Oklahoma Gas and Electric Company Oklahoma demand programs annual report

              Oklahoma Gas
and
Electric Company
2010 Oklahoma Demand Programs Annual Report
Per Annual Reporting Requirements
Title 165: Oklahoma Corporation Commission
Chapter 35. Electric Utility Rules
Subchapter 41. Demand Programs
165:35-41-7. Reporting
June 1, 2011
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Oklahoma Gas and Electric Company
0 TABLE OF CONTENTS
1.0 Executive Summary 3
2.0 Portfolio Impact 7
3.0 Portfolio Programs 13
3.1 Low Income Weatherization Program 14
3.2 Fixed Income Weatherization Program 20
3.3 Home Energy Efficiency Program 26
3.4 Positive Energy – New Home Construction Program 31
3.5 Geothermal Heating Cooling and Water Heating Program 34
3.6 Commercial Lighting Program 37
3.7 Commercial/Lighting Standard Offer Program 40
3.8 Energy Efficiency Education Program 44
3.9 Research and Development of EE Projects 48
3.9a OG&E Solar Inverter Proof of Concept Project 48
3.9b OG&E Ground Source Heat Pump Research Project 50
4.0 Evaluation, Measurement and Verification 52
4.1 EM&V Overview 53
4.2 Program Evaluation 54
Fixed and Low-Income Weatherization Program 54
Home Energy Efficiency Program 56
Positive Energy New Home Construction Program 57
Geothermal Heating, Cooling, and Water Heating Program 58
Commercial Lighting Program 60
C&I Standard Offer Program 61
Education Programs 62
5.0 Supplemental Information 64
5.1 Training 65
6.0 Appendix 80
6.1 Evaluation, Measurement and Verification Details 81
6.2 Annual Report of Cost Effectiveness Demand Programs 252
6.3 Survey Results - Weatherization & HEEP Program 266
7.0 Demand Response Program – Load Reduction 270 3
Oklahoma Gas and Electric Company
1.0 Executive Summary
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Oklahoma Gas and Electric Company
Executive Summary
OG&E is pleased to present to the Oklahoma Corporation Commission, The Comprehensive Demand Program Portfolio annual report for 2010. This is required to be filed by June 1, 2011 per Annual Reporting Requirements Title 165: Oklahoma Corporation Commission Chapter 35. Electric Utility Rules Subchapter 41. Demand Programs 165:35-41-7.
OG&E’s demand and energy savings goals for 2010, as filed and approved by the Oklahoma Corporation Commission Cause No. PUD 200900200 and approved by Order No. 573419, were 11,941 kW and 45,492,053 kWh; representing a budget of $15,401,538. The 2010 actual results achieved for demand and energy savings are 10,485 kW; 47,473,097 kWh; representing a cost of $12,576,019.
HISTORY:
OG&E began implementation of the Demand Program in July 2008. The initial program was known as the Quick-Start Program. This portfolio contained seven programs, and continued through December 31, 2009. Quick Start allowed OG&E to build a framework to deliver programs to over 700,000 customers in the Oklahoma jurisdiction. The Comprehensive Demand Program was approved and implemented on February 10, 2010. The Comprehensive Demand programs will remain effect through December 31, 2012.
DEMAND & ENERGY SAVINGS:
The 2010 portfolio produced 104% of the energy savings goal and 88% of demand savings goal. These on-going energy savings will accumulate over the life of the measures.
EXPENDITURES:
The Demand Program expenses of $12,576,019 for 2010 were 82% of the approved annual budget of $15,401,538. $11,671,166 of the $12,576,019 was spent on inducements and $904,853 for administrative expenses.
IMPLEMENTATION:
OG&E had two existing employees working in the Quick Start Program and they have continued to work in the Comprehensive Demand Program. Due to a restructuring within the company an additional six rate based employees were assigned over to manage the Comprehensive Demand Program Portfolio. In order to begin implementation of the Residential Thermal Efficiency program known as HEEP (Home Energy Efficiency Program), an RFP was issued and a turnkey contractor (CLEAResults) was selected. Frontier Associates created a data base (EnerTrek) for data collection for weatherization, Direct Options created an on line commercial lighting input form for our customers and contracts were executed for two weatherization contractors that work low and fixed income weatherization.
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Oklahoma Gas and Electric Company
EVALUATION, MEASUREMENT & VERIFICATION:
Global Energy Partners was selected to perform the EM&V for the programs. Over the course of the 3 year program period they will perform a detailed process evaluation and a detailed impact evaluation on each of the programs. Included in this report are the process and impact evaluations and associated recommendations from Global Energy Partners for Program year 2010. The cost for the EM&V work performed in 2010 was $101,170. Global Energy Partners provided findings and recommendations on all of the programs. There were several references to data collection issues that are being addressed. In addition Global pointed out that in the testimony for low and fixed income weatherization, not all measures were being installed and the energy and demand savings per home were not being achieved. Early on in the program, OG&E realized not all measures were being installed and thus the deemed savings was claimed only on the measures installed. In commercial lighting Global stated that OG&E under estimated the actual savings.
LOST REVENUE:
As part of the approved Comprehensive Demand Programs, OG&E is allowed to recover “lost revenue” for all of the Demand programs with the exception of the education program, although OG&E believes energy education is very important, the Company agreed not to collect lost revenues for the education program. OG&E has reported $2,844,902 in lost revenues for the demand programs during 2010.
INCENTIVE:
OG&E was able to earn an incentive on the amount of energy efficient reductions that were obtained. This incentive was calculated using the Total Resource Cost Test (TRC) for each program, OG&E was allowed to earn a shared incentive of 15%, based on the net benefit TRC of the programs and the program costs. During 2010, OG&E earned $2,727,818 in incentive payments. However, in the Settlement Agreement reached in Cause No. PUD 200900200 the incentive was capped at $2,700,000 for 2010.
RESOURCE PLANNING:
The demand reduction in this portfolio is part of the Integrated Resource Plan (IRP). The results from the Demand programs are an integral part of the Company’s future capacity planning needs. They are included in the integrated Resource Plan (IRP). Every 3 years, OG&E develops demand response programs based on customer needs and dollars available in order to meet the Company’s growing energy demands.
RESULTS:
OG&E believes that the Comprehensive Demand Programs were very successful in 2010. Each program appeared to be properly staffed and most of the programs were properly budgeted. The commercial lighting program had better than expected participation. The fixed income weatherization program started slow. As the word spread of the savings available from participation, the number of customers grew. By year’s end, the anticipated number of fixed income customers weatherized had exceeded the annual budgeted amount. The geothermal program has less participation than expected; this market appears to be a market for high end homes owners or customers that could take advantage of the tax credit.
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Oklahoma Gas and Electric Company
COST EFFECTIVENESS:
OG&E is required annually to provide the Oklahoma Corporation Commission with an update to the Cost Effectiveness of each of the demand programs. OG&E engaged Frontier Associates to provide this analysis. Based on Frontier Associates new calculations, the report shows that all programs continue to be cost effective and the results of the Total Resource Cost Test show the present value net benefits to be $39,178,820; $26,302,560 from Commercial/Industrial and $12,876,260 Residential.
CONCLUSION:
The Comprehensive Program was approved February 10, 2010, for a 3 year term for calendar years 2010 through 2012. The Demand Program Portfolio performed very well in 2010. Due to the restructuring at OG&E the programs started off slow, but gained momentum throughout the year. Through survey results and customer appreciation notes received, our customers had been very appreciative of our weatherization efforts. The HEEP program has allowed OG&E to educate our customers on energy efficiency in their homes. The commercial lighting program was very well accepted, but will have to be shut down in 2011 unless additional funds can be obtained. The Standard Offer Program (SOP) was targeted at Industrial Customers, however many industrial customers opted out and the commercial sector benefited through the installation of geothermal units and HVAC change outs. The amount of energy saved by the comprehensive demand programs is enough electricity to power 3600 homes annually. OG&E expects to continue with the same momentum in 2011.
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Oklahoma Gas and Electric Company
2.0 Portfolio Impact
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Oklahoma Gas and Electric Company
Table 1 summarizes the expenditures for 2010. Please note that in 2010 money was budgeted for the research and development project but no money was actually spent. The R&D projects were in the planning stages.
TABLE 1
Table 2 below is a summary of the money spent by program in 2010.
TABLE 2
BudgetActualType%($)($)%Inducements90%13,422,11511,671,16687%Administration10%1,479,423904,85313%Subtotal100%14,901,53812,576,019100%Research & Development100%500,00000%Demand Programs Portfolio Summary by Cost TypeProgram Cost Summary2010 Total Cost% ofProgramProgramBudgetActualFundsNameNumberProgram TypeMarket($)($)UsedLow Income Weatherization1WeatherizationRes (All)#6,568,0806,094,49892.79%Fixed Income Weatherization2WeatherizationRes (All)#1,824,1032,447,710134.19%Residential HEEP3HVAC Inspection or Tune-upRes (Single-Family)#3,422,2221,410,05641.20%Positive Energy Home4New Construction- IncentivesRes (Single-Family)#133,247115,45586.65%Geothermal HVAC5HVACRes (Single-Family)#833,333146,80517.62%Commercial Lighting6LightingSmall C&I (All)#656,4361,116,052170.02%Standard Offer Program - C&I7Custom and BundledSmall C&I (All)#322,818164,96651.10%Education8Energy Audit or EvaluationRes (All)#1,141,2991,080,47794.67%Research & Development-Research & Development-#500,00000.00%Total15,401,53812,576,01981.65%Demand Programs Portfolio Summary by Program20109
Oklahoma Gas and Electric Company
Table 3 below shows the inducements paid by program for 2010.
Table 3
Table 4 below shows a breakdown of the administration costs for 2010
Table 4
Demand Programs Inducements by ProgramProgram NameBudgetActual% of Funds Low Income Weatherization5,911,272$ 5,881,907$ 99.50%Fixed Income Weatherization1,641,693$ 2,361,246$ 143.83%Residential HEEP3,080,000$ 1,126,741$ 36.58%Positive Energy Home119,922$ 113,850$ 94.94%Geothermal HVAC750,000$ 145,275$ 19.37%Commercial Lighting590,792$ 1,045,840$ 177.02%Standard Offer Program290,536$ 162,830$ 56.04%Education1,037,900$ 833,477$ 80.30%Totals13,422,115$ 11,671,166$ 86.95%Demand Programs Administration CostsAdmin CostsBudgetActual% of Funds UsedEM&V398,440$ 101,170$ 25.39%Marketing98,406$ 267,639$ 271.97%Printing14,500$ 25,234$ 174.02%Professional Services132,000$ 611,981$ 463.62%Employee Expenses48,000$ -$ 0.00%Labor800,000$ -$ 0.00%Total1,491,346$ 904,854$ 60.67%10
Oklahoma Gas and Electric Company
Table 5 below shows the kWh, kW and the dollars spent on the Comprehensive Demand Programs in 2010. Variance explanations for each program are listed on the next page.
TABLE 5
Note: R&D projects are not included in these totals.
kWh% ofProgramBudgetActualGoalLow Income Weatherization15,073,1818,242,91555%Fixed Income Weatherization4,185,6553,108,23674%Residential HEEP4,648,919649,32914%Positive Energy Home187,602173,30292%Geothermal HVAC3,239,039627,55619%Commercial Lighting10,778,00029,754,696276%Standard Offer Program - C&I7,379,6574,917,06367%Education00-Total45,492,05347,473,097104%DEMANDkW% ofProgramBudgetActualGoalLow Income Weatherization3,120.001,742.8256%Fixed Income Weatherization866.00785.2491%Residential HEEP3,284.00983.1530%Positive Energy Home135.00124.6892%Geothermal HVAC791.00153.2619%Commercial Lighting2,757.005,991.13217%Standard Offer Program - C&I988.00704.3471%Education0.000.00-Total11,941.0010,484.6288%BUDGETBudgetActual% ofProgram($)($)GoalLow Income Weatherization6,568,0806,094,49893%Fixed Income Weatherization1,824,1032,447,710134%Residential HEEP3,422,2221,410,05641%Positive Energy Home133,247115,45587%Geothermal HVAC833,333146,80518%Commercial Lighting656,4361,116,052170%Standard Offer Program - C&I322,818164,96651%Education1,141,2991,080,47795%Regulatory 00-Total14,901,53812,576,01984%20102010Energy SavingskWhkW11
Oklahoma Gas and Electric Company
Explanations of Demand Program Variances
Low Income Weatherization-
55% - kWh Energy Savings 56% KW Demand Savings 93% Budget Spent
There were 9 weatherization impact measures for the program. One of the largest impact measures was duct sealing, the duct sealing was being performed however, since a duct blaster test was not being performed only a small fraction of the duct sealing saving was being accounted for under infiltration. Modifications are being made to the data base and duct blaster tests are going to be performed on approximately 100 homes to create a statically valid deemed savings value. Due to the cost of the duct blaster test, creating a value representative of all homes should be sufficient and the money that would have been spent on testing can be utilized to weatherize additional homes.
Fixed Income Weatherization-
74% - kWh Energy Savings 91% KW Demand Savings 134% Budget Spent
See explanation above under Low Income Weatherization. In addition, this program gained momentum after the initial promotion by word of mouth, causing this program to exceed the 2010 program budget.
