1. Opportunities to Collaborate with Electric Utilities on Energy Efficient Vending Machines

2. 2 Talk Outline 1.Utilities 101 2.Energy Savings Options 3.Program Design and Needs 4.Next Steps

3. 3 Utilities 101 Many utilities are funded to deliver energy efficiency programs. Goal: reduce energy demand and “acquire” cost-effective energy savings. Benefits: Cheaper and faster than building new power plants and distribution lines. Reduced power plant emissions. Help take strain off system (prevent black-outs).

4. 4 Who Has the Bucks? Generally bi-coastal phenomena Northwest, Northeast, and CA (also WI) These regions have legislatively-mandated funding for efficiency. Coordinating organization for utilities is CEE (Consortium for Energy Efficiency). CEE sets performance specifications and provides forum for utilities to share information and plan programs.

5. 5 Typical Utility Programs Customer outreach and education. New Equipment - Rebates for more efficient models. Existing Equipment - Incentives paid per kWh of savings delivered (Standard Performance Contract - SPC) or per approved retrofit measure.

6. 6 SPC Example 2002 SPC Payments in California (www.scespc.com)www.scespc.com Lighting - 5¢/annual kWh Refrigeration-14¢/annual kWh Example: T-12 to T-8 lighting retrofit (40W)(24hr/day)(365 days/yr)(1kW/1000W) = 350 kWh/yr Rebate = 350 kWh/yr x $0.05/kWh = $17/machine

7. 7 Vending Options Promote new energy efficient machines (rebate for E-Star or better). Encourage retrofitting existing machines (lights, refrigeration components). Controls – add external control (e.g. Vending Miser) or enable built-in controls at appropriate sites. Early machine retirement and recycling Pay $X/machine to owner for the functioning machine. Utility pays recycling costs.

8. 8 Utility Issues/Concerns Need some level of certainty that the savings will occur in the utility’s service territory. If new E-Star machine installed in Long Island, how to ensure machine won’t be in NYC in 18 months?)

9. 9 Utility Issues/Concerns II Documentation/Verification: How to prove that the more efficient new or retroffitted machine is in place and delivering the savings? Who to pay rebate to? (Building owner, tenant, bottler, refurbishment center?)

10. 10 Next Steps Finalize E-Star specification and provide utilities with usable performance data (what is incremental energy savings due to E-Star machine?) Explore retrofit opportunities – utilize refurbishment centers? Collaborate with CEE Commercial Refrigeration Committee and individual utilities, states as appropriate.

11. 11 Inefficient Model Efficient Model (up to 50% savings) Better Components/No Controls Scenario

12. 12 Just Controls Inefficient ModelInefficient model with Controls (30%-50% savings)

13. 13 Inefficient Model Efficient Model (components) Efficient Model Plus Controls Better Components and Controls