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Pepco & Delmarva Power Commercial & Industrial Energy Savings Program

Small Business Program Trade Ally Training

February 27, 2013

Housekeeping • The presentation will be emailed to you after

the webinar.

• If you have technical issues, please send your question directly to the Host or call 866-229-3239 for support.

• There will be a Q&A afterwards. Please submit your questions to the HOST throughout the session via the Chat feature.

• Program Overview

• “The Opportunity” – Small Business Program

• Application & Payment Process

• Walk Through Energy Assessment Criteria

• Walk Through Energy Assessment Tool

• Questions and Answers

Agenda

We’ve already helped our customers earn

more than $14.7 MILLION in

incentives, and save more than

127.6 MILLION kWh

of electricity per year.

• Pepco and Delmarva Power’s commercial and industrial customers in Maryland

• Small businesses, non-profits, faith based, or institutional customers that register a maximum monthly demand of 100 kW or less over the last twelve months in an existing building are eligible for this program

• Walk-Through Energy Assessment will be provided at no charge

– Once low cost and no cost measures are completed, customer is eligible to receive the enhanced incentives

• An approved Small Business Program trade ally must be used for the Walk-Through Energy Assessment and implementation

Small Business Program Eligibility

6

Delmarva Power Area

•27,000 total accounts

•90% are eligible for the SBP

• Customers such as:

- Royal Farms

- Salisbury University

- Ramsey Ford

- City of Cambridge

- Kent Co. Board of Ed

- Rite-Aid

The Opportunity

Pepco Program Area

•47247 total accounts

•92% are eligible for the SBP

(43266)

•Customers such as

•Baskin-Robbins, Inc

•David’s Bridal

•WaWa/7 Eleven

•Wachovia Bank

•City of Gaithersburg

•Giant Food

7

Pepco Program Area

8

Upper

Delmarva Program Area

9

Lower

Delmarva Program Area

Customers are required to use an approved

Small Business Program trade ally

– Walk-Through Energy Assessment must be

completed by a trade ally

– Equipment must be installed by a trade ally

Trade Ally Network

11

Marketing

Program Marketing Tactics Include:

• E-blast, direct mail, and events

• Website

• Brochures

• Direct outreach to customers

• PR Events

Recommendations for Trade Allies:

• Target one or more zip codes

• Target franchise, regional, and local chains owners/managers

• Consider teaming with other companies that specialize in other

equipment/services

• Provide program material with your company information

Trade Ally Network - Guidelines

Use of the Pepco or Delmarva Power logos are prohibited. This includes all

promotional items including clothing, business cards, vehicles, advertising.

The program name "Pepco [or Delmarva Power] C&I Energy Savings

Program" is restricted to printed materials only.

Use of the program name requires prior approval from Pepco or Delmarva

Power.

The program name shall not be used on items of clothing, ID badges or motor

vehicles.

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Selling Points

• Walk-Through Energy Assessment that identifies energy-savings

opportunities

– The assessment is performed at your convenience at no charge

• Installation of low cost measures - up to $250 at no additional cost

• Enhanced incentives that can greatly reduce the financial burden of

installing new equipment.

– Many incentives cover up to 80% of the program-estimated installed cost

• Experienced Trade Ally Network can perform the work, allowing you

time to focus on other priorities

Small Business Program

Customer Benefits

Small Business Customer Program Overview

– Light Fixtures & Controls

– VFDs

– Packaged HVAC Units

– Specialized Controls

– Commercial Refrigeration & Kitchen Equipment

– Commercial Water Heating

– Custom Projects

Standard measure projects completed within two months, and custom projects completed within four months, are eligible for an additional 10% in incentives!

Small Business Program

Highlights Standard measures

– Lighting measures: up to approximately 80%-90% of the Program-estimated

installed cost for each measure

– VFD and Refrigeration measures that cost less than $2,000: up to

approximately 80%-90% of the Program-estimated installed cost

– For more expensive VFD and Refrigeration measures: up to approximately

40%-50% of Program-estimated installed costs

– Packaged HVAC incentives: approximately doubled from those offered to non-

small business customers

Custom and Alternative measures

Measures not considered standard may be eligible. These projects are eligible for a one

time payment of $0.30 per kWh/yr saved. The incentives support up to 80% of the

installed cost, and are offered on measures with payback periods of at least 6 months.

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Sample Lighting Project

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Trade Ally Agreement

• The Small Business Program Trade Ally Walk Through Energy Assessment (WTEA) training has

been completed, and this document serves as confirmation of the completion.

• Agreement to perform WTEAs, prepare high-quality reports as per the WTEA Acceptance Criteria,

and submit a minimum of three (3) Program applications (each signed by an eligible customer)

during each calendar quarter.