Residential HEEP-
14% - kWh Energy Savings 30% KW Demand Savings 41% Budget Spent
The HEEP program required large upfront costs to get the program rolled out. The savings both in energy and demand are accounted for from the A/C tune-ups and duct repairs. A/C tune-ups can only be performed when the temperature is above 70:, due to the late roll-out only a minimal number of tunes were performed in 2010.
Positive Energy Home-
92% - kWh Energy Savings 92% KW Demand Savings 87% Budget Spent
This program is on track and under budget.
Geothermal HVAC-
19% - kWh Energy Savings 19% KW Demand Savings 18% Budget Spent
This program is on track for the amount of energy and demand savings claimed verse money spent. The high upfront cost continues to be a barrier for customers.
Commercial Lighting-
276% - kWh Energy Savings 217% KW Demand Savings 170% Budget Spent
This program was established during the Quick Start Program and has gained wide acceptance with our customers. This program will have to be discontinued in June 2011 unless additional funds can be made available.
Standard Offer Program-
67% - kWh Energy Savings 71% KW Demand Savings 51% Budget Spent
This program is on track and under budget for 2010. The niche market for this program has become the commercial geothermal installations and HVAC equipment upgrades. Due to a restructuring at 12
Oklahoma Gas and Electric Company
OG&E, a sales consultant was not put in place until May 2010. With the current projects in the pipeline, this program will be at the 2 year budgeted spend by the end of 2011.
Chart 1 shows the kW savings by program. 61% of the kW savings for 2010 was from the commercial lighting sector followed by 26% from low income and fixed income weatherization.
CHART 1
Low Income Weatherization18%
Fixed Income Weatherization8%
HEEP -RTE*3%
PE -New Home Construction1%
Geothermal (TONS)2%
Commercial Lighting61%
C&I Standard Offer Program7%
KW13
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3.0 Portfolio Programs 14
Oklahoma Gas and Electric Company
3.1 Low Income Weatherization Program
3.1.1 Program Description
The OG&E Oklahoma Low Income Weatherization Program is a comprehensive long term energy efficiency program targeted to Oklahoma OG&E residential customers that allows the customer to participate in programs to assist in managing energy costs and to begin to be able to utilize price response tariffs. The program targeted OG&E Oklahoma residential customers who own, rent, or lease their home, built prior to 2000, and who have incomes at or below 200% of the Federal Poverty Guidelines, or are owners of multifamily units whose population rental units are 75% occupied by customers certified as Hard-to-Reach per program guidelines. The program is designed to improve the thermal envelope of the dwelling and the use of energy efficient appliances.
OG&E views the Oklahoma Low Income Weatherization Program as a key component in the DSM area. Two contractors, Skyline Energy Solutions and Titan ES, Inc., were chosen to help implement the program. Both contractors received training from OG&E on program requirements, as well as training on EnerTrek® the on-line database provided and supported by Frontier Associates. EnerTrek® is used to record contractor inputs for each home, which resulted in capturing actual kW and kWh savings by measure. OG&E partnered with several agencies to provide weatherization leads for the Oklahoma Low Income Weatherization Program., including Urban League of Greater OKC and Oklahoma Association of Community Action Agency. OG&E also partnered with Central Oklahoma Habitat for Humanity and Rebuilding Together, which enabled these non-profit agencies to provide weatherization services to qualified OG&E customers, based on OG&E’s Program requirements. OG&E also partnered with Whirlpool Corporation for EnergyStar refrigerators for qualified customers. Oklahoma Low Income Weatherization Program presentations were made by OG&E member to civic organizations, senior citizens groups, and to church groups throughout the OG&E Oklahoma territory, informing customers of the program.
Contractors started weatherizing homes in late February 2010 in the OG&E Oklahoma service area and completed 3,085 homes as of December 31, 2010. Contractor crews installed key weatherization measures in the homes to upgrade them to energy efficient standards. One of the measures, solar screens, was not fully utilized in program. This was due in part to the consumer not wanting to change the aesthetics of their home and this was not a permanent solution to the problem of solar infiltration. Wall insulation was also not fully utilized in the program, due to the measure being costly to perform and stay within the budgeted dollars. Blower door testing was utilized in each home providing a measurable air leakage reduction, which enabled the Program to capture actual kW and kWh reductions for CFM reduction. Some of the measures installed included: ceiling insulation, air infiltration, caulking, weather- stripping, window pane replacement, door replacement, refrigerator replacement, window unit replacement, compact fluorescent lighting, duct and plenum repair, return air cavity sealing, CO detectors, smoke detectors, water heater blankets, HVAC tune-ups.
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Oklahoma Gas and Electric Company
OG&E continues to audit the Program in the field on a regular basis to ensure that proper installation procedures and safety standards are followed. Contractors are encouraged to attend and receive additional training for improvements in proper home weatherization methods.
3.1.2 Program Highlights
 The Oklahoma Low Income Weatherization Program was launched February 10, 2010.
 OG&E weatherized 3,086 homes during 2010 at an average cost of $2,011 per home.
 Deal Construction, a contractor in the Oklahoma Quick Start program, failed to report 111 homes for 2009, resulting in charges incurred in the Oklahoma Low Income Weatherization 2010 program year. The number of homes weatherized, kW and kWh deemed savings will be reported in 2011.
 Online database EnerTrek®, provided and supported by Frontier Associates, was implemented to capture customer information including actual kW and kWh savings by measure installed.
 OG&E weatherized its first low income apartment complex for OKC Housing Authority.
3.1.3 Program Budget, Savings and Participation
TABLE 5
 The actual savings realized for each low income home was calculated using EnerTrek®, an online database provided and supported by Frontier Associates, which provided actual kW and kWh savings per measure.
 OG&E weatherized 3,086 homes for an annual kWh savings of 8,242,915 and an annual demand savings of 1,743 kW. These annual savings have an average life of 15 years for a lifetime energy savings of 123,643,725 kWh.
3.1.4 Program Events and Training
Highlights of Events:
 Training events during the year included updates to the contractors on weatherization procedures and database enhancements for capturing customer information.
 Civic and community presentations, promoting the OG&E Weatherization Program, were conducted by OG&E member throughout OG&E’s service area.
 OG&E participated in Weatherization Day at the Community Action Agency of OKC.
Annual
Actual
% of
Demand
Energy*
Demand
Energy*
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$6,568,080
$6,094,498
95%
3,120.00
15,073,181
1,742.82
8,242,915
56%
55%
3,000
3,086
0
103%
*Lifetime Savings
Low Income Weatherization
Participants
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 16
Oklahoma Gas and Electric Company
 OG&E performed post inspections on a random sample of weatherized homes on a monthly basis for completion, proper application, and verification of work performed.
 OG&E weatherized its first low income apartment complex this year -- the OKC Housing Authority.
 Training events during the year included updates to the contractors on weatherization procedures and database enhancements for capturing customer information.
 Online database EnerTrek®, provided and supported by Frontier Associates, was implemented to capture customer information, including actual kW and kWh savings by measure installed.
 OG&E produced two educational weatherization DVD’s for customers: 1) Part One-“Be Prepared” , what to expect before weatherization. DVD’s were mailed to those that had signed up for the program to let them know who the contractors were. Early in the program we were experiencing a low response and felt this would help the customer identify our contractors when they called to set up an appointment. 2) Part Two-“More Ways to Save” was given to the customer after weatherization, which included tips on additional no-cost or low cost ways to save. We have discovered that most of our Low Income customers do not watch the DVD.
 OG&E created a Weatherization pocket folder that was given to the customer, which included the Part Two DVD, 12-Month To Do List brochure with additional tips, OG&E PowerPlus brochure with additional services offered by OG&E, a Smart Grid brochure explaining the new smart meter technology, Who to Call with products, services, and OG&E contact numbers, and an insert explaining the weatherization programs.
 OG&E implemented ID badges and uniforms as a safety and security feature for the weatherization contractors and crews. This provided the customer a way of identifying the weatherization crews as contractors for OG&E. This has been received extremely well by our customers.
 Civic and community presentations promoting the OG&E Weatherization Program were conducted by OG&E member throughout OG&E’s service area. (see Training section – external and internal)
 OG&E partnered with the Urban League of OKC to provide weatherization leads. OG&E pays $50 for each lead.
 OG&E partnered with two Community Action Agencies to provide leads for weatherization. OG&E pays $50 for each lead.
 Participated in Weatherization Day at the Community Action Agency of OKC. OG&E had a table top booth at the event, handed out brochures on weatherization and other DSM programs, and discussed OG&E’s Weatherization Program with individuals.
 OG&E performed post inspections on weatherized homes on a monthly basis for completion, proper application, and verification of work performed.
Program and member Certification:
 OG&E members received certification on EPA-HUD curriculum for Lead Safety for Renovation, Repair, and Painting Certification.
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Oklahoma Gas and Electric Company
Training
EXTERNAL TRAINING (contractors, trade allies, consumer groups, etc.)
Date
Class Name
Class Description
Training Location
Sponsor
# attendees (A)
3/30/2010
Blower Door Training
Train contractors on blower door procedures
OKC
OG&E
10
4/15/2010
EnerTrek Training
Training on EnerTrek database
OG&E
Frontier
10
4/17/2010
Live Earth Eco Festival
Promoting DSM program portfolio
Remington
OG&E
10
4/29/2010
Contractor training
Weatherization Techniques and forms
Pauls Valley-Skyline Energy Solutions
OG&E
35
10/15/2010
Weatherization procedures
Review weatherization methods, forms
Pauls Valley-Skyline Energy Solutions
OG&E
8
10/20/2010
Weatherization Day at CAA
Tabletop display
Community Action Agency in OKC
Community Action Agency in OKC
40
12/6/2010
EnerTrek Training
EnerTrek database training for recording weatherization inputs
OG&E
OG&E
4
INTERNAL TRAINING (Utility or Administrator Staff)
Date
Class Name
Class Description
Training Location
Sponsor
# attendees (A)
1/26/2010
Lead Safe Work Practices
Lead Safety for Renovation
City Office
City of Ft Smith
23
3/10/2010
Deemed Savings
Review deemed savings
OG&E
Frontier
5
4/28/2010
EnerTrek database
inputs for online database
OG&E
Frontier
6
12/2/2010
Infrared Camera Training
How to use the IR camera
Energy Technology Center
OG&E
6
12/4/2010
Renewable Energy Sources and the Smart Grid course
Alternative energy sources
OG&E
Bismark State College
1
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Oklahoma Gas and Electric Company
3.1.5 Challenges and Opportunities
Initially, OG&E was accepting leads from customers on OG&E’s LIAP rate. Once this list was exhausted, OG&E made some procedural in-house adjustments to qualify customers based on the 2010 Federal Poverty Guidelines, which changes annually. OG&E removed the requirement to reside at the residence at least 12 months in order to make the program available to a broader base of low income residential customers. Additionally, OG&E partnered with several agencies to obtain qualified leads. OG&E has been able to maintain a steady pace in obtaining and qualifying customers.
An additional challenge the Oklahoma Low Income Program has experienced is the number of unvented combustion space heaters. Due to health and safety, OG&E will not weatherize a home that has unvented combustion space heaters as its main source of heat. The customer may qualify for the program but the home may not qualify due to program restrictions such as this.
3.1.6 Outlook for Continuation, Expansion, Reduction or Termination
The OG&E Weatherization Program showed growth by performing more assessments in 2010 than the prior 18 months of the Quick Start Program. Using the Quick Start to launch this program showed that the program will be able to provide good opportunities for 2011.
3.1.7 Planned or Proposed Changes to Program and Budget
OG&E plans on implementing the duct tool within the EnerTrek® database to capture actual kW and kWh savings associated with this measure. The Duct Blaster is used to record duct air tightness measurements that are used to diagnose and demonstrate leakage problems, estimate efficiency losses from duct leakage, and certify compliance with duct leakage standards such as California's Title 24 Building Energy Efficiency Standards. The tool will be available in 2011.
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3.1.8 Program Evaluation:
OG&E Low Income Weatherization Program
Ten percent of the homes that were weatherized under the OG&E Oklahoma Low Income Weatherization program received a post weatherization inspection. All of the post inspections were performed by the OG&E Program Managers. The selection process was purely random, selecting homes weatherized by OG&E contractors. The inspection process involved a walk-through of the home to visually inspect the stated weatherization services that were listed on the invoice and to ensure weatherization work was properly performed.
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3.2 Fixed Income Weatherization Program
3.2.1 Program Description
The OG&E Oklahoma Fixed Income Weatherization Program is a comprehensive long term energy efficiency program targeted to Oklahoma OG&E residential customers that allows the customer to participate in programs to assist in managing energy costs and to begin to be able to utilize price response tariffs. The program targeted Oklahoma OG&E residential customers who own their own home, that is single-family, site built, owner-occupied, built prior to 2000, and who have incomes at or below $35,000, and who are age 65 or older. A “Fixed Income Customer” is a customer whose income has minimal variance during a given time period. These customers typically have relatively limited discretionary income or have little financial freedom to make large expenditures. The program is designed to improve the thermal envelope of the dwelling and the use of energy efficient appliances.
