ANTONIO CORRADINI & M M VALMIKI, AESC JULY 28, 2016 PMSM Fan Assemblies for Refrigerated Case Evaporators – Update

Since last meeting 2 Improved bin analysis of grocery store refrigeration across climate zones for both med and low temp cases. Confirmed 0% market penetration and no to-date sales in California (or elsewhere). Confirmed program rollout in Vermont and expected programs in other jurisdicitons. ORNL completed their multi-store study. Met with CPUC staff to get early feedback. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

3 CPUC Comments Develop separate measures for med- and low-temp applications Original intent was to simplify program offering into a single measure and prevent gaming of rebates by claiming low-temp for med-temp installations. CPUC would like to see separate measures for each, but are amenable to having the same rebate for each. Investigate and address fan performance with respect to application How will varying conditions impact performance and savings?  As an example, what happens when frost builds up in case, thus altering system pressure and operating point?  PMSM assembly has been shown to be more efficient across all system conditions through AMCA testing. Therefore, the new technology will achieve savings regardless of conditions such as case usage, case design, and frost buildup. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

The blue PMSM fan curve to the right of all others indicates no decrease in airflow due to retrofit. This in turn suggests that savings are attributable to fan efficiency improvements, only. 4 PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

5 CPUC Comments Include literature review and justification for COP parameter selection  Used four peer-reviewed, technical documents from various sources to select COP values.  Method similarly used in other refrigeration measure workpapers in California and elsewhere. Justify the CZ-independent savings values by displaying modeling results across climate zones for the relevant refrigeration system DEER2005 refrigeration measures illustrate the variation across CZs.  Workpaper will include a review of DEER refrigeration measures and comment with respect to this measure Refrigeration model: - Hourly weather model - Med and low temp - Fixed speed evap and condenser fans (sequenced), floating discharge pressure - Efficiency equivalent to literature survey on supermarket systems - DEER peak demands per CZ PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

6 CPUC Comments Investigate and develop justification for program support. Generally not acceptable to offer incentives for measures with no incremental cost unless there is research that shows that incentive will address market barriers. Measure is completely new offering with large potential and has 0% market uptake. Vendors have little reason to take risk on new technology without any incentive. Case interiors are troublesome to access and will not be addressed until a fan burns out. Store managers of chains unlikely to take initiative unless directed by energy managers. Savings per unit are small relative to total store balance sheet and thus are unlikely to be prioritized unless there is external motivation. Industry has been aware of technology for about 2 years but have yet to adopt it despite acknowledging it’s benefits, similar to what took place with ECMs. Efficiency Vermont is rolling out upstream rebate and covering marketing costs for distributors starting in September. Covering total cost of technology.  Based on advocacy from manufacturer, past project results, and ongoing case studies.  Appears to provide upstream incentives and then financial support for direct install, whole-store implementation. Other jurisdictions are expected to provide program support soon or are in early pilot or investigation stages. To provide additional justification, surveying of refrigeration service providers, vendors, and customers has been proposed.  Open-ended and pointed questions to reveal market barriers and potential program influence  Can develop survey and seek approval from CPUC or CalTF prior to calling.  Survey will also seek justification for downstream vs. upstream rebate delivery method. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

7 CPUC Comments Consider removing early retirement category. CPUC staff has indicated that that will most certainly get hung up. “Early retirement claim in a downstream application seems nearly impossible to support for this technology.” Major benefit to ER designation: non-trivial incremental cost In order to support a claim of early retirement, there must be evidence that:  The replaced equipment was fully functional and would not need to be replaced in the near future  The downstream incentive was the primary driver of the customer’s decision to replace the equipment. Although it is simple to categorize fans as having remaining life if they are still functional and through case age or maintenance records, it may be prudent to pursue ROB only.  Can seek approval for ROB and then add on ER later based on additional data collection?  Doing so would place added importance on justifying rebate despite $0 IMC. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

