2001 Commercial/Industrial Standard Performance Contract Program
1. Overview: The Standard Performance Contract Program offers cash payments to non-residential customers for replacing existing equipment or systems with new, high-efficiency equipment. The amount of the payment is determined by the quantity of savings resulting from installation of the new equipment or system.
2. Eligible Customers: The program is open to any non-residential customer. Program features differ depending on customer size.
2.1 Small/Medium Customers: Commercial and industrial accounts with a maximum electric demand of 499 kW. For customers with more than one account, aggregate demand for all accounts cannot exceed 499 kW. Customers not eligible as Small/Medium customers qualify for participation in the program as Large customers.
2.2 Large Customers: Commercial and industrial accounts with a minimum electric demand of 500 kW or greater.
3. Eligible Projects: Almost any project involving replacement of existing equipment or systems with high-efficiency equipment is eligible in the SPC program. Some projects are not eligible. They include new construction, electrical generation, fuel switching, maintenance and operational changes, and equipment that is not permanently installed, or is readily removable without the use of tools.
3.1 Equipment Covered In Express Efficiency Rebate Program Not Eligible In SPC: An application in the SPC program may not include equipment or systems that are covered in SCE’s Express Efficiency Rebate Program.
4. Eligible Applicants: A customer may apply directly, or may designate another entity to apply for the incentive on their behalf. Customers may choose any entity to apply on their behalf. There are no certification requirements and SCE does not maintain a list of companies that may participate in the program.
5. Minimum Application Size: An application must have at least 5,000 kWh per year total savings. The minimum can be met be combining different energy efficiency measures, like air conditioning and motor replacement, and also by combining projects at any number of different sites.
6. Estimating and Measuring Energy Savings: There are two ways to estimate energy savings for a project. The SPC incentive price and payment terms depend on which method is chosen. The applicant is responsible for determining the energy savings from their project. SCE must review and approve the applicant’s energy savings estimate.
6.1 Calculated Savings: A one time calculation using accepted engineering practices or using estimating software or lookup tables provided by SCE. Estimating software or tables are available from SCE for the most common types of energy saving projects. For specialized or unique projects, the estimate must be done using engineering calculations. For projects involving incentive payments of over $100,000, an applicant may be required to use the Measured Savings approach if suitably documented calculations are not submitted by the applicant.
6.2 Measured Savings: This method requires that measurements be taken to determine the savings. Measurements could include energy consumption, hours of operation, flow rates, temperatures, or other similar parameters related to energy savings. Measurements must be done in accordance with an SCE approved Measurement and Verification (M&V) Plan.
6.3 Energy Savings Based On Minimum Standards: Applicable minimum efficiency standards must be incorporated into savings estimates. The SPC pays incentives only for savings that exceed any applicable minimum efficiency standards.
7. Incentive Payments: Incentive payments are determined by the amount of savings a project produces in one year of operation.
7.1 Energy Savings Payment: The base incentive payment is determined by multiplying the annual energy (kWh) saved times the applicable incentive price. Incentive prices for energy savings are shown below in Table 7.1 below.
7.2 Peak Demand Reduction Bonus Payment: A bonus payment, determined by multiplying the peak summer demand (kW) saved times the applicable incentive price, is offered for qualifying projects installed and operational prior to June 1, 2001. The peak demand reduction bonus is limited to 20% of the estimated total energy incentive payment. Incentive prices for the peak-demand reduction bonus are shown in Table 7.2 below.
Table 7.1 - 2001 SPC Incentive Prices For Energy Savings
Type of Retrofit / Small/Medium Customers / Large CustomersCalculated Savings Approach / Lighting / 6.0¢ / kWh / 5.5¢ / kWh
Air Conditioning/Refrigeration / 20.0¢ / kWh / 18.0¢ / kWh
All Other (motors, controls, etc.) / 10.0¢ / kWh / 9.0¢ / kWh
Measured Savings Approach / Lighting / 7.0¢ / kWh / 6.0¢ / kWh
Air Conditioning/Refrigeration / 22.5¢ / kWh / 20.0¢ / kWh
All Other (motors, controls, etc.) / 11.0¢ / kWh / 10.0¢ / kWh
Table 7.2 - 2001 SPC Bonus Incentive For Peak Demand Reduction
Type of Retrofit / Small/Medium Customers / Large CustomersCalculated Savings and Measured Savings / Lighting / $125 / kW / $100 / kW
HVAC & Refrigeration / $250 / kW / $225 / kW
All Other Qualifying Measures / $175 / kW / $150 / kW
* Projects must be complete and operational by June 1, 2001 to qualify for Bonus Incentive for Peak Demand Reduction
8. Incentive Payment Terms: The total incentive is paid in two installments. The length of time between payments is different for the two different application approaches.
8.1 Calculated Savings: The first payment is made upon completion of installation of the new equipment. The first payment is 60% of the energy incentive, plus 100% of the bonus incentive for peak demand reduction. The second payment is made six months after the first payment, after completion of a site inspection by SCE to verify continued operation of the new equipment.