OG&E views the Oklahoma Fixed Income Weatherization Program as a key component in the DSM area. Two contractors, Skyline Energy Solutions and Titan ES, Inc., were chosen to help implement the program. Both contractors received training from OG&E on program requirements, as well as training on EnerTrek® the on-line database provided and supported by Frontier Associates. EnerTrek® is used to record contractor inputs for each home, which resulted in capturing actual kW and kWh savings by measure. OG&E partnered with several agencies to provide weatherization leads for the Oklahoma Fixed Income Weatherization Program., including Urban League of Greater OKC and Oklahoma Association of Community Action Agency. OG&E also partnered with Central Oklahoma Habitat for Humanity and Rebuilding Together, which enabled these non-profit agencies to provide weatherization services to qualified OG&E customers, based on OG&E’s Program requirements. OG&E also partnered with Whirlpool Corporation for EnergyStar refrigerators for qualified customers. Oklahoma Fixed Income Weatherization Program presentations were made by OG&E member to civic organizations, senior citizens groups, and to church groups throughout the OG&E Oklahoma territory, informing customers of the program.
Contractors started weatherizing homes in late February 2010 in the OG&E Oklahoma service area and completed 1,252 homes as of December 31, 2010. Contractor crews installed key weatherization measures in the homes to upgrade them to energy efficient standards. One of the measures, solar screens, was not fully utilized in program. This was due in part to the consumer not wanting to change the aesthetics of their home and this was not a permanent solution to the problem of solar infiltration. Blower door testing was utilized in each home providing a measurable air leakage reduction, which enabled the Program to capture actual kW and kWh reductions for CFM reduction. Some of the measures installed included: ceiling insulation, air infiltration, caulking, weather- stripping, window pane replacement, door replacement, refrigerator replacement, window unit replacement, compact fluorescent lighting, duct and plenum repair, return air cavity sealing, CO detectors, smoke detectors, water heater blankets, HVAC tune-ups.
OG&E continues to audit the Program in the field on a regular basis to ensure that proper installation procedures and safety standards are followed. Contractors are encouraged to attend and receive additional training for improvements in proper home weatherization techniques. 21
Oklahoma Gas and Electric Company
3.2.2 Program Highlights
 The Oklahoma Fixed Income Weatherization Program was launched February 10, 2010.
 OG&E weatherized 1,252 homes in 2010 at an average cost of $1,973 per home.
 Civic and community presentations highlighting the program were conducted by OG&E member throughout the service area served by OG&E promoting the Oklahoma Fixed Income Weatherization Program. These presentations were well received throughout the OG&E service area.
3.2.3 Program Budget, Savings and Participation
TABLE 6
 The actual savings realized for each Fixed Income home was calculated using EnerTrek®, OG&E weatherized 1,252 homes for an annual kWh savings of 3,108,236 and annual demand savings of 785 kW. These annual savings have an average life of 15 years for a lifetime energy savings of 46,623,540 kWh.
3.2.4 Program Events and Training
Highlights of Events:
 Training events during the year included updates to the contractors on weatherization procedures and database enhancements for capturing customer information.
 Online database EnerTrek®, provided and supported by Frontier Associates, was implemented to capture customer information, including actual kW and kWh savings by measure installed.
 OG&E produced two educational weatherization DVD’s for customers: 1) Part One-“Be Prepared” , what to expect before weatherization. DVD’s were mailed to those that had signed up for the program to let them know who the contractors were. Early in the program we were experiencing a low response and felt this would help the customer identify our contractors when they called to set up an appointment. 2) Part Two-“More Ways to Save” was given to the customer after weatherization, which included tips on additional no-cost or low cost ways to save. We have discovered that most of our Fixed Income customers do not have a DVD player to watch the DVD.
 OG&E created a Weatherization pocket folder that was given to the customer, which included the Part Two DVD, 12-Month To Do List brochure with additional tips, OG&E PowerPlus brochure with additional services offered by OG&E, a Smart Grid brochure explaining the new smart meter
Annual
Actual
% of
Demand
Energy*
Demand
Energy
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$1,824,103
$2,447,710
136%
866.00
4,185,655
785.24
3,108,236
91%
74%
833
1,252
0
150%
*Lifetime Savings
Fixed Income Weatherization
Participants
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 22
Oklahoma Gas and Electric Company
technology, Who to Call with products, services, and OG&E contact numbers, and an insert explaining the weatherization programs.
 OG&E implemented ID badges and uniforms as a safety and security feature for the weatherization contractors and crews. This provided the customer a way of identifying the weatherization crews as contractors for OG&E. This has been received extremely well by our customers.
 Civic and community presentations promoting the OG&E Weatherization Program were conducted by OG&E member throughout OG&E’s service area. (see Training section – external and internal)
 Participated in Weatherization Day at the Community Action Agency of OKC.
 OG&E performed post inspections on weatherized homes on a monthly basis for completion, proper application, and verification of work performed.
Program and Member Certification:
OG&E member received certification on EPA-HUD curriculum for Lead Safety for Renovation, Repair, and Painting Certification.
Training
EXTERNAL TRAINING (contractors, trade allies, consumer groups, etc.)
Date
Class Name
Class Desc
Training Location
Sponsor
# attendees (A)
3/30/2010
Blower Door Training
Train contractors on blower door procedures
OKC
OG&E
10
4/15/2010
EnerTrek Training
Training on EnerTrek database
OG&E
Frontier
10
4/17/2010
Live Earth Eco Festival
Promoting DSM program portfolio
Remington
OG&E
10
4/29/2010
Contractor training
Weatherization Techniques and forms
Pauls Valley-Skyline Energy Solutions
OG&E
35
10/15/2010
Weatherization procedures
Review weatherization methods, forms
Pauls Valley-Skyline Energy Solutions
OG&E
8
10/20/2010
Weatherization Day at CAA
Tabletop display
Community Action Agency in OKC
Community Action Agency in OKC
40
11/11/2010
Seminar for Seniors
Weatherization
Drumright First Baptist Church
OG&E
30
12/6/2010
EnerTrek Training
EnerTrek database training for recording weatherization inputs
OG&E
OG&E
4
10/21/10
DSM/Energy Tips
Agency board requested presentation
Oklahoma County Senior Nutrition Program Site Manager's Meeting
OG&E
20
11/01/10
DSM/Energy Tips
Promote Weatherization program
Spencer Nutrition Site
OG&E
26
11/29/2010
DSM/Energy Tips
Promote Weatherization program
Penn Nutrition Site
OG&E
21
7/13/2010
DSM
Group requested presentation
Drumright Senior Center
OG&E
17
8/4/2010
DSM
Information sharing meeting
Muskogee Interagency Meeting
OG&E
22
9/14/2010
DSM
Group requested presentation
Drumright Senior Center
OG&E
70
4/8/10
Wind Power / DSM
Explain wind power /DSM
1st Baptist-El Reno-Seniors
OG&E
40
6/30/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Byars Senior Center
OG&E
15
7/1/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Midwest City Senior Citizens
OG&E
90
7/16/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Eagle Heights-Moore-Seniors
OG&E
35
7/19/10
Fixed Income
Explain Weatherization for srs
Choctaw Senior Center
OG&E
40 23
Oklahoma Gas and Electric Company
Weatherization/Heat Stress
7/27/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Del City Senior Citizens
OG&E
50
7/29/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Brand Senior Center - Moore
OG&E
80
8/12/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Noble Senior Citizens Center
OG&E
40
8/25/10
Fixed Income Weatherization/Heat Stress
Explain Weatherization for srs
Norman Senior Citizens Center
OG&E
38
12/16/2010
Weatherization
Explain Weatherization for srs
Alva Senior Center
OG&E
35
12/14/2010
Weatherization
Explain Weatherization for srs
Seiling Senior Center
OG&E
30
12/13/2010
Weatherization
Explain Weatherization for srs
Billings Senior Center
OG&E
10
12/13/2010
Weatherization
Explain Weatherization for srs
Garber XYZ Senior Center
OG&E
10
12/7/2010
Weatherization
Explain Weatherization for srs
Woodward Senior Center
OG&E
50
11/11/2010
Weatherization
Explain Weatherization for srs
Resource Alliance Group
OG&E
25
11/2/2010
Weatherization
Explain Weatherization for srs
Waukomis Senior Center
OG&E
15
10/20/2010
Weatherization
Explain Weatherization for srs
OEDA Agency Group
OG&E
20
INTERNAL TRAINING (Utility or Administrator Staff)
Date
Class Name
Class Desc
Training Location
Sponsor
# attendees (A)
1/26/2010
Lead Safe Work Practices
Lead Safety for Renovation
City Office
City of Ft Smith
23
3/10/2010
Deemed Savings
Review deemed savings
OG&E
Frontier
5
4/28/2010
EnerTrek database
inputs for online database
OG&E
Frontier
6
12/2/2010
Infrared Camera Training
How to use the IR camera
Energy Technology Center
OG&E
6
12/4/2010
Renewable Energy Sources and the Smart Grid course
Alternative energy sources
OG&E
Bismark State College
1
24
Oklahoma Gas and Electric Company
3.2.5 Challenges and Opportunities
Early in the Program, OG&E had a slow start in obtaining leads for the Fixed Income Program. Marketing efforts to target this segment, through bill inserts and community presentations, paid off in mid-year. OG&E removed the requirement to reside at the residence at least 12 months in order to make the program available to a broader base of fixed income residential customers. Additionally, OG&E partnered with several agencies to obtain qualified leads. OG&E has been able to maintain a healthy list of qualified customers.
3.2.6 Outlook for Continuation, Expansion, Reduction or Termination
The OG&E Fixed Income Weatherization Program was well received in the community. The Program exceeded its goal in 2010 and continues to grow at a fast pace. The Program will meet its three year program goal before the end of 2011 and will run out of funds by mid-year 2011.
3.2.7 Planned or Proposed Changes to Program and Budget
OG&E plans on implementing the duct tool within the EnerTrek® database to capture actual kW and kWh savings associated with this measure. The Duct Blaster is used to record duct air tightness measurements that are used to diagnose and demonstrate leakage problems, estimate efficiency losses from duct leakage, and certify compliance with duct leakage standards such as California's Title 24 Building Energy Efficiency Standards. The tool will be available in 2011.
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Oklahoma Gas and Electric Company
3.2.8 Program Evaluation
OG&E Fixed Income Weatherization Program
Ten percent of the homes that were weatherized under the OG&E Oklahoma Fixed Income Weatherization program received a post weatherization inspection. All of the post inspections were performed by the OG&E Program Managers. The selection process was purely random, selecting homes weatherized by OG&E contractors. The inspection process involved a walk-through of the home to visually inspect the stated weatherization services that were listed on the invoice and to ensure weatherization work was properly performed.
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Oklahoma Gas and Electric Company
3.3 Home Energy Efficiency Program
3.3.1 Program Description
The Home Energy Efficiency Program (HEEP) is an offering that was filed under the name Residential Thermal Efficiency and is approved by the Oklahoma Corporation Commission. HEEP is a sequential four-tier offering to residential customers. Customers pay $50 to enroll in the program and can sign up for the program through the direct mail insert, e-mail or by calling the external call center.
1. The program begins with an on-site energy audit provided by an OG&E contractor. OG&E has partnered with CLEAResults to deliver the program. Upon completion of the audit, customers receive specific recommendations and information about their home to help reduce their energy use. The value of the audit is $250.
2. After the energy audit, customers are eligible for a free cooling system service performed by a trained heating and cooling specialist. The value of the cooling system service is $75; customers receive the service for free.
3. After the cooling system service, customers are eligible for $300 of duct system repair and tightening.
4. Customers without central heating and cooling are eligible for ENERGY STAR appliance rebates ($40 per window unit and dishwasher replacement and $25 per refrigerator or freezer replacement).
3.3.2 Program Highlights
 In January 2010, the RFI was released to the public and OG&E received 10 respondents.
 In February 2010 DSM programs approved by OCC. Immediately thereafter OG&E released the RFP to six companies that responded to RFI that had the capability of delivering the program.
 In March 2010 RFP Proposal Review was performed and CLEAResult Consulting Incorporated was selected and contract negotiations began.
 In April 2010 OG&E Program Managers, Donney Dorton and Gale Lewis, were selected.
 On July 16, 2010 the contract was signed with CLEAResult (CR) to deliver the HEEP Program
 In July 2010 the Home Energy Specialists (HES) performed the first 20 audits.
 In September 2010, OG&E Marketing began Direct Mail and Email solicitations to Oklahoma City metro area residential customers.
 At year end 2010, 1457 audits had been conducted by HES, 477 homes received an a/c tunes, and 375 duct seals had been performed.
 On January 1, 2011 HEEP Program went statewide to all OG&E residential customers, additional HES were added by CR, and a scheduling tool to make it easier to schedule HES in the outer lying areas.
 Beginning with the February 2011 billing cycle, OG&E marketed statewide in the OG&E Currents with $50 fee waived 27
Oklahoma Gas and Electric Company
 To date, 6456 audits performed by the HES, another 6313 audits scheduled to be performed, 1927 a/c tunes performed by licensed contractors with requests for an additional 6094 to be performed.
3.3.3 Program Budget, Savings and Participation
TABLE 7
 The deemed savings realized for each home was calculated using 0.3284 kW and 464.89 kWh per home. This number was evaluated and derived by Frontier Associates.
 OG&E had 1,460 on-site energy audits on homes, which included 476 HVAC tune-ups and 374 duct repairs for an annual kWh savings of 649,329 and annual demand savings of 479 kW. These annual savings have an average life of 13 years for a lifetime energy savings of 2,051,977 kWh.
