Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 2019–2023 ENERGY EFFICIENCY PLAN Interstate Power and Light Company Application Exhibit 1 Docket No. EEP-2018-0003 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table of Contents Table of Contents ............................................................................................................. i Index of Tables ................................................................................................................ iii Acronyms ....................................................................................................................... vii 1. Executive Summary.............................................................................................. 9 1.1. Plan Composition ....................................................................................... 9 1.2. Energy Efficiency and Demand Reduction Targets ................................. 11 1.3. Benefits, Costs and Cost-Effectiveness of the Plan ................................. 12 1.4. Schedule .................................................................................................. 14 2. Overview of the Plan .......................................................................................... 15 2.1. Plan Development ................................................................................... 17 2.2. Plan Composition and Changes .............................................................. 29 2.3. Rationale for Eliminating Programs ......................................................... 33 3. Benefits, Costs and Cost-Effectiveness.............................................................. 37 3.1. Program Benefit Components.................................................................. 37 3.2. Program Cost Components ..................................................................... 38 3.3. Cost Effectiveness Analysis ..................................................................... 38 3.4. Summary of the Plan’s Project Economic Outcomes............................... 40 4. Energy Efficiency Plan........................................................................................ 43 4.1. Energy Efficiency Targets ........................................................................ 43 4.2. Energy Efficiency Budgets ....................................................................... 48 4.3. Residential Prescriptive Rebates Program .............................................. 49 4.4. Home Energy Assessments Program ...................................................... 56 4.5. Be Bright Program ................................................................................... 59 4.6. Appliance Recycling Program .................................................................. 64 4.7. Home Energy Reports Program ............................................................... 68 4.8. Low-Income Weatherization Program ...................................................... 74 4.9. Low-Income Multifamily Program ............................................................. 80 4.10. LivingWise (School Kits) Program ........................................................... 86 4.11. Nonresidential Prescriptive Rebates Program ......................................... 92 4.12. Small Business Energy Solutions Program............................................ 101 4.13. Custom Solutions Program .................................................................... 106 4.14. Commercial New Construction Program ................................................ 118 4.15. Agriculture Solutions Program ............................................................... 127 i Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 5. Demand Response Plan ................................................................................... 135 5.1. Demand Response Targets ................................................................... 135 5.2. Demand Response Budgets .................................................................. 136 5.3. Residential Direct Load Control Program............................................... 137 5.4. Nonresidential Interruptible Program ..................................................... 142 6. Other Funding Initiatives ................................................................................... 148 6.1. Other Funding Initiatives Budgets .......................................................... 148 6.2. Energy Awareness ................................................................................. 149 6.3. Research Development and Demonstration .......................................... 153 6.4. Legislative Assessment ......................................................................... 155 6.5. Regulatory and Next Plan ...................................................................... 156 6.6. Evaluation, Measurement and Verification............................................. 157 7. Plan Management ............................................................................................ 158 7.1. Program Labor ....................................................................................... 158 7.2. Outside Services .................................................................................... 160 7.3. Quality Assurance and Quality Control .................................................. 162 ii Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Index of Tables Table 1-1. IPL 2019–2023 Plan Programs .................................................................... 10 Table 1-2. Savings and Cost Summary by Program ..................................................... 12 Table 1-3. Total Plan Benefits and Costs ...................................................................... 13 Table 1-4. Total Plan Cost-Effectiveness ...................................................................... 14 Table 2-1. 2019–2023 Programs and Funding Initiatives .............................................. 15 Table 2-2. Savings and Cost Summary by Program ..................................................... 17 Table 2-3. Technical and Economic Electric and Natural Gas Energy Efficiency Potential (Cumulative in 2018–2027) ............................................................. 27 Table 2-4. Potential by Customer Class ........................................................................ 28 Table 2-5. Achievable BAU and BAU+ Electric and Natural Gas Energy Efficiency Potential (Cumulative in 2018–2027) ............................................................. 29 Table 2-6. 2019–2023 Plan Changes ............................................................................ 31 Table 3-1. Utility Cost Categories .................................................................................. 38 Table 3-2. Stakeholder Relevance to Cost-Effectiveness Tests.................................... 39 Table 3-3. Allocation of Benefits and Costs from Different Perspectives ...................... 39 Table 3-4. Primary Assumptions Used in the Benefit/Cost Analysis ............................. 40 Table 4-1. Estimated Electric Efficiency Potential and Plan Goals ................................ 46 Table 4-2. Estimated Natural Gas Efficiency Potential and Plan Goals ........................ 47 Table 4-3. Energy Efficiency Plan Budget ..................................................................... 48 Table 4-4. Residential Prescriptive Rebates Customer Eligibility Parameters............... 50 Table 4-5. Residential Prescriptive Rebates Incentive Summary .................................. 51 Table 4-6. Residential Prescriptive Rebates Participation Assumptions ....................... 53 Table 4-7. Residential Prescriptive Rebates Incremental Energy and Demand Savings Goals ................................................................................................ 53 Table 4-8. Residential Prescriptive Rebates Budget ..................................................... 54 Table 4-9. Residential Prescriptive Rebates Cost-Effectiveness Results ...................... 55 Table 4-10. Home Energy Assessments Customer Eligibility Parameters .................... 57 Table 4-11. Home Energy Assessments Budget ........................................................... 58 Table 4-12. Be Bright Customer Eligibility Parameters.................................................. 61 Table 4-13. Be Bright Incentive Summary ..................................................................... 61 Table 4-14. Be Bright Participation Assumptions .......................................................... 62 Table 4-15. Be Bright Incremental Energy and Demand Savings Goals ....................... 62 Table 4-16. Be Bright Budget ........................................................................................ 63 Table 4-17. Be Bright Cost-Effectiveness Results ......................................................... 63 iii Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-18. Appliance Recycling Customer Eligibility Parameters ................................ 65 Table 4-19. Appliance Recycling Incentive Summary ................................................... 65 Table 4-20. Appliance Recycling Participation Assumptions ......................................... 66 Table 4-21. Appliance Recycling Incremental Energy and Demand Savings Goals ..... 66 Table 4-22. Appliance Recycling Budget....................................................................... 67 Table 4-23. Appliance Recycling Cost-Effectiveness Results ....................................... 67 Table 4-24. Home Energy Reports Customer Eligibility Parameters ............................. 70 Table 4-25. Home Energy Reports Participation Assumptions...................................... 71 Table 4-26. Home Energy Reports Incremental Energy and Demand Savings Goals .. 71 Table 4-27. Home Energy Reports Budget ................................................................... 72 Table 4-28. Home Energy Reports Cost-Effectiveness Results .................................... 73 Table 4-29. Low-Income Weatherization Customer Eligibility Parameters .................... 75 Table 4-30. Low-Income Weatherization Incentive Summary ....................................... 76 Table 4-31. Low-Income Weatherization Participation Assumptions............................. 76 Table 4-32. Low-Income Weatherization Incremental Energy and Demand Savings Goals .............................................................................................................. 77 Table 4-33. Low-Income Weatherization Budget .......................................................... 78 Table 4-34. Low-Income Weatherization Program Cost-Effectiveness Results ............ 79 Table 4-35. Low-Income Multifamily Customer Eligibility Parameters ........................... 81 Table 4-36. Low-Income Multifamily Incentive Summary .............................................. 82 Table 4-37. Low-Income Multifamily Participation Assumptions.................................... 83 Table 4-38. Low-Income Multifamily Incremental Energy and Demand Savings Goals 83 Table 4-39. Low-Income Multifamily Budget ................................................................. 84 Table 4-40. Low-Income Multifamily Cost-Effectiveness Results .................................. 85 Table 4-41. LivingWise Customer Eligibility Parameters ............................................... 87 Table 4-42. LivingWise Incentive Summary .................................................................. 88 Table 4-43. LivingWise Participation Assumptions ........................................................ 88 Table 4-44. LivingWise Incremental Energy and Demand Savings Goals .................... 89 Table 4-45. LivingWise Budget ..................................................................................... 90 Table 4-46. LivingWise Cost-Effectiveness Results ...................................................... 91 Table 4-47. Nonresidential Prescriptive Rebates Customer Eligibility Parameters ....... 93 Table 4-48. Nonresidential Prescriptive Rebates Incentive Summary........................... 94 Table 4-49. Nonresidential Prescriptive Rebates Participation Assumptions ................ 98 Table 4-50. Nonresidential Prescriptive Rebates Incremental Energy and Demand Savings Goals ................................................................................................ 98 Table 4-51. Nonresidential Prescriptive Rebates Budget .............................................. 99 Table 4-52. Nonresidential Prescriptive Rebates Cost-Effectiveness Results............. 100 iv Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-53. Small Business Energy Solutions Customer Eligibility Parameters .......... 102 Table 4-54. Small Business Energy Solutions Incentive Summary ............................. 102 Table 4-55. Small Business Energy Solutions Participation Assumptions................... 103 Table 4-56. Small Business Energy Solutions Incremental Energy and Demand Savings Goals .............................................................................................. 104 Table 4-57. Small Business Energy Solutions Budget ................................................ 104 Table 4-58. Small Business Energy Solutions Cost-Effectiveness Results ................. 105 Table 4-59. Custom Solutions Customer Eligibility Parameters .................................. 112 Table 4-60. Custom Solutions Incentive Summary ..................................................... 113 Table 4-61. Custom Solutions Participation Assumptions ........................................... 114 Table 4-62. Custom Solutions Incremental Energy and Demand Savings Goals........ 115 Table 4-63. Custom Solutions Budget ......................................................................... 116 Table 4-64. Custom Solutions Cost-Effectiveness Results ......................................... 117 Table 4-65. Commercial New Construction Customer Eligibility Parameters .............. 122 Table 4-66. Commercial New Construction Incentive Summary ................................. 123 Table 4-67. Commercial New Construction Participation Assumptions ....................... 124 Table 4-68. Commercial New Construction Incremental Energy and Demand Savings Goals ............................................................................................................ 125 Table 4-69. Commercial New Construction Budget..................................................... 