• Agreement to keep customer data confidential, including mailing addresses, email addresses,

electricity usage, billed utility charges, and any other customer information supplied by Pepco, the

Program office, or the customer, as the trade ally acknowledges that the confidential information is

proprietary to the Disclosing Party and Disclosing Party regards all of its confidential information

as trade secrets.

• The Program will provide $125.00 for the completion of each WTEA report approved once a

minimum of three low-cost or no cost measures are installed. (The qualifying installed measures

may or may not be completed by you.)

• The Program will pay up to $250.00 for the installation of the recommended low cost measures

identified in the WTEA report. No payment for the same set of measures shall be requested from

or accepted from the customer or any customer representative. The low cost measure installation

rate will be based on the payment schedule in effect at the time the WTEA request is approved.

• Agreement to comply with Program rules, participate in future training events, and to stay current

with all Program rules, policies, eligible measures, incentives and applications. Updates will be

distributed by the Program Office as they become available.

Low-cost Measure Schedule

See No Cost / Low Cost Measures: Confirmation of Completion Form

Trade Ally Payment Process

• Once WTEA has been presented to the customer and measures

have been completed, the trade ally is eligible to receive $125.00 for

the completing the WTEA.

Payment trigger – when minimum low cost or no cost measures have been

completed by the trade ally or the installation of equipment has been completed

• Trade allies are eligible to receive up to $250.00 for the installation

of eligible low cost measures.

Payment trigger – when confirmation of low cost measures confirmation form has

been submitted and WTEA report is approved and WTEA Request Form has

been received by the Program Office

• The Customer has the choice of receiving the incentive check

directly or assigning payment to the trade ally

Payment trigger – when project has received final approval from the Program

Pepco /DPL

Customer

Small

Business

Trade Ally

WTEA

Request

Completed

WTEA

Request

Received

Customer

Eligibility

Confirmed/

Pre-Approval

Review

WTEA

No-cost/

Low-Cost

Completed

Project

Application

Completed

Assessment

Report is

Reviewed by

Engineering

WTEA

Report

Completed

Incentive

Payment to

Trade Ally

The WTEA Flow

WTEA

Completed

Post-Inspection

(as needed)

These steps can be combined. You can complete the

WETA, install the low cost and submit project application at

the same time with the customers approval.

Pre-Approval Guidelines for SBP

Project Applications

The new guidelines will:

• Reduce time from lead generation to installation

• Reduce the total number of days before incentive checks are distributed

• Improve overall customer experience

No pre-approval required: Small Business Program standard projects that

offer incentives of $5,000 or less do not require pre-approval. It is incumbent

upon the trade ally to ensure that all installed measures are eligible and

incentives are correct. If pre-approval is not required, follow the steps outlined

below.

Pre-approval required: Small Business Program standard projects over

$5,000 and ALL Alternative/Custom projects require pre-approval.

Pepco /DPL

Customer

Small

Business

Trade Ally

Project

Completion

Project

Documents

Submitted

Post-Inspection

(as needed)

Final

Approval

Incentive

Payment

The Application Flow

Projects $5,000 or less

Pepco /DPL

Customer

Small

Business

Trade Ally

Application

Received Review

Application

Pre-Inspection (as needed)

Pre-

Approval

Approval

Letter

Received/

Purchases

Started

Project

Completion

Project

Documents

Submitted

Post-Inspection

(as needed)

Final

Approval

Incentive

Payment

The Application Flow

Projects Greater than $5,000

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Trade Allies (TA) may use either their own Walk-Through Energy

Assessment (WTEA) report or use the WTEA software provided by

Pepco and Delmarva Power Small Business Program Office

– Either way, the WTEA Report must be reviewed and approved by the

Program Office prior to being presented to the Customer

– The Walk-Through Energy Assessment must be comprehensive

WTEA Tool Review

Small Business Program Walk-Through Energy Assessment Criteria

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1. Comprehensive Scope

• The report must adequately cover all equipment and systems at the facility for which

the Program provides incentives (e.g., lighting, HVAC, controls, refrigeration, cooking,

DHW, building envelope).

2. Promoting Eligible Measure Types

• The Small Business Program Applications are available on the website and are the

primary source of information concerning measure eligibility.

3. Savings Calculations and Incentives

• The estimated savings, payback and other calculations used in the report must be

based on sound and acceptable engineering principles.

• Calculations must be available for review and approval by the Program’s engineers.

The program workbooks will be used to review TA submissions and validate the

proposed energy savings. Your savings calculations need not be in the customer’s

report, but the calculations used must be sent to the Program Office for review

together with the draft WTEA report. Savings based on advertising or marketing

brochures are not acceptable. Savings values must be within 10-15% of those

produced by the Program’s Application workbooks. (It is recommended that these

workbooks be used to calculate incentives and savings.)