3.3.4 Program Events and Training
 July 13, 2010, OG&E trained CR Michigan call center on OG&E expectations. OG&E used this opportunity to impress upon CR the OG&E “customer first” attitude. This training consisted of approximately 15 people.
 July 19, 2010, OG&E orientation for CLEAResult Home Energy Specialists (HES). OG&E shared with the HES the OG&E company values and beliefs. This training consisted of approximately 10 people.
 On October 20, 2010 HES training on kW and kWh savings by house components. This was to aid the HES understanding of kW and kWh savings associated with different housing components such as adding insulation. HES were able to make better recommendations of low cost and no cost energy efficiency improvements. This training consisted of approximately 10 people.
 November 8, 2010 HES training on Blower Door and Duct Blaster methods and benefits. This helped HES to understand and physically see air infiltration into the home. This makes it easier for the HES to identify potential air leaks in the homes being audited. 15 people attended.
Annual
Actual
% of
Demand
Energy*
Demand
Energy*
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$3,422,222
$1,410,056
47%
3,284.00
4,648,919
983.15
649,329
30%
14%
10,000
1,460
0
15%
*Lifetime Savings
Residential HEEP
Participants
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 28
Oklahoma Gas and Electric Company
 December 13, 2010 HES training on infrared camera methods and benefits. This allowed HES to understand the thermal efficiency or inefficiencies of homes. This allowed them to see poorly installed or missing insulation and air infiltration leaks again in an effort to help them be aware of potential leaks in the homes they are auditing. Approximately 15 people in attendance.
 March 4, 2011 HES in-home demonstration of Blower Door and Duct Blaster methods and benefits. This training was to emphasize specific duct leaks so HES could identify the duct leakage in the homes being audited. This training emphasized duct leaks and the problems those leaks can present. There were approximately 18 people in attendance.
Highlight of Events:
 In July 2010 OG&E met with the City of Oklahoma City and the Community Action Committee in an effort to coordinate and determine the audit requirements of the City Of OKC’s home improvement low interest loan program. The Community Action Committee (administrator of the loan program) did approve and adopt the HEEP Program as meeting the requirements of an energy audit to qualify for the stimulus money provided to the City of Oklahoma City.
 On January 21-23, 2011 the HEEP Program was promoted at Home and Garden Show for free, flyers were distributed to customers about the program and 246 people signed up for the program.
 On February 2, 2011 HEEP Program Promotion with OKC Chamber Of Commerce – Mega Lunch, 38 attended and DSM programs were promoted.
 On February 3-4, 2011 HEEP Program Promotion Leadership Square Atrium Exhibit, eighteen people enrolled in HEEP Program and program material was distributed to everyone that stopped by our booth.
 On February 8, 2011, OG&E made a presentation to the Rotary Club of Sapulpa, 42 in attendance, this helped to spread the word about the OG&E DSM programs to the community leaders in advance of targeted marketing of the HEEP Program
 On February 8, 2011 HEEP Program Promotion Leadership Square Atrium Exhibit, one person signed up for free promotion and program material was given to all that stopped by our booth
 On February 8, 2011 HEEP Program Promotion OKC Thunder BB Game, HEEP Program material was passed out to all who stopped by our booth, 10 people signed up.
 On February 10, 2011 HEEP Program Promotion Neighborhood Alliance Association Meeting at OG&E Tech Center 42 people in attendance, HEEP promotional materials were passed out.
 February 15-16, 2011 HEEP Program Promotion Leadership Square Atrium Exhibit, promotional material was passed out to all who stopped by our booth, 8 people signed up for free program.
 February 15, 2011 HEEP Program Promotion at Oklahoma City Chamber of Commerce Sunset Reception. The free audit was promoted and program materials were passed out. 29
Oklahoma Gas and Electric Company
 February 19, 2011 HEEP Program Promotion at OU Women’s BB Game, HEEP Program materials were passed out to all who stopped by our booth and 26 people signed up for the program.
 February 19, 2011 HEEP Program Promotion at OSU Men’s BB Game,
 February 22, 2011 HEEP Program Promotion at OKC Thunder BB Game
 On February 23, 2011 a presentation was made to the Ada Rotary Club, 35 community leaders were in attendance and they were informed of the OG&E DSM programs and were specifically instructed on the HEEP Program and the free offer.
 On March 2, 2011, a presentation was made to the Sapulpa Lions Club, 40 community leaders were in attendance and they were informed of the OG&E DSM programs and were specifically instructed on the HEEP Program and the free offer available. Thirty people were in attendance.
 March 5, 2011 HEEP Program Promotion at OSU Women’s BB Game, HEEP material was handed out to all who visited the booth.
 On March 31, 2011, a presentation was made to the Sapulpa Kiwanis Club, 50 community leaders were in attendance and they were informed of the OG&E DSM programs.
 On April 12, 2011 HEEP Program Promotion at SchmoozaPalooza Networking Trade Show.
Program and Member Certification
 Both Program Managers are AEE Certified Energy Managers (CEM)
 Donney Dorton is a RESNET Home Energy Rater Trainer
 Gale Lewis is a RESNET Home Energy Rater
3.3.5 Challenges and Opportunities
CLEAResult has met the challenge to economically deliver audits Statewide with a current staff of 18 Home Energy Specialists.
One of the largest challenges was to be able to deliver the tune-ups and duct seals by licensed AC contractors across the OG&E service territory. To date, OG&E has 62 contractors signed up with and trained by CLEAResult to deliver the tune-ups and duct seal services. OG&E has the ability to add additional contractors who might be interested in participating in the program.
A barrier to achieve the program goals concerns timing of getting cooling systems serviced; cooling systems can’t be serviced when the external temperature is below 70 degrees. This will require all cooling system service work occur in about 6 to7 months of the year.
3.3.6 Outlook for Continuation, Expansion, Reduction or Termination
The response to the program has been overwhelming positive as shown In the April customer satisfaction survey where 90% of respondents were either somewhat likely or extremely likely to recommend the program to family and friends. We are very optimistic about achieving program goals and the continuation of the program beyond 2012 would be possible. 30
Oklahoma Gas and Electric Company
3.3.7 Planned or Proposed Changes to Program and Budget
The Home Energy Efficiency Program is approved by the Corporation Commission and the current program expires at the end of 2012. If funding for this program is depleted prior to December 31, 2012, the program may be suspended. If this happens, OG&E will evaluate whether or not there is need and if there are available resources to transfer funds from other programs. Significant customer feedback, either positive or negative, could dramatically impact this program. OG&E should also allow customers six months notice of program discontinuation to allow customers to make adjustments to any upcoming projects. 31
Oklahoma Gas and Electric Company
3.4 Positive Energy – New Home Construction Program
3.4.1 Program Description
Positive Energy - New Home Construction (PE-NHC) is a comprehensive long term new home energy efficiency program targeted to residential customers and builders. The program is designed to assist customers in managing energy costs. The purpose of the program is to make builders and homeowners aware of the benefits of energy efficiency and PE-NHC practices. The program is also designed to increase the overall efficiency, quality and sustainability of customer homes based on the National Association of Home Builders (NAHB) Green Home Building guidelines, the Environmental Protection Agency's ENERGY STAR Homes program, the Residential Energy Services Network's Home Energy Rating System and the Federal Energy Policy Act of 2005 guidelines. Efficiency programs that are recommended by these guidelines include: high efficiency cooling and heating, tighter home construction, high efficiency water heating, higher levels of wall, ceiling, floor and slab insulation, and high efficiency windows. Other components of the NAHB Green Home Building guidelines recommend using recycled building material, adding rainwater collection for lawn care, day lighting, and numerous other "green" building characteristics. PE-NHC design would help to reduce both energy consumption and peak demand for OG&E.
3.4.2 Program Highlights
 OG&E believes that new homes should be built to the highest standards of construction with recognition for energy efficiency, techniques, technology and green materials.
 A new home built and inspected to OG&E Positive Energy guidelines will provide the homeowner opportunities for energy saving, improved durability, and quality not available in standard construction.
 OG&E wants to partner with builders to encourage positive decision making that will provide long term energy savings benefits to new home buyers.
 During the first year of the program, OG&E certified 146 homes.
32
Oklahoma Gas and Electric Company
3.4.3 Program Budget, Savings and Participation
TABLE 8
 The deemed savings realized for each Positive Energy Home was calculated using 0.854 kW and 98.917 kWh per home. This number was evaluated and derived by Frontier Associates.
 OG&E certified 146 homes for an annual kWh savings of 173,302 and annual demand savings of 125 kW. These annual savings have an average life of 25 years for a lifetime energy savings of 4,332,550 kWh.
3.4.4 Program Events and Training
Highlights of Events:
 Program Manager has recruited and approved 8 HER’s raters throughout the Oklahoma service territory to perform HVAC load calculations, plan analysis, thermal bypass inspections and blower door/duct blaster testing for certification of OG&E Positive Energy homes. He meets with each of them on an ongoing basic to perform quality assurance on inspections, home testing and certification.
 Program Manager has met with construction trades including insulation companies, HVAC distributors/installers, framers, slab installers, window distributors/installers to help implement improved building science practices for OG&E Positive Energy homes. These meeting have occurred at associate home builders meeting, table top trade shows as well as on the construction sites.
 Program Manager made a presentation for home appraisers to teach them about energy efficient building science methods and techniques.
 The Program Manager has had over 200 meetings with builders to convince them to build OG&E Positive Energy Homes throughout the Oklahoma Service territory. He meets with many of them on a regular basis to insure they build to OG&E stringent standards. He works to educate them about existing and new energy efficient methods and building practices. He has discussed improved building science strategies at home builder meetings throughout our territory as well as meeting with many of them on a 1 on 1 basis.
 OG&E is also a sponsor for the Oklahoma State Home Builders Association Convention where builders are educated about improved building techniques and practices.
 OG&E was a major sponsor for the Oklahoma Green Building summit in 2010. He is a founding member of the Oklahoma State Green Building Committee; he continues to work to put this summit on each year to educate builders, trades, architects, energy engineers, real estate professionals and the public. We brought 125 people to 2 day summit in 2010.
Annual
Actual
% of
Demand
Energy*
Demand
Energy*
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$133,247
$115,455
153%
135.00
187,602
124.68
173,302
92%
92%
158
146
0
92%
*Lifetime Savings
Positive Energy Home
Participants
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 33
Oklahoma Gas and Electric Company
Program and member Certification:
The OG&E program manager is a certified HERS rater for RESNET. He is also certified for Energy Star Version 3.
3.4.5 Challenges and Opportunities
 Convincing builders to spend more money on their homes in a down market while appraisers are not increasing appraisal values for energy efficient/green homes verses standard homes.
 Convincing customers to build a home from an energy efficient and comfort perspective when other features such as granite can be seen and appear more desirable. We only have an opportunity to build a new house right once; we must accomplish this with increasing interest in both builders and consumers.
 Consumers must be convinced to demand energy efficient and comfortable homes that have had third party inspections and testing to insure quality control in energy efficient building science.
3.4.6 Outlook for Continuation, Expansion, Reduction or Termination
OG&E will continue its Positive Energy Home Program through the program year with no major changes. Based on current demand for the program, the budget for customer incentives will run out. A decision will need to be made to seek additional funding or terminate the program.
3.4.7 Planned or Proposed Changes to Program and Budget
No changes planned for 2011.
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Oklahoma Gas and Electric Company
3.5 Geothermal Heating Cooling and Water Heating Program
3.5.1 Program Description
The geothermal program is a DSM offering approved by the Oklahoma Corporation Commission. Geothermal equipment is widely considered to be the most energy efficient method to heat and cool a home. Geothermal is also considered to be the most comfortable, longest lasting, and lowest maintenance of any system. While geothermal provides unmatched advantages, the system also comes with a significantly higher initial cost. The higher first cost has been a barrier to wide term acceptance of geothermal systems. To help overcome the higher initial cost barrier, OG&E has paid an incentive of $375 per ton for new or replacement installations of residential geothermal heat pumps. Always considered a product of upper-end custom homes and high end retrofit applications, the OG&E incentive has helped introduce a proven technology to a wider variety of customers.
3.5.2 Program Highlights
 Program became available for residential applications installed after February 10’2010
 95 homes took advantage of OG&E incentives
 Continued use of OG&E website to educate and promote program
 30 Habitat for Humanity new and existing homes installed geothermal
3.5.3 Program Budget, Savings and Participation
TABLE 9
 The deemed savings realized for each geothermal home was calculated using 0.3955 kW and 1,619.5 kWh per ton. This number was evaluated and derived by Frontier Associates.
 OG&E installed 95 geothermal heat pumps to new or existing homes which added 387.5 tons for an annual kWh savings of 627,556 and annual demand savings of 153 kW. These annual savings have an average life of 20 years for a lifetime energy savings of 12,551,140 kWh.
Annual
Actual
% of
Demand
Energy*
Demand
Energy*
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$833,333
$146,805
28%
791.00
3,239,039
153.26
627,556
19%
19%
500
388
0
78%
*Lifetime Savings
Geothermal HVAC
Tons
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 35
Oklahoma Gas and Electric Company
3.5.4 Program Events and Training
Highlights of Events:
 Oklahoma State Fair / Promote Geothermal Technologies to the public by hosting and manning an informational booth for fair-goers. Field questions from prospective customers, distribute brochures, and promote energy information to the public which will inform homeowners in future HVAC decisions, talking individually with roughly 2000 customers over a 10 day period, further solidifying OG&E’s position as a trusted energy advisor to the ratepayers of Oklahoma.