125 Table 4-70. Commercial New Construction Cost-Effectiveness Results ..................... 126 Table 4-71. Agriculture Solutions Customer Eligibility Parameters ............................. 129 Table 4-72. Agriculture Solutions Incentive Summary ................................................. 129 Table 4-73. Agriculture Solutions Participation Assumptions ...................................... 132 Table 4-74. Agriculture Solutions Incremental Energy and Demand Savings Goals ... 133 Table 4-75. Agriculture Solutions Budget .................................................................... 133 Table 4-76. Agriculture Solutions Cost-Effectiveness Results..................................... 134 Table 5-1. Estimated Demand Response Achievable Potential BAU+ (MW) and Plan Goals ............................................................................................................ 136 Table 5-2. Demand Response Plan Budget ................................................................ 136 Table 5-3. Residential DLC Zonal Temperature Triggers ............................................ 138 Table 5-4. Residential DLC Customer Eligibility Parameters ...................................... 139 Table 5-5. Residential DLC Incentive Summary .......................................................... 139 Table 5-6. Residential DLC Participation Assumptions ............................................... 140 Table 5-7. Residential DLC Incremental Energy and Demand Savings Goals ............ 140 Table 5-8. Residential DLC Budget ............................................................................. 141 Table 5-9. Residential DLC Cost-Effectiveness Results.............................................. 141 Table 5-10. Nonresidential Interruptible Customer Eligibility Parameters ................... 144 v Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 5-11. Nonresidential Interruptible Incentive Summary ....................................... 145 Table 5-12. Nonresidential Interruptible Participation Assumptions ............................ 146 Table 5-13. Nonresidential Interruptible Incremental Energy and Demand Savings Goals ............................................................................................................ 146 Table 5-14. Nonresidential Interruptible Budget .......................................................... 147 Table 5-15. Nonresidential Interruptible Cost-Effectiveness Results........................... 147 Table 6-1. Other Funding Initiatives Budget ................................................................ 148 Table 6-2. Branching Out Participation Assumptions .................................................. 152 Table 6-3. Energy Awareness Budget ......................................................................... 153 Table 6-4. Legislative Assessment Budget ................................................................. 156 Table 6-5. Regulatory and Next Plan Budget .............................................................. 157 Table 7-1. Full-Time Equivalent Staff Assigned to 2019–2023 Plan ........................... 159 Table 7-2. Outside Service Providers .......................................................................... 160 Table 7-3. Verification Procedures .............................................................................. 164 vi Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Acronyms AMCA Assessment BAU BAU+ Board BRC C&I CAP EDA EISA EM&V FPL FTE GPM GWh hp IAC IDHR IECC IOU IPL IUA KAMs kW kWh LMP MISO MW MWh PAC PCT Plan QA/QC Residential DLC RIM SAVE SCT SEM TRC vii Air Movement and Control Association Assessment of Iowa’s Energy Efficiency Potential Business as Usual Business as Usual Plus Iowa Utilities Board Business Resource Center commercial and industrial Community Action Program energy design assistance Energy Independence and Security Act of 2007 evaluation, measurement and verification federal poverty level full-time equivalent gallons per minute gigawatt-hour Horsepower Iowa Administrative Code Iowa Department of Human Rights International Energy Conservation Code investor-owned utility Interstate Power and Light Company Iowa Utility Association key account managers Kilowatt kilowatt-hour locational marginal price Midcontinent Independent System Operator, Inc. megawatt megawatt-hour program administrator cost test participant cost test 2019–2023 Energy Efficiency Plan quality assurance and quality control Residential Direct Load Control (Program) ratepayer impact measure test System Adjustment and Verified Efficiency societal cost test Strategic Energy Management (Program) total resource cost test Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 TREES TRM UEF viii Tool for Reporting Energy Efficiency Services Technical Reference Manual unit energy factor Application Exhibit 1 Energy Efficiency Plan Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 1. Executive Summary Interstate Power and Light Company (IPL), a utility subsidiary of Alliant Energy Corporation, hereby submits its proposed 2019–2023 Energy Efficiency Plan (Plan) in compliance with Iowa Code §§ 476.6(13) and (15) (2018) and 199 Iowa Administrative Code (IAC) Chapter 35. This filing is made pursuant to the Iowa Utilities Board (Board) Final Order issued December 2, 2013, in Docket No. EEP-2012-0001 and Order Granting Motions to Withdraw Filing in Setting Filing Schedule issued May 25, 2018, in Docket No. EEP-2017-0002. IPL’s Plan describes comprehensive energy efficiency and demand response plans consisting of a range of residential and nonresidential electric and natural gas saving programs, as well as its continued efforts to educate customers, trade allies and stakeholders about the benefits of and opportunities for saving energy. 1.1. Plan Composition Beginning in 1990, IPL was among the first utilities in the nation to offer costeffective, equitable, flexible and wide-ranging energy efficiency and load management programs to its customers in all sectors. This proposed Plan will enable IPL to continue in its role as a leading provider of cost-effective, customer-focused energy efficiency and peak load reduction programs by offering diverse incentive options, delivery mechanisms and outreach and education. The utility industry — and consumers’ relationship with technology and energy — is changing rapidly. IPL’s planning process is centered on both meeting its regulatory obligations and on addressing evolving utility and consumer markets by offering comprehensive programmatic options that provide value to every customer sector, 9 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan engaging with a broad range of stakeholders through diverse channels and monitoring and adjusting to regulatory and market changes. The Plan offers a comprehensive suite of programs and initiatives for acquiring energy efficiency and peak demand resources during the five-year Plan period from 2019 to 2023. It expands upon IPL’s 2014–2018 Energy Efficiency Plan, filed with the Board on November 30, 2012, and approved December 2, 2013 in Docket No. EEP2012-0001. The Plan consists of 15 electric and natural gas energy efficiency and demand response programs, as well as additional funding initiatives that focus on educating and training customers and trade allies while setting realistic savings targets for each program. Section 2.2 provides a detailed account of proposed changes to IPL’s programs in this Plan. This 2019–2023 Plan will replace the 2014–2018 Plan beginning on or before April 1, 2019. Table 1-1 outlines the programs included in IPL’s Plan. Table 1-1. IPL 2019–2023 Plan Programs # Program 1 Residential Prescriptive Rebates 2 3 4 5 6 7 8 Home Energy Assessments Be Bright Appliance Recycling Home Energy Reports Low-Income Weatherization Low-Income Multifamily LivingWise 9 Nonresidential Prescriptive Rebates 10 11 Small Business Energy Solutions Custom Solutions 12 Commercial New Construction 13 14 15 Agriculture Solutions Residential Direct Load Control (DLC) Nonresidential Interruptible 10 Markets Served All residential single-family customers and multifamily customers with a residential meter Residential customers in single family homes All IPL customers All IPL customers Residential customers in single family homes Low-income customers in single family homes Low-income customers in multifamily housing Sixth-grade students Nonresidential customers and multifamily customers with a commercial meter Small business customers Nonresidential customers Nonresidential builders, developers and building owners Farm and agribusiness owners Residential customers with central air conditioning Large commercial and industrial (C&I) customers Continuing New ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 1.2. Application Exhibit 1 Energy Efficiency Plan Energy Efficiency and Demand Reduction Targets In establishing the 2019 through 2023 energy savings and demand reduction targets, IPL considered the results of the Assessment of Iowa’s Energy Efficiency Potential (Assessment), 1 the Iowa Technical Reference Manual (TRM) and its own experience implementing programs over more than two decades, particularly participation trends in 2014 through 2018. IPL has established annual electricity savings targets ranging from 0.73% to 0.82% of its retail sales forecast. The electric component of the Plan is expected to achieve 611 gigawatt-hours (GWh) of savings over the fiveyear Plan (122 GWh annually) and 20 megawatts (MW) of demand annually (excluding demand response programs). IPL’s natural gas component is expected to produce slightly less than 2.5 million therms of savings from 2019 through 2023 (0.5 million therms annually). IPL’s demand response offerings will provide IPL with optional peak load management potential of 265 MW over the course of the Plan. Achieving these goals will avoid the equivalent of approximately 435,509 tons2 of carbon dioxide. This is comparable to removing 84,601 passenger vehicles from the road for one year. 3 In total, IPL’s 2019–2023 Plan projects lower savings than were estimated in its 2014–2018 Plan, at a lower overall cost to customers. Table 1-2 provides a summary of electric and natural gas costs and cumulative savings by program. 1 Dunsky Energy Consulting, Michaels Energy and Opinion Dynamics Corporation. Assessment of Iowa’s Energy Efficiency Potential. Submitted to the Iowa Utilities Association. September 2017. 2 Calculated using IPL’s 2016 System Emissions Rate, Source: Alliant Energy Corporate Sustainability Report, page 29. 3 Calculated using the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator, available online: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator 11 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 1-2. Savings and Cost Summary by Program Programs Energy Efficiency Plan Residential Prescriptive Rebates Home Energy Assessments Be Bright Appliance Recycling Home Energy Reports Low-Income Weatherization Low-Income Multifamily LivingWise Nonresidential Prescriptive Rebates Small Business Energy Solutions Custom Solutions Commercial New Construction Agriculture Solutions Demand Response Plan Residential Direct Load Control (DLC) Nonresidential Interruptible Other Funding Initiatives Energy Awareness Research, Development and Demonstration Legislative Assessment Regulatory and Next Plan Evaluation, Measurement and Verification (EM&V) Total Plan Totals may not sum due to rounding. 1.3. 2019–2023 Cumulative Energy Savings Electricity (GWh) Natural Gas (therms) 588.37 2,456,309 26.68 603,611 32.66 36.26 68.19 1.18 389,013 2.02 10,145 6.77 348,054 102.39 274,520 34.59 191.45 830,966 46.15 40.03 22.41 0.99 21.41 NA NA NA NA NA NA NA NA NA NA Costs ($MM) $124.14 $16.90 $1.37 $3.41 $5.56 $7.75 $10.25 $1.54 $1.57 $17.54 $7.35 $38.33 $5.65 $6.94 $94.78 $12.43 $82.35 $18.68 $7.04 NA $5.40 $4.14 NA NA $2.10 610.78 2,456,309 $237.61 Benefits, Costs and Cost-Effectiveness of the Plan IPL strived to design this Plan to be cost-effective when analyzed from a societal cost test (SCT) perspective, as required by 199 IAC Chapter 35 (199 IAC 35.8(1)“e”(1)). The Plan is cost-effective, with a SCT benefit/cost ratio of 2.93; only three programs do not pass the cost-effective threshold according to the SCT. 4 In addition to the SCT perspective, the Plan’s cost-effectiveness was evaluated from the perspectives of the utility (program administrator cost test, or PAC), participant 4 One of the three programs that does not pass the SCT targets low-income customers: low-income programs are not required to be cost-effective according to 199 IAC Chapter 35. 12 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan (participant cost test, or PCT), all ratepayers (ratepayer impact measure test, or RIM) and total resources (total resource cost test, or TRC). As shown in Table 1-4, the Plan is cost-effective from all five perspectives. By fuel, the electric portfolio of the Plan is costeffective from all five perspectives, while the natural gas portfolio only passes the PCT. IPL’s electric energy efficiency plan and demand response plan are cost-effective with a cumulative RIM ratio of 1.10. Table 1-3 and Table 1-4 summarize the benefits and costs that comprise the costeffectiveness analysis of IPL’s Plan, incorporating electric and natural gas components. Table 1-3. Total Plan Benefits and Costs Benefit/Cost Component 2019 128,529,457 Electric Savings (kWh) Energy Efficiency Capacity 22,060 Savings (kW) Demand Response Capacity 265,000 Savings (kW) Natural Gas Savings (therms) 491,914 Capacity Savings (therms) 5,831 Participant Cost Net of $14,291,100 Incentives ($) Direct Utility Costs ($) $48,341,022 Planning and Design $403,000 Administration $12,619,336 Advertising and Promotion $1,794,500 Customer Incentive $29,299,363 Equipment Cost $475,346 Installation Cost $3,534,977 Review and Assessment $214,500 Total Societal Cost $62,632,122 1 Demand reduction is not cumulative. Source: Application Exhibit 3 Benefit Cost. Totals may not sum due to rounding. 13 2020 114,712,093 Plan Year 2021 118,938,700 2022 122,351,049 2023 126,247,355 610,778,653 18,853 19,106 19,338 19,516 NA1 265,000 265,000 265,000 265,000 NA1 491,172 5,819 489,836 5,802 490,847 5,818 492,540 5,846 2,456,309 29,116 $14,028,521 $14,613,978 $14,949,888 $15,234,312 $73,117,799 $49,169,666 $403,000 $14,206,592 $1,794,500 $29,361,522 $475,346 $2,714,205 $214,500 $63,198,187 $48,358,987 $392,000 $13,401,471 $1,769,500 $29,468,319 $475,346 $2,697,851 $154,500 $62,972,965 $45,961,617 $442,000 $10,908,051 $1,769,500 $29,568,332 $475,346 $2,673,888 $124,500 $60,911,505 $45,777,446 $442,000 $10,660,412 $1,769,500 $29,669,600 $475,346 $2,651,088 $109,500 $61,011,758 $237,608,738 $2,082,000 $61,795,862 $8,897,500 $147,367,137 $2,376,731 $14,272,008 $817,500 $310,726,537 Total Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 1-4. Total Plan Cost-Effectiveness Utility Net Present Value Benefits ($) $614,308,470 Net Present Value Costs ($) $216,631,137 Benefit/Cost Ratio 2.84 Source: Application Exhibit 3 Benefit Cost. Totals may not sum due to rounding. 