SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Partner Training 1 Small Cities Climate Action Partnership (SCCAP) Innovator Pilot

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Workshop Agenda

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Introductions SEI team City Staff Warm-up Discussion What role does energy play in your city?

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved.

Energy Management Has traditionally meant: Utility bill tracking, monitoring, and verifying Replacing aging inefficient equipment w/new higher efficiency equipment Improving control and modifying behavior Participating in utility rebate programs Raising “energy” awareness

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Has not been important traditionally because Energy costs were low Tools and resources were out of reach for most small cities Utility bill M&V were expensive and labor intensive Is important because: Savings can equal or exceed costs in the long run Increases comfort/reduces emissions Meets long-term goals

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Green Buildings can have significant resource conservation benefits Energy Management is essential to realizing these benefits 7 Source: USGBC.org

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Impacts from historical Investment in Energy Efficiency in California versus US as a whole

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management is Evolving Increasing Availability of Cost-effective energy tools Distributed generation – On-site, grid-tied power generation Electric and hybrid electric vehicles Light-emitting-diodes (LED) Nest Thermostat

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management is Evolving Customers have more choice for supply purchase Electricity and natural gas utility deregulation/restructuring (e.g., ABAG Power Pool) Self-generation Independent commodity providers Other supply options Having more choices can thus increase the effort needed to manage those choices to ensure positive outcomes.

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management is Evolving Energy management is increasingly “green oriented” Climate change mandates are driving energy management decisions and green product offerings from utilities Energy management is no longer just about cost savings, but also about greenhouse gas emissions reductions Energy management aligns with goals of Climate Action Plans or Energy Action Plans

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management is Evolving Municipal infrastructure investments may benefit from change: Role decision analysis (analysis paralysis) Role of long-range planning Potential for revenue generation and reinvestment of savings

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Agents of Change: Emerging Tools for Municipal Energy Management The internet is taking on a larger role in energy management Wireless technology, miniaturization, and remote control of equipment are more common weblog/2011/04/energy- efficiency-world-gathers-in- santa-barbara-for-summit-and- sheds-light-on-opportunities- to-make.html

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Agents of Change: Greater Access to Your Data Utilities are becoming more interactive with customers Online information (especially time of use ([TOU], real-time data) could help people to manage their energy use and lifestyle New rate structures (e.g., TOU & real-time rates) Electronic-billing (e-billing) and access to usage data Green Button Customers empowered to make sophisticated energy decisions Conservation energy efficiency, distributed generation, and Load shedding (demand response)

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Agents of Change: Financing New financing tools also relate to energy management On-Bill Financing PACE (Property Assessed Clean Energy) PPA (Power Purchase Agreements) CREB (Clean Renewable Energy Bonds) ESCO (Energy Service Company) FiT (Feed-in Tariff)

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. What This Means for Small Cities More complexity? A good clear understanding through proper education is key Knowing what’s coming helps you to prepare – but who has a crystal ball? Potential Benefits: Better control of systems means lower costs and increased comfort Greater energy independence Cleaner air Potential new revenue streams 21st century workspace

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. What This Means for Small Cities Energy management will always take some work Need to clearly define goals and roles to manage your energy Self-empowerment and cooperation with the utility? PG&E says: “We’re In This Together”

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved.

Power Mix U.S. Primary Energy Flow by Source and Sector, 2009 U.S. Energy Information Administration, Annual Energy Review 2009

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Power Mix Renewable vs. Non-renewable power Climate Neutral power

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Electricity Generation, Transmission, and Distribution Process GENERATIONTRANSMISSIONDISTRIBUTIONLOAD Power is produced at 13, ,000 Volts Then stepped-up for Long Distance Transmission to 230,000 to 500,000 Volts Step-down transformers bring voltage levels back down to sub-transmission voltage kV Secondary service and Primary Distribution are provided at 4, 12, 16 & 33kV Local Distribution transformers provide V to residences

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. The Electricity Grid Links power plants to load centers Links transmission lines together Power is ‘pooled’ in the transmission system, and each distribution system draws from the pool ‘System’ has diversity of sources 150 computerized control centers to dispatch generators as needed An electron is an electron!