 Green Building Summit ’10 / Attended a 2 day informational summit in OKC learning about new technologies while presenting geothermal options and distributing brochures to builder customers and ratepayer attendees. Summit attended by approx 200 builder customers, all interested in the latest in energy saving building techniques and equipment.
 BASCO Parade of Homes Show House / Public open house featuring a brand new home incorporating the latest in building techniques and energy efficient equipment available to consumers on today’s “for sale” new home construction market. Over the course of 3 weeks the house is open during the Parade of Homes and viewed by approx 1000 prospective buyers and curious home owners. This “for sale” home help promote the latest in ideas for today’s new home buyer. A valuable marketing tool for new products along with geothermal technologies, the Parade of Homes events are always a great way to leave the customers with informational brochures and inform the public of new products.
 COHBA Parade of Homes Show House / Parade of Homes event for the Central Oklahoma area featuring a “for sale” new home viewed over a 3 week period by approx 1500 prospective home buyers and curious future home buyers.
 COHBA Home and Garden Show / A new products event featuring construction ideas for the new home and retrofit market. Open to the public, the Home and Garden show promotes all areas of home construction and décor to an interested future customer. Attended by approx 10,000 customers over a long weekend, the show is a great way to reach interested customers, distribute brochures, and inform the public about geothermal technology.
 Tulsa Home and Garden Show / New products show for the Tulsa area reaching approx 10,000 customers over the course of the event.
Program and Member Certification
Certifications and training for the geothermal industry takes place through IGSHPA. Scheduled training for 2010 was as follows:
October 25 - IGSHPA Technical Conference, Denver CO - Trade show for the geothermal industry worldwide, featuring the latest in products for customers and HVAC dealers. A valuable show for networking and learning new technologies which apply to our local market and ultimately our customers.
October 27 Accredited Drillers and Installers workshop, Denver CO - Learn the latest in drilling technologies which apply to our local market. Learn about upcoming laws and regulations that 36
Oklahoma Gas and Electric Company
will affect the industry focusing on better ways to increase geothermal installations and customer satisfaction.
October 28 Certified GeoExchange Designer Workshop and Conference, Denver CO - Learn the latest in residential geothermal design and installation and network with dealers that are currently in that business. Stay informed on industry trends which will ultimately benefit customers.
3.5.5 Challenges and Opportunities
Geothermal opportunities have been identified as a strategic initiative for OG&E. Because of OG&E’s history with the technology, the local manufacturing presence and the energy efficiencies delivered from geothermal OG&E has decided to explore business opportunities.
3.5.6 Outlook for Continuation, Expansion, Reduction or Termination
The Residential Geothermal Program is scheduled to run through December 31, 2012, at which point the program is scheduled for termination. No plans at this time for expansion or reduction.
3.5.7 Planned or Proposed Changes to Program and Budget
No changes planned for 2011.
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Oklahoma Gas and Electric Company
3.6 Commercial Lighting Program
3.6.1 Program Description
The Commercial Lighting Program provides incentives to OG&E commercial and industrial customers who purchase and install energy efficient indoor and outdoor lighting, lighting controls, occupancy sensors and light emitting diode (LED) exit lights in both retrofit and new construction applications. This program helps customers reduce monthly energy costs while reducing some of the initial cost barrier.
The Commercial Lighting program was a continuation of the Quick Start measure. This measure was designed to reach existing and new customers including large school districts, commercial, and industrial complexes. OG&E continued to recruit and educate customers with additional presentations on the advantages of high efficiency lighting.
3.6.2 Program Highlights
 The Commercial Lighting Program is ahead of what was anticipated for the year ending 2010. OG&E received approval from the Corporation Commission in February 2010 to offer the Commercial Lighting Program to commercial and industrial customers and schools.
 Marketing material was developed to provide information to customers and to provide handout information at trade shows, seminars and other public events.
 An electronic version of the marketing material was also created to further enhance OG&E’s correspondence with customers by being able to immediately provide them information on their requests.
 A website was created for the lighting customers to allow them to apply online -- making it more convenient.
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Oklahoma Gas and Electric Company
3.6.3 Program Budget, Savings and Participation
TABLE 10
3.6.4 Program Events and Training
Highlights of Events:
Table top displays, the OG&E Website, and professional group meetings helped promote the awareness of the lighting program to local architects, engineers and maintenance personnel. Lighting surveys were conducted in plants on operational facilities throughout the OG&E territory. This was done in conjunction with manufacturers, distributors and electrical contractors. Presentations were performed for trade groups and professional organizations in various areas of the OG&E territory.
 Lutron Lighting Seminar, OKC, 30 people representing lighting contractors, facility managers, engineers and architects.
Handed out OG&E Commercial Lighting Program brochures, made program presentation and talked to individuals one on one. Positive interaction educating allies on the OG&E Commercial Lighting Program.
 GE Lighting Distributors Seminar, OKC, 17 people representing lighting & electrical contractors.
Presented the OG&E Commercial Lighting Program with PowerPoint Presentation. Handed out OG&E Lighting Brochures. Introduction to new contractors on the lighting rebates.
 GMMA Energy Seminar, Muskogee, 35 people representing electricians, building maintenance engineers, manufacturers & facility managers. Handed out OG&E Lighting Brochures and explained the OG&E Commercial Lighting Program with PowerPoint Presentation. Positive results with many questions asked.
 Oklahoma Manufacturers Alliance, OKC, 15 people representing Facility Engineers & Managers.
Handed out OG&E Commercial Lighting Brochures and explained the Program with PowerPoint Presentation. Positive reaction from those participating asking several questions.
 International Facility Managers Association, OKC, 15-20 people representing facility managers, building maintenance engineers from local metro area. Handed out brochures and presented the OG&E Commercial Lighting Program with PowerPoint Presentation. Good positive interaction from the group.
AnnualActual% ofDemandEnergy*DemandEnergy*DemandEnergy*% ofBudgetExpensesBudgetkWkWhkWkWhkWkWhTargetedActualWait ListGoal$656,436$1,116,052189%2,757.0010,778,0005,991.1329,754,696217%276%918611067%*Lifetime SavingsParticipants2010Budgeted SavingsStipulated Savings% of Goal2010Commercial Lighting39
Oklahoma Gas and Electric Company
3.6.5 Challenges and Opportunities
 Meeting with each contractor/distributor on rebate opportunities.
 Funding for incentives will reach the 3 year program budget limit by the end of June 30, 2011.
 The Commercial Lighting Program has been highly successful in influencing customers to replace inefficient lighting.
3.6.6 Outlook for Continuation, Expansion, Reduction or Termination
OG&E will continue its Commercial Lighting Program through the program year with no major changes. Based on current demand for the program, the budget for customer incentives will run out in June 2011. A decision will need to be made on whether to seek additional funding or terminate the program.
3.6.7 Planned or Proposed Changes to Program and Budget
The commercial lighting program has gained wide acceptance from our customers. Due to the success of this program, the money budgeted for the 3 year life of the program will run out in June 2011 and the program will be shut down unless additional funding can be made available. 40
Oklahoma Gas and Electric Company
3.7 Commercial/Industrial Standard Offer Program
3.7.1 Program Description
The Commercial/Industrial Standard Offer Program (SOP) offers financial incentives for the installation of a wide-range of measures that reduce peak demand. In this program, commercial, industrial, school and public authority customers are eligible to participate in the program and qualify for incentive payments of $250 per kW saved by energy efficiency projects that significantly reduce customer peak demand. The flexible nature of the program encourages potential participants to customize an energy efficiency solution to meet their specific needs, but still does not place constraints on smaller opportunities such as single motor replacements or HVAC change outs.
In addition to financial incentives, OG&E may also take additional steps to overcome some of the barriers large customers face in investing in energy efficiency equipment by:
 Providing support to customers in the designing of projects and calculating savings estimates.
 Providing customers with a list of qualified ESCOs.
 Encourage energy efficiency planning services, emphasizing consistent and long-term return on investments.
The Standard Offer Program runs on the calendar year, January through December, and is a three-year program targeted for 2010, 2011 and 2012. The 2010 program started late, and did not begin until June due to staffing administration for the program.
3.7.2 Program Highlights
Production for the program is on track and slightly ahead of what was anticipated for the year ending 2010. OG&E received approval from the Corporation Commission in February 2010, to offer the Standard Offer Program to its commercial, industrial, school and public authority customers.
Marketing Materials were developed and printed to provide information to our customers, and to provide handout information at Trade Shows, Seminars and Events. (Sample attached, see in examples). In addition, an electronic version was also created to further enhance our correspondence with customers by being able to immediately provide them information on their requests.
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Oklahoma Gas and Electric Company
3.7.3 Program Budget, Savings and Participation
TABLE 11
3.7.4 Program Events and Training
Highlights of Events
1) Training Programs:
Company - Honeywell
Speaker - Kevin Johnson
Topic - Performance Contracting Opportunities
Date - November 10th, 2010
Attendance - 32
Location - OG&E Technology Center
2) Program and Member Certification:
2010 - Training consisted of In-House by Engineers
2011 - Enrolled in “Commercial Energy Auditing Course”
3.7.5 Challenges and Opportunities
Challenges
 The largest challenge is “Qualifying the Existing Equipment”, finding data and specs sheets on the current equipment, (motors, HVAC, chillers, etc.). This information is vital on the smaller applications, (metering not practical or cost effective), to be able to accurately and effectively compute the kW savings associated with the measure.
Opportunities
The original intent of the SOP, was to directly target the “Large Commercial and Industrial” Rate Class, providing them an opportunity to look at their business or facility from a higher level of Energy Efficiency improvements, and recoup some of their investment costs through the OG&E Incentive of
AnnualActual% ofDemandEnergy*DemandEnergy*DemandEnergy*% ofBudgetExpensesBudgetkWkWhkWkWhkWkWhTargetedActualWait ListGoal$322,818$164,96683%988.007,379,657704.344,917,06371%67%6617026%*Lifetime SavingsParticipants2010Budgeted SavingsStipulated Savings% of Goal2010Standard Offer Program - C&I42
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$250 per kW saved. This would provide the customer with the ability to look at the process or performance contracting perspective of adopting new energy efficient practices, business solutions, technology and retrofits…
Two Factors Affecting SOP Direction
1) At the onset of the SOP, the Industrial Rate Class customers were given the option of opting out of the SOP. 70.5% of the Industrial customers chose to opt out of the program. This directly affected OGE’s initial intent of the program, and the ability to achieve the designed results of the program.
2) The overall health of the economy affected these larger commercial and industrial customers; causing them to re-position their approach to investments by balancing the reduction in their work forces, adjusting for the slowdown in marketable consumables affecting their rate of production, forcing many facilities to reduce from 2 and 3 shift programs, down to a single shift. This challenged the company’s budgets and available dollars for energy improvements and capital expenditures.
OG&E was afforded the opportunity to explore other venues with these customers. It became quickly apparent that these same companies’ would have difficulties in larger project retrofits, and be more inclined to do individual measures from cost or salvaging perspective. This adjusted the playing field form the larger ESCO’s down to more localized contractor’s facilitation the improvements, fixing the broken pieces, and keeping the plant or business operation at a “Day By Need” basis.
The DSM Team developed a new strategy of:
1) Targeting ESCO’s – (Keeping them in the loop as the marketing place rebuilds)
2) Targeting Contractors – (HVAC, Geothermal Distributors & Manufacturers, Motor Distributors & Manufacturers, Electricians, etc).
3) Expand the Market Place to Include Public Authority and Schools
4) Reduce the sub-metering restriction, since they would be individual measures, (e.g. – 25hp motor for a Premium Efficient 25hp motor), which kW is easily calculated from the electrical information contained on the plates.
OG&E’s approach has proven very effective. We hit the ground running with the SOP in June of 2010. In the 7-months we achieved 71.15% of the desired kW reduction in just 58.3% of the time allotted. We are very confident of the continued and even increased success, of the Standard Offer Program for 2011 and 2012.
3.7.6 Outlook for Continuation, Expansion, Reduction or Termination
The Standard Offer Program fills a necessary niche in the commercial and industrial community. The rebate incentive helps facilitate companies with an opportunity to make necessary energy efficient improvements to their facility, which may not have necessarily been performed. (e.g. – they may have to replace a motor, but the SOP incentive may help encourage them to look at, purchase and install a more premium efficient motor). 43
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During 2010, about 35% of the companies taking advantage of the SOP made an energy efficient improvement, which they would not have otherwise made had the incentive not been available. The other 65% were going to make the improvement anyway. The Standard Offer Program proves to be effective by moving 35% of the marketplace.
3.7.7 Planned or Proposed Changes to Program and Budget
If funding for this program is depleted prior to December 31, 2012, the program may be suspended. If this happens, OG&E will evaluate whether or not there is a need and if there are available resources to transfer funds from other programs. Significant customer feedback, either positive or negative, could dramatically impact this program. Many targeted customers have opted out of being eligible for this customer offering. OG&E should also allow customers six months notice of program discontinuation so customers can make adjustments to any upcoming projects.
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Oklahoma Gas and Electric Company
3.8 Energy Efficiency Education Program
3.8.1 Program Description
The OG&E Energy Efficiency Education Program is designed to help customers make informed decisions about how they use energy and provides alternatives to improve their consumption, thereby decreasing demand and energy usage.