1.4. Participant $503,765,125 $189,379,624 2.66 Ratepayer $617,101,611 $570,271,961 1.08 Societal $860,381,838 $293,419,003 2.93 Total Resource $785,439,499 $293,419,003 2.68 Schedule IPL expects to implement this Plan starting on or before April 1, 2019. All the programs described in this Plan are already in place and operational. This includes one new program, Home Energy Reports, which IPL offered as a pilot and will transition to a fully operational program when this Plan is launched. IPL has collaborated with interested parties to develop the Assessment and Plan. IPL believes it is reasonable to assume that contested issues will be limited and the Board can render a decision on this Plan in the early part of the 2019 to enable efficient, cost-effective delivery and implementation. 14 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 2. Overview of the Plan Through the five-year Plan, IPL will offer a comprehensive set of programs and initiatives for acquiring energy efficiency resources and peak demand reduction from 2019 through 2023. It continues, refines and expands upon the successful energy efficiency programs in the 2014–2018 Plan. The Plan includes savings targets for every program, introduces enhancements to individual programs, where warranted, and incorporates one new program. It consists of an energy efficiency plan with eight residential and five nonresidential programs and a demand response plan with one program for each customer sector and several additional funding initiatives, as outlined in Table 2-1. Table 2-1. 2019–2023 Programs and Funding Initiatives Sector Energy Efficiency Plan Program Name Residential Prescriptive Rebates Home Energy Assessments Be Bright Appliance Recycling Residential Home Energy Reports Low-Income Weatherization Low-Income Multifamily LivingWise 15 Program Offerings • Prescriptive rebates for qualifying measures in retrofit and new construction applications for single family and qualified multifamily homes. • Online home energy assessment tool. • Upstream incentives for qualifying high-efficiency LED lighting measures. • Incentive and free pick up of older, inefficient refrigerators and freezers. • Personalized household reports, sent by mail and email, with individual energy usage, tips and program recommendations. • Free online portal where participating customers can view a customized profile showing their energy consumption and obtain energy-saving tips and educational content. • Potential option for free high-usage alerts by phone, email or text for customers who sign up. • Free comprehensive energy assessment with direct install measures and free weatherization services for qualified lowincome households. • Free energy assessments with in-unit and common area direct installation measures and enhanced prescriptive rebates for recommended retrofits in low-income multifamily housing. • Free energy-saving kit including low-cost energy efficiency measures and educational content for sixth grade students. Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Sector Program Name Nonresidential Prescriptive Rebates Small Business Energy Solutions Custom Solutions Nonresidential Commercial New Construction Agriculture Solutions Demand Response Plan Residential Residential DLC Nonresidential Nonresidential Interruptible Other Funding Initiatives Energy Awareness Residential and Nonresidential Customers, Trade Allies, Regulators and Stakeholders Research, Development and Demonstration Legislative Assessment Regulatory and Next Plan 16 Application Exhibit 1 Energy Efficiency Plan Program Offerings • Prescriptive rebates for nonresidential customers and qualifying multifamily customers who install eligible measures. • Free on-site assessment of lighting and refrigeration efficiency opportunities and enhanced incentives for recommended upgrades. • Free energy audits for C&I customers. • Incentives for retrocommissioning of large commercial buildings and industrial facilities. • Incentives for investment-grade feasibility studies of potential energy efficiency projects. • Strategic Energy Management (SEM) including free technical support, education, tools, data and facilitated knowledge sharing with peer companies. • Complementary energy design assistance (EDA) and financial incentives for integrating energy efficiency into industrial new construction projects. • Free assessments and incentives for quick repair of qualifying pumps and automated systems. • Incentives for the installation of cost-effective custom equipment measures and projects not covered by other programs. • Free EDA for commercial new construction projects (multifamily properties are not eligible for EDA). • Tiered incentives for new construction projects that achieve electric energy savings and exceed the commercial building energy code by various levels. • Incentives to support ongoing maintenance of energy performance in participants’ properties. • Free walk-through energy assessments for agriculture customers. • Prescriptive rebates for energy efficiency measures intended specifically for agricultural applications. • Incentives for residential customers who allow IPL to control their central air conditioner during peak periods. • Incentives for large C&I customers who reduce their demand during times of system peak conditions or high market prices. • Non-targeted energy awareness including PowerHouse® TV, an educational television program focused on home energy efficiency and advertising to promote general awareness of the benefits of energy efficiency through mass media, events and sponsorships. • Branching Out Program grants to help fund community treeplanting projects. • Information sharing, promotional support and training for trade allies who participate in IPL’s Dealer Network. • Option to propose pilot programs, demonstration projects and market research on new program models, emerging technologies and market trends with the potential to enhance IPL’s energy efficiency programs. • Financial support for the Iowa Energy Center and the Center for Global and Regional Environmental Research. • Funding allocated for regulatory engagement and energy efficiency planning. Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Sector Program Name EM&V Application Exhibit 1 Energy Efficiency Plan Program Offerings • Funding to support third-party EM&V of IPL’s energy efficiency programs. Table 2-2 provides a summary of electric and natural gas costs and savings by program. Table 2-2. Savings and Cost Summary by Program Programs Energy Efficiency Plan Residential Prescriptive Rebates Program Home Energy Assessments Program Be Bright Program Appliance Recycling Program Home Energy Reports Program Low-Income Weatherization Program Low-Income Multifamily Program LivingWise (School Kits) Program Nonresidential Prescriptive Rebates Program Small Business Energy Solutions Program Custom Solutions Program Commercial New Construction Program Agriculture Solutions Program Demand Response Plan Residential DLC Program Nonresidential Interruptible Program Other Funding Initiatives Energy Awareness Research Development and Demonstration Legislative Assessment Regulatory and Next Plan EM&V Total Plan 2.1. 2019–2023 Cumulative Energy Savings Electricity (GWh) Natural Gas (therms) 588.37 2,456,309 26.68 603,611 32.66 36.26 68.19 1.18 389,013 2.02 10,145 6.77 348,054 102.39 274,520 34.59 191.45 830,966 46.15 40.03 22.41 0.99 21.41 NA NA NA NA NA NA NA NA NA NA NA NA 610.78 2,456,309 Total Costs ($MM) $124.14 $16.90 $1.37 $3.41 $5.56 $7.75 $10.25 $1.54 $1.57 $17.54 $7.35 $38.33 $5.65 $6.94 $94.78 $12.43 $82.35 $18.68 $7.04 NA $5.40 $4.14 $2.10 $237.61 Plan Development In developing its Plan, IPL tailored its programs to the unique characteristics of its Iowa service territory, following a process that included a review of its historical program achievements, corporate priorities and guiding principles; collaboration and engagement with Iowa stakeholders; an assessment of energy efficiency and demand response 17 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan potential; consideration of Iowa market dynamics and the evolving regulatory framework; and execution of a systematic process to establish realistic participation, energy savings and demand reduction targets and budgets for each program and the plan overall. This Plan continues IPL’s more than 25-year history of offering customers costeffective, equitable, flexible and wide-ranging programmatic choices, incentive options, information and educational opportunities designed to produce long-term savings and create lasting change in the way Iowans use energy. This section describes the planning and development process for IPL’s 2019–2023 Plan. 2.1.1. Plan Objectives The utility industry — and consumers’ relationship with technology and energy — is changing rapidly. In developing this Plan, IPL sought to create forward-looking, integrated programs that engage customers in new ways, anticipate changing market dynamics and set IPL’s customers on a path to increasing sustainability and energy security. IPL used several guiding principles in developing this Plan: • Offer a diverse suite of energy efficiency and peak load management programs and services. • Comply with the requirements of 199 IAC Chapter 35 and incorporate the changes contained in Senate File 2311. • Provide programs that create customer value and engender high satisfaction. • Foster equity by offering program options for all segments of IPL’s customer base, including the low-income and other hard-to-reach populations. 18 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan Sharpen the focus on peak capacity by offering higher incentives for measures that reduce peak demand. • Offer customers the opportunity to participate in energy efficiency through diverse channels including online engagement and digital platforms. • Engage and collaborate with dealers, customers, regulators, nongovernmental organizations, industry groups and other investor-owned utilities (IOUs) to achieve stakeholder consensus to the extent possible. IPL is well positioned to deliver programs that will meet customers’ needs and fulfill the Plan objectives and regulatory obligations. 2.1.2. Plan Context Since implementing its 2014–2018 Plan, the utility industry, the Iowa marketplace and the energy landscape in general has undergone rapid, far-reaching changes. Utilities face an ever-growing and ever-changing assortment of challenges, ranging from potential cyber security threats to proliferation of rooftop solar and energy storage to changing customer expectations. Historically a stable industry, utilities and the nation’s power grid are, in many ways, in one of their most disruptive periods of the last 100 years. Many of these challenges have direct implications for IPL’s energy efficiency plan. Nationally, energy efficiency programs, which have produced reliable, costeffective energy savings for decades, increasingly struggle to achieve energy-savings goals amid these rapidly changing market conditions. IPL anticipates that over the next five-year plan horizon, it will face continued market disruptions that require additional planning around new technologies, declining 19 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan energy demand and harder-to-reach energy-savings potential. Some of these issues are highlighted below. • Energy Independence and Security Act of 2007 (EISA) backstop provision. In 2020, the EISA backstop provision is expected to come into effect. This provision requires that any bulb sold after 2019 meet a 45 lumens-per-watt standard. Although this provision is technology neutral, the current residential lighting baseline technology (standard, screw-in halogen bulbs) will no longer meet the lumens-per-watt standard. The market for screw-in CFL bulbs (while meeting the backstop provision) is also expected to shrink, as these bulbs no longer meet ENERGY STAR® standards (Lamps v2.0 specification) and will not be an appropriate baseline after 2019. As such, standard screw-in LED bulbs will become the new baseline, negating their savings potential. As a result, numerous lighting technologies that have historically provided a significant portion of IPL’s energy savings will no longer be viable as program offerings. • Distributed energy resources and storage. A growing share of customers has installed distributed energy solutions and more are planning to do so in the next few years. A recent study found that although only 4% of consumers currently own a rooftop solar system, 34% expressed interest in getting one.5 Meanwhile, as storage costs decline, meter-downstream storage will likely 5 Association of Energy Service Professionals and Essense Partners. Distributed Energy Resources. Part 3 of 4. October 2017. 