Demand Response (DR) & Energy Efficiency

1. Demand Response (DR) & Energy Efficiency "The least expensive kilowatt is the one not used," Joe Desmond, Chairman of CEC. Dennis J. Charlebois, P.E., Ph.D. V.P. Marketing & Technology dcharlebois@yamas.com

2. Energy Facts (US) • US - 2004 – 4.0 Trillion KWh consumed (+2%) • 23 Million barrels oil (-17%) • 485 Billion Cu Ft of natural gas (+6%)

3. Energy Facts (US) • Lighting • 30% of institutional building's energy use • 40% of a school's total energy use • Space heating/cooling • 37% of a typical government building's energy • Government agencies in the United States spend > $10 billion a year – 1/3 goes to waste. • Healthcare organizations spend > $6 billion • K-12 spend > $6 billion — more than is spent on textbooks and computers combined! ENERGY STAR rated schools cost forty cents per square foot less to operate than the average school • Higher Ed ~ $2 billion. Energy management can lower their energy bills by 30% or more US Dept of Energy

4. Energy Facts (CA) • In Summer 2004 (per CEC report to Senate) • ISO Peak demand records were set 7 times in spite of average weather conditions. • 2004 peak demand was at a level projected for 2006. • Southern California had insufficient reserves on several days • Transmission bottlenecks reduced access to available capacity which was needed to serve demand. • Reliability was at risk due to failure to secure deliverable resources in advance. California Energy Commission

5. Energy Facts (CA) • Energy Efficiency Successes • In California since 2001 - Energy savings > 1,000 Megawatts (MW) a year • In 2001, CA state office buildings cut energy use by an average of 22%, including a 26% reduction in one month. • California's Department of General Services benchmarked 35 buildings in 2001; 3 achieved Energy Star status • A new state complex in Sacramento, the Capitol Area East End, is expected to save $429,000 annually in energy costs as a result of its sustainable and energy-efficient design and construction. • Many cities, counties and special districts in California reduced energy use in their facilities by at least 15% - ie. City of Poway retrofitted traffic lights with energy-efficient LEDs ~ 71% energy savings US Dept of Energy

6. Demand vs Supply…situation is likely to get worse in spite of add’l new capacity

7. 2005 Outlook – CA (ALL)

8. 2005 Outlook – CA (North)

10. 2005 Outlook – CA (South)

12. C.E.C. FORECAST MODELS

13. 2005 California Energy Outlook • 2005 through 2008 predicted to be “very tight”…large gaps anticipated • Add’l Generation will not fill the gap • Retirements will exacerbate the problem • Transmission capacity is questionable • Bay Area Econ Forum is predicting Power Crisis (2001) • CEC is pushing Demand Response as first line of defense • Additional Risks; • Higher than expected economic growth…higher demand • Higher than expected forced outages. • Lower than expected imports. • Regional “heat storm”. • Reduced hydro resources. • Higher than expected congestion. • Transmission closures due to forest fires. *Sources – California Energy Commission Update Report Feb 2005; BAEF “Lightning Strikes Twice-California Faces Real Risk of Second Energy Crisis – August 2004

14. 2005 CEC Plans • Ensure load serving entities to forward purchase sufficient resources to maintain reliability. • Augment demand response (DR) programs. • Augment energy efficiency programs. • Ensure successful utility procurement processes. • Accelerate construction of permitted power plants. • Add additional peak generation capacity • Identify and expedite transmission upgrades feasible for 2005. • Emphasize public education and voluntary reduction efforts.

16. C.E.C. Takes Action with DR • The Demand Response Research Center (LBNL/Purdue Joint Venture) • Research on how to do Demand Response • Covers technologies, policies, programs, strategies and practices • Price response scenarios are modeled • time-of-use rates • dynamic pricing • demand bidding programs

17. Two Types of DR • “Call-Type” Programs • Participants commit load reductions • Penalties if commitments not met • Rebates to customer for shed loads at peak • Comprehensive Baseline for each customer is needed • “Quote-Type” Programs • Participation is voluntary • Customers decide day-to-day on what they will/won’t do • No penalties • Dynamic Pricing is essentially a quote type DR

18. Why is DR Important? • Helps avoid rolling blackouts • Customers can capture preferred energy pricing • Reduces environmental impact • Helps offset generation retirements • Helps offset generation shortfalls • Helps offset transmission overload

19. How is DR Accomplished? • Manual Demand Response – Light Switches & HOA’s • Labor intensive • Requires human intervention • Moderate overall impact • Semi-Automated – Existing Building Automation Systems • Preprogrammed responses • Requires human intervention • Relies on availability

20. How is DR Accomplished? • Fully Automated – BAS & Energy Management Information System • No human intervention • Signal dependent • Reliable outcome • Measurable & Verifiable

21. Demand Response – Methodology

22. Predicted Savings - Sample

23. Real Savings – GSA Oakland Regression Model Power [kW] Actual

24. Issues Affecting DR • Transparency of Energy Costs • Accuracy and availability of data • Telephone/Pager/Email does not fill obligation • Shedding needs to be obligated • Grid operator requires reliability from DR participants • Ramifications need to be understood • User must understand all load opportunities and historical consumption profiles • Tools required to analyze portfolio • Focus on least intrusive impact to building occupants

25. Issues Affecting DR • Connectivity to Energy Consuming Equipment • Human intervention minimized • Signal must link to response • Sophisticated Decision Making • Automation is essential • Rules-Engine needed to drive response(s) • Multiple scenarios need to be mapped and tested under varying conditions