There are three programs included in the OG&E Education Program: LivingWise®, Custom Energy Report and Media.
The program goal is to allow customers to make informed decisions about long term energy efficiency and participate in programs that will help them manage their energy costs and utilize price response tariffs.
Program 1
LivingWise® is a custom designed energy curriculum for fifth grade students in Oklahoma. The “hands-on” LivingWise® program is designed to educate students about energy conservation and efficiency as well as encourage their families to make energy improvements at home. The program is offered at no cost to qualified teachers, schools and school districts.
The LivingWise® kit includes:  Low flow Showerhead  Kitchen Aerator  Limelite® Night Light  Flow Rate Test Bag  Energy Cost Calculator  FilterTone® Alarm  High-Efficiency Light Bulb  Water Temperature Card Program 2
Custom Energy Report (CER) is a self guided online home energy audit offered through the OG&E website. Customers are prompted to input items pertaining to the appliances and energy consuming devices (i.e. ceiling insulation, windows, doors, direction of home, number of individuals living in home, appliances, etc.) in their home. Upon completion of the survey, the customer will receive an e-mail of their personalized energy report providing analysis and recommendations on how to save energy. The report is specific to their house, living styles and choices. Customers also receive energy savings tips customized to their individual criteria and needs. Recommendations are provided that will direct the customer on ways to save energy. The information is relevant, consistent, and fuel-neutral, covering efficient practices, efficient technologies, and the application of conservation programs.
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Oklahoma Gas and Electric Company
PROGRAM 3
Media – The Education Program provides information to all customers, of all classes, allowing them to make informed decisions about how they use energy. The program also allows customers to look at alternatives to improve their consumption, thereby decreasing demand and energy usage.
3.8.2 Program Highlights
The LivingWise® program provided energy efficiency and awareness training for 20,010 students from January 2010 through December 31, 2010, targeting school districts in Oklahoma.
 Created OG&E customized box to improve the generic look for the LivingWise® Kits.
 OG&E utilized its community coordinators along with key contact personnel for promotion of the program.
The Custom Energy Report is provided to customers, free of charge, after they complete the home information survey. The report contains electric usage information and cost comparisons based on the information they provide.
 The Custom Energy Report also includes recommendations to help customers use energy wisely and save money on their monthly bills. The report contains specific energy savings tips for their home.
 A follow up survey is sent to those requesting a report, asking for comments and suggestions for improving this service.
3.8.3 Program Budget, Savings and Participation
TABLE 12
Annual
Actual
% of
Demand
Energy*
Demand
Energy*
Demand
Energy*
% of
Budget
Expenses
Budget
kW
kWh
kW
kWh
kW
kWh
Targeted
Actual
Wait List
Goal
$1,141,299
$1,080,477
99%
0.00
0
0.00
0
-
-
33,136
20,746
0
63%
*Lifetime Savings
Education
Participants
2010
Budgeted Savings
Deemed Savings
% of Goal
2010 46
Oklahoma Gas and Electric Company
3.8.4 Program Events and Training
Highlights of Events:
Sept. 1, 2010: Pollution Prevention Week “Energy, Environment & Economics: Supporting Leadership through Sustainability.” OG&E presented its energy efficiency programs to the Oklahoma Dept. of Environmental Quality’s Oklahoma Star Program group. The program recognizes businesses for pollution prevention, energy efficiency and overall environmentally responsible operations. OG&E provided the group of approximately 50 participants with energy efficiency brochures and information about the various DSM programs that are available to customers. OG&E received positive responses from attendees with several who said they learned something about OG&E’s programs that they did not already know.
 Oct. 7, 2010: Tinker Air Force Base, Energy Awareness Month. This event is held annually. OG&E provided brochures featuring its energy efficiency programs and tips to help customers save energy and money. Approximately 500 Tinker Air Force Base (TAFB) employees attended the event. In addition, OG&E provided approximately 200 Compact Fluorescent Light bulbs (CFLs) to attendees. A vast majority of the TAFB employees said they were happy to learn about the OG&E DSM programs and plan to participate and share the information with family, friends and neighbors.
 Nov. 11, 2010: Weatherization programs seminar for senior adults sponsored by the Cimarron Baptist Association in Drumright, OK. Approximately 50 senior citizens attended the seminar to receive information about ways to use energy more efficiently. A variety of collateral material was provided for attendees including energy tips and DSM programs designed to help customers save energy and money. When asked, many of the attendees said they would implement some of the tips they learned during the seminar.
Program and member Certification:
No program or member certifications were received during 2010.
3.8.5 Challenges and Opportunities
OG&E’s success with the LivingWise® program has been through key contacts in each of the school districts. Each of the participating schools within the OG&E territory has embraced the concept and curriculum provided through OG&E and Resource Action Programs.
OG&E has continued to provide updated material to all classifications of consumers throughout the OG&E territory. Challenges to residential, commercial and industrial consumers will be to initiate timely and important energy improvements to homes and businesses. Cost effective 47
Oklahoma Gas and Electric Company
measures should be implemented in a timely manner to maintain lower utilities. Education to the consumer is a key in stressing the importance of energy efficiency in all applications.
3.8.6 Outlook for Continuation, Expansion, Reduction or Termination
OG&E proposes to continue to support and promote the growth of energy awareness throughout its customer base for the remainder of the program.
3.8.7 Planned or Proposed Changes to Program and Budget
No changes planned for 2011.
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Oklahoma Gas and Electric Company
3.9 Research & Development of Demand Program Projects
3.9a OG&E Solar Inverter Proof of Concept Project
3.9a.1 Project Description:
OG&E believes it may be possible to introduce a smart grid integrated inverter (SGII) program rather than an incentive program. The SGII can potentially provide operational benefits to participants and non participants in the following ways:
• Meter the production without installing expensive metering equipment
• Safer installation by ensuring IEEE standards are met
• Better power quality by choosing a quality inverter
• Allows for power quality improvement as a smart grid device
• Allows to Volt/Var control to lower future resource needs at critical peak periods
The objectives of the project are to:
1) Analyse the ‘change case’ by contrasting an integrated and standardized approach vs. the current state
2) Determine system architecture and device requirements necessary to integrate Residential and Small Commercial PV generation and storage systems into the OG&E Smart Grid.
3) Determine if commercially available devices/equipment can meet established requirements, or if customization is required.
4) Build a lab facility and test, evaluate, and demonstrate PV inverters in the actual OG&E distribution environment. This ‘Proof of Concept’ lab will support design, operational benefit, and power quality verification.
The proof of concept lab can also be used to demonstrate to regulators and customers the importance of making the right choice for the PV system in order to make the most of the investments by all parties concerned.
3.9a.2 Project Highlights:
In 2010, considerable time was devoted to improving the commercial process and re-staffing efforts as most of the marketing/product development staff was assigned to the smart grid program and required re-staffing for vacancies. Product development began in May with a stage-gate process initiated. During the second half of the year, meetings were scheduled to find a consultant that can assist us on the project. In December 2010, Lockheed Martin was chosen to be our consultant for this project.
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Oklahoma Gas and Electric Company
3.9a.3 Project Budget:
The $250,000 that was allocated for this project was not been used in 2010. Preparations have been made to use the entire amount in 2011.
3.9a.4 Outlook for Continuation, Expansion, Reduction or Termination:
3.9a.5 Planned or Proposed Changes to Project & Budget:
If additional work is required by Lockheed-Martin in 2011, unused dollars from the geothermal research project will be budgeted to the Solar Inverter Proof of Concept.
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Oklahoma Gas and Electric Company
3.9b OG&E Ground Source Heat Pump Research Project
3.9b.1 Project Description:
The OG&E Ground Source Heat Pump Research Project is designed to conduct collaborative research with existing geothermal companies and public institutions. Its goal is to reduce the initial investment requirement for geothermal heat pump technology and increase the geothermal heat pump installation infrastructure to improve project life cycle efficiency and commercialize new technology.
OG&E would accomplish the following:
1. Install emerging geothermal technology to reduce the drilling costs associated with geothermal heat pump installation. Meter, analyze and document results and prepare a report summarizing the conclusions and recommendations based on the results of the study.
2. Improve the quality control and standard operating procedures of the geothermal heat pump installation.
3. Conduct research to determine the baseline order to completion cycle time for geothermal heat pump installation. Identify the issues that increase cycle time and cost and recommend solutions to reduce cycle time. Survey geothermal customers following installation for insight on areas for improvement.
4. Utilize the results of the first three areas to develop a training and recruitment program for all elements of the installation process.
3.9b.2 Project Highlights:
In 2010, considerable time was devoted to improving the commercial process and re-staffing efforts as most of the marketing/product development staff was assigned to the smart grid program and required re-staffing for vacancies. Product development began in May with a stage-gate process initiated. Initial talks with several geothermal companies and public institutions began by gauging their interest in participation. A memorandum of agreement was signed between OG&E and Oklahoma State University in December 2010. Oklahoma State University will be providing project design, data analysis, and documentation.
3.9b.3 Project Budget:
The $250,000 that was allocated for this project has not been used in 2010. Preparations have been made to use the entire amount in 2011.
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Oklahoma Gas and Electric Company
3.9b.4 Outlook for Continuation, Expansion, Reduction or Termination:
3.9b.5 Planned or Proposed Changes to Project & Budget:
OG&E is looking to work with collaborators in obtaining in-kind donations to the research project to help mitigate costs of the installations. If successful, unused dollars would go to the solar inverter project.
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4.0 Evaluation, Measurement and Verification
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Oklahoma Gas and Electric Company
4.1 EM&V Overview
Introduction:
The Evaluation, Measurement and Verification Plan is a systematic approach to quantify energy savings. OG&E is using appropriate EM+V for each of the programs in the portfolio.
The 2007 International Performance Measurement and Verification Protocol will be the cornerstone for the OG&E Measurement and Verification Plan.
OG&E has made a considerable effort to address all customers within the OG&E service area and used deemed savings, data and reporting program information and stipulated savings to evaluate and monitor the individual program results.
OG&E identified seven programs in the portfolio that require EM&V in order to qualify the results prior to reporting:
 Low Income Weatherization
 Fixed Income Weatherization
 Home Energy Efficiency (formerly Residential Thermal Efficiency)
 Positive Energy – New Home Construction
 Geothermal Heating, Cooling and Water Heating
 Commercial/Industrial Standard Offer Program
 Commercial Lighting
Section 4.2 outlines the summary of the EM&V activities Global Energy Partners conducted on each of the programs offered in 2010. The full report is included in the appendix 6.1.
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Oklahoma Gas and Electric Company
4.2 Program Evaluation
500 Ygnacio Valley Road Suite 450, Walnut Creek, CA 94596
Phone 925.482.2000 | Fax 925.284.3147
MEMORANDUM
To: Randy Warren, OG&E
From: Craig Williamson, Global
CC: Patrice Ignelzi, Global
Date: May 16, 2011
Re: Summary of findings and recommendations for PY 2010 across all programs
Global Energy Partners (Global) evaluated OG&E‘s Demand programs for PY 2010, and provided in-depth reports for each program under separate cover. This memo summarizes the findings and Global‘s recommendations for all the programs. This is intended to provide a top level look at the portfolio evaluation for inclusion in the OG&E report to the OCC. For details about the evaluation of each program, please refer to the individual reports.
Fixed-Income and Low-Income Weatherization
Evaluating the two Weatherization (Wx) programs together, Global reviewed the EnerTrek database used to track the progress of the programs and conducted a field verification of a random sample of 30 program participants. Later this year, when one year of post installation data become available, Global will conduct a billing analysis impact evaluation. The findings are listed below.
Database Findings
 The actual number of participants for each Program is beyond expectations with 4,337 participants in PY 2010, which is 113% of the goal for the year. The Fixed-Income program alone had 150% more participants than expected.
 Calculated energy savings for the Wx Programs totaled 11,350 MWh, which is 59% of what was expected. Calculated demand reductions were 2.53 MW, which is 63% of expected.
 The expected yearly impacts per participant for the Wx Programs are 5,025 kWh and 1.04 kW. The actual per-participant impacts for the two PY 2010 Wx Programs are 2,617 kWh and 0.58 kW. These results are 48% and 44%, respectively, of the expected impacts per participant.
 Since the calculated savings are based on deemed values, it appears that either the average size or number of the units installed in each home was not what was expected.
Program Impact Results
The actual number of participants for each Program is beyond expectations. However, the energy and demand impacts are far less than expected for each Program. Therefore, the average savings per participant is about half of what was expected. Table 1 summarizes these results. 55
Oklahoma Gas and Electric Company
Appendix A Table 1 Participants and Calculated Impacts of PY 2010 OG&E Wx Programs Program Participants / Percent of PY 2010 Goal Energy Savings / Percent of PY 2010 Goal Demand Savings / Percent of PY 2010 Goal
Fixed-Income
1,253 (150.4%)
3,109 MWh (74.3%)
0.79 MW (90.8%)
Low-Income
3,084 (102.8%)
8,241 MWh (54.7%)
1.74 MW (55.8%)
Combined Wx Programs
4,337 (113.1%)
11,350 MWh (58.9%)
2.53 MW (63.4%)
Field Verification Findings
Among the 30 homes in the sample there were 94 improvements claimed by the contractors. The most commonly installed measures were CFLs and infiltration improvements, which were both installed in all 30 homes visited. Overall, of the 64 non-CFL improvements claimed to have been performed on the 30 homes, 11 (17%) were either not found to have been done, done poorly or only partially, or used ineligible or non-ENERGY STAR equipment. That is a success rate of about 83%, which is quite high considering that in some cases, as many as 14 months could have elapsed since the improvements were made – ample time for alterations by the occupant. Six more improvements (11%) could not be confirmed due to inaccessibility or inability to read equipment nameplates to confirm whether the equipment was ENERGY STAR.