20 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan accelerate the rate of solar adoption which will, in turn, impact utilities’ load growth projections. • Focus on climate policy. In the absence of stronger federal leadership, many states are enacting their own climate goals and policies. Twenty states and the District of Columbia have adopted specific greenhouse gas reduction targets and are experimenting with policies including carbon pricing, emission limits and steps to promote cleaner transportation alternatives. In Iowa, the state Energy Plan, released in December 2016, emphasizes the state’s 25year history as an energy leader and the need for effective planning to address energy supply and demand challenges, ensure reliable and affordable energy supply and continue progress toward the adoption of cleaner energy resources and energy efficiency. As state-level energy and environmental policy continues to evolve and become increasingly intertwined, IPL expects to engage with its stakeholders, policymakers and regulators to ensure it can make a meaningful contribution to any future energy policy while continuing to provide safe, affordable energy services to its customers. • Changing customer expectations. In nearly every industry, customer choice, personalized services and competitive pricing have become the norm. Customers are increasingly demanding that their service providers offer a variety of simple, low-cost options from which to customize their engagement experience and to communicate with them using a variety of digital and traditional platforms. To keep pace, the utility industry must continue to offer 21 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan value, customized solutions, a personalized experience and, increasingly, a total digital engagement solution. • Peak demand constraints. As shown in Application Exhibit 12, IPL’s combined avoided generation, transmission and distribution costs have stayed relatively stable with only a slight decrease since the 2014–2018 Plan. These capacity costs continue to drive energy efficiency toward peakcoincident measures, particularly through programs that address heating and cooling end uses. • Cost of natural gas. The cost of natural gas has been low and declining for several years. Unconventional natural gas extraction methods and other technological advances have led to sharp production cost declines and an oversupply of natural gas in the United States, resulting in fuel costs at a 20year low. Such low natural gas costs create a disincentive for customers to install energy-efficient upgrades since the cost savings value of highefficiency technologies is relatively low. Additionally, because avoided fuel costs are a major factor in calculating cost-effectiveness, this drop in natural gas prices puts tremendous negative pressure on the benefit/cost ratios of natural gas efficiency measures. Considering the dramatic changes taking place in the utility industry, IPL is committed to planning for and investing in energy efficiency technologies, programmatic approaches and market intervention strategies that will increase its flexibility and allow it to continue to serve its customers. 22 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 2.1.3. Planning Process Building on the success of its existing energy efficiency programs, IPL developed the Plan to capture available energy efficiency potential while refining and modifying programs based on evaluation and other best practice research and tailoring programs to the characteristics of its service territory. Taken together, the programs outlined in this Plan continue IPL’s history of offering a diverse suite of cost-effective, flexible and inclusive programmatic choices, incentive options, information and educational opportunities for every customer class. Figure 2-1 illustrates the process IPL used to derive the programs outlined in the Plan. Figure 2-1. Plan Development Process Iowa Technical Reference Manual Assessment of Potentials Current Programs Gap Analysis Stakeholder Workshop Program Evaluation, Benchmarking, Best Practices Review Stakeholder Input: New Program Proposals Program Concepts Stakeholder Workshop Program Design Stakeholder Workshop Program Portfolio Five-Year Plan 23 Budgets, Savings, CostEffectiveness Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan IPL used a seven-step process to develop its Plan and constituent programs, as described below. Step 1: Compile a comprehensive list of energy efficiency and conservation measures and practices. IPL created an extensive list of measures approved through the Iowa TRM and identified by the Assessment, then compared these to the measures offered through its current programs. For each measure considered in the Plan, IPL compiled data on technical specifications, potential end-use energy and peak demand impacts and costs from the Iowa TRM, Assessment and other secondary sources. Step 2: Assess program design strategies. IPL reviewed internal research and sought input from program managers, implementation vendors and stakeholders to assess potential modifications to its existing programs and to identify new program delivery strategies warranting consideration for its Plan. This information helped IPL identify program strategies for consideration in the new Plan. IPL also considered the potential for freeridership, as described in the Net-toGross Study, in designing its programs. IPL did not include measures that have historically experienced high freeridership in this Plan. Step 3: Collaborate with stakeholders. Throughout developing the Plan, IPL pursued opportunities to inform stakeholders of its progress and solicit input through frequent formal and informal communications with multiple parties. Application Exhibit 5 Coordination/Collaboration provides a summary of IPL’s coordination and collaboration activities. 24 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Step 4: Determine the costs, savings and avoided costs and benefits for each measure to compute the measure’s cost-effectiveness from a societal perspective. IPL screened measures based on achieving the cost-effectiveness threshold of 1.0, which allowed it to identify those measures that would not materially contribute to its overall goals. Step 5: Estimate participation for each measure. IPL derived its estimate of participation (number of installations) for measures included in its current plan using historical participation data and applying reasonable escalation rates that considered market trends, changing equipment standards and other factors, then projecting those rates over the five-year Plan. For new measures, IPL derived participation rates by benchmarking similar programs operated by utilities in other jurisdictions, and then tempered those rates with findings from the Assessment and other market research to arrive at realistic participation projections for each measure in each Plan year. Step 6: Calculate savings for each program in the Plan. IPL calculated savings as the sum of each measure’s annual energy-savings estimate (derived from the Iowa TRM) and expected participation over the entire Plan. All savings in this Plan are calculated at a gross level. However, for some of the major measures in the Iowa TRM, the adjusted baseline already accounts for net savings at the measure-level, so net values were used to calculate savings for these measures. Step 7: Balance the Plan. Finally, IPL iteratively adjusted the expected number of participants and customer incentive levels in each program to balance the Plan. The objective of balancing is to provide a reasonable mix of programs that meet IPL’s goals 25 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan for a comprehensive Plan with a robust set of programmatic options for every customer sector and segment. 2.1.4. Assessment of Potential The 199 IAC Chapter 35 sets forth the rules that implement legislation enacted in 1990 and modified in 1996, requiring Iowa’s IOUs to “file with the board an assessment of the potential for energy and capacity savings from actual and projected customer usage by applying commercially available technology and improved operating practices to energy-using equipment and buildings.” 6 In compliance with this requirement, the Iowa Utility Association (IUA), of which IPL is a member, commissioned a statewide assessment of the remaining electric and natural gas energy efficiency and demand response potentials within the service territories of Iowa’s three largest IOUs. The Assessment quantified the amount of energy that could be saved in each utility’s service territory from 2018 to 2027, from efficient technologies and practices that are widely commercially available, accounting for known changes in codes and standards, technical limitations (technical potential), societal cost-effectiveness (economic potential) and barriers and market conditions (achievable potential). Table 2-3 shows the forecasted 2027 baseline electric and natural gas sales and total potential for IPL’s service area. The Assessment results indicated 3,701 GWh of technically feasible electric energy efficiency potential by the end of the 10-year planning horizon in 2027. Approximately 3,112 GWh of these resources proved to be 6 199 IAC 35.8(476). 26 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan cost-effective. The identified economic potential is equivalent to a reduction of 20% of forecast retail sales in 2027. The Assessment further indicated nearly 71 million therms of technically feasible natural gas energy efficiency potential by 2027, of which 42.4 million therms (60%) is expected to be economic. The identified natural gas economic potential of 42.4 million therms represents 15% of forecasted load in 2027. Table 2-3. Technical and Economic Electric and Natural Gas Energy Efficiency Potential (Cumulative in 2018–2027) Forecast 2027 Retail Sales1 Resource Electricity (MWh) Natural Gas (thousand therms) Energy Savings Potential 15,328,485 3,700,834 287,874 70,766 Technical Potential Capacity Savings Percentage Potential of Base (MW/ Thousand Sales Therm-Day)2 24% 450 25% 684 Energy Savings Potential 3,112,214 42,358 Economic Potential Capacity Savings Percentage Potential of Base (MW/ Thousand Sales Therm-Day)2 20% 412 15% 477 The Plan uses the electric Iowa 2018–2027 Midcontinent Independent System Operator, Inc. (MISO) forecast (2017) of retail sales. This updates the Assessment report. The electric forecast can be found in Application Exhibit 12. The natural gas forecast can be found in Application Exhibit 13. 2 Excludes demand response potential. Source: Application Exhibit 2 Assessment of Potential, Volume II, Tables A46–A49 (Potentials); Application Exhibit 12 Additional Requirements for Electric Utilities and Application Exhibit 13 Additional Requirements for Electric Utilities. 1 As shown in Table 2-4, the Assessment indicated that the commercial sector represents the largest portions of electric technical and economic potential, at 36% and 40%, respectively. The residential and industrial sectors contribute similar shares of technical potential, at 32% each, while the industrial sector represents slightly higher share of economic potential, at 32% compared with 28% for the residential sector. The Assessment also showed that most technical and economic potential for natural gas efficiency is concentrated in the residential sector, which accounts for 63% of technical and 58% of economic potential. Technical and economic potential in the 27 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan industrial sector respectively represents 9% and 11% of aggregate natural gas potential (Table 2-4). Table 2-4. Potential by Customer Class Sector Residential Commercial Industrial Share of Electric Technical Potential 32% 36% 32% Share of Electric Economic Potential 28% 40% 32% Share of Natural Gas Technical Potential 63% 28% 9% Share of Natural Gas Economic Potential 58% 32% 11% Source: Application Exhibit 2 Assessment of Potential, Volume II, Tables A46–A49. 2.1.5. Energy Efficiency Achievable Potential The Assessment also included an estimate of achievable potential under four increasingly aggressive assumptions regarding marketing and incentive amounts, including availability of financing: 1. Business as Usual (BAU), assuming programs would operate under existing levels of marketing and incentives. 2. Business as Usual Plus (BAU+), assuming a 25% increase in administrative costs for more intensive marketing and delivery. 3. Maximum Achievable, assuming incentives would cover 100% of incremental costs for all programs. 4. Financing Programs, assuming the availability of financing. The Assessment suggests that approximately 1.271 GWh of electricity savings and slightly more than 15 million therms of natural gas savings are achievable under the BAU scenario. These savings represent 8% of IPL’s projected electric sales and 5% of natural gas sales in 2027, the Assessment’s final year. Under the BAU+ scenario, 28 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan saving potentials are expected to rise to approximately 1.746 GWh in electricity savings and nearly 25 million therms in natural gas savings. These savings are equivalent to a respective 11% and 9% of IPL’s projected retail electricity and natural gas sales in 2027 (Table 2-5). Table 2-5. Achievable BAU and BAU+ Electric and Natural Gas Energy Efficiency Potential (Cumulative in 2018–2027) Forecast 2027 Retail Sales1 Resource Electricity (MWh) Natural Gas (thousand therms) 15,328,485 287,874 Achievable Potential BAU+ Capacity Savings Energy Percentage Potential Savings of Base (MW/ Thousand Potential Sales Therm-Day)2 1,745,608 11% 321 24,876 9% 240 Energy Savings Potential 1,271,119 15,199 Achievable Potential BAU Capacity Savings Percentage Potential of Base (MW/ Thousand Sales Therm-Day)2 8% 225 5% 137 The Plan uses the electric Iowa 2018–2027 MISO forecast (2017) for the retail sales forecast. This updates the Assessment report. The electric forecast can be found in Application Exhibit 12. The natural gas forecast can be found in Application Exhibit 13. 2 Excludes demand response potential. Source: Application Exhibit 2 Assessment of Potential, Volume II, Tables A46–A49 (Potentials); Application Exhibit 12 Additional Requirements for Electric Utilities and Application Exhibit 13 Additional Requirements for Gas Utilities. 1 2.2. Plan Composition and Changes The Plan’s overarching approach is best described as a plan perspective, addressing energy usage in a customer’s home, farm or business through a comprehensive, whole-facility approach or a menu approach, whichever is most appropriate for the customer. IPL employs multiple market intervention strategies in its Plan, including informing and educating customers, offering technical assistance and, most importantly, providing financial incentives to produce long-term savings and provide IPL and its customers with the highest returns in terms of market reach, energy savings and cost-effectiveness. 29 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan The Plan is composed of 15 programs organized in the two primary plans — Energy Efficiency and Demand Response — and includes funding for educational and training activities, general awareness advertising, research and development and other initiatives that do not directly contribute energy savings. In designing the plans, IPL sought to provide program opportunities with a range of available measures, delivery mechanisms and educational opportunities for every customer sector. Figure 2-2 summarizes program eligibility across all customer sectors and segments. Figure 2-2. Customer Eligibility by Program 30 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan IPL’s 2019–2023 Plan builds on its 2014–2018 Plan, with new elements added to capture untapped market potential, certain elements eliminated that failed to produce long-term benefits for customers and program operations and delivery streamlined. Table 2-6 provides a comparison of each program in IPL’s Plan to the corresponding program in the 2014–2018 Plan, and summarizes program modifications. Table 2-6. 