BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA
Application of NEVADA POWER COMPANY d/b/a NV Energy and SIERRA PACIFIC POWER COMPANY d/b/a NV Energy, seeking approval to add 1,001 MW of renewable power purchase agreements and 100 MW of energy storage Docket No. 18-06___ capacity, among other items, as part of their joint 2019-2038 integrated resource plan, for the three year Action Plan period 2019-2021, and the Energy Supply Plan period 2019-2021
VOLUME 9 OF 18
TECHNICAL APPENDIX DEMAND SIDE PLAN
ITEM DESCRIPTION PAGE NUMBER
DSM-17 Commercial Energy Services - NPC 2
DSM-18 Commercial Energy Services -SPPC 246
DSM-17
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Commercial Incentives NV Energy – Southern Nevada (NPC) Program Year 2017
Measurement and Verification Report March 5, 2018
Prepared for:
Prepared by:
3239 Ramos Circle Sacramento, CA 95827 916-363-8383
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TABLE OF CONTENTS Section Title ...... Page 1. Executive Summary ...... 1 2. Program Background ...... 3 3. M&V Methodology ...... 8 4. Findings from M&V Data Collection and Analysis ...... 23 5. Recommendations ...... 33 Appendix A: Project-Level Analyses ...... 36 Appendix B: Savings per Month by Rate Class...... 227 Appendix C: Calculation Methodology, Critical Peak Demand (kW) Savings ...... 230 Appendix D: Determining Energy (kWh) Savings per Month by Rate Class ...... 234 Appendix E: Procedures for Determining Updated Energy (kWh) Savings ...... 240
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1. EXECUTIVE SUMMARY
This Measurement & Verification (“M&V”) report presents the measured and verified savings for the Commercial Energy Services program that NV Energy implemented in its southern Nevada service territory (also known as the “NPC” service area) during program-year 2017 (PY2017). The program included both retrofit, new construction, non-profit agency grants, and direct install projects.
ADM Associates, Inc. (ADM) was the third-party independent contractor that performed the M&V work. The main features of the approach that ADM used for the M&V effort are as follows. NV Energy’s DSM Central (DSMC) Database, was used as the source of the final, certified, program level data. Total ex ante expected energy (kWh) savings reported for the program in the DSMC database were 136,713,468 kWh. Data with which to verify these savings were collected through review of program materials, on-site inspections, and end-use metering. Based on data provided by NV Energy, a stratified sample design was developed for on-site data collection for the M&V work. ADM used a strata boundary optimization process that minimized variance within individual stratum, leading to a more efficient sample design. The sample design allowed for the measurement and verification of ex post energy (kWh) savings to achieve 7.88% precision at the 90 percent confidence interval. The selected sample included a total of 93 projects, of which 7 were new construction projects, 65 were retrofit projects, 10 were non-profit agency grants, and 11 were direct install projects. The 93 southern Nevada projects in the M&V sample accounted for nearly 44% of ex ante expected energy (kWh) savings. ADM conducted on-site visits to a selected sample sites to verify measure installation and collect primary data for measure operating parameters that impact the ex post determination of energy (kWh) and critical peak demand (kW) savings. During the on- site M&V visits, facility staff were interviewed to determine the operating hours of the installed systems and to identify any additional benefits or shortcomings with the installed systems. For some M&V sample sites, lighting equipment, HVAC equipment or motors/VFDs were monitored to obtain accurate primary data pertaining to operating schedules and other parameters.
The results of the analysis to determine ex post savings are summarized in Table 1-1. The analysis determined that ex post verified energy (kWh) savings for the southern Nevada Commercial Energy Services program totaled 135,176,397 kWh (full-year savings) in PY2017, which gives a realization rate of 98.9%. Verified first-year savings (during calendar-year 2017) totaled 60,980,281 kWh and critical summer peak demand (kW) savings was 15,798 kW.