Recommendations - EnerTrek Tracking Database
 Ensure that those database fields that have drop-down lists from which the user can select values have mutually exclusive values and only values that are on current field data collection forms used by the contractors. In addition, use the choice ―none‖ rather than ―n/a‖ if the equipment of interest is not present.
 Include landlord/property manager name and contact information for participants living in multi-family buildings or adult living residences. There were instances while attempting to schedule the field verification visits, where the occupant was unaware of any work having been done, because the landlord made the arrangements while the unit was unoccupied.
 The program plan contained in Gary Marchbanks' testimony before the OCC states that OG&E will partner with eight to 12 contractors for these two programs. In PY 2010, two for-profit and two non-profit contractors were used on these programs. Global recommends that, due to the small number of OG&E staff managing these programs, OG&E stay with fewer contractors, rather than increase to the eight to 12 contractors anticipated to avoid unnecessary complication and the need for additional management oversight.
 It would be worth the additional labor cost to the Programs to develop frequency tables and cross-tabulations of the data in the tracking database at regular intervals (such as quarterly or biannually) to ensure that there are no data anomalies. Another option may be to include validation checks in the data entry screens that will ask the user to verify a value they have entered if it is outside of a pre-set range or is significantly different than other entries in that particular field.
 The area of attic insulation applied by the contractor should be noted in the database. At one site, less than one-third of the available attic area was covered with insulation due to the shape of the home and the arrangement of the framing in the attic. If the contractor was reimbursed based on the floor area, they were overpaid for the performance of that task.
Recommendations - Weatherization Contractors
 Provide clear guidelines to Wx contractors as to where and when measures are to be or can be installed. The contractors should know that OG&E‘s Wx Programs do not allow more than four CFLs to be installed in a single fixture or that water heater pipe insulation cannot be installed when the water heater has a heat trap installed.
 Provide the Wx contractors with minimum quality or warranty specifications for the equipment used or measures provided. 56
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 Train the Wx contractors to prioritize the implementation of improvements such that the most cost-effective are implemented first, rather than the one that will provide them the largest reimbursement for the lowest effort on their part.
 Redesign the contractor reimbursement process so that the contractor takes on some of the risk associated with measures or improvements not performing satisfactorily.
 Our research indicates that none of the Wx contractors used by OG&E were Building Performance Institute certified. In future contractor selection, we suggest that OG&E require that Wx contractors be so certified (www.bpi.org).
Home Energy Efficiency Program
The evaluation of the Home Energy Efficiency Program (HEEP) for Program Year 2010 included three specific goals:
 To review and validate field deemed savings estimates calculated by CLEAResult using the deemed savings information provided by Frontier Associates LLC.
 To review the savings estimation process used by OG&E.
 To review how the program operates from a process perspective and provide recommendations for improvement in future program years.
Key Results
 CLEAResult has developed a very useful online tool, the Energy Data Management (EDM) dashboard, which can efficiently query the savings and audit data. The EDM also allows OG&E project managers to track scheduled audits and tunes.
 Global has found evidence of issues with the CLEAResult data entry process. Out of a sample of 40 participants with completed AC-Tunes and duct-work, 8 had data entry errors that caused incorrect field savings estimates.
 Global also found evidence of errors in the data translation process. CLEAResult transferred the savings data from a Master Spreadsheet database to the OG&E iAvenue system and eventually to the Energy Data Management (EDM) dashboard. Differences in program savings estimates were noted between different data sources.
Summary of the Analysis
Global reviewed all program data relevant to the savings calculation, plus some additional data provided by the program managers, summarized in Table 2. While overall program savings is significantly behind original goals for 2010, kWh and kW savings per audit are fairly close to those goals for both savings approaches, indicating that after OG&E has caught up on audits, the program should be able to achieve its stated goals.
Table 2 Comparison of HEEP Deemed Savings Estimates
Program kW Program kWh Audits kW per Audit kWh per Audit
Reported Savings Approach
336
647,793
1,454
0.23
445.5
Field Savings Approach
456
979,482
1,454
0.31
673.6
Program Goal PY 2010
3,384
4,769,060
10,000
0.34
476.9
Global also provides an independent accounting of program impacts and measure counts using two data sources and two deemed savings methods. The two data sources are the CLEAResult Master database, provided on March 9, 2011, and an extract of data from the EDM dashboard performed on April 6, 2011. The two deemed savings methods are the reported savings estimates and the field savings estimates. It was during this comparison that Global discovered evidence of errors in the data translation process moving from the Master database to the EDM dashboard.
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Next, Global performed a cross check of both the methods employed, and the resulting field savings estimates produced by CLEAResult for a sample of HEEP participants. Because a significant number of mistakes were discovered, we also estimate a corrected kW and kWh savings for the program based on the sample. Finally, we provide an estimate of the proportion of errors in the population based on the sample. Table 3 presents the estimate of corrected kW and kWh for the HEEP for PY 2010. The kW and kWh savings estimates in the first column represent the total program savings obtained from the CLEAResult field savings. The corrected estimates are fairly close to the field estimates, but for both kW and kWh, the savings have been underestimated.
Table 3 Estimated Field kW and kWh Savings
Field (CR) Savings Corrected (GEP) Savings
kW Savings
451
458
kWh Savings
972,113
975,381
Because this is the first year of the HEEP, Global also conducted a process review. The process review included conducting a formal interview with the program managers and reviewing the results of surveys conducted with a sample of PY2010 participants. Global offers recommendations for both impact evaluation analysis and process improvements for the program going forward.
Recommendations for Improving Savings Estimates and Processes
Due to the issues that were uncovered related to data entry of field savings estimates we recommend that OG&E take the following actions to ensure the integrity of the savings estimates in future program years:
 Conduct a mid-year (2011) review of the CLEAResult field kW and kWh calculations to determine if data entry problems have been resolved. If problems have not been resolved then develop a quality control plan that will help CLEAResult improve the data entry process.
 Conduct further analysis to determine the source of the differences between the program savings estimated from the original CLEAResult database and the EDM dashboard. Totals may also have to be generated from the iAvenue database directly to determine the source of the error. If necessary, correct any processes that resulted in errors and ensure that the two databases are in agreement.
 Global also recommends that OG&E consider revising the savings estimates used to report program savings to the OCC using the Frontier savings instead of the reported savings for the AC-Tune measure. Furthermore, we recommend that OG&E consider additional analysis of duct work estimates in order to improve the robustness of the field savings.
The process review also resulted in recommendations to improve the operation of the program in future years.
 Research how changes in the program‘s administration, such as waiving the $50 audit fee for a limited time, have impacted the program‘s cost effectiveness and savings.
 Work with the marketing department to get more data on the various marketing campaigns conducted for HEEP. Develop a schedule for receiving reports on survey results and marketing efforts. Regularly schedule meetings to discuss the findings in the reports and work together to determine how to best spend the program marketing budget.
Positive Energy New Home Construction
The evaluation of the Positive Energy New Home Construction program for PY 2010 was intended to provide an accounting of the energy savings reported for customers who participated in the program. Specific objectives of this evaluation were:
 Verify that homes have met program requirement of a HERS rating of less than 70.
 Validate that the deemed savings were applied correctly.
 Recommend improvements to estimating savings during the program year. 58
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Program Impact Results
Each of the qualifying homes was deemed to save 0.854 kW and 1,187 kWh based on the Frontier Potential Study – Phase II Study. With rebates issued to 146 projects in PY 2010, program savings were a reduction of 0.125 MW in peak load and a 173 MWh reduction in energy. Our evaluation showed that the deemed savings were consistently applied to each participant, which is consistent with OG&E‘s methodology.
However, our examination of the GJM testimony revealed an inconsistency in the deemed per-unit savings. Three different sets of savings values are quoted in the report. Table PE-2 and EPH-5 show per home savings of 0.886 kW and 1,189 kWh. Table EPH-1 and page 22 of the GJM testimony show per home savings of 0.83 kW and 1,145 kWh. Ultimately, OG&E chose to use the savings values implied by Table GJM-1 which are 0.854 kW and 1,187 kWh per home for 158 homes. Note that this is calculated based on total kW savings of 135 kW and 187,602 kWh over 158 homes. Since rebates were only issued to 146 participants, the overall program savings are lower.
Based on the data provided by OG&E, it does not appear that OG&E currently maintains and tracks the level of detail necessary to meet the reporting requirements outlined in Exhibit GJM-10, (page 21, item 8 Reporting). If this data is not maintained electronically in iAvenue or elsewhere, it will be impossible to conduct a full evaluation of the program impacts planned for the PY 2011 program evaluation.
Recommendations for Improving Savings Estimates in Future Program Years
Based on this review we have the following recommendations for the program.
 Document electronically the list of measures and heating fuel type that are put into the home so that an exact calculation of energy savings can be made and used for reporting in future program years. Although the information is provided from the HERS inspection in REM/Rate, it would be better for OG&E to collect and maintain this electronically as part of the program participation documentation for each home.
 Calculate the savings for each individual home instead of assigning a flat deemed savings value. By only using the deemed savings for each home, the program is likely inaccurately estimating the amount of savings that is achieved by the program. Since the savings value OG&E currently assigns reflects savings from minimum efficiency eligibility, it is likely understating the program impacts.
Geothermal Heating, Cooling, and Water Heating Program
Global‘s PY 2010 evaluation of the Geothermal Heating, Cooling and Water Heating (GHP) Program included developing two case studies of GHP Program participants and a thorough review of the GHP Program tracking database.
GHP Program Impacts
Table 4 details the goals and accomplishments of the GHP Program in PY 2010. Overall, the GHP Program attained about 20% of its PY 2010 goals. Existing customers were expected to represent about one-quarter of the Program‘s participants. In actuality, existing participants represented 43% of PY 2010 participants. 59
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Table 4 Summary of PY 2010 GHP Program Goals and Accomplishments PY 2010 Goals PY 2010 Actuals* Existing New Construction Total Existing New Construction Total
Participants
125
375
500
41 (32.8%)
55 (14.7%)
96 (19.2%)
Rebates
$187,500
$562,500
$750,000
$69,564 (37.1%)
$77,440 (13.8%)
$147,004 (19.6%)
Tons Installed
500
1,500
2,000
185 (37.0%)
206 (13.7%)
391 (19.5%)
kW Impacts
-198
-593
-791
-73.2 (37.0%)
-81.5 (13.7%)
-154.7 (19.5%)
kWh Savings
-809,750
-2,429,250
-3,239,000
-299,616 (37.0%)
-333,619 (13.7%)
-633,234 (19.5%)
Note: *Percentages represent proportion of PY 2010 goals (e.g., 55 new construction participants is 14.7% of the PY 2010 goal of 375 new construction participants).
Recommendations
Based on the case studies and our review of the tracking database, we have the following recommendations for the GHP Program.
 Require an indication of whether the hot water generator option is installed in the unit.
 Require the entry of unit cooling capacity in Btu/hour (Btuh) or kBtu/hour rather than tons, since most models are not designated by tons, but rather by kBtu in their model numbers.
 Add additional fields to the tracking database to allow the entry of model numbers and serial numbers for up to three separate GHP units.
 Calculate the rebate amount based on the model number rather than a value entered by a database user.
 Note the type of cooling system replaced in addition to the type of heating system replaced for retrofits..
 Do not provide incentives for the replacement of GHP systems with GHP systems, unless it can be determined that the GHP system being replaced was in need of replacement due to premature equipment or ground loop failure.
 Increase marketing effort to make program better known. The GHP Program currently relies heavily on word-of-mouth for marketing.
 Tie in the federal tax federal tax credit of 30% on GHP systems placed in service before December 31, 2016.
 Establish or strengthen relationships with developers and new home builders, since the majority of the installations are expected to result from new construction. Remind them that the modifications required to existing home plans to accommodate GHP systems are minimal and represent an insignificant marginal cost.
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Commercial Lighting Program
The Commercial Lighting Program evaluation for PY 2010 included a review of the program database and an impact evaluation based on an engineering review and on-site monitoring for a sample of participants. This program is the only program to receive a full impact evaluation for PY 2010 at this time.
Table 5 shows the goals for participants, demand, and energy savings for the program. In PY 2010, OG&E reported that the program had 611 participants with deemed savings of 5,985 kW and 29,754 MWh, exceeding the goals for deemed savings for both demand and energy with fewer than expected participants.
Table 5 Comparison of Program Goals to Reported Savings OG&E Goal OG&E Reported savings
kW Savings
2,760
5,985 kWh Savings 10,778,000 29,754,696
Number of participants
918
611
Key Results
The analysis provided the following key results:
 As shown in Table 5 above, the Commercial Lighting program reported savings that exceeded its demand and energy savings goals with fewer participants than expected.
 The OG&E reported savings underestimate actual savings. Global‘s independently developed savings estimates using field data on actual lighting usage and which take into account the interactive effects of lighting on the heating, ventilation and air conditioning (HVAC) system loads are higher than OG&E‘s reported savings. It does not appear as if the OG&E reported savings takes into consideration the interactive effects.
