PAURAVI SHAH IOU WATTAGE RANGE METHOD(WRM) WORKING GROUP: HENRY LIU(PG&E), PAURAVI SHAH(PG&E),MINI DAMODARAN(PG&E), THOMAS PASKER, AJAY WADHERA (SCE), JEFF COX & MARTIN VU(SDG&E) OCTOBER 27, 2016 WRM methodology for High/low- bay and exterior lighting luminaires

Presentation Overview Wattage Range Method (WRM) Objective: Seeking CalTF feedback on the wattage range method (WRM) change in calculating savings for non residential bay and exterior lighting Background on WRM  History of WRM  Issues with current WRM structure Why address issues now? Recommended proposed method Questions or Comments Appendix – Background analysis October

Background on WRM Wattage Range Method (WRM) Applies to LED luminaire products (bay lighting, outdoor lighting, etc.) Range of LED Wattages mapped to single baseline or range of baseline wattages (depending on the LED luminaire type) Wattage Reductions for Measures Using Ranges  If the savings are calculated based on typical wattage ratings within specific ranges then pre-existing wattage shall be the lowest wattage within the pre- existing range and the measure wattage shall be the highest wattage within the measure wattage range. Workpaper disposition for Lighting Retrofits, CPUC, ED, March 1, 2013 section 5b, page 3 & 4) Example: 40 – 131 W LED (Measure case) replacing 175W pulse-start metal halide (Base case) (System Wattage 208W)  Current method: Using highest LED wattage: 208 W – 131W = 77W savings October

Current WRM Approach: Impact Wattage Range Method (WRM) Disadvantages Using upper end of LED range underestimates savings for most fixtures Incentivizes customers to buy less efficient, higher wattage products Must be updated regularly to account for changing LED efficacy Advantages Simple to apply Uses easily collected lamp data (watts) More efficient products do not yield higher savings October

Navigant Study – Wattage Range findings Wattage Range Method (WRM) October Wattage Range Savings Estimation Method findings Navigant Study suggests that the typical installed LED wattage for bay and exterior lighting applications falls nearer to the mean of the existing LED wattage ranges. The existing methodology of deriving delta watt savings using the upper bound of the LED wattage range is therefore underestimating savings and not reflecting typical installation. Additionally, It also dis ‐ incentivizes the promotion of more efficacious products. Navigant Study, Key Findings and Recommendations section (page 1-12)

Navigant Recommendations for Improvements to Wattage Range Method Wattage Range Method (WRM) Recommendation 2 Consider adding the narrower ranges suggested in Figure 4 ‐ 7 within the current lowest wattage range to improve accuracy in the delta watts savings calculation. Update guidance in next lighting disposition to specify using mean of LED wattage ranges for delta watts calculations instead of upper end. October

Navigant Workpaper Update Study: WRM Results Wattage Range Method (WRM) In each case, study results show wattage range midpoints are close to the market average. October

Working Group Recommendation Considerations: Wattage Range Method (WRM) Navigant Recommendation Working Group AnalysisWorking Group Final Determination 1. Use mean of LED wattage range rather than upper end for savings calculations Simple and suitable solution to improving savings claims Accepted with additional modifications to account for efficacy updates. 2. Consider adding narrower ranges for lowest wattage range to improve accuracy in savings calculation. Current measure code wattage ranges are based on a work paper disposition defining the base case fixture wattages and lumen outputs. Under consideration with work paper updates to baseline and current DLC fixture data. October

Working Group Review of Navigant report Recommendation 1: Mean WRM Wattage Range Method (WRM) Challenges Work paper updates for efficacy improvements in the market still required Benefits More accurate savings claims Similar assumptions and calculations as current methodology, few workpaper changes required Minimal customer & program disruption October

Savings Accuracy Improvement With Mean Wattage Method Wattage Range Method (WRM) Example Calculation Comparison: Base Case System Wattage Minimu m Fixture Lumens Measure Case System Wattage Range Current Method: Delta Wattage/ Claimable Savings Recommended Method: Delta Watts/ Claimable Savings Percentage Increase in Savings using Mean Wattage Method 2086, – 131 = – 86 = 12258% 2329,600> – 160 = – 146 = 8619% 28811,200> – 187 = – 174 = % October

Navigant Recommendation #2: Splitting measure code October 2016 Wattage Range Method (WRM) 11 Consider adding the narrower ranges suggested in Figure 4 ‐ 7 within the current lowest wattage range to improve accuracy in the delta watts savings calculation.

