 55 gallons, <55 <75 gallons gallons_EF0.94+ Prior to Update ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. >= 75 gallons, <100 gallons >= 100 gallons, <120 gallons Current Update 10 ENERGY Domestic Hot Water Heaters Incremental Cost Results Comparison Before and After Update Incremental Cost Comparison 100 90 Incremental Cost ($/Unit) 80 70 60 50 40 30 20 10 0 >= 25 gallons, <35 gallons >= 35 gallons, <45 gallons >= 45 gallons, <55 gallons >= 45 gallons, >= 55 gallons, <55 <75 gallons gallons_EF0.94+ Prior to Update ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. >= 75 gallons, <100 gallons >= 100 gallons, <120 gallons Current Update 11 ENERGY Domestic Hot Water Heaters TRC Results Comparison Before and After Update TRC Comparison 3 TRC Benefit to Cost Ratio 3 2 2 1 1 0 >= 25 gallons, <35 gallons >= 35 gallons, <45 gallons >= 45 gallons, <55 gallons >= 45 gallons, >= 55 gallons, <55 <75 gallons gallons_EF0.94+ Prior to Update ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. >= 75 gallons, <100 gallons >= 100 gallons, <120 gallons Current Update 12 ENERGY RTF Proposed Motion: I _________ move that the RTF approve the DHW UES Measure to “Proven” with a sunset date of April 16, 2015. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 13 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 14 ENERGY Residential Freezers Measure Description and Properties Market Sector Residential Market Segment All Residential Dwelling Types Measure Category Appliances - Refrigeration Upgrade to Energy Star Freezer (except Compact) Measure Description Sunset Criteria Primary Workbook Linked Workbooks Number of Measures, and UES Components ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 1/1/2013 (New Energy Star Standards come in effect) ResFreezerFY10v2_0 No External links 30 Measures, 1 UES Component 15 ENERGY Residential Freezers Actions Taken to Bring Measure Into Compliance • Enhanced documentation for assumptions and sources. • Updated cost and energy consumption values based on latest available information. • Streamlined workbook to only present data necessary for analysis. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 16 ENERGY Residential Freezers Point for Discussion: Adjusted Volumes of Residential Freezers Source Vintage AHAM 2008 RBSA 2012 Adjusted Volume • 20.89 cu.ft (value prior to update) • Adjusted volume disaggregated by two configurations •Chest freezers: 26.8 cu. ft •Upright freezers: 31.3 cu. ft Source: CEC Database, 2012* * Current source for update • Adjusted volumes from the CEC Database closely resemble the RBSA adjusted volumes with the exception of Tier 2 and Tier 4 upright freezers in which the values in the CEC database are smaller. • No data available for Tier 2-Tier 5 upright manual configurations, in which adjusted volumes of upright auto freezers of the same tier are used. • The adjusted volume table is in the “Baseline and Efficient Case” tab of the Residential Freezer workbook. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 17 ENERGY Residential Freezers-Results Comparison Savings Results Comparison Before and After Update Savings Comparison Savings (kwh/year) 250 200 150 100 50 0 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Chest, Any Defrost Upright, Automatic Defrost Upright, Manual Defrost Prior to Update Upright, Any Defrost Any Freezer Current Update Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard) ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 18 ENERGY Residential Freezers-Results Comparison Incremental Cost Results Comparison Before and After Update Incremental Cost Comparison Incremental Cost ($/Unit) 90 80 70 60 50 40 30 20 10 0 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Chest, Any Defrost Upright, Automatic Defrost Upright, Manual Defrost Prior to Update Upright, Any Defrost Any Freezer Current Update Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard) ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 19 ENERGY Residential Freezers-Results Comparison TRC Results Comparison Before and After Update TRC Comparison TRC Benefit to Cost Ratio 25 20 15 10 5 0 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Any T1 T2 T3 T4 T5 Chest, Any Defrost Upright, Automatic Defrost Upright, Manual Defrost Prior to Update Upright, Any Defrost Any Freezer Current Update Any= no Tier; T1= Tier 1 (10%-15% more efficient than federal standard ; T2= Tier2 (15%-20% more efficient than federal standard); T3= Tier 3 (20%-25% more efficient than federal standard);T4-Tier 4; (25%-30% more efficient than federal standard);T5= Tier 5 (30%-35% more efficient than federal standard) ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 20 ENERGY Residential Freezers Increased residential freezer baseline efficiency reduces savings for most measures while reducing incremental costs for all measures except Tier 5 measures. • Residential freezers have become more efficient since the last freezer review, bringing the baseline freezer efficiency to be 5% more efficient than federal standard (as opposed to 2% more efficient than federal standard from last review). • The increased baseline efficiency reduced savings for most measures, some measures show increase in savings due to the updated adjusted volume. • Incremental costs for all Tiers except Tier 5 measures decreased. •TRC’s of all measures are still greater than 1.0. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 21 ENERGY RTF Proposed Motion: “I _________ move that the RTF approve the Residential Freezer UES Measure to “Proven” with a sunset date of January 1, 2013” ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 22 ENERGY Contents Table of Contents 1 Introductions 2 Overview of Measures to Brought into Compliance 3 Domestic Hot Water Heaters 4 Residential Freezers 5 Residential Clothes Washers ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 23 ENERGY Residential Clothes Washers Measure Description and Properties Market Sector Residential Market Segment All Residential Dwelling Types Measure Category Appliances Measure Description Residential Clothes Washer Upgrades Sunset Criteria November 1, 2013 ( New Energy Star Criteria) Primary Workbook ResClothesWashersSF_ProCostRTFTemplate257f_v 3_9_9.10.2012 v7.xlsm Linked Workbooks No External links Number of Measures, and UES Components 20 Measures, 3 UES Components ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 24 ENERGY Residential Clothes Washers Actions Taken to Bring Measure Into Compliance Task Task Source Work-book Calculation Errors need to be corrected; these Reccomendation include errors in wastewater energy savings calculations. Memo Documentation Updates Reccomendation Memo Notes - Investigate the possibility of including a climate zone Reccomendation This is not required - Navigant explored the identifier to the measure definition Memo Input parameters need to be updated by incorporating the Reccomendation most recent CEC data. Memo Clotheswasher load per year need to be investigated Reccomendation Memo Update the EUL of the measure NWPCC Update EUL Summary Table NWPCC Update cost of incented clothes washers from a utility program Navigant's proposed Cost Analysis Update Cost Summary Table ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. NWPCC Navigant/ NWPCC NWPCC possibility Completed RBSA draft provided this value. Sourced the EUL (14 years) from DOE Clothes Washer Technical Support Document Completed as per guidelines EnergyTrust of Oregon provided data for 2003 2012. For Discussion Completed as per guidelines 25 ENERGY Residential Clothes Washers Actions Taken Since Last RTF Meeting (8/21/2012) • • Expanded Northwest clothes washer retail cost dataset. • Last meeting, all clothes washers available at Home Depot (N = 73 machines) in Portland, Oregon were used to inform machine cost. • Since the last RTF meeting, Navigant added all front- and top-load machine costs from Sears of Portland, OR (N = 96 machines) and Lowes of Portland, OR (N = 80 machines) for a total of 249 cost data points. Updated clothes washer screening algorithm to screen out all CEC database clothes washers not meeting the current federal standard for water factor (9.5). • This resulted in an average CEC database (unique models only) MEF of 2.33. In the previous res clothes washer workbook adopted by the RTF, the average CEC database MEF was 1.94. • In addition, the average MEF of 2.33 places the estimated Northwest MEF market average above the average MEF of CEE Tier 1, CEE Tier 2, and WA State Tier 1. • Therefore, the efficiency tiers currently considered here are Energy Star, CEE Tier 3, WA State Tier 2, and Energy Star Top 10%. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 26 ENERGY Residential Freezers-Results Comparison Savings Results Comparison Before and After Update Savings Comparison Savings (kwh/year) 250 200 150 100 50 0 E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any Energy Star CEE Tier 3 WA State Tier 2 Prior to Update Energy Star Top 10% Current Update E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 27 ENERGY Residential Freezers-Results Comparison Incremental Cost Results Comparison Before and After Update Incremental Cost Comparison Incremental Cost ($/Unit) 300 250 200 150 100 50 0 E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any Energy Star CEE Tier 3 WA State Tier 2 Prior to Update Energy Star Top 10% Current Update E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 28 ENERGY Residential Freezers-Results Comparison TRC Results Comparison Before and After Update TRC Comparison TRC Benefit to Cost Ratio 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any E, E E, G G, E G, G Any Energy Star CEE Tier 3 WA State Tier 2 Prior to Update Energy Star Top 10% Current Update E, E = Electric DHW, Electric Dryer; E, G = Electric DHW, Gas Dryer; G, E = Gas DHW, Electric Dryer; G, G = Gas DHW, Gas Dryer; Any = Any DHW, Any Dryer Note: The previously adopted res clothes washer workbook does not have an efficiency tier equivalent to the current WA State Tier 2. ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 29 ENERGY RTF Proposed Motion: “I _________ move that the RTF approve the Residential Clotheswasher UES Measure to “Proven” with a sunset date of November 1, 2013 ©2011 Navigant Consulting, Inc. Confidential and proprietary. Do not distribute or copy. 30 ENERGY