 There is wide variation in the site-specific realization rates for both demand and energy savings. The range of this variation is greater for the energy savings (ranging from 0.23 to 2.55) than for the demand savings (ranging from 0.68 to 1.21 with one outlier). Since the demand estimates for individual customers tended to be more accurate, this indicates that the savings estimates based on the equipment installed were closer to what Global found. The higher variability in site-specific realization rates for energy savings indicates that the estimates of operating hours were somewhat less accurate, which is common for commercial lighting programs.
 Overall, assuming that the OG&E-reported savings did not include the interactive effect, those savings overestimated the Global-estimated savings somewhat. This was counteracted by the interactive effect, which raised the final savings estimates overall.
 Global identified a couple of instances where not all of the lighting measures were installed; the customer contact acknowledged that some of the more efficient lights were kept in storage for future use. In these cases, Global adjusted the savings to reflect only the installed lights.
Program Impact Results
Table 6 below shows the program-level savings for both demand and energy, including both the OG&E-reported savings and the Global-estimated savings, along with the realization rate.
Because the use of lights affects the level of cooling and heating required in the building, improvements to the efficiency of lighting has two types of impacts: savings in energy used by the lights themselves and changes in energy use for heating, cooling and ventilation (HVAC). The interactive effects on HVAC load are appropriate to include in estimating the total savings associated with lighting improvements.
In the results tables shown below the savings estimated by Global are reported to demonstrate the two types of impact estimates as follows:
 Lighting only impacts = the kW and kWh savings in lighting use only, directly stemming from the improvement in efficiency of the lighting measures installed (savings without interactive effects)
 Lighting plus HVAC impacts = the combined kW and kWh savings associated with the lighting measures plus the effects of increased or decreased HVAC load resulting from the installation of more efficient lighting (savings with interactive effects)
��� Realization rate = the ratio of the Global site-monitored savings with the interactive effects included in the OG&E-reported savings 61
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The findings of Global‘s analysis, counting only the direct impacts of the participants‘ actions on electricity used for lighting (i.e., without interactive effects), suggest that OG&E overestimated the effects of the measures on both kW demand and annual energy use for lighting. Taking into account the interactive effects with the air conditioning, Global‘s calculations show slightly more kW and kWh savings than OG&E‘s reported savings for the entire program. The realization rate for demand savings is 1.07 and for energy savings is 1.03, meaning that, overall, the interactive effects increased Global‘s lighting-only savings estimates, resulting in estimates of total program savings that exceed what OG&E reported.
Table 6 Program-Level Savings—Global-Estimated Savings Compared to OG&E-Reported Savings Savings OG&E-Reported Savings Global-Estimated Savings (Lighting only impacts) Global-Estimated (Lighting + HVAC impacts) Program Savings Realization Rate
Demand Savings (kW)
5,985
5,851
6,375
1.07 Energy Savings (kWh) 29,754,696 27,812,688 30,564,780 1.03
Recommendations for Improving Savings Estimates in Future Program Years
Based on this review we have the following recommendations for the program.
 Since it appears that much of the difference between the OG&E-reported savings and Global‘s estimates is related to operating hours, the approach used to calculate operating hours should be investigated further to see if there are ways to improve the estimates developed during the project implementation stage.
 Collect information on the type of heating fuel and system to enable reasonable estimates of the interactive effects with HVAC for the deemed savings calculations. These fields can easily be added to the Oklahoma – Retrofit Work Detail Submission Form.
 Make slight improvements to the iAvenue database including the following:
 Enter the estimated square footage from the data collection form into the database.
 Enter the description of the building/room location into the database.
 Add a field for heating fuel type to account for interactive effects in the savings estimates.
 Correct labels in the database to reflect that the wattage of the lamp is expressed in watts, not kilowatts as it currently indicates.
 Conduct post-installation visits or contacts with the participants to obtain a better count of measures actually installed and operating hours for the area where the lights are installed, then either adjust individual savings values or develop and apply an estimated installation rate to the recorded savings totals. Doing this, OG&E could develop and report more accurate total savings.
C&I Standard Offer Program
Our review of PY 2010 of the C&I Standard Offer Program included conducting case studies of two 2010 program projects. Global verified the savings calculations for the case study customers using an Engineering Review (IPMVP Option A) approach. In using this approach, we checked for the appropriate use of formulas and the accuracy of values used in the formulas such as efficiency level, equipment size, hours of operation and the baseline used. The goal of this review is to provide an early assessment of OG&E‘s project savings estimation approach to identify strengths and weaknesses in the savings calculation method.
The case study review allowed us to identify several strengths of the program as well as some weaknesses. Based on this review we recommend the following improvements to the program:
 Develop a new marketing strategy for reaching customers earlier in the decision making process.
 Use the federal minimum standard as the baseline for equipment at the end of its useful life or that is going to be replaced regardless of the program.
 Use manufacturer derived EER values to calculate both baseline and new equipment kW and make sure the EER used in the savings calculation is consistent with the equipment documentation. 62
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 Conduct direct metering of equipment as part of the program‘s measurement and verification activities and as part of the PY 2011 impact evaluation.
Education Programs
Because OG&E does not claim savings from the Education Programs, Global did not perform any evaluation of these programs.
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4.3 Initial Program Ratios
LevelizedCostProgram$ / kWhNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioLow Income Weatherization0.02436,1033.21-20,0340.556,0361.3429,0212.5530,9851.34Fixed Income Weatherization0.02410,1163.23-5,5640.551,6751.348,1672.578,7122.67Residential HEEP0.0268,4181.73-5,5360.661,5771.176,2751.516,8011.56Positive Energy Home0.0227702.161821.226382.751,6093.331,6483.39Geothermal HVAC0.0224,8341.75-2,5520.734,7583.095,1691.875,7601.97Commercial Lighting0.02619,0473.82-6,7830.7215,7349.7616,8263.3918,2233.59Standard Offer Program - C&I0.0253,6731.48-4980.958,00210.065,3221.786,3151.92Energy Efficiency EducationEE Portfolio Total107,9862.91-45,7410.6337,6161.9274,3042.2880,6572.39LevelizedCostProgram$ / kWhNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioNPV ($000's)RatioLow Income Weatherization0.02410,6113.86-5,3050.521,6731.417,0072.747,1352.77Fixed Income Weatherization0.0244,4173.72-1,9820.578701.503,1652.823,2202.85Residential HEEP0.0262,9946.05-7500.43-2460.701,3312.331,3402.34Positive Energy Home0.0226502.97-1140.812341.957212.837272.85Geothermal HVAC0.0227572.29-4560.614352.594991.865151.89Commercial Lighting0.02632,9005.76-12,73316.7922,64116.7924,6154.5425,2164.63Standard Offer Program - C&I0.0254,0153.33-1,8580.552,0218.521,6882.221,7542.27Energy Efficiency EducationEE Portfolio Total112,6304.63-22,1980.6227,6284.1439,0253.4339,9073.48(RIM)(UCT)Utility Cost Test(RIM)(UCT)(TRC)Participant Cost TestRatepayer Impact MeasureUtility Cost TestTotal Resource CostCost-Effectiveness Test(PCT)Societal Test(ST)Program Year - 2010Cost-Effectiveness Test(PCT)(ST)Ratepayer Impact MeasureNext Program Year - 2011Societal TestParticipant Cost Test(TRC)Total Resource Cost64
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5.0 Supplemental Information 65
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5.1 Training
Efficiency Education Program
 June 2010: OG&E member provided homes for BPI training certification for nine individuals, to be BPI certified in Building Analysis and Building Shell.
 March 31-2010: Electricity and Greenhouse Gas Reduction
 June 8, 2010: Industrial Greenhouse Gas Emissions
 June 24, 2010: Compressed Air Systems workshop
 September 22, 2010: Reducing Your Industrial Energy Use – A Management Approach
 December 7, 2010: Pumping System Optimization Opportunities to Improve Life Cycle Performance.
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6.0 Appendix
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Weatherization
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Thank You Notes
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Home Energy Efficiency Program 73
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HEEP Outreach Kit
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Brochure Commercial Lighting
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Commercial/Industrial Standard Offer Program
Tri-Fold Handout
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Energy Efficiency Education Program
Thank You Letters
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6.1 Evaluation, Measurement and Verification Details
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EVALUATION OF THE OG&E LOW- & FIXED-INCOME WEATHERIZATION PROGRAMS – PROGRAM YEAR 2010
Final Report
Prepared for Oklahoma Gas & Electric
May 26, 2011
Global Energy Partners Project Manager R. Milward
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EXECUTIVE SUMMARY
This document presents the findings of Global Energy Partners‘ (Global) evaluation of the OG&E Low- and Fixed-Income Weatherization Programs (Wx Programs) for program year (PY) 2010.
The OG&E Wx Programs address the inspection, upgrade, and improvement of the thermal envelope of each participant‘s dwelling. Upon its completion, the weatherization work should make the house more comfortable for the resident and it should help reduce the rising impact of utility bills. The difference between the two Wx Programs lies only in how a customer qualifies to participate in the Program and the separate participation, energy savings, and demand reduction goals for the two Programs. The 2010 goals for each Program are summarized in .
Table ES-1 Goals for PY 2010 Wx Programs Program Participants Total Energy Savings Total Demand Savings
Low-Income
3,000
15,073 MWh
3.12 MW
Fixed-Income
833
4,186 MWh
0.87 MW
Combined Wx Programs
3,833
19,259 MWh
3.99 MW
Purpose of the Evaluation
The purpose of this evaluation of the PY 2010 Wx Program was to provide independent validation of the energy savings achieved by customers who participated in the program. Specific objectives of this evaluation were:
 Conduct on-site verification of reimbursed weatherization improvements to establish whether the improvements claimed by the contractors were, in fact, performed.
 Conduct a thorough review of Wx Program tracking database to determine whether any improvements to the record keeping and project tracking process could be made and whether the contractors are providing adequate project and measure information for OG&E Project staff to accurately report impacts and progress.
Summary of the Analysis
Global reviewed the EnerTrek database used to track the progress of the Wx Programs. A majority of the information in this database is entered by the Wx contractors by completing an online form that indicates which improvements they made to individual homes. The database contains algorithms that calculate the energy and demand impacts of each measure implemented using the information entered by the contractors. Global‘s review included looking for inconsistencies in the data, including outliers (values that appear to be too high or too low compared to other values), missing data, and non-mutually exclusive or ambiguous responses. Global worked with database developer Frontier Associates to fully understand the database, the database fields, the values found in the fields, and analysis and maintenance issues.
Global‘s field verification involved visiting the homes of a random selection of 30 Wx Program participants. The field verification visits were conducted April 6-9 and 11 and included 20 Low-Income and 10 Fixed-Income participants. While on-site, Global‘s field verification engineer verified the existence of each of the measures reported as having been made by the contractor. In addition, she measured attic insulation levels, 85
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counted number of CFLs in place, recorded air conditioner and refrigerator model numbers, and other values associated with the particular measures implemented in each house.
Database Findings
 The actual numbers of participants for each Program are beyond expectations with 4,337 participants in PY 2010, which is 113% of the goal for the year. The Fixed-Income program alone had 150% more participants than expected. ―Word of mouth‖ helped bring in many participants, but also created unrealistic expectations by a few participants about what they would receive from OG&E.
 Calculated energy savings for the Wx Programs totaled 11,350 MWh, which is 59% of what was expected. Calculated demand reductions were 2.53 MW, which is 63% of expected. While there was no problem getting customers to participate, the improvements made did not bring in the savings as expected.
 The expected yearly impacts per participant for the Wx Programs are 5,025 kWh and 1.04 kW. The actual per-participant impacts for the two PY 2010 Wx Programs are 2,617 kWh and 0.58 kW. These results are 48% and 44%, respectively, of the expected impacts per participant.
 Since the calculated savings are based on deemed values, it appears that either the average size or number of the units installed in each home was not what was expected. The billing analysis that Global will conduct later in 2011 should be able to provide an indication of where the deemed savings figures are varying from the savings figures calculated in the tracking database.
Program Impact Results
The actual numbers of participants for each Program are beyond expectations. However, the energy and demand impacts are far less than expected for each Program. Therefore, the average savings per participant is about half of what was expected. Both programs exceeded their PY 2010 budgets. Therefore it appears that the per-participant costs are about what was expected. However, since the per-participant impacts were less than the goal, more was being spent per participant for the resulting impacts.
Table ES-2 Participants and Calculated Impacts of PY 2010 OG&E Wx Programs Program Participants / Percent of PY 2010 Goal Energy Savings / Percent of PY 2010 Goal Demand Savings / Percent of PY 2010 Goal
Fixed-Income
1,253 (150.4%)
3,109 MWh (74.3%)
0.79 MW (90.8%)
Low-Income
3,084 (102.8%)
8,241 MWh (54.7%)
1.74 MW (55.8%)
Combined Wx Programs
4,337 (113.1%)
11,350 MWh (58.9%)
2.53 MW (63.4%)
Field Verification Findings
Among the 30 homes in the sample there were 94 improvements claimed by the contractors. The most commonly installed measures were CFLs and infiltration improvements, which were both installed in all 30 homes visited. Overall, of the 64 non-CFL improvements claimed to have been performed on the 30 homes, 11 (17%) were either not found to have been done, done poorly or only partially, or u