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Table 1-1. Summary of Energy (kWh) and Summer Critical Peak Demand (kW) Savings
Ex Post First- Ex Post Ex Ante Annual Ex Post Annual Realization Year (2017) Summer Peak kWh Savings kWh Savings Rate kWh Savings kW Savings
60,980,281 136,713,468 135,176,397 98.9% 15,798
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2. PROGRAM BACKGROUND
This chapter provides background information on the Commercial Energy Services (CES) Program that NV Energy offered to commercial customers in its southern Nevada service territory during 2017. It also provides an overview of the measurement and verification methods used to determine ex post savings values for the program.
2.1 DESCRIPTION OF THE COMMERCIAL ENERGY SERVICES PROGRAM
The CES Program offers financial rebates for electric energy-efficiency measures to qualifying commercial applicants. Both retrofit and new construction projects are included in this program.
Under this program prescriptive rebates are available for electric energy efficiency equipment upgrades and improvements; this includes energy efficiency measures for lighting, HVAC, commercial refrigeration and miscellaneous measures. Rebates are provided for qualified equipment installed in a retrofit or as equipment replacement.
The program also offers rebates for custom measures, including most measures that reduce electric energy use that are not included in the program as prescriptive measures. Custom measure rebates are paid based on the ex ante estimated energy savings achieved. Examples of custom measures include chilled water plant control optimization, economizers, light fixture improvements not covered as a prescriptive measure, motor variable speed drives (“VSDs”), etc.
PY2017 was the second year that the Non-Profit Agency Grants (NPAG) program was fully imbedded into the CES Program. NV Energy’s Non-Profit Agency Grants (“NPAG”) program is designed to help non-profit organizations1 reduce their energy consumption and related operating costs by funding weatherization and energy efficiency retrofit projects. Projects may be funded up to $7,500. Grant applications are rated and awarded based on projected electric energy savings measured in kilowatt hours (“kWh”).
Based on project feasibility and estimated energy savings, the 2017 NPAG program awarded grants to 17 organizations for which there were a total of 23 projects. Several organizations completed multiple projects at separate premises. Table 2-1 below summarizes program participation by organization type.
1 As defined under section 501(c)(3) of the Internal Revenue Code
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Table 2-1. NPAG Summary of Participation by Organization Type
Organization Type Number of Grantees Number of Grants Community Services 7 12 Education 1 1 Medical 1 2 Religious 8 8 Total 17 23 The 2017 evaluation was based on data contained in NV Energy’s DSMC database. These data showed that there was a total of 810 projects between the three program components, Commercial Energy Services, Non-Profit Agency Grants, and Small Business Direct Install, implemented in southern Nevada representing ex ante savings of 136,713,468 kWh. Table 2-2 shows the distribution of reported ex ante savings by measure type. Table 2-2. Ex Ante Savings for CES Program, by Measure Type Percent of Ex Ante Expected Program Ex Measure Category (kWh) Savings Ante kWh Savings Custom 27,135,278 19.8% EMC, VSD pool pump &; controls 366,588 0.3% Kitchen Ventilation Controls 625,458 0.5% Lighting per Fixture/Lamp/Watt Controlled 978,174 0.7% Lighting per Watts Reduced 83,166,416 60.8% Performance Based 18,976,407 13.9% PTAC/PTHP 150,383 0.1% Reduced LPD 2,255,339 1.6% Unitary Cooling 46,401 0.0% VSD on HVAC pumps and fans 1,651,119 1.2% Window films 776,653 0.6% NPAG Lighting LED 585,251 0.4% Total 136,713,468 100.0%
Figure 2-1 shows the program ex ante savings by measure start-up month for all projects.
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Figure 2-1. Program Ex Ante Savings (kWh) by Measure Start-up Month
2.2 OVERVIEW OF EVALUATION APPROACH
The overall objective for the M&V work for the CES Program in southern Nevada was to determine the energy savings (kWh) and the summer critical peak demand (kW) reduction resulting from energy efficiency measures installed as part of the program during 2017.