8 CPUC Comments Investiage options for NTG along with the market research. “The intent of the higher NTG [0.85 ET vs. 0.70] is to encourage comprehensive research in both technical and program implementation areas.” One possible outcome is that ET NTG is allowed for 1 year, the default 0.70 for the second year, and then the standard commercial default after that. The workpaper will pursue 0.85 NTG with justication using program guidelines. Alternatively, each IOU could support documentation after one year on the technology market saturation and uptake rate. “Commission Staff shall assign a new Net-to-Gross category for Emerging Technology measures with a default NTG of 0.85” “Commission Staff shall accept or reject a proposed Emerging Technology measure classification and set any ET measure’s NTG ratio at a higher value than the default value as it deems appropriate.” PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

Action Items 9 Survey of food retail refrigeration service providers, vendors, and customers to establish market barriers and justify program influence  Gather additional information that may provide justification for downstream delivery mechanism Develop workpaper if approved  Seek approval for ROB measure utilizing downstream and direct install programs. Future updates can alter program implementation and deemed value weights, if necessary.  SDG&E seeks downstream approach based on previous program feedback and existing program infrastructure. However, can seek input from other IOUs so that workpaper is presented in solidarity with common goals. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

The blue PMSM fan curve to the right of all others indicates no decrease in airflow due to retrofit. This in turn suggests that savings are attributable to fan efficiency improvements, only. 10 Appendix – Supporting Slides PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

Measured fan assembly energy in the field corroborated by AMCA laboratory testing. 11 Airflow PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

12 Airflow PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

COP References 7/28/2016 High Efficiency Pumping Systems 13 Fazamari and Walker. (2004). Investigation of Secondary Loop Supermarket Refrigeration Systems. CEC PIER Report Michael Deru, et. Al. (2011). U.S. Department of Energy Commercial Reference Building Models of the National Building Stock. NREL Report TP Arthur Little. (1996). Energy Savings Potential for Commercial Refrigeration Equipment. Prepared for U.S. Department of Energy Building Equipment Division. PG&E and PECI. (2016). Work Paper PGE3PREF124 Display Case ECM Motor Retrofit Revision 3.

Per Unit Measure Costs (Installed)  Equivalent to ECM cost  $63 hardware cost per unit (2009 Navigant) and $120/hr refrigeration service rate  ROB FMC and IMC: $123 and $0 (30 minutes labor)  ER FMC and IMC: $83 and $83 (10 minutes labor) Proposed measure EUL  15 years  PG&E Fisher Nickel report 2005 and other workpapers identify lifespan of ECMs and SP as 15 years  DEER2014 GrocDisp-FEvapFanMtr  Would enable 5 year RUL for ER install type 14 Proposed Parameters PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016

Summary of Parameters 15 ParameterValue Confidence Level (High, Medium, Low) Energy savings [kWh/year] 133.5High Demand reduction [W]15.3High Natural Gas Savings [Therms/year] 0High EUL15 yearsMedium IMC$0 (ROB), $83 (ER)Low NTG0.85Medium PMSM Fan Assemblies for Refrigerated Case Evaporators EUL: DEER2014 GrocDisp-FEvapFanMtr NTG: DEER2014 ET-Default ET approved by ED through workpaper review  NTG alternative: 0.70 (DEER2014 All other EEMs with no evaluated NTGR; new tech in program <2 years) 7/28/2016

Program Implementation 16 Program Goal: Achieve early retirement of existing units and ensure ensure that ROB do not re-install ECM, SP, or PSC Units: 9-12W fan assembly Measure Application and Delivery Type  Downstream deemed rebate per fan (ROB ER blend)  Direct install (ER) Eligibility  Climate Zones: All (negligible dependence)  Building Types: Food retail (supermarkets, convenience stores, pharmacies, etc.) Target Market  Any food retailer with reach-in refrigerated cases  Education and solicitation of refrigeration service providers  Could target supermarkets and grocery stores specifically due to their large market share Market Potential  Based on US Census data and ORNL estimates, there are roughly 1,965,000 fan assemblies of this size in California  100% market transformation would result in 262 GWh/year savings and 30.1 MW on-peak demand reduction. Program may cut out at 50% as measure becomes ISP. PMSM Fan Assemblies for Refrigerated Case Evaporators 7/28/2016