For TAs using their own assessment tool, the report must meet the

following standards:

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Key Identifying Data

• Report Title

• Business name and address

• Customer name and address (if different)

• Owner’s name and contact information

• Name and contact information for the owner’s key representative

(if there is one)

• Name(s) of report’s author(s) and organization that employs them

• Telephone number and e-mail address for the author(s)

• Date of the data-collection visit and date the WTEA report is finalized

and discussed with the customer

• Program’s report number

Your report must include the following although the ordering

and presentation may differ.


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Recommendations to Customer

• Table 1 - Overview Assessment The Overview is a simple table that lists the major building systems and has

columns that indicate the utility bill that is affected, whether upgrades are

eligible for Program incentives, and “Comments”.

• Table 2 - Recommended Equipment Upgrades

This table will have the following structure:

– Brief description of measure (e.g., upgrade T12 fixtures to 28W T8 lamps and

more efficient ballasts)

– Annual cost savings

– Cost to implement

– Program Incentive

– Customer Cost

– Payback period (For example, 6.5 years. Just use one decimal place)


• Table 3 - Recommended Low Cost Measures (chosen from list

below)

Low/No Cost measures are actions that may be taken immediately and are very

inexpensive or may require no costs to implement. Our currently approved list of Low

Cost measures is as follows:

– Clear blocked supply and return air distribution vents (HVAC and refrigeration

equipment)

– Clean or replace air filters and exposed/accessible condenser coils associated

with A/C and refrigeration units

– Reduce air infiltration using caulk and spray foam (apply latter to increase

insulation)

– Install "Smart Strips" for computer equipment and multiple associated plug-in

loads (e.g., a printer)

– Replace incandescent lamps with CFLs

– Install timers on coffee makers and water coolers

– Add external insulation blanket to electric water heaters

– Insulate exposed and accessible hot-water and refrigerant piping

– Replace worn gaskets on refrigerator and exterior doors

– Install insulation gaskets on switch and outlet plates on exterior walls


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Our currently approved list of No Cost measures is as follows:

– Check and adjust thermostat's programmable settings

– Check and adjust water heater thermostat's settings to 115oF - 120oF range if

dishwashing is not a factor

– Activate energy-saving features of computers, monitors and copiers

– Install reminder signs to turn off lights when not in use and in areas where

adequate natural daylight is available

– Check outdoor light controls for proper operation and settings

– Use window blinds to allow natural light to fill an area instead of artificial lights

– Promote participation in the Small Business Direct Load Control Program

(includes a free programmable thermostat)

– Encourage the purchase of energy efficient equipment (Energy Star Qualified) as

a standard Practice

– Other Measures (Write in any opportunities identified not listed above)


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Building Information

– A very brief narrative description of the building, including its size, type (e.g.,

convenience store, gas station, school), number of stories, and primary use(s)

– Occupancy and operating hours (both normal and at times when there is only limited or

partial occupancy, such as for cleaning)

– Annual/monthly cost and consumption history (not required)

– Space heating and cooling equipment (at the minimum, indicate type and number of

units, location, rated heating and cooling capacities, age, and heating fuel used)

– When possible document the nameplate information (i.e., make, model, rated output)


Building Information Continued

– Air supply, distribution and exhaust equipment, describe how space heating and

cooling equipment is controlled, whether an air-handler, heat recovery loop, or

economizer is used, and how all HVAC equipment is controlled.

– Domestic water heater type and capacity (electric, gas, propane, etc.)

– Interior and Exterior Lighting systems and controls (list lamp and fixture types)

– Refrigeration equipment, including ice makers

– Kitchen equipment (Ovens, Fryers, etc.)

– Inventory of electrical motors over 2 HP (Identify use and location and HP).

– Specialized equipment (machinery, exhaust fans, medical equipment or any

other systems that may have an effect on electrical cost and consumption)

– Small plug in loads may be grouped as a general category. There is no

requirement for a detailed inventory.

Existing systems that will not be included for incentives should be indentified and

explained. For example, “The existing building has existing LED exterior lighting. No

further modifications are recommended.” Provide estimated data if nameplate data

are not available.


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Data on Recommended Measures

The following information is essential for review by our engineering staff. Please be

prepared to justify savings calculations if inquiries are necessary.

– Brief description of the existing equipment

– Estimated current electricity consumption (kWh/yr and peak kW draw)

– Brief description of the recommended improvement/replacement equipment

– Estimated future electricity consumption (kWh/yr and peak kW draw)

– If water or fuel savings also result, the current and future consumption values

should also be provided

– Savings (kWh/yr, peal kW, fuel-use, water-use)

– Annual cost savings

– Cost to implement the measure

– Program Inventive

– Net cost to customer

– Simple payback period

Measures can be grouped by system type (e.g., retrofitting lighting fixtures with T12

lamps to 28W T8s may be totaled for the entire facility. TAs are free to negotiate a

“Package deal” for their customers, but the WTEA report must provide the savings,

cost and payback period per measure.