26. Issues Affecting DR • Measurability and Verifiability • Need to be able to verify curtailment obligation (for financial settlement) • M&V tools can normalize data for Weather and Billing Period • Integration of Unlike Systems/Equipment • DR Strategies must incorporate multiple vendors • Anywhere, Anytime Access is needed • Web-Enabled/LAN accessibility • Real-time systems availability

27. Preparation for DR • OBJECTIVES – Readiness, Responsiveness, Minimal Impact • Evaluate readiness of complete Portfolio of County Bldgs • Understanding the facility(ies) and what is available to be involved in the program • Quantify Demand Response Capabilities • Manual vs Automatic • Identify Energy Conservation Measures • Evaluate & Prepare Financial Indicators – IRR, ROI, etc • One-time & Recurring costs • Savings (Reduced consumption, Rebate programs) • Comprehensive Application Plan • Turnkey Automated Response to STAGE 1,2,3 Alerts

28. Demand Response – LBNL Study • Motivations for Demand Response • Improve grid reliability • Flatter system load shape • Lower wholesale and retail electricity costs • Method • Provide fictitious dynamic XML-based electric prices with 15-minute notification • Program building EMCS & EIS to receive signals & respond • Document building shed using EMCS & metered data California Energy Commission's Public Interest Energy Research (PIER)

29. Existing DR Programs in CA

30. Long Term Benefits • Proactive & Instantaneous response to Alerts & Pricing signals • Demonstrated leadership by early adopters • Reduced County energy costs • Energy Costs • Long Term Cost of Ownership • Favorable Environmental Impact • Measurable and Verifiable Results for all to see • The tools to deliver Continuous Improvement

31. Space Setpoint Changes CHW/CDW/SAT Temp Reset Occupancy Control Demand Control Ventilation CO Control (garages) VAV/VFD fan speed control Optimal Start/Stop Equipment Sequencing (ie. chillers) Cooling Tower Control (fans) Night Ventilation Economizer/Free Cooling Lighting controls (time) Dimming controls Occupancy Sensors Lighting sweeps Load Shedding/Load Rolling Demand Peak limiting Thermal Storage Distributed Generation Co-Generation Lighting Retrofits/Upgrades HVAC/BAS Recommissioning Utility Rate Optimization Energy Conservation Examples Accomplished through DR

32. Next Steps for DR • Findings (forthcoming report: dr.lbl.gov) • Demonstrated feasibility of fully automated shedding • XML and related technology effective • Next Steps: Evaluate Performance of Current Test Sites • In hot weather • Participation in DR programs • Annual benefits at each site & through enterprise • Beyond Test Sites • What other strategies offer kW savings & minimal impact? • How could automation be scaled up? • What are costs for such technology? • What is statewide savings potential? • What is value of fully automated vs manual DR?

33. DR Resources • Demand Response Research Center • Forthcoming site http://drrc.lbl.gov • Current CEC Demand Response Sites • Consortium for Electric Reliability Technology Solutions (CERTS) http://certs.lbl.gov • Center for the Study of Energy Markets (CSEM) http:// www.ucei.berkeley.edu/power.html • Demand Response Enabling Technology Development (DRETD) http:// ciee.ucop.edu/dretd

34. About Us & How We Can Help

35. Yamas Inc. • Facility Systems & Technical Services • Open, Non-Proprietary Systems Integrator • 52 year old California based Company • National coverage– 13 offices East & West • $60 Million in revenues annually • 400 employees • Significant installed systems base

36. Yamas Businesses Bldg Systems Building Services • Energy Management • Lighting Control • Electronic Access Control • Alarm Monitoring • Environmental Control • Temperature, Humidity, Pressure • Air Quality • Smoke Control • System Integration (BAS, ERP) • Network Design • System Modernization • System Migration • Preventative Maintenance • Repairs & Replacements • HVAC Diagnostics • Mechanical Maintenance • Help Desk • Training • Recommissioning • Parts Warehouse • Technical Support • Remote Diagnostics • Dispatch Call/Center • Extended Warranty • Network Services Data Services Energy Services • Data Aggregation • Data Trending/Reporting • Database Maintenance • Software Support • Hosted Applications • Field Workforce Automation • Configuration Management • Application Rationalization • Demand Response Programs • Energy Audits • Energy Retrofits • HVAC Retrofits • Financing • LEED • Energy/Utility Analysis • Energy Management

37. Yamas Locations Serving CA Sacramento San Francisco Oakland Los Angeles Reno Las Vegas

38. Yamas Customers

39. How Yamas Can Help • Rationalize BAS Systems • Assessment and migration towards Open Systems • Multiple BAS Vendor Integration • Smart Integration with mech/elect equipment • Recommissioning (Retro-Commissioning) • Improves Environment of Care Comfort Conditions • Reduces Demand Maintenance Costs • Supports JCAHO Continuous Readiness Principles • Uncovers new Energy Conservation possibilities • Positions Facility for Dynamic Pricing

40. How Yamas Can Help • Enhanced Automation & Control • Capitalizes on Existing Infrastructure • Improves the Potential for Energy Cost Reduction • Other Items • Utility/Consumption Analysis • Conservation Benchmarking • Load Profiling, Trending, Modeling • Optimization of Control Strategies for Real-Time Energy Pricing • Training & Education • EMS Application/Software Analysis • Configuration Management

41. Yamas Uses VES To Enable DR

42. Eliminates Manual Intervention • Meets reliability obligation • Delivers the Appropriate Information • The tools to perform critical analysis • Provides Consuming Equipment View • Significantly broadens shed options • Automates Decision Making • Signal can drive curtailment options • Can be Measured and Verified • Demonstrates the curtailment obligation • Offers Access from Anywhere • Allows anytime system fine tuning

43. Questions & Discussion