2019–2023 Plan Changes 2019–2023 Plan # Program 2014–2018 Plan # Changes/Details Program • • 1 Residential Prescriptive Rebates 1 Residential Prescriptive Rebates • • • 2 Home Energy Assessments 2 Home Energy Assessments 3 Be Bright 3 Change-a-Light 4 Appliance Recycling 4 Appliance Recycling NA NA 5 New Home Construction NA NA 6 Multifamily • • • • • • • • • Discontinuing the New Home Construction Program. • • Discontinuing Multifamily as a stand-alone program. Integrating prescriptive rebate program offerings for qualifying market rate multifamily customers into the Residential Prescriptive and Nonresidential Prescriptive programs (based on property meter type). Adding the Home Energy Reports pilot to the residential energy efficiency plan as a formal program. Increasing the size of the treatment group. Potentially offering high usage alerts if a customer’s energy usage is on pace to be higher than usual. • 5 Home Energy Reports 31 NA NA Adding new measures: Tier 2 power strips, room air purifiers and variable speed pool pumps. Introducing new incentives for equipment installed in new construction applications. Offering higher incentive levels for measures that help IPL manage its peak load. Discontinuing measures: furnace and boiler tune-ups, room air conditioners, air-to-air heat exchangers, programmable thermostats, natural gas water heaters, desuperheaters for air-source heat pumps and whole-house fans. Discontinuing the requirement for HVAC measures to be System Adjustment and Verified Efficiency (SAVE)–installed. Discontinuing participating dealer incentives. Offering an online audit for participants to conduct independently without a technician. Discontinuing in-home energy assessments. Discontinuing all direct install and home envelope measures. Formally changing the program name to Be Bright. Limiting available bulb types after 2019 to those that continue to offer energy savings. Adding an online customer scheduling platform. Discontinuing the pickup, disposal and rebating of window and room air conditioners. • • Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 2019–2023 Plan # 6 NA Program 2014–2018 Plan # 7 NA 10 Home Energy Savers Low-Income Weatherization 7 Low-Income Multifamily 9 Low-Income Multifamily and Institutional Efficiency Improvements NA NA 8 EnergyWise Education 18 School-Based Energy Education 8 9 LivingWise Nonresidential Prescriptive Rebates 11 Nonresidential Prescriptive Rebates NA NA 12 Business Assessments 10 Small Business Energy Solutions NA NA 11 Custom Solutions 13 Changes/Details Program Low-Income Weatherization Custom Rebates • • • Defining eligible buildings as those with four or more living units. Modifying the incentive for low-income multifamily properties to 40% of the project cost plus five times the first-year energy savings. • Adjusting customer eligibility parameters for low-income multifamily properties such that 40% of units must be subsidized low-income housing. • Formally changing the program name to Low-Income Multifamily. • • • Discontinuing the EnergyWise Education (low-income kits) Program. • Adopting the LivingWise component name as the overall program name (replacing School-Based Energy Education). Moving LivingWise from outreach, education and training initiatives to the residential energy efficiency plan. Discontinuing the Alliant Energy Kids component of the program. Discontinuing most food service measures, traffic lights, T-8 lighting, duct repair, pool and spa covers, ENERGY STAR computers, scroll compressors, tune-ups for boilers and furnaces, insulation, air sealing, water heaters, steam trap replacement, strip curtains for walk-in refrigerators and hotel key cards. Discontinuing participating dealer incentives. • Discontinuing the Business Assessments Program. • • Adding a new measure package offering for refrigeration. Reducing the maximum program incentive from 75% to 70% of project costs. Formally changing the program name to Custom Solutions. Adding SEM as a new program component. Adding an incentive for each kilowatt (kW) saved. Modifying the incentive structure such that rebates are based on energy savings rather than energy cost savings. Moving industrial new construction from the Commercial New Construction Program. Discontinuing the Building Operator Certification and Technology Training components. Adding an ongoing performance track that targets previous participants for retrocommissioning. Increasing design team incentives for non-multifamily projects. Offering incentives for electric savings only. Moving industrial new construction to the Custom Solutions Program. Formally changing the program name to Agriculture Solutions. Adding dairy refrigeration tune-up measure. • • • • • • • • • • Commercial New Construction 14 Commercial New Construction 13 Agriculture Solutions 15 Agriculture Sector 32 Adding duct sealing and repair as a standard retrofit measure. Monitoring the EISA 2020 backstop provision to assess ongoing cost-effectiveness of direct install LED lighting measures in 2021 and beyond. Discontinuing the water heater tank wrap and CFL direct install measures. • Discontinuing the Home Energy Savers Program. • 12 Application Exhibit 1 Energy Efficiency Plan • • • • • Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 2019–2023 Plan # Program 2014–2018 Plan # Changes/Details Program • • • 14 Residential DLC Nonresidential Interruptible 15 24 25 Energy Awareness 30 Next Plan • No changes planned. 31 EM&V • No changes planned. 20 20 NA NA 19 NA NA Research, Development and Demonstration Legislative Assessment Regulatory and Next Plan EM&V 22 NA NA NA 2.3. • • • 21 NA Nonresidential Interruptible • Making measures that are not specific to agricultural applications available to farm customers through the Nonresidential Prescriptive Rebates Program. Discontinuing fluorescent lighting, low pressure irrigation, dairy scroll compressors and high-volume low-speed fans. Replacing existing, end-of-life air conditioner cycling switch devices with new technology. Reviewing the feasibility of a pilot program that leverages the controlling capabilities of Tier 3 learning thermostats. Discontinuing program eligibility for water heaters. Updating the tariff to designate a three-year contract period for program participation, change tariff decision rules, recalculate bill credit and update remote displacement fees. Integrating several programs as components under a single Energy Awareness initiative. Formally changing the name of the Tree Planting program to Branching Out Reducing the maximum annual Branching Out grant to $5,000 per community. Discontinuing Builder Training and HVAC SAVE Training. Discontinuing the Speakers’ Bureau, Trees for Kids, Operation ReLeaf and Tree Storm Fund. Non-Targeted Energy Information and Awareness Branching Out Builder Training Energy Efficiency Dealer Network Hometown Rewards Bright Ideas Research, Development and Demonstration Legislative Assessment 16 NA Residential DLC 23 26 Application Exhibit 1 Energy Efficiency Plan • • • • • Discontinuing the Hometown Rewards Program. • Discontinuing the Bright Ideas Program. • No changes planned. • No changes planned. Rationale for Eliminating Programs IPL carefully considered each program’s ability to achieve the objectives of offering value to a broad range of customers, providing benefits that exceed costs to all customers and maximizing achievable energy savings. In its assessment, IPL determined that New Home Construction, Home Energy Savers, Multifamily, EnergyWise Education, Business Assessments, Hometown Rewards and Bright Ideas 33 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan did not sufficiently achieve these objectives to continue offering the programs. Details on IPL’s rationale for eliminating these programs are provided below. • New Home Construction. The New Home Construction Program is not costeffective. The State of Iowa’s current energy code, which is based on the 2012 International Energy Conservation Code (IECC), requires a very highefficiency envelope as a baseline, which limits the amount of savings that can be achieved from new construction projects, especially in natural gas–heated homes. Exceeding the baseline efficiency level is costly for builders and can be difficult given physical limitations of the home’s envelope. • Home Energy Savers. The Home Energy Savers Program is not costeffective. Additionally, it is a “limited income” program focused on customers whose income exceeds 200% of the federal poverty level (FPL); therefore, it does not comply with the low-income provisions in 199 IAC 35.8(2)a. • Multifamily. IPL’s Iowa territory is mostly rural and its residential customer base is dominated by single family housing. The costs to deliver efficiency services to this sector are comparatively high. Combined, these factors contribute to low overall programmatic cost-effectiveness. IPL can no longer justify offering a comprehensive, whole-facility solution for market rate multifamily customers. As an alternative, IPL will offer its suite of prescriptive energy efficiency rebates to customers in multifamily housing through its Residential and Nonresidential Prescriptive Rebate programs, while continuing to serve low-income multifamily customers through its Low-Income Multifamily Program. 34 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan EnergyWise Education. Through the EnergyWise Education Program, local Community Action Program (CAP) agencies provide adult energy education workshops and free kits containing low-cost energy efficiency measures to low-income households. Although the program is cost-effective, IPL received feedback from local CAP agencies that it has become difficult to implement due to decreasing funds and high turnover among staff who are trained to administer the program. • Business Assessments. In the Plan, IPL will offer business assessments for medium and large nonresidential customers through the Custom Solutions Program and will provide small business assessments focused on lighting and refrigeration through its Small Business Energy Solutions Program. These modifications help to streamline IPL’s business offerings by providing comprehensive solutions under a sector-focused program offering and will improve the programs’ overall cost-effectiveness. • Hometown Rewards. Through the Hometown Rewards Program and previous E-Communities Program, IPL has worked with 11 communities within its service territory to help them set and work toward achieving energy reduction goals over a two-year period. The program was designed to support Iowa towns in IPL’s electric and natural gas combined territory with populations between 5,000 and 25,000 that do not have the resources to commit to meaningful energy efficiency on their own. While the program has achieved some success in supporting these communities, it entails a significant commitment of time and funding, from both IPL and the participating 35 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan communities, but produces no direct savings (since savings accrue to other programs) and is therefore not cost-effective. • Bright Ideas. For 10 years through the Bright Ideas Program, IPL has provided grant funding to affinity organizations to support innovative energysaving ideas. However, interest in the program has been declining. The program was designed to fund emerging energy efficiency technologies; however, most grant applications in recent years have focused on renewable generation and storage rather than efficiency. Additionally, the program entails significant funding but produces no direct savings and is therefore not cost-effective. 36 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 3. Benefits, Costs and Cost-Effectiveness For each program in the Plan, IPL began assessing cost-effectiveness by valuing its gross societal benefits, as measured by IPL’s avoided energy and capacity costs (including externalities) and the program’s total lifecycle costs. A program’s costeffectiveness is determined by the net present value of its benefits. A program is considered cost-effective if its net societal benefits are positive: in other words, if the ratio of the net present value of the program’s benefits compared to costs is greater than 1.0. 3.1. Program Benefit Components The benefits of an energy efficiency program include the value of avoided timedifferentiated and seasonally differentiated costs, adjusted by a 10% externality factor for electricity as provided in 199 IAC 35.9(7) and a 7.5% externality factor for natural gas as provided in 199 IAC 35.10(4). For each energy efficiency measure included in a program, IPL adjusted hourly (8,760) system avoided costs by the measure’s hourly load shape to capture the full value of the time-differentiated and seasonally differentiated impacts of the measure. In the case of programs where conservation measures are expected to affect the consumption of more than one fuel, IPL incorporated avoided cost impacts for both fuels in the analysis. Non-energy benefits for replacement bulb cost savings for lighting measures and water savings benefits for measures reducing water consumption are included benefits in the SCT, TRC and PCT perspectives. 37 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 3.2. Application Exhibit 1 Energy Efficiency Plan Program Cost Components The cost components of the analysis consist of incremental measure costs and utility costs. The incremental measure costs are the incremental material and labor expenses associated with installing energy efficiency measures (rather than baseline equipment) and their ongoing operation and maintenance costs, where applicable. Utility costs are the expenses associated with developing, deploying and operating the program, and fall into the seven categories outlined in Table 3-1. Table 3-1. Utility Cost Categories Utility Cost Category Description Expenses associated with program development, designing new programs or making Planning and Design modifications to existing programs Costs associated with program support functions, such as ongoing operation, administration, Program Administration vendor management and reporting Program-specific marketing, education, training and demonstrations aimed at promoting the Advertising and Promotion program Incentives Utility contributions provided to participants, such as rebates1 Program-specific costs associated with hardware purchased by the utility and given to customers as a portion of their incentives, such as direct installation measures. This includes all non-rebate Equipment contributions to participants, such as loan subsidies, payments to dealers, rate credits, bill credits and the cost of energy audits. Installation Labor costs associated with installing equipment provided to participants in individual programs Review and Assessment Expenses associated with IPL’s annual program review and assessment 1 As defined in the California Standard Practice Manual for Economic Analysis of Demand-Side Management Programs and Projects (October 2001). 