Case Background
On August 11,
2015, the Commission entered an order approving Tampa Electric Company’s (TECO
or Utility) Demand-Side Management (DSM) Plan. The plan included TECO’s ENERGY STAR
Program for New Homes (New Homes Program) that offers an $850 rebate to
encourage builders to construct new single-family homes to meet the
requirements to achieve the ENERGY STAR certified new home label. By meeting
the ENERGY STAR requirements, the new home uses less energy and demand which
helps reduce the growth of TECO’s peak demand. This program began in November
2015, and in 2016, the New Homes Program produced savings of 1,059,239 kWh at
the generator and contributed towards TECO’s conservation goals set by the Commission.
On January 10,
2017, TECO petitioned the Commission for approval of its ENERGY STAR Program
for New Multi-Family Residences (Multi-Family Program). The Multi-Family
Program offers a $325 rebate to builders of new multi-family residences, being
planned for construction in TECO’s service area, to encourage construction of
multi-family residences that meet the ENERGY STAR requirements. By meeting
these requirements, the new residence will use less energy and demand, helping
to reduce the growth of TECO’s peak demand and helping future tenants become
more energy focused and save on their electric bills in the process.
The Commission
has jurisdiction over this matter pursuant to Sections 366.80 through 366.83
and 403.519, Florida Statutes (F.S.), collectively known as the Florida Energy
Efficiency and Conservation Act (FEECA).
Discussion
of Issues
Issue 1:
Should the Commission approve TECO’s petition for
approval of its ENERGY STAR Program for New Multi-Family Residences?
Recommendation:
Yes. The Multi-Family Program advances the policy
objectives of FEECA, is directly monitorable and yields measurable results, and
is cost-effective. The Program Participation Standards were submitted
concurrently with the program description. Staff has reviewed these standards
and believes that they are sufficient. Therefore, staff recommends that costs
associated with the Multi-Family Program are eligible for cost recovery through
TECO’s Energy Conservation Cost Recovery factor. (Thompson)
Staff Analysis:
The criteria used to review the appropriateness of
DSM programs are: (1) whether the program advances the policy objectives of
FEECA and its implementing rules; (2) whether the program is directly
monitorable and yields measurable results; and (3) whether the program is
cost-effective. Staff
has reviewed TECO’s petition for approval of its Multi-Family Program and it
appears to be consistent with these criteria.
Program Description
TECO requests the Commission’s approval of a new
residential conservation program offering rebates to the builders of
multi-family residential units if they adopt ENERGY STAR requirements. Upon
receiving inquiries regarding the possibility of adopting a similar ENERGY STAR
Program for multi-family residences, TECO conducted cost-effectiveness tests
which showed that this program would be cost-effective if the rebate is set at
$325 for each multi-family unit that receives an ENERGY STAR certification.
Similar to the New Homes Program, this is a residential new construction
conservation program designed to reduce the growth of peak demand and energy.
The proposed program differs in that it is targeted to the residential new
construction apartment and condominium market. The Utility estimates its annual
number of program participants for the period 2017 through 2024 to range from
600 through 1,000 as shown in Table 1-1 below. The $325 rebate is used as an
incentive to encourage the construction of new multi-family residences that
meet the requirements to achieve the ENERGY STAR Certified Apartments and Condominiums
Label.
Table 1-1
Estimated Program
Participation
|
Year
|
Total Number of Customers
|
Total Number of Eligible Customers
|
Annual Number of Program Participants
|
Cumulative Number of Program Participants
|
|
2017
|
201,074
|
3,820
|
600
|
600
|
|
2018
|
204,894
|
3,893
|
600
|
1,200
|
|
2019
|
208,787
|
3,967
|
800
|
2,000
|
|
2020
|
212,754
|
4,042
|
800
|
2,800
|
|
2021
|
216,797
|
4,119
|
800
|
3,600
|
|
2022
|
220,916
|
4,197
|
1,000
|
4,600
|
|
2023
|
225,113
|
4,277
|
1,000
|
5,600
|
|
2024
|
229,390
|
4,358
|
1,000
|
6,600
|
Source: TECO’s petition for approval of its Multi-Family Program.
To earn the ENERGY STAR certification, a building must
meet the qualifications outlined in the ENERGY STAR Multifamily High Rise
National Performance Path Requirements. Based on these requirements, a building
must meet the Performance Target, which is 15 percent energy cost savings over
the Asharae 90.1 Standard 2010 based on the building codes of the State of
Florida. Standards to help meet this target include providing ENERGY STAR certified
heating and cooling equipment, building envelope, ventilation and infiltration,
domestic water heating, and lighting. In addition, ENERGY STAR certified appliances
such as refrigerators, dishwashers, ceiling fans, and clothes washers are
included. TECO states that many multi-family residences are being planned for
construction in its service area. Therefore, presenting an opportunity for builders
to participate in its Multi-Family Program gives the Utility an opportunity to reduce
its electric peak demand and residents the opportunity to become more energy focused
and save on their electricity bills.