The approach for the M&V work had the following main features: Available documentation (e.g., audit reports, savings calculation work papers, etc.) was reviewed for a sample of projects, with particular attention given to the calculation procedures and documentation for savings calculations. On-site data collection was conducted for a sample of projects to provide the information needed for calculating savings and demand reductions. Monitoring was also conducted at some sites to obtain verified information on measure operating characteristics. For sampled Non-Profit Agency Grant (NPAG) projects, available documentation was first reviewed for completeness and to determine project scope. Telephone interviews were conducted with grantees to verify equipment installation and typical operating hours. Annual kWh savings were determined using industry standard and proven techniques. o Analysis of lighting savings was accomplished through an evaluation model using information on operating parameters collected on-site and, if appropriate, industry standards. o For HVAC measures, the original analyses used to calculate the ex ante savings were reviewed and the operating and structural parameters of the analysis were
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verified. For custom measures or relatively more complex measures, simulations with the DOE-2 energy analysis model were used to develop energy use values and savings from the installed measures. Energy savings curves for each sampled site were developed from site-specific data (daily operating schedules, seasonal operating variation, etc.) o Where uncertainty existed, monitoring data was collected and utilized in development of these energy savings curves. o Energy savings curves for each rate class were developed by combining individual site-specific savings curves weighted by individual site ex post savings. o These energy savings curves were then applied to calculate first year savings, savings per rate class, and critical peak demand savings.
2.3 CONTENTS OF THIS REPORT
This report documents ADM’s efforts in performing the M&V activities for the CES Program in NV Energy’s southern Nevada service territory. This report is organized as follows: Chapter 3 presents and discusses the measurement and verification methods used for this program. Chapter 4 presents the results obtained from determining kWh savings for measures installed under the program. Appendix A provides project-level measurement and verification reports for each project for which data were collected on-site. Appendix B provides kWh and kW savings for the CES Program in the southern Nevada NV Energy service territory per month by rate tariff for the years 2017 through 2020. Appendix C provides a description of ADM’s analytical steps for determining critical peak demand savings per month per rate class. Appendix D provides a detailed description of ADM’s analytical steps for determining energy (kWh) savings per month per rate class. Appendix E provides the methodology for reviewing past projects.
2.4 OUTREACH ACTIVITIES
In addition to the energy savings projects, the implementation contractor provided 36 commercial outreach events to 4,816 of NV Energy’s southern Nevada commercial customers
Program Background 6 Page 10 of 392 Commercial Energy Services: 2017 – NV Energy, Southern Nevada M&V Report March 2018 in support of the Commercial Energy Services Program. A summary of the activity, the number of events, and the number of commercial customers impacted are shown in Table 2-3.2
Table 2-3. Summary of Classes and Outreach Activities Commercial Count of Program Activity Components Customers Events Interacted Commercial Energy Efficiency 29 3,155 Presentations and Booth Events AEE Lunch-and-Learn Events 6 202 Energy Saving Kits 1 1,459 Total 36 4,816
2 A full description of energy education programs and events can be found in the 2017 NPC Energy Education Program Measurement and Verification Report provided separately from this report.
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3. M&V METHODOLOGY
This chapter discusses the approach and methods that ADM used in measuring and verifying ex post annual kWh savings and summer critical peak demand kW reductions that resulted from measures installed in facilities of customers that obtained rebates under the CES Program in southern Nevada during 2017.
3.1 SAMPLING PLAN
Data used to calculate annual kWh savings achieved through the program in southern Nevada were collected for a sample of projects completed during 2017.
Data from the DSMC database showed that there were 810 program projects implemented in southern Nevada during 2017. DNV GL, the implementation contractor for the program, reported ex ante savings that totaled 136,713,468 kWh annually for all projects.
Inspection of ex ante data on kWh savings for individual projects, that was extracted from the DSMC database, showed that the distribution of savings was generally positively skewed, with a relatively small number of projects accounting for a high percentage of the savings. Stratified random sampling was used in the sample design to account for this positive skew and to enable ADM to achieve sampling precision of 10 percent at the 90 percent confidence interval.3 ADM used a strata boundary optimization process that adjusts strata boundaries to minimize variance within each stratum. This process allows for less variation within the stratum and a more efficient sample design.