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Natural Gas: Status – electrical and non-electrical uses Source: California Energy Commission 40-50% of electricity in PG&E territory is derived from NG

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Natural Gas: Process

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Gas Generation, Transmission, and Distribution Process Like the electricity system the NG system has losses and inefficiencies throughout and can have disastrous consequences

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. How We Use Energy

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Demand and Energy Demand is… Four 250 Watt computers turned on and drawing 1000 Watts or 1 kiloWatt (1kW) 250 Watts

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Demand and Energy Demand x Time = Energy usage 1kW x 12hours = 12kWh Energy is the measure of demand (kW) and time (hours) and is expressed in kilowatt-hours (kWh). You can view your total energy usage over the day in the form of a load curve.

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Municipal Load Profile

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Overview of Supply and Demand 24 Hour Day Midnight Noon Midnight LOAD in MW (Demand) Peak Period Hydro Geothermal Natural Gas Note: Utility time-of-use rates reflect hourly cost of power. Oil/Spot Market Off Peak Off Peak Nuclear Price of Power

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Quiz Time! Name some ways that energy management is evolving. What are some reasons why small cities might be invested in energy management? If you have a 100 kW motor that runs for 2 hours every day (7 days a week), how much energy does it consume in one week? What is the demand of your motor? How much electricity is lost in transmission and distribution in the current electric system? What are the 2 municipal energy end-uses that account for the most electricity consumption? How about for natural gas? What are some examples of distributed generation? Name two load-shifting activities to reduce peak demand.

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved.

Utility Pricing Conventional Utility Pricing Profit based on how much is sold Rates based on cost of service plus profit margin Energy efficiency is a disincentive Decoupling Separates fixed costs/profit margin from volume of sales Slight rate increase to adjust for reduced volume (2-3%) New power plant costs not passed on to consumer California: 1982, 2001 Every $1 invested by utilities in EE = $2 customer savings

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Electricity Rates Explained Rate schedules Time of Use (TOU) Peak Day Pricing Demand metering Seasonal and tiered rates

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Bill Paying Process Paper bills versus electronic bills Bill consolidators Discussion about payment process Are bills reviewed? Do energy users ever see the bill? What would it take to change this process? Pros and Cons Needed changes

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Rate Optimization What is rate optimization? The importance of being on the right rate schedule Tools and resources to conduct rate optimization Albany Child Care Center case study

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Rate Opt Why A10? What’s Different? Automation

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Tools GHG inventories Climate Action Plan Cost tracking Project tracking Discovering billing mistakes Rate analysis Awards Identifying future projects Decision analysis

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Tools Comparison

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved.

Energy Management Tools

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Pacific Gas and Electric, Co. Tools

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Pacific Gas and Electric, Co. Tools

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Pacific Gas and Electric, Co. Tools

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Portfolio Manager

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. EnergyCAP Express

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Municipal Energy Planning Tool

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Energy Management Tools Discussion

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved.

Preview of Training 2 Objectives Partners will understand benchmarking and how to upload and update energy use data. Partners will be shown common errors in order to identify data anomalies. Partners will be taught how to compare the performance of their buildings to average buildings and to similar buildings. Partners will learn about common reporting functions Topics Introduction to energy monitoring software Identifying data anomalies Comparing buildings Identifying savings opportunities Model Energy Monitoring Policies and Procedures Report.

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Preview of Training 3 Objectives How to sustain energy management functions Partners will review outcomes and identify next steps Receive project materials and energy management tools, understand how they are organized, and be able to explain the materials to future stakeholders (e.g., interns, other city staff that take over energy management activities) Partners will understand necessary and ideal tasks to complete each month Topics Preparing for transition Identification of ongoing energy management tasks Energy Action Plan Financing mechanisms for the long term including On Bill Financing and recommendations from the Reinvestment Mechanism Summary Report

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Training 1 Wrap-up Feedback What parts of today’s training were effective? How could future trainings be more effective? What was the most interesting thing you learned today? Extensions Would you like follow-up information on any of the content presented today? Would you like to have brown-bag sessions on subjects of interest between trainings?

SCCAP is a program of Strategic Energy Innovations “PG&E” refers to Pacific Gas and Electric Company. A subsidiary of PG&E Corporation. © 2012 Pacific Gas and Electric Company. All rights reserved. Frank Di Massa Nick Hein Liz Jones