Program Analysis Regarding FEECA Objectives
FEECA emphasizes reducing the growth rate of peak demand
and reducing and controlling the growth rates of electricity consumption. The
Multi-Family Program encourages builders to participate by incentivizing them
with a $325 rebate. Also, a component of FEECA’s goal is addressing the
accessibility of conservation programs. The Multi-Family Program will allow new
multi-family residences in TECO’s service area to participate in savings as
well. By meeting the ENERGY STAR requirements, the new residence will use less
energy and demand which would help reduce the growth of TECO’s electric peak
demand. Therefore, staff recommends that the Multi-Family Program aligns with
FEECA’s goal of conservation.
Program Monitoring and Evaluation
TECO plans to monitor and evaluate its Multi-Family
Program consistent with the monitoring and evaluation standards for the New
Homes Program approved in Order No. PSC-15-0323-PAA-EG and Commission Rules,
such as Rule 25-17.003(10)(b), Florida Administrative Code, (F.A.C.). This Rule
requires post-audit inspections of 10 percent of each type of energy
conservation measure installed as a result of the Utility’s recommendation. To
estimate savings, TECO utilized the energy and economic software program
EnergyGauge from the University of Central Florida’s Solar Energy Center.
First, TECO modeled a new multi-family residence that only satisfied the
requirements of the Florida Building Code. It then utilized the checklists and
guidance from the ENERGY STAR Multi-Family Program to model the facility to
meet those requirements. This process is consistent with the model used for the
New Homes Program. The estimated savings per customer participant are shown in
Table 1-2 below.
Table 1-2
Estimated Program Savings
per Participant
|
Summer Demand (kW)
|
Winter Demand (kW)
|
Annual Energy (kWh)
|
|
0.361
|
0.242
|
1,239
|
Source: TECO’s petition for
approval of its Multi-Family Program.
Cost-Effectiveness Review
Pursuant to Rule 25-17.008, F.A.C., TECO provided a
cost-effectiveness analysis of the program using the Participant Test, the Rate
Impact Measure (RIM) Test, and the Total Resource Cost (TRC) Test. The Participant
Test analyzes the cost and benefits from a program participant’s point of view.
The RIM Test ensures that all ratepayers will benefit from a proposed DSM
program, not just the program participants. The TRC Test measures the overall
economic efficiency of a DSM Program from a social perspective. Each test takes
the ratio of benefit and cost and the program is determined to be cost-effective
if that ratio is greater than one. Staff has reviewed the assumptions
associated with TECO’s program savings and recommends that they are reasonable.
The results for the New Homes Program from Order No. PSC-15-0323-PAA-EG and the
Multi-Family Program are compared in Table 1-3 below.
Table 1-3
Cost-Effectiveness Test
Results
|
Program
|
Participant Test
|
RIM Test
|
TRC Test
|
|
New Homes
|
1.82
|
1.05
|
1.19
|
|
Multi-Family
|
1.51
|
1.01
|
0.97
|
Source: Order No. PSC-15-0323-PAA-EG;
TECO’s petition for approval of its Multi-Family Program.
Based on these results, the Multi-Family Program passed
the Participant and RIM Tests and failed the TRC Test by a minimal amount. While
a higher TRC value would be more suitable, the Participant and RIM Tests show that
the Utility, participants, and the general body of ratepayers will benefit from
the implementation of this program. Therefore, staff believes that the program
is beneficial in meeting the goals of FEECA.
Conclusion
TECO’s Multi-Family Program advances the policy objectives
of FEECA and its implementing rules by encouraging builders’ participation with
rebates which, in turn, would promote residences that use less energy and
demand and would help reduce the growth of TECO’s peak demand. The program is
directly monitorable and yields measurable results. Also, the program is cost-effective.
Based on staff’s review of this program, staff recommends that the Commission
approve TECO’s petition for approval of its ENERGY STAR Program for New
Multi-Family Residences.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no person whose substantial interests are
affected by the proposed agency action files a protest within 21 days of the
issuance of the PAA Order, a Consummating Order should be issued and the docket
should be closed. (Murphy)
Staff Analysis:
Yes. If no person whose substantial interests are
affected by the proposed agency action files a protest within 21 days of the
issuance of the PAA Order, a Consummating Order should be issued and the docket
should be closed.