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Next Steps

• If you are already a part of the Trade Ally Network, submit a SBP

Agreement Letter to the Program office after this training webinar.

• If you are not already a part of the Trade Ally Network, submit a Trade Ally

Application to the Program office now.

• If you have a customer that is eligible for the Small Business Program,

submit a WTEA request form. The Program will work with you to complete the

assessment. Consider :

Reviewing your assessment tool with the us prior to the walk through

Program Representative will accompany you on the walk through

Once the assessment has been reviewed and no cost/low cost measures are

complete, your customer is eligible for the enhanced incentives

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FAQ’s

Q. I have an expert staff for doing lighting projects, how am I supposed to do the HVAC

projects?

A. You may either train existing staff or partner with another company that does HVAC

work. Note that to conduct the WTEAs you need to be familiar with more than just

lighting technologies

Q. What if there are no improvements needed for the HVAC system. Do I still have to

include it in my WTEA Report?

A. Yes. Simply describe the existing system – “Brand X air conditioning unit, Energy

Star Qualified, SEER 19, approximately 2 years old. No further improvements

needed”

The report is to be comprehensive in scope and should include all components

effecting the electricity consumption. If no mention is made of a system, it will be

questioned during the engineering review

FAQ’s

Q. This Walk-Through will cost my company more time and money than the $125

allotted. Why can’t I be paid for my real expenses?

A. The program is designed to provide funds for equipment installed, not to perform

energy audits. Your company may use the report as a marketing tool to create sales

legitimized by the WTEA report. If the customer’s facility appears to be too small to

be worth the effort, your customer may request a WTEA by the Program, however the

customer is then under no obligation to have your company do the installation. The

customer would be free to choose from any approved Small Business TA. Note that

you can get paid up to $250 more by installing low-cost measures

Q. Where can I find a list of the incentives that are eligible for enhanced incentives?

A. On our program website: https://cienergyefficiency.pepco.com/SmallBus.aspx or

https://cienergyefficiency.delmarva.com/SmallBus.aspx . If the application you need

is not available on the Website, contact the Program office.

https://cienergyefficiency.pepco.com/SmallBus.aspx

https://cienergyefficiency.delmarva.com/SmallBus.aspx

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FAQ’s

Q. Do I have to use the Program’s Assessment tool?

A. No, However, we highly recommend that you do use the tool as it will have the

incentives and other details built in. Additionally, over time the tools will be

automated and will transfer into the application as needed

Q. Do I have to be a Trade Ally to be perform the walk-through and install the work?

A. Yes, however you may use subcontractors that are not TAs to install measures

Q. Does the walk-through request need to be pre-approved by the Program?

A. Yes, the customer must be eligible for the Small Business program in order to

receive any payments

Q. How will the Program process WTEA’s that come directly from a customer

and are not associated with a TA?

A. Our office will assist the customer by introducing the Trade Ally Network

searchable database

Q. When will I be paid for the Walk Through Energy Assessment?

A. Once the Assessment report has been presented to the customer and no-

cost/low-cost measures are completed

Q. Can customers install equipment themselves?

A. No, equipment must be installed by a approved Small Business Trade Ally

FAQ’s

38

FAQ’s

Q. What if the equipment cannot be identified (For example, HVAC system model

plates)?

A. There may be many times where nameplate data and other information may not be

available. There are tools available to help with estimating HVAC needed based on

building type and square footage.

Q. What if there is repair work that must be done in order to install an approved

measure?

A. Repair work or any other contingent work must be done at the customer’s expense.

The Small Business program will only pay for approved incentive measures.

Q. What if the customer does not do all of the Low/No cost measures?

A. Participants will be encouraged to do as many of the Low/No Cost items as possible,

but a minimum of three must be done or installed if at at least three are identified in

the WTEA Report (all must be done or installed if fewer than three are identified). A

sample of projects will be inspected for quality control (QC) prior to release of

incentive payments. The QC will include verification that the required number of

Low/No Cost measures were done or installed.

FAQ’s

• Q. Who do I call for help if I have questions on the tool?

• A. Contact John or Jack. Their contact information is provided at the end of the

presentation.

• Q. How do I make sure I have the latest version of the tool?

• A. Always download the latest version from the website.

We are available to assist you!

Pepco www.pepco.com/business

1-866-353-5798

[email protected]

Delmarva Power www.delmarva.com/business

1-866-353-5799

[email protected]

Robert D. Johnson

Business Development Representative

240.506.7883

[email protected]

John Lattanzio

Small Business Program Lead

301.519.5378

[email protected]

http://www.pepco.com/business

mailto:[email protected]

http://www.delmarva.com/business


