SoCalGas Energy Efficiency Incentive Programs, 2013-2014 SCAP Joint Energy/Biosolids Committee September 26th, 2013 Ranjiv Goonetilleke P.E. Principal Engineer

Outline 2013-2014, Energy Efficiency Incentives Water-Energy Nexus, System Solutions Leak Loss Prevention Pressure Control Landscaping & Irrigation Control Retro-fit Add on’s Engine Rebuilds & Replacements Well Rehab’s 1/17/2019

Shale Gas and Alaska drives supply growth trillion cubic feet Alaska Projections History Associated with oil Coalbed methane Net imports Non-associated onshore Shale gas Non-associated offshore Non-associated offshore Source: EIA Annual Energy Outlook 1/17/2019

Energy Prices – Gas vs. Electricity $ / MMBtu Electricity Natural Gas 2/ Source: EIA Energy Prices by Sector and Source, United States, AEO2011 Reference Case, Industrial Sector - 2009 nominal prices 1/ Includes energy for combined heat and power plants, except those whose primary business is to sell electricity, or electricity and heat, to the public. 2/ Excludes use for lease and plant fuel. 1/17/2019

Systems Solutions Water-Energy Nexus, The IOU’s are directed to evaluate and implement EE programs with more societal benefits – Save Water-Save Energy! Specifically, we are currently evaluating Leak Loss Prevention System pressure control State of the Art -Irrigation Controller’s Well Rehabilitation If you are pumping water using Natural Gas Engines, and the embedded energy in the water savings can be attributed to your Natural Gas usage, you may qualify for energy saving incentives

Compiled from data in CPUC Study2 Just 7 Water & Wastewater Agencies Alone Contributed to 93MW of SCE’s peak demand in 2008 The seven agencies contributed 93 MW, the coincident water related demand for all the agencies in Southern california may well exceed 1,000 MW. Water & wastewater agencies have more flexibility to change the amount, time and place of their electric use Reducing on-peak demand could eliminate need for power plants that are only used about 50-70 hours per year New, efficient gas engines would help electric reliability and accelerate shutdown of old, inefficient fossil fuel power plants, reducing GHGs. Not surprisingly, most groundwater pumping occurs during hot summer months in which electric demand is at it’s highest. Compiled from data in CPUC Study2

EECIP-Our Programs are changing, more due diligence 2013-2014, Energy Efficiency EECIP-Our Programs are changing, more due diligence What you need to know for an engine EECIP application: Horsepower, Annual hours of operation, Load factor Contact your Account Executive Retro-fit Add ons Rich burn to Lean burn Conversions Air fuel ratio controls Crankshaft stabilized electronic Ignition Gas Engine & Pump Replacement or Refurbishment Consult your Account Executive, pre-tests and post-tests 1/17/2019

The Gas Company Services Air Quality Assistance Individuals internally who specialize in air quality issues, and external aid in permitting processes Account Executives Assistance with any gas related issues (billing, services, etc.) Energy audits, for tips on ways to save energy Information on Gas Company programs that are appropriate for your needs 1/17/2019

The Gas Company Services Industrial Service Technician (IST) Engine Efficiency Test – Torque cell Well test Emissions tests – monitoring & comparison Operating Cost Analysis We will model your electric motor costs vs natural gas engine costs, to enable you to evaluate the Time of Use cost differential

Natural Gas Engine-Driven, Water Pumping Systems Financial Incentives Based on a 300 HP engine running about 2000 Estimated Full Load Hours (EFLH), the added load is 50,000 therms The Gas Company may provide to qualified projects, line allowances, which can be used to pay for new gas line services There are incentives available to offset the equipment installation costs, under Rule 38 The customer must commit to this added usage for a five-year contract term. *If usage falls below contracted amount the customer will face an annual true up of the delivery charge to the contracted amount 1/17/2019

Questions ? Useful Websites Natural Gas Engine-Driven Water Pumping Systems Questions ? Useful Websites www.socalgas.com www.energysavers.gov/industry www.energy.ca.gov 1/17/2019 11