Table 3-1 below shows the project population statistics that were used in developing the sample plan. This table includes the number of projects and ex ante energy savings of the southern Nevada CES Program sample by stratum. All projects, including direct install lighting, and NPAG, are divided into stratum based on estimated energy savings. Direct install projects accounted for 2.57% of the total ex ante estimated savings while NPAG projects accounted for 0.43%.
3 After subsequently completing the M&V analyses for this program, ADM determined that the actual sampling precision achieved ex post is 7.88 percent at the 90 percent confidence interval.
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Table 3-1. Population Statistics Used for Sample Design Average Standard Number Number Ex Ante Deviation of Sum of Contribution to Stratum of Savings of Ex CV M&V Savings Variance Projects per Ante Sample Project Savings Sites South 1 627 69,191 67,321 0.97 43,383,055 46 3.59E+13 South 2 43 567,845 190,234 0.34 24,417,339 10 5.14E+12 South 3 14 1,608,247 391,459 0.24 22,515,453 7 2.15E+12 South 4 8 3,549,560 657,756 0.19 28,396,476 7 4.94E+11 South 5 2 6,951,201 347,112 0.05 13,902,403 2 0.00E+00 South DI 1 67 20,450 15,003 0.73 1,370,136 4 2.38E+11 South DI 2 26 82,437 49,540 0.60 2,143,355 7 1.73E+11 South NPAG 1 12 17,082 3,089 0.18 204,982 4 2.29E+08 South NPAG 2 8 29,444 4,468 0.15 235,551 3 2.66E+08 South NPAG 3 3 48,239 5,006 0.10 144,718 3 0.00E+00 Totals 810 136,713,468 93 4.41E+13 Relative Precision at 90% Confidence 7.99%
Table 3-2 shows how the ex ante and ex post savings for the 93 projects sampled were distributed across strata. Combined, the sample sites account for 60,780,704 kWh of ex ante savings, approximately 44% of the program total.
Table 3-2. Distribution of Ex Ante kWh Savings for Sampled Projects across Strata
Sample Ex Project Size Stratum Ante Savings Smallest CES South 1 4,120,017 South 2 6,563,363 South 3 11,238,018 South 4 23,859,958 Largest CES South 5 13,902,403 Smallest DI South DI 1 67,580 Largest DI South DI 2 719,216 Smallest NPAG South NPAG 1 68,957 South NPAG 2 96,474 Largest NPAG South NPAG 3 144,718 Total 60,780,704
Sampling for the collection of program M&V data accounted for the M&V effort occurring in real time, during program implementation. Completed projects accumulate during the year as the program is implemented, and sample selection was thus spread over the entire program year. ADM used a near real-time process whereby a portion of the sample was selected periodically as projects
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in the program were completed. The timing of sample selection was contingent upon the timing of the completion of projects during the program year.
3.2 REVIEW OF DOCUMENTATION
After the sample of projects was selected, ADM prepared requests to NV Energy’s program implementation contractor to provide documentation pertaining to those projects. The first step in the evaluation effort was to review this documentation and other program materials that were relevant to the M&V effort.
For each project, the available documentation (e.g., audit reports, savings calculation work papers, etc.) for each rebated measure was reviewed, with particular attention given to the ex ante savings calculation procedures. Documentation that was reviewed included program forms, data bases, reports, billing system data, weather data, and any other potentially useful data. Each application was reviewed to determine whether the following types of information had been provided: Documentation for the new or retrofitted equipment, including descriptions, schematics, performance data, and other supporting information. Information about the methods used to calculate savings, including descriptions of methods used, specifications of assumptions and sources for these specifications, and correctness of calculations.
If there was uncertainty regarding a project or apparently incomplete project documentation, ADM staff contacted the implementation contractor to seek further information to ensure the development of an appropriate project-specific M&V plan.