3.3. Cost Effectiveness Analysis IPL calculated benefit/cost ratios using the standard methods described in the California Standard Practice Manual for analyzing the cost-effectiveness of conservation programs. Using the five tests from the California standard protocols, IPL evaluated the economic performance of each program from the five stakeholder perspectives outlined in Table 3-2. 38 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 3-2. Stakeholder Relevance to Cost-Effectiveness Tests Cost-Effectiveness Test Program Administrator Cost Test Participant Cost Test Test Abbreviation PAC PCT Ratepayer-Impact Measure Test RIM Societal Cost Test Total Resource Cost Test SCT TRC Stakeholder Perspective Utility Program participants All IPL customers (including nonparticipants, also referred to as ratepayers in 199 IAC Chapter 35) Society at large Utility and program participants combined (total resource) The allocation of benefit and cost components to various stakeholders is illustrated in Table 3-3. Table 3-3. Allocation of Benefits and Costs from Different Perspectives Utility (PAC) Stakeholder Perspective Participant Ratepayer Societal (PCT) (RIM) (SCT) Total Resource (TRC) Benefits Avoided energy costs ● ● ● Avoided capacity costs ● ● ● Avoided transmission and distribution losses ● ● ● Avoided secondary fuel costs ● ● ● Bill reductions ● Externalities adder (10% electric, 7.5% natural ● gas) Non-energy benefits (operations and ● ● maintenance and water savings) Utility incentives ● Costs Incremental measure costs ● ● Utility costs incurred as incentives ● ● Utility costs other than incentives ● ● ● Lost revenues ● Source: California Energy Commission. California Standard Practice Manual for Economic Analysis of Demand-Side Management Programs and Projects. October 2001. ● ● ● ● ● ● ● The assumptions IPL used in its cost-effectiveness calculations are summarized in Table 3-4. 39 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 3-4. Primary Assumptions Used in the Benefit/Cost Analysis Base Rates (in effect January 2018) Avoided Energy Costs (2019 without losses or externalities) Avoided Capacity Costs (2019 without losses or externalities) Externality Factor Line Loss Discount Rates Inflation Rate 3.4. Electric Natural Gas Residential Service Usage, 2nd block: Residential Gas Service: $0.1645 per Winter: $0.0671 per kWh therm Source: IPL Gas Tariff, Eighth Revised Summer: $0.1108 per kWh Source: IPL Electric Tariff, Tenth Revised Sheet No. 20 Sheet No. 40 Non-Residential General Service Usage, 2nd block: Non-Residential General Gas Service: Winter: $0.0597 per kWh $0.16322 per therm Source: IPL Gas Tariff, Ninth Revised Summer: $0.0942 per kWh Source: IPL Electric Tariff, Tenth Revised Sheet No. 22 Sheet No. 41 Summer Peak: $0.030 per kWh-yr Summer: $0.270 per therm Summer Off-Peak: $0.027 per kWh-yr Winter: $0.293 per therm Winter Peak: $0.028 per kWh-yr Source: Application Exhibit 13 Additional Winter Off-Peak: $0.026 per kWh-yr Requirements for Gas Utilities, “Avoided Source: Application Exhibit 12 Additional Requirements Energy” tab for Electric Utilities, “Avoided Energy” tab Generation: $71.66 per kW-yr Source: Application Exhibit 12 Additional Requirements for Electric Utilities, “Generation Carrying Charge” tab Transmission: $70.13 per kW-yr Source: Application Exhibit 12 Additional Requirements Generation: $11.3 per peak day therm for Electric Utilities, “Transmission Carrying Charge” tab Source: Application Exhibit 13 Additional Requirements for Gas Utilities, “Avoided Distribution: $39.33 per kW-yr Capacity” tab Source: Application Exhibit 12 Additional Requirements for Electric Utilities, “Distribution Carrying Charge” tab Total: $181.12 per kW-yr Source: Sum of Generation, Transmission and Distribution 10.00% 7.50% Source: 199 IAC 35.9(7)a Source: 199 IAC 35.10(4)a Industrial: 4.09% (energy), 4.69% (demand) Residential, Commercial and Agricultural: 5.11% NA (energy), 5.66% (demand) Source: IPL 2017 line-loss factors Utility and RIM Discount Rate: 6.665% Participant Discount Rate: 6.665% Societal and Total Resource Discount Rate: 2.978% Source: IPL data as sourced in Iowa Utilities Association, Iowa’s Energy Efficiency Potential, conducted by Dunsky Energy Consulting, et al., September 2017 2.00% (used to escalate retail rates and natural gas avoided capacity costs) Source: Bureau of Labor Statistics, Consumer Price Index Summary of the Plan’s Project Economic Outcomes IPL designed this Plan to be cost-effective from a SCT perspective, as required by 199 IAC 35.8(1)“e”(1); taken as a whole, the Plan achieves a SCT benefit/cost ratio of 2.93. However, some individual programs and measures are not cost-effective 40 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan according to the SCT. IPL balanced cost-effectiveness against the objectives of equity and comprehensiveness, designing individual programs to incorporate a diverse set of measures. In some cases, IPL retained measures that are not cost-effective, but which offer other benefits such as high customer satisfaction and savings. The Plan also passes the cost-effectiveness criteria according to the participant, utility and total resource perspectives. Although the Plan passes the RIM test, not all energy efficiency programs meet the ratepayer cost-effective criterion. The Plan’s high RIM test result is due to the relatively low lost revenues associated with demand response programs. An additional complicating factor affecting the cost-effectiveness of the Plan’s natural gas components is the way costs are allocated for certain measures that produce both electric and natural gas savings. Weatherization and certain upgrades to heating and cooling systems affect the consumption of both electricity and natural gas. To separately determine the cost-effectiveness of a measure for both fuels, it is necessary to account for the benefits and costs associated with both fuels separately. While calculating energy savings and the corresponding benefits for both fuels is straightforward, there are no conventions for allocating joint implementation costs to both fuels. For this Plan, IPL allocated the joint costs based on each fuel’s relative British thermal unit savings. This method, although practical, tends to shift a disproportionately large share of the measures’ joint costs to the natural gas component of the Plan, lowering the cost-effectiveness of the natural gas measure and component overall. Absent a more equitable method for allocating these costs, it is reasonable to judge cost-effectiveness for the entire Plan, rather than separately for its electric and natural gas components. 41 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Three programs in the energy efficiency plan contained did not pass the societal cost-effectiveness threshold of 1.0: 1. Home Energy Assessments Program. IPL incurs a cost to offer the online energy audit tool to customers, but participants do not install measures through this program. As a result, the program does not produce claimable savings. While it provides a valuable service and education to IPL’s customers, the program cannot pass the SCT. 2. Home Energy Reports Program. First piloted in 2016, this program is new in the Plan and includes considerable upfront costs for adding 100,000 new participants in 2019 and approximately 15,000 per year thereafter. Considering the high costs to deliver this educational energy efficiency program, the ramp-up time required and the moderate level of savings achieved to date, the overall programmatic cost-effectiveness is low. 3. Low-Income Weatherization Program. This program, which targets customers in an income bracket at or below 200% of the FPL for weatherization assistance, is not required to be cost-effective according to 199 IAC 35.8(2)a. Application Exhibit 3 Benefit Cost contains summary information of combined electric and natural gas benefits and costs that comprised the 2019–2023 Plan’s costeffectiveness analysis. Application Exhibit 3 also contains tables showing costeffectiveness inputs and results for the electric and natural gas components. 42 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4. Energy Efficiency Plan IPL’s energy efficiency plan comprises the largest portion of its Plan, representing 0.74% of electric savings and 0.17% of natural gas savings over the Plan delivery period. The energy efficiency plan savings represent 1.4% of retail electric sales and 1.3% of retail natural gas sales forecasted in 2019 through 2023. IPL’s energy efficiency plan includes 13 programs targeting single family, multifamily and low-income residential customers, as well as commercial, industrial and agriculture customers. The plan offers a range of programmatic options that include rebates, direct installation measures and technical assistance. IPL designed its energy efficiency plan to offer customers in every sector the flexibility to participate at many levels, based on their individual needs and building type. 4.1. Energy Efficiency Targets The Iowa TRM and the Assessment provided the principal basis for establishing IPL’s 2019–2023 savings targets. These sources provided information on energy efficiency measures and their savings, costs and market opportunities. The savings targets were also informed by more than two and a half decades of experience with energy efficiency markets and information on the achievements of other utilities operating in markets like IPL’s. Based on these considerations and the lessons learned from implementing its 2014–2018 Plan, IPL established savings targets, both in terms of the fraction of its forecasted sales and relative to the savings potential assumed to be achievable in the Assessment. 43 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan The Assessment provided estimates of annual incremental and cumulative technical, economic and achievable potential under the BAU and BAU+ scenarios for both electricity and natural gas. These values, together with IPL’s forecasted retail electric and natural gas sales and the proposed targets for the duration of the 2019– 2023 Plan, are shown in Table 4-1 (electricity) and Table 4-2 (natural gas). As the tables show, IPL’s cumulative 2019–2023 electricity savings target of 610,779 MWh is equivalent to 93% of the Assessment’s identified achievable potential between 2019 and 2023 under the BAU scenario. Moreover, the targets represent nearly 69% of the Assessment’s achievable potential in the BAU+ scenario and a 25% increase in program administrative expenditures, reflecting the full participation of all customer sectors in IPL’s territory. IPL’s 2019–2023 cumulative natural gas saving target of 2.5 million therms represents 0.2% of its 2019–2023 retail sales and is the equivalent of 28% of the Assessment’s achievable potential under the BAU scenario and 19% of achievable potential in the BAU+ scenario. IPL estimates that the energy savings from the electric and natural gas energy efficiency programs over this five-year Plan will reduce greenhouse gas emissions by approximately 435,509 tons 7 of carbon dioxide equivalent. This is approximately equivalent to removing 84,601 passenger vehicles from the road for one year. 8 This preliminary analysis assumes that the programs avoid greenhouse gas emissions at 7 Calculated using IPL 2016 System Emissions Rate, Source: Alliant Energy Corporate Sustainability Report, page 29. 8 Calculated using the U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator, available online: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator 44 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan IPL’s 2016 average delivered greenhouse gas emissions rate. If electric energy efficiency programs reduce emissions from marginal power plants in the region, the plan would reduce greenhouse gas emissions by between 291,274 tons9 and 639,967 tons10 of carbon dioxide equivalent, depending on which source of marginal emissions factors is used. 9 Calculated using the emissions rate for an average combined cycle natural gas power plant in the United States. Emission rate calculated using data from the Energy Information Administration’s 2015 Electric Power Annual, Tables 8.2 and A.3. 10 Calculated using the non-baseload output emissions rate for the Midwest Reliability Organization, West region from the U.S. Environmental Protection Agency eGRID2014 database, available online: https://www.epa.gov/energy/emissions-generation-resource-integrated-database-egrid 45 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-1. Estimated Electric Efficiency Potential and Plan Goals Cumulative 2019–2023 1 Retail Sales Forecast (MWh) 15,659,510 15,816,425 15,861,936 15,930,259 15,997,932 79,266,062 Technical Potential (MWh) 463,484 428,622 331,235 344,986 337,763 1,906,090 2 Technical Potential (Peak MW) 56 52 40 42 41 232 Technical Potential % of Sales 3.0% 2.7% 2.1% 2.2% 2.1% 2.4% Economic Potential (MWh) 360,176 333,193 293,467 294,612 305,260 1,586,708 Economic Potential (Peak MW)2 48 44 39 39 40 210 Economic Potential % of Sales 2.3% 2.1% 1.9% 1.8% 1.9% 2.0% Achievable Potential BAU+ (MWh) 208,624 189,287 163,764 160,429 163,500 885,604 Achievable Potential BAU+ (Peak MW)2 38 35 30 29 30 163 Achievable Potential BAU+ % of Sales 1.3% 1.2% 1.0% 1.0% 1.0% 1.1% Achievable Potential BAU (MWh) 151,287 135,638 115,459 130,513 121,560 654,456 Achievable Potential BAU (Peak MW)2 27 24 20 23 21 116 Achievable Potential BAU % of Sales 1.0% 0.9% 0.7% 0.8% 0.8% 0.8% Plan Goals (MWh) 128,529 114,712 118,939 122,351 126,247 610,779 Plan Goals (Peak MW)3 22 19 19 19 20 99 Plan MWh Savings % of Sales 0.8% 0.7% 0.7% 0.8% 0.8% 0.8% 1 These values represent the retail sales forecast used in the Assessment. These forecasts have since been revised, based on the Iowa 2018–2027 MISO forecast (2017). 2 Annualized MWs using the Assessment results. Excludes demand response potential. 