Navigant Recommendation #2: Splitting Measure Code October 2016 Wattage Range Method (WRM) 12 Base Case Lamp Watts & Qty Base CaseMeasure Description Base Case system wattage Fixture Lumens degree zonal lumens Minimum Fixture Lumens 100MH 100 LED high-bay or low-bay fixture > 36W and <= 57W replacing 100 Watt HID fixture 1286,7374,0655, MH 150 LED high-bay or low-bay fixture > 57W and <= 85W replacing 150 Watt HID fixture 1909,9275,9905, Pulse-Start MH 175 LED high-bay or low-bay fixture > 85W and <= 100W replacing 175 Watt HID fixture 2089,3925,6676,200 2 – 32 T8 Fluorescent 2nd generation 2L VHLO LED high-bay or low-bay fixture > 28W and <= 46W replacing 2 Watt HID fixture 795,8802,5185,000 3 – 32 T8 Fluorescent 2nd generation 3L VHLO LED high-bay or low-bay fixture > 46W and <= 76W replacing 3 Watt HID fixture 1129,6914,0816,200 4 – 32 T8 Fluorescent 2nd generation 4L VHLO LED high-bay or low-bay fixture > 76W and <= 100W replacing 4 lamp fluorescent fixture 15112,2845,5897,600

Navigant Recommendation #2: Splitting Measure Code October 2016 Wattage Range Method (WRM) 13 Base Case Lamp Watts & Qty Measure Description Base Case system wattage Delta Watts using Max measure case Average measure case Watts Delta Watts using Average measure case Watts % savings increase using average of measure case range % savings increase from efficacy improve- ment 100 LED high-bay or low-bay fixture > 36W and <= 57W replacing 100 Watt HID fixture %23% 150 LED high-bay or low-bay fixture > 57W and <= 85W replacing 150 Watt HID fixture %23% 175 LED high-bay or low-bay fixture > 85W and <= 100W replacing 175 Watt HID fixture %34% 2 – 32 LED high-bay or low-bay fixture > 28W and <= 46W replacing 2 Watt HID fixture %33% 3 – 32 LED high-bay or low-bay fixture > 46W and <= 76W replacing 3 Watt HID fixture %31% 4 – 32 LED high-bay or low-bay fixture > 76W and <= 100W replacing 4 lamp fluorescent fixture %92%

Navigant Recommendation #2: October 2016 Wattage Range Method (WRM) Base Case Lamp Watts & Qty Base CaseMeasure Description Base Case system wattage Fixture Lumens degree zonal lumens Minimum Fixture Lumens 200Pulse-Start MH 200 LED high-bay or low-bay fixture > 100W and <= 122W replacing 200 Watt HID fixture ,8887,1749, Pulse-Start MH 250 LED high-bay or low-bay fixture > 122W and <= 142W replacing 250 Watt HID fixture ,7518,29811, Pulse-Start MH 320 LED high-bay or low-bay fixture > 142W and <= 168W replacing 320 Watt HID fixture ,55110,59112, Pulse-Start MH 350 LED high-bay or low-bay fixture > 168W and <= 200W replacing 350 Watt HID fixture ,85412,58415, Pulse-Start MH 400 LED high-bay or low-bay fixture > 200W and <= 213W replacing 400 Watt HID fixture ,77714,95221, Pulse-Start MH 450 LED high-bay or low-bay fixture > 213W and <= 244W replacing 450 Watt HID fixture ,51318,41323, Pulse-Start MH 750 LED high-bay or low-bay fixture > 244W and <= 381W replacing 750 Watt HID fixture ,03121,13932, Pulse-Start MH 1000 LED high-bay or low-bay fixture > 381W and <= 571W replacing 1000 Watt HID fixture ,08545,91343,400 6 – 32 T8 Fluorescent 2nd generation 6L VHLO LED high-bay or low-bay fixture > 100W and <= 122W replacing 6 lamp fluorescent fixture ,2537,6339,600 8 – 32 T8 Fluorescent 2nd generation 8L VHLO LED high-bay or low-bay fixture > 122W and <= 168W replacing 8 lamp fluorescent fixture ,5459,97411,200 14