3.3 ON-SITE DATA COLLECTION PROCEDURES
On-site visits to the sites of the sampled projects were used to collect primary data required for determining ex post savings impacts. Before making an on-site visit to a facility, ADM notified NV Energy in two ways.
For all sites for which there is an NV Energy Major Account Executive (MAE), ADM provided the MAEs with a list of all sites for which ADM planned to schedule M&V activities. This list included the company name, the respective MAE for the customer, the site address or other premise identification. Contact information was also provided for the customer representative that ADM intended to contact to schedule an appointment. For customers with MAEs, ADM typically provided notification at least two weeks prior to contacting customers to schedule M&V visits. Upon request from an MAE, ADM coordinated its scheduling and M&V activities with the MAE. ADM provided NV Energy staff with a list of projects for which ADM planned to schedule M&V activities. This notification to NV Energy staff also served as a request to the implementation contractor for any documentation relating to the projects. This
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list included the company name, the project ID, the site address or other premise identification. Contact information was also included for the customer representative that ADM intended to contact to schedule an appointment. PY2017 was the first year that DNVGL would verify that ADM had the correct contact information for each site, and notified customers that their projects had been selected for M&V.
During an on-site visit, ADM’s field staff accomplished three major tasks: First, field staff verified the implementation status of all measures for which customers received rebates. They verified that the energy efficiency measures were indeed installed, that they were installed correctly and that they still functioned properly. Second, field staff collected the physical data needed to analyze the energy savings that have been realized from the installed improvements and measures. Data was collected using a form that was prepared specifically for the project in question after an in-house review of the project file. A form is used that is comprehensive in addressing a facility's characteristics, modes and schedules of operation, and its electrical and mechanical systems. The form addresses various energy efficiency measures, including high efficiency lighting (both lamps and ballasts), lighting occupancy sensors, lighting dimmers and controls, air conditioning, high efficiency motors, etc. Third, field staff interviewed the contact personnel at a facility to obtain additional information on the installed system to complement the data collected from other sources.
At some sites, monitoring was conducted to gather more information on the operating hours of the installed measures. Monitoring was conducted at sites where it was judged that the monitored data would be useful for refining and improving the accuracy with which savings were calculated. Whenever possible monitoring activities were coordinated with the implementation contractor to allow for simultaneous data collection. This coordination ensures that both ex ante and ex post savings are calculated using identical datasets. Monitoring was not considered necessary for sites where project documentation allowed for sufficiently detailed calculations.
3.4 PROCEDURES FOR DETERMINING KWH SAVINGS FROM MEASURES INSTALLED THROUGH CES PROJECTS
The procedures used to calculate savings resulting from NV Energy’s southern Nevada CES Program projects depended on the type of measure being analyzed. Table 3-3 shows the distribution of ex ante savings for the sampled projects across various categories of energy efficiency measures.
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Table 3-3. Ex Ante Energy Savings for Sample Projects
Sample Savings Ex Ante Sample Ex as Percent of Measure Category Expected Ante Savings Total Expected (kWh) Savings (kWh) Savings Custom 16,263,080 27,135,278 59.9% EMC, VSD pool pump and controls 264,000 366,588 72.0% Kitchen Ventilation Controls 61,256 625,458 9.8% Lighting per Fixture/Lamp/Watt Controlled 235,013 978,174 24.0% Lighting per Watts Reduced 32,007,323 83,166,416 38.5% Performance Based 10,810,158 18,976,407 57.0% PTAC/PTHP 17,330 150,383 11.5% Reduced LPD 47,728 2,255,339 2.1% Unitary Cooling 3,459 46,401 7.5% VSD on HVAC pumps and fans 761,207 1,651,119 46.1% Window films 0 776,653 0.0% NPAG Lighting LED 310,149 585,251 53.0% Total 60,780,704 136,713,468 44.5%
ADM used a specific set of methods to determine annual kWh savings for projects that depended on the type of measure being analyzed. These typical methods are summarized in Table 3-4. Project-specific information on savings calculations is contained in Appendix A, which also describes analytical strategies for projects for which the following strategies were not appropriate.