3 Excludes demand response potential. Source: Application Exhibit 2 Assessment of Potential, Volume II and AOP Model BAU+ and BAU scenarios. Totals may not sum due to rounding. Plan Year 46 2019 2020 2021 2022 2023 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-2. Estimated Natural Gas Efficiency Potential and Plan Goals Plan Year Retail Sales Forecast (Thousand Therms) Technical Potential (Thousand Therms) Technical Potential (Peak-Day Thousand Therms)1 Technical Potential % of Sales Economic Potential (Thousand Therms) Economic Potential (Peak-Day Thousand Therms)1 Economic Potential % of Sales Achievable Potential BAU+ (Thousand Therms) Achievable Potential BAU+ (Peak-Day Thousand Therms)1 Achievable Potential BAU+ % of Sales Achievable Potential BAU (Thousand Therms) Achievable Potential BAU (Peak-Day Thousand Therms)1 Achievable Potential BAU % of Sales Plan Goals (Thousand Therms) Plan Goals (Peak-Day Thousand Therms) Plan Savings % of Sales 2019 285,058 6,795 66 2.4% 3,873 44 1.4% 2,066 20 0.7% 1,066 10 0.4% 492 6 0.2% 2020 285,676 6,871 66 2.4% 4,249 48 1.5% 2,412 23 0.8% 1,333 13 0.5% 491 6 0.2% 2021 Annualized peak-day therms based on Assessment report. Source: Application Exhibit 2 Assessment of Potential, Volume II and AOP Model BAU+ and BAU scenarios. Totals may not sum due to rounding. 1 47 286,066 8,012 77 2.8% 5,000 56 1.7% 2,938 28 1.0% 1,741 17 0.6% 490 6 0.2% 2022 286,439 8,044 78 2.8% 5,201 59 1.8% 2,972 29 1.0% 3,117 30 1.1% 491 6 0.2% 2023 286,783 7,062 68 2.5% 4,111 46 1.4% 2,357 23 0.8% 1,429 14 0.5% 493 6 0.2% Cumulative 2019–2023 1,430,023 36,783 356 2.6% 22,434 253 1.6% 12,746 123 0.9% 8,687 84 0.6% 2,456 29 0.2% Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.2. Application Exhibit 1 Energy Efficiency Plan Energy Efficiency Budgets Table 4-3 presents IPL’s annual energy efficiency plan costs by program. Table 4-3. Energy Efficiency Plan Budget Program 2019 2020 Residential Prescriptive $3,284,566 $3,331,557 Rebates Program Home Energy Assessments $308,595 $261,192 Program Be Bright Program $1,490,878 $670,448 Appliance Recycling Program $1,110,509 $1,111,133 Home Energy Reports $1,547,186 $1,548,152 Program Low-Income Weatherization $2,048,463 $2,048,851 Program Low-Income Multifamily $305,782 $306,660 Program LivingWise (School Kits) $313,349 $313,815 Program Nonresidential Prescriptive $3,426,765 $3,445,856 Rebates Program Small Business Energy $1,471,063 $1,473,207 Solutions Program Custom Solutions Program $7,618,393 $7,647,039 Commercial New Construction $1,083,623 $1,100,547 Program Agriculture Solutions Program $1,381,979 $1,384,565 Energy Efficiency Plan $25,391,150 $24,643,023 Source: Application Exhibit 4 Budget/Accounting for Costs 48 Plan Year 2021 2022 2023 Total $3,375,119 $3,432,991 $3,476,446 $16,900,679 $263,868 $266,624 $269,463 $1,369,742 $464,444 $1,111,776 $410,844 $1,112,438 $373,416 $1,113,121 $3,410,030 $5,558,978 $1,549,147 $1,550,171 $1,551,226 $7,745,882 $2,049,251 $2,049,663 $2,050,087 $10,246,314 $307,564 $308,495 $309,453 $1,537,953 $314,295 $314,789 $315,299 $1,571,548 $3,500,035 $3,551,059 $3,614,868 $17,538,583 $1,465,416 $1,467,690 $1,470,033 $7,347,410 $7,656,544 $7,686,935 $7,718,237 $38,327,147 $1,127,550 $1,154,636 $1,181,805 $5,648,161 $1,390,851 $24,575,859 $1,389,936 $24,696,270 $1,392,669 $24,836,124 $6,940,000 $124,142,426 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.3. Application Exhibit 1 Energy Efficiency Plan Residential Prescriptive Rebates Program 4.3.1. Program Description The Residential Prescriptive Rebates Program is one of IPL’s longest-running and most successful energy efficiency programs. IPL attributes the program’s success to a simple participation process and rebates offered to residential customers for a range of energy efficiency options. Key changes to this program in the Plan include: • Adding rebates for new measures, including Tier 2 power strips, room air purifiers and variable speed pool pumps (pool pump rebates only offered through 2020). • Introducing rebates specifically for prescriptive measures installed in new construction applications (replacing the Builder Option Package from the New Home Construction Program). • Offering higher rebates for measures that help IPL manage its peak load compared to measures that do not impact peak load. • Discontinuing rebates for measures that are not cost-effective or do not offer sufficient economic potential to justify budget expenditures, including equipment tune ups for natural gas HVAC measures (specifically furnaces and boilers), room air conditioners, natural gas water heaters, standard programmable setback thermostats, air-to-air heat desuperheaters for air-source heat pumps and whole-house fans. 49 exchangers, Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan Discontinuing participating dealer incentives to help manage program costs for customers. 4.3.2. Operations Customers who purchase qualifying high-efficiency measures directly from equipment dealers or retailers are eligible for prescriptive rebates. Participating customers must submit a program rebate application with documentation of the equipment purchase and installation to IPL’s rebate processing center. IPL offers prescriptive rebates in the form of prepaid card or check 11 to customers who purchase high-efficiency electric or natural gas equipment for installation in both retrofit and new construction applications. 4.3.3. Customer Targets The program is targeted to residential customers who replace or install new equipment. Participants must be an IPL residential customer in Iowa. To be eligible, a measure must save energy that is supplied by IPL. Table 4-4 outlines customer eligibility requirements. Table 4-4. Residential Prescriptive Rebates Customer Eligibility Parameters Eligible Customers Customer Class Customer Status Building Type Building Vintage Geography 11 Electric Measures Residential electric Natural Gas Measures Residential natural gas All Single family; manufactured home; multifamily with four or more units and a residential meter All IPL’s Iowa service territory Prepaid cards are offered in amounts from $5 to $500. Checks are issued for amounts above $500. 50 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.3.4. Eligible Measures and Incentives Through the Residential Prescriptive Rebates Program, IPL offers prescriptive rebates for a wide range of electric and natural gas energy efficiency measures, with tiered rebates for some measures intended to encourage customers to purchase higher efficiency models. In general, IPL designed its rebates to cover approximately 40% of the incremental measure cost for typical measures and approximately 50% of the incremental cost for measures that reduce peak demand and save energy. New construction rebates are set at approximately 60% of the equivalent rebate available to an existing home. Table 4-5 provides eligible measures, qualification standards and rebate levels for equipment offered through this program. Table 4-5. Residential Prescriptive Rebates Incentive Summary Program/Measure Central Air Conditioner Air Source Heat Pumps Geothermal Heat Pumps Desuperheater Mini-Split Heat Pump Furnace 51 Qualification Tier 1 SEER/EER 15/12.5 (split system); Air Conditioning, Heating, and Refrigeration Institute (AHRI) Certified Tier 2 SEER/EER 16/13 (split system); AHRI Certified Tier 3 SEER/EER 18/14 (split system); AHRI Certified Tier 1 SEER/EER 15/12.5 and HSPF 8.5 (split system); AHRI Certified Tier 2 SEER/EER 16/13 and HSPF 9.0 (split system); AHRI Certified Tier 3 SEER/EER 18/13 and HSPF 10.0 (split system); AHRI Certified Tier 1 ENERGY STAR; AHRI Certified Tier 2 ENERGY STAR variable speed; AHRI Certified Desuperheater — ground-source heat pump Whole-house primary heating - SEER/EER 15/12 and HSPF 8.5; AHRI Certified Supplemental heating system - SEER/EER 15/12 and HSPF 8.5; AHRI Certified ≥ 96% AFUE; AHRI Certified Customer Incentive Existing Buildings New Construction $150 per unit $90 per unit $300 per unit $180 per unit $600 per unit $360 per unit $300 per unit $180 per unit $500 per unit $300 per unit $800 per unit $480 per unit $1,320 per unit $790 per unit $1,750 per unit $1,050 per unit $150 per unit $90 per unit $200 per unit NA $50 per unit NA $180 per unit $80 per unit Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Advanced Thermostat Electric HVAC System Tune-Up Electric Heat Pump Water Heater Advanced Power Strips Room Air Purifiers Pool Pumps - Variable Speed Learning functionality: occupancy sensing with motion sensors; optimization based on historical trends and weather data. Geofencing is not eligible as the sole occupancy sensing technology. Tune-up - central AC Tune-up - air-source heat pump Tune-up - geothermal heat pump Tier 1, ≤ 55 gallons (unit energy factor [UEF] ≥ 2.00); > 55 gallons (UEF ≥ 2.16); AHRI Certified Tier 2, ≤ 55 gallons (UEF ≥ 2.36); > 55 gallons (UEF ≥ 2.55); AHRI Certified Tier 2 advanced power strips ENERGY STAR ENERGY STAR Application Exhibit 1 Energy Efficiency Plan $100 per unit $60 per unit $50 per unit $50 per unit $50 per unit NA NA NA $300 per unit $180 per unit $350 per unit $210 per unit $20 per unit $30 per unit $20 per unit $30 per unit $220 per unit NA 4.3.5. Marketing and Promotion IPL promotes the program using a two-pronged approach that incorporates downstream and upstream marketing strategies. For its downstream marketing strategy, IPL relies on direct mailings to residential customers (including multifamily property owners) and on general advertising in broadcast, print and online media. For its upstream marketing strategy, IPL encourages dealers (equipment installers, retailers and distributors) to market, stock and upsell eligible equipment. IPL focuses upstream marketing on: • Continuing to build the Dealer Network with qualified dealers who are eligible to participate in the program. • Keeping dealers informed of program activities and requirements. • Providing dealers with applicable point-of-purchase materials to facilitate the sales of energy-efficient equipment. 52 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.3.6. Participation Table 4-6 provides program participation assumptions. Table 4-6. Residential Prescriptive Rebates Participation Assumptions 2019 2020 2021 2022 2023 Total 11,933 12,460 13,023 13,635 14,290 65,341 Electric Measures Natural Gas Measures 2,725 2,760 2,820 2,905 3,005 14,215 14,658 15,220 15,843 16,540 17,295 79,556 Total Notes: According to the Assessment, the population of eligible participants is approximately 366,000 residential electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one single fuel measure installed. One combo fuel measure is equivalent to one participant for each fuel category. Source: Application Exhibit 11 Savings. 4.3.7. Energy and Demand Savings This program is expected to produce 26,675 MWh of electricity savings and 603,611 therms of natural gas savings over the five-year Plan. This program accounts for 4.5% of electricity savings and 24.6% of natural gas savings in the energy efficiency plan. Table 4-7 provides energy and demand savings goals. Table 4-7. Residential Prescriptive Rebates Incremental Energy and Demand Savings Goals 2019 Electric Impacts Incremental Annual 4,803,158 Energy (kWh) Peak Demand (kW) 1,981 Natural Gas Impacts Incremental Annual 120,507 Energy (therms) Peak-Day Demand 1,980 (therms) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 2020 2021 2022 2023 Total 5,066,189 5,347,356 5,666,791 5,791,953 26,675,447 2,060 2,141 2,229 2,234 NA 119,765 119,875 120,886 122,579 603,611 1,968 1,969 1,985 2,012 NA 4.3.8. Budget The total budget for this program is estimated at $16,900,679. Table 4-8 provides program budget assumptions. 53 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-8. Residential Prescriptive Rebates Budget 2019 2020 Electric Budget Planning and Design $30,000 $30,000 Administration $954,089 $966,512 Advertising and Promotion $475,000 $475,000 Customer Incentive $1,324,681 $1,363,380 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $30,000 $30,000 Electric Total $2,813,770 $2,864,892 Natural Gas Budget Planning and Design $500 $500 Administration $78,636 $79,195 Advertising and Promotion $25,000 $25,000 Customer Incentive $363,659 $358,970 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $3,000 $3,000 Natural Gas Total $470,796 $466,666 Total Budget Planning and Design $30,500 $30,500 Administration $1,032,726 $1,045,707 Advertising and Promotion $500,000 $500,000 Customer Incentive $1,688,340 $1,722,350 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $33,000 $33,000 Total $3,284,566 $3,331,557 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $30,000 $979,307 $475,000 $1,395,607 $0 $0 $30,000 $2,909,914 $30,000 $992,487 $475,000 $1,439,617 $0 $0 $30,000 $2,967,104 $30,000 $1,006,061 $475,000 $1,466,709 $0 $0 $30,000 $3,007,770 $150,000 $4,898,456 $2,375,000 $6,989,993 $0 $0 $150,000 $14,563,449 $500 $79,771 $25,000 $356,933 $0 $0 $3,000 $465,205 $500 $80,364 $25,000 $357,023 $0 $0 $3,000 $465,887 $500 $80,975 $25,000 $359,201 $0 $0 $3,000 $468,676 $2,500 $398,943 $125,000 $1,795,787 $0 $0 $15,000 $2,337,230 $30,500 $1,059,079 $500,000 $1,752,540 $0 $0 $33,000 $3,375,119 $30,500 $1,072,851 $500,000 $1,796,640 $0 $0 $33,000 $3,432,991 $30,500 $1,087,036 $500,000 $1,825,910 $0 $0 $33,000 $3,476,446 $152,500 $5,297,399 $2,500,000 $8,785,780 $0 $0 $165,000 $16,900,679 IPL’s anticipated needs for internal full-time equivalent (FTE) staff and outside services for this program are outlined in Section 7. Plan Management. 4.3.9. Cost-Effectiveness Results The Residential Prescriptive Rebates Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 1.30. Table 4-9 provides program costeffectiveness results. 54 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-9. Residential Prescriptive Rebates Cost-Effectiveness Results Utility Electric Program $26,554,238 Benefits $12,843,358 Costs $13,710,881 Net Benefits 2.07 B/C Ratio $0.058 $/kWh Natural Gas Program $4,032,111 Benefits $2,063,147 Costs $1,968,964 Net Benefits 1.95 B/C Ratio $0.383 $/therm Total Program $30,586,349 Benefits $14,906,504 Costs $15,679,844 Net Benefits 2.05 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 55 Participant Ratepayer Societal Total Resource $28,000,622 $21,513,018 $6,487,604 1.30 $0.098 $26,562,017 $34,695,133 ($8,133,116) 0.77 $0.158 $39,105,003 $30,220,568 $8,884,435 1.29 $0.103 $35,551,606 $30,220,568 $5,331,038 1.18 $0.103 $2,918,095 $3,894,528 ($976,432) 0.75 $0.723 $4,032,111 $3,395,639 $636,472 1.19 $0.630 $6,194,399 $4,670,855 $1,523,544 1.33 $0.635 $5,758,473 $4,670,855 $1,087,618 1.23 $0.635 $30,918,717 $25,407,546 $5,511,171 1.22 $30,594,127 $38,090,771 ($7,496,644) 0.80 $45,299,402 $34,891,423 $10,407,979 1.30 $41,310,079 $34,891,423 $6,418,656 1.18 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.4. Application Exhibit 1 Energy Efficiency Plan Home Energy Assessments Program 4.4.1. Program Description Through the Home Energy Assessments Program, IPL promotes energy efficiency by offering a free online energy assessment that customers can perform on their own. Key changes to this program in the Plan include: • Offering an online assessment for customers to conduct independently without a technician visiting the home. • Discontinuing all in-home energy assessments. • Discontinuing all direct install and weatherization measures. 