8.2 Measured Savings: The first payment is made upon completion of installation of the new equipment. The first payment is 60% of the energy incentive, plus 100% of the bonus incentive for peak demand reduction. The second payment is made one year after the first payment, after completion of the measurement and verification plan by the applicant, and completion of a site inspection by SCE to verify continued operation of the new equipment.
8.3 Bonus Incentive For Summer Peak Demand Savings: A bonus payment is offered for projects that are completed by June 1, 2001. The bonus payment is determined by multiplying the calculated on-peak demand savings by the applicable demand incentive rate shown in Table 2.
8.3.1 Bonus Pro-Rated Between June 1 and September 1, 2001. The bonus incentive will be pro-rated downward for installations completed between June 1, 2001, and September 1, 2001.
8.3.2 Bonus Payment Limited To 20% Of Total Incentive. The maximum bonus incentive payment, regardless of time of completion of project, will be limited to 20% of the total energy savings incentive.
9. Incentive Payment Limits: There are limits on the amount of incentives that will be paid to customers and other entities that apply for incentives on behalf of customers. Limits and definitions are shown in Tables 9.1 and 9.2 below.
9.1 Total Incentive Limited To 70% of Project Cost: The total incentive paid on any application will be limited to 70% of the total cost of the measures included in the application. The total cost includes materials and labor attributed to the energy efficiency measures.
Table 9.1 - Annual Incentive Limits for Customers
Customer Site / Corporate Parent / State and Federal Government Parents*Small/Medium / $200,000 / $200,000 statewide / $200,000 statewide
Large / $500,000 / $2 million statewide / $6 million statewide
Small/Med + Large combined / NA / $2 million statewide / $6 million statewide
*State Government Parents include the University of California, California State University, Department of Corrections, Department of General Services, the combination of the Department of Developmental Services and CalTrans, the combination of the California Youth Authority and the Department of Mental Health, and all other state agencies and departments.
Federal Government Parents include the Navy, Marines, Air Force, Army, Postal Service, General Services Administration, and all other federal agencies or departments.
Local Government Parents (such as cities, counties, school districts, or water districts) are treated as Corporate Parents.
Table 9.2 - Annual Incentive Limits for Third-Party Applicants
Project Sponsor / Utility Affiliate*25% of total incentive funds of each Large and Small/Medium programs in each utility service territory. / 15% of total incentive funds of each Large and Small/Medium programs in each utility service territory.
10. How To Apply: An applicant follows a multi step process to apply for incentives in the SPC program. An overview of the process is described below. For more detailed instructions, please refer to the program materials, which can be downloaded from www.scespc.com, or are available from your SCE representative.
10.1 Do Not Remove Existing Equipment Before Applying And Receiving Approval Of Project: One of most important rules of the program is that an application must be approved by SCE prior to removal of existing equipment from service. Upon receipt of an application, SCE will send an inspector to the site to verify existing conditions, i.e. baseline data, to determine the accuracy of the savings estimates. If the existing equipment has been removed, or is non-operational, the application will not be approved.
10.2 Application Forms: Application forms for manually completing an application are attached to this document. There is also a software program available that does energy savings estimates for some measures, and fills out the required forms automatically. Refer to the SPC website, or contact your Edison representative for assistance.
10.2.1 First Submittal - Project Application. The Project Application contains all the information necessary to determine the savings and estimate the total incentive. Once the Project Application is approved by SCE, a contract is executed between the applicant and SCE, and the incentive money is reserved for the project, pending timely completion of installation. The Project Application consists of the following:
· Customer and project site information
· Information about third-party applicant
· A technical description of the project
· Documentation of the savings estimate, i.e. engineering calculation
· A measurement plan, if measured savings approach is used
10.2.2 Pre-Installation Site Inspection By SCE. SCE may conduct a site inspection upon receipt of the Project Application. The purpose of the site inspection is to verify the existing equipment baseline.
10.2.3 Second Submittal – Installation Report. The Installation Report is submitted by the applicant after the project is installed and operational. The Installation Report is the basis for the first payment installment. The Installation Report is basically an updated, final version of the Project Application.
10.2.4 Post-Installation Site Inspection By SCE: SCE may conduct a site inspection upon receipt of the Installation Report. The purpose of the site inspection is to verify that the project is installed and operational.
10.3 Third Submittal - Operating Report. The Operating Report is submitted by the applicant either 6 months (for calculated savings applications) or one year (for measured savings applications) after the Installation Report is approved by SCE. The Operating Report provides confirmation that the project is still in operation as installed, and must include measurement results, if the measured savings approach was used.
11. Important Dates and Deadlines:
Program Opens: March 1, 2001
Deadline For Bonus For Early Installation: June 1, 2001 (Bonus is prorated between June 1st and September 1st, 2001, inclusive
Application Deadline: December 28, 2001
Installation Deadline: June 1, 2002
12. Where To Submit An Application:
Large SPC: Attn: Grant Hjelsand
Small / Medium SPC: Attn: Carole Quinn
Southern California Edison
2131 Walnut Grove Avenue
Rosemead, CA 91770
13. For More Information:
World Wide Web: www.scespc.com, or sce.com
Email:
Phone: 800-736-4777
Or contact your Edison representative
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