Navigant Recommendation #2: October 2016 Wattage Range Method (WRM) 15 Base Case Lamp Watts & Qty Measure Description Base Case system wattage Delta Watts using Max measure case Average measure case Watts Delta Watts using Average measure case Watts % savings increase using average of measure case range % savings increase from efficacy improve- ment 200 LED high-bay or low-bay fixture > 100W and <= 122W replacing 200 Watt HID fixture %40% 250 LED high-bay or low-bay fixture > 122W and <= 142W replacing 250 Watt HID fixture %36% 320 LED high-bay or low-bay fixture > 142W and <= 168W replacing 320 Watt HID fixture %30% 350 LED high-bay or low-bay fixture > 168W and <= 200W replacing 350 Watt HID fixture %36% 400 LED high-bay or low-bay fixture > 200W and <= 213W replacing 400 Watt HID fixture %35% 450 LED high-bay or low-bay fixture > 213W and <= 244W replacing 450 Watt HID fixture %35% 750 LED high-bay or low-bay fixture > 244W and <= 381W replacing 750 Watt HID fixture %24% 1000 LED high-bay or low-bay fixture > 381W and <= 571W replacing 1000 Watt HID fixture %33% 6 – 32 LED high-bay or low-bay fixture > 100W and <= 122W replacing 6 lamp fluorescent fixture %43% 8 – 32 LED high-bay or low-bay fixture > 122W and <= 168W replacing 8 lamp fluorescent fixture %40%

Metrics for Evaluating Implementation of the Best Recommendation: Wattage Range Method (WRM) CriteriaMean Wattage Range Kilolumen Method Availability of required data Yes Potentially Accessibility of required data by utilities Yes Potentially Feasibility of data collection by all programsCostly because they are downstream/catalog measures Feasibility of implementation by engineering in work papers Yes Complicated Impact to stakeholders and Programs Minimal impact Large Impact Scalability of methodology for various products in work papers Yes Potentially Cost-effectiveness Yes Increased initial cost of implementation Increases Accuracy of Saving Estimates Yes October

Summary October 2016 Wattage Range Method (WRM) 17 Issues  Current wattage range method does not capture accurate savings and therefore does not allow IOUs to incent customers appropriately.  Kilolumen method has proven challenging for implementation.  Implementation timeline significantly impacted due to required changes to all internal systems, reporting systems, Implementer communications/training – up to 1 year.  Market place confusion with lumen terminology and reporting requirements.  Mis-incentivizes higher lumen packages and overlit spaces.  Manufacturer spec sheets not aligned with tested specs reported on QPL. Recommendations  Navigant recommendation for using mean of wattage range allows accurate savings to be captured.  Navigant recommendation for splitting wide wattage range measure code into multiple codes.

Summary October 2016 Wattage Range Method (WRM) 18 Timeline Required for Implementation of Changes to methodology  For any changes made to Programs, 90 day notice to Stakeholders and Customers required.  Changes to incentives, measure code structure, product qualification requirements, etc.  DLC Technical Requirements V4.0 update effective April 1, 2017  Timing of updates conflict with rolling portfolio guidelines  Work paper updates to reflect new efficacy requirements

Questions or Comments? Wattage Range Method (WRM) October

Appendix Wattage Range Method (WRM) October