4.4.2. Operations Customers interested in having an assessment of their home can learn about the program through IPL’s website or by calling the Energy Efficiency Hotline. The online energy assessment allows customers to perform a home self-assessment by entering key information about the home, such as size, occupancy, heating and cooling fuel types and energy bill details. The assessment tool uses an algorithm to account for the effects of local weather and other factors and identify energy-saving opportunities. Customers receive an estimate of the home’s energy-savings potential and an action plan to help them prioritize investments in energy efficiency upgrades. 4.4.3. Customer Targets IPL offers online energy assessments to all customers in single family homes regardless of their location or the fuel they receive from IPL. Table 4-10 outlines customer eligibility requirements. 56 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-10. Home Energy Assessments Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other Eligible Customers All All All All IPL’s Iowa Service Territory NA 4.4.4. Eligible Measures and Incentives Through the Home Energy Assessments Program, IPL provides access to an online energy assessment tool and a customized report at no cost to customers. 4.4.5. Marketing and Promotion IPL uses direct mail, mass media advertising and its website to promote the program. 4.4.6. Participation According to the Assessment, the population of eligible participants is approximately 290,000 residential electric and natural gas customers in single family homes IPL’s Iowa territory. As the online assessment will be a new offering for this program, IPL is not able to forecast participation based on historical performance; however, IPL will carefully track customer logins, visit duration and other metrics to report on the program’s performance. 4.4.7. Energy and Demand Savings This program is not expected to produce electricity savings or natural gas savings over the course of the Plan. 57 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.4.8. Budget The total budget for this program is estimated at $1,369,742. Table 4-11 provides program budget assumptions. Table 4-11. Home Energy Assessments Budget 2019 2020 Electric Budget Planning and Design $137,000 $92,000 Administration $82,265 $84,733 Advertising and Promotion $60,000 $60,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $279,265 $236,733 Natural Gas Budget Planning and Design $15,000 $10,000 Administration $4,330 $4,460 Advertising and Promotion $10,000 $10,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $29,330 $24,460 Total Budget Planning and Design $152,000 $102,000 Administration $86,595 $89,192 Advertising and Promotion $70,000 $70,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $308,595 $261,192 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $92,000 $87,275 $60,000 $0 $0 $0 $0 $239,275 $92,000 $89,893 $60,000 $0 $0 $0 $0 $241,893 $92,000 $92,590 $60,000 $0 $0 $0 $0 $244,590 $505,000 $436,755 $300,000 $0 $0 $0 $0 $1,241,755 $10,000 $4,593 $10,000 $0 $0 $0 $0 $24,593 $10,000 $4,731 $10,000 $0 $0 $0 $0 $24,731 $10,000 $4,873 $10,000 $0 $0 $0 $0 $24,873 $55,000 $22,987 $50,000 $0 $0 $0 $0 $127,987 $102,000 $91,868 $70,000 $0 $0 $0 $0 $263,868 $102,000 $94,624 $70,000 $0 $0 $0 $0 $266,624 $102,000 $97,463 $70,000 $0 $0 $0 $0 $269,463 $560,000 $459,742 $350,000 $0 $0 $0 $0 $1,369,742 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.4.9. Cost-Effectiveness Results As the Home Energy Assessments Program produces no savings benefits, it is not possible to derive cost-effectiveness ratios. 58 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.5. Application Exhibit 1 Energy Efficiency Plan Be Bright Program 4.5.1. Program Description Be Bright is an upstream program for which IPL provides incentives directly to lighting manufacturers to reduce the purchase price of ENERGY STAR–rated, highefficiency lighting products at participating retail locations. The upstream incentive mechanism helps mitigate first costs as a barrier to program participation, making highefficiency lighting purchases simple for customers, and is offered year-round. IPL partners with retailers throughout its service territory to offer discounted LED bulbs and to promote the program to customers. IPL works with an implementation contractor to negotiate and coordinate with manufacturers and retailers, develop and lead promotional efforts, provide training and other on-site support to participating retailers and report sales data. Key changes to this program in Plan include: • Formally changing the program name to Be Bright (from Change-a-Light). • Limiting available bulb types after 2019 to those that continue to offer viable, cost-effective energy savings. IPL will monitor implementation of the EISA backstop provision to assess the ongoing cost-effectiveness of LED bulbs in 2020 and beyond (described in Section 2.1.2, Plan Context). If standard screw-in LED bulbs remain a viable source of cost-effective energy savings, IPL will continue to offer them. 59 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.5.2. Operations A third-party vendor manages Be Bright, including negotiating bulk pricing, recruiting and coordinating with retail stores, conducting marketing and outreach to retailers, tracking data and providing program reports. The third-party vendor works with a broad range of retailers, including big-box stores and smaller local and independent stores throughout IPL’s service territory. At the beginning of each program year, retailers submit a list to IPL’s vendor of the program-qualified lighting products they wish to offer. The vendor negotiates with manufacturers for those products, coordinates incentive payments and manages the development, distribution and maintenance of all in-store marketing efforts. IPL provides upstream incentives to its third-party vendor, who in turn distributes program funds to participating manufacturers in the amounts needed to buy down qualifying LED bulbs in the quantity required by participating retailers. The vendor also provides periodic instore training and other support to retail sales personnel. Retailers provide documentation of qualifying product sales data to the vendor, who in turn reports program participation and savings to IPL. 4.5.3. Customer Targets The program is targeted to residential customers, but is available to all customers through retailers located in IPL’s Iowa service territory. The upstream incentive mechanism does not allow for customer eligibility screening. Table 4-13 outlines customer eligibility requirements. 60 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-12. Be Bright Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Eligible Customers All All All All IPL’s Iowa service territory 4.5.4. Eligible Measures and Incentives Retailers may request any type or wattage of ENERGY STAR–rated LED bulbs, in as many varieties as they desire, including interior, exterior and specialty bulbs. Table 4-14 provides eligible measures, qualification standards and incentive levels for equipment offered through this program. Table 4-13. Be Bright Incentive Summary Program/Measure Qualification Standard LED Bulbs ENERGY STAR ENERGY STAR Specialty LED Bulbs ENERGY STAR LED Fixtures Note: Incentives may not exceed 50% of applicable product cost. Customer Incentive Buy down amount varies by year Buy down amount varies by year Buy down amount varies by year 4.5.5. Marketing and Promotion For its upstream marketing strategy, IPL relies on its third-party vendor to manage, implement and maintain marketing and outreach efforts through retail partners, point-ofpurchase tactics and broadcast, print and online media. Additionally, IPL promotes the program through the Alliant Energy website, the PowerHouse television program and customer newsletters. Retailers (including big-box stores, chain stores, grocery stores, discount stores and small independent stores) market and sell products directly to customers. 61 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.5.6. Participation Table 4-15 provides program participation assumptions. Table 4-14. Be Bright Participation Assumptions 2019 2020 2021 2022 2023 Total 700,000 400,000 350,000 300,000 250,000 2,000,000 Electric Measures Total 700,000 400,000 350,000 300,000 250,000 2,000,000 Notes: According to the Assessment, the population of eligible participants is approximately 399,000 electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one bulb purchased. Source: Application Exhibit 11 Savings. 4.5.7. Energy and Demand Savings This program is expected to produce 32,663 MWh of electricity savings over the course of the Plan. This program accounts for 5.6% of electricity savings in the energy efficiency plan. Table 4-16 provides energy and demand savings goals. Table 4-15. Be Bright Incremental Energy and Demand Savings Goals 2019 Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) 19,340,708 3,659 2020 3,652,682 790 2021 2022 2023 Total 3,468,620 728 3,216,324 664 2,984,296 602 32,662,629 NA Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 4.5.8. Budget The total budget for this program is estimated at $3,410,030. Table 4-17 provides program budget assumptions. 62 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-16. Be Bright Budget 2019 2020 Electric Budget Planning and Design $3,000 $3,000 Administration $215,378 $215,719 Advertising and Promotion $50,000 $50,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $1,102,500 $281,729 Monitoring and Evaluation $120,000 $120,000 Electric Total $1,490,878 $670,448 Total Budget Planning and Design $3,000 $3,000 Administration $215,378 $215,719 Advertising and Promotion $50,000 $50,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $1,102,500 $281,729 Monitoring and Evaluation $120,000 $120,000 Total $1,490,878 $670,448 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $0 $114,070 $25,000 $0 $0 $265,374 $60,000 $464,444 $0 $114,433 $25,000 $0 $0 $241,411 $30,000 $410,844 $0 $114,806 $25,000 $0 $0 $218,611 $15,000 $373,416 $6,000 $774,405 $175,000 $0 $0 $2,109,625 $345,000 $3,410,030 $0 $114,070 $25,000 $0 $0 $265,374 $60,000 $464,444 $0 $114,433 $25,000 $0 $0 $241,411 $30,000 $410,844 $0 $114,806 $25,000 $0 $0 $218,611 $15,000 $373,416 $6,000 $774,405 $175,000 $0 $0 $2,109,625 $345,000 $3,410,030 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.5.9. Cost-Effectiveness Results Be Bright is cost-effective from a societal perspective, achieving a benefit/cost ratio of 4.17. Table 4-18 provides program cost-effectiveness results. Table 4-17. Be Bright Cost-Effectiveness Results Utility Electric Program $20,115,786 Benefits $4,498,738 Costs $15,617,047 Net Benefits 4.47 B/C Ratio $0.018 $/kWh Source: Application Exhibit 3 Benefit Cost. 63 Participant $28,830,949 $4,425,578 $24,405,371 6.51 $0.017 Ratepayer $20,721,924 $24,926,483 ($4,204,559) 0.83 $0.098 Societal $37,786,064 $9,069,175 $28,716,890 4.17 $0.029 Total Resource $35,422,459 $9,069,175 $26,353,284 3.91 $0.029 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.6. Application Exhibit 1 Energy Efficiency Plan Appliance Recycling Program 4.6.1. Program Description The Appliance Recycling Program is designed to eliminate old, inefficient refrigerators and freezers from use, to ensure their safe disposal and to prevent such equipment from being sold in a secondary market. Through the program, IPL offers customers a rebate to remove and safely dispose of their old, inefficient appliances. Key changes to this program in the Plan include: • Adding an online customer scheduling platform. • Discontinuing the pickup and rebating of window and room air conditioners. 4.6.2. Operations IPL uses a third-party vendor who specializes in appliance recycling to implement the Appliance Recycling Program as a turnkey service. The vendor is responsible for scheduling, picking up and verifying the eligibility of each unit, transporting appliances to a recycling facility, recycling applicable components and safely disposing of remaining components, tracking and distributing customer rebates and reporting results to IPL. All removed equipment is disposed of in an environmentally responsible manner. The process involves removing chlorofluorocarbon-based refrigerant and other hazardous materials, preparing them for reclamation and recycling various material components such as metals, foam and plastic. 4.6.3. Customer Targets The program is primarily targeted to residential electric customers in two markets: those who currently own and operate secondary appliances and those who are 64 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan purchasing new equipment. Commercial customers with residential-sized equipment are also eligible to participate. Table 4-19 outlines customer eligibility requirements. Table 4-18. Appliance Recycling Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other Eligible Customers Residential and commercial electric rate All All All IPL’s Iowa service territory Appliances must be operational, residential size and 10 cubic feet or larger 4.6.4. Eligible Measures and Incentives Through the Appliance Recycling Program, IPL offers a rebate and free pick up and disposal of qualifying equipment (refrigerators and freezers). Table 4-20 provides eligible measures, qualification standards and the rebate level offered through this program. Table 4-19. Appliance Recycling Incentive Summary Program/Measure Refrigerators Freezers Qualification Must be in working condition at time of pick up; residential size/10 cubic feet or larger Customer Incentive $50 + free removal and disposal 4.6.5. Marketing and Promotion IPL’s third-party vendor assists with program marketing and outreach by working in collaboration with IPL’s energy efficiency staff. To target