Applying the methods listed in 4 produced two assessments of annual kWh savings for each sample project: an ex ante savings estimate (as reported in the project documentation and program tracking system) and the ex post verified gross savings developed through the M&V procedures employed by ADM.
Energy savings realization rates were calculated for each project for which on-site data collection and engineering analysis/building simulations were conducted. Sites with relatively high or low realization rates were further analyzed to determine the reasons for the discrepancy between ex ante and ex post energy savings. In general, the primary differences between ex ante and ex post energy savings are due to differing analysis methodology for those projects that are eligible for prescriptive measures. ADM uses site specific data to inform ex post savings estimates and these site-specific data often vary from the data used to develop prescriptive ex ante estimates. More detailed information on how realization rates were achieved for such sites is included in the site- level M&V analyses for each project that are included in Appendix A.
The following discussion describes the basic procedures used for calculating ex post verified savings from various measure types. Project-specific information on savings calculation is contained in Appendix A.
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Table 3-4. Typical Methods to Determine Savings for Custom Measures
Type of Measure Method to Determine Savings
ADM’s custom-designed Lighting Evaluation Model, which uses data Lighting on wattages before and after installation of measures and hours-of-use data from either site contact interviews or field monitoring.
ADM uses several methods including (1) an equivalent full load hour method to calculate savings resulting from HVAC measures. HVAC (including packaged Equivalent full load hours are derived using eQuest models developed units, chillers, cooling for each territory using corresponding weather files. (2) Simulations towers, controls/EMS) with eQuest engineering analysis model, with monitored data. (3) Billing history econometric analysis.
Motors and VFDs Measurements of power and run-time obtained through monitoring.
Simulations with eQuest engineering analysis model, with monitored Refrigeration data.
Manufacturing or Process Engineering analysis, with monitored data on load factor and a Improvements schedule of operation and production data provided by the customer.
ADM performs desk reviews of project documentation and on-site Small Business Direct Install inspections of selected sites to verify claimed fixture counts, wattages, and hours of use are accurate.
All NPAG projects selected in the sample received a thorough desk review of project documentation. Telephone surveys are also Non-profit agency grants conducted with grantees to verify project scope and hours of operation.
Methods for Analyzing Savings from Lighting Measures
Lighting measures that were examined included the retrofit of existing fixtures, lamps and/or ballasts with energy efficient fixtures, or lamps and/or ballasts. These types of measures reduce demand, while not affecting operating hours. Lighting control strategies that might include the addition of energy conserving control technologies such as motion sensors or day-lighting or dimming controls were also examined. These measures typically involve a reduction in hours of operation and/or reduced fixture wattage during some hours of operation.
Analyzing the savings achieved by such lighting measures requires data for the retrofitted fixtures on (1) wattages before and after the retrofit and, (2) hours of operation before and after the retrofit. Fixture wattages are taken from a table of standard wattages, with corrections made for non- operating fixtures. When appropriate, to improve calculations, hours of operation are determined from metered data collected after measure installation for a sample of fixtures.
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To determine baseline and post-retrofit demand values for the lighting efficiency measures, ADM used in-house data on standard wattages of lighting fixtures and ballasts developed from lighting industry sources. This lighting data provides information on wattages for common lamp and ballast combinations.
As noted, ADM collects data with which to determine average operating hours for retrofitted fixtures by using Time-of-Use (TOU) data loggers to monitor a sample of “last points of control” for unique usage areas in the sites where lighting efficiency measures had been installed. Usage areas are defined to be those areas within a facility that are expected to have comparable average operating hours. For commercial customers, expected usage areas include such areas as office space, hallways/stairways, and storage areas. Typical usage areas are designated in the forms used for data collection.
ADM uses pre-fixture baseline demand, retrofit demand, and appropriate post-retrofit operating hours to calculate peak capacity savings and annual energy savings for sampled fixtures of each usage type. The on-off profile and the fixture wattages are used to calculate post-retrofit kWh usage. ADM calculates annual energy savings for each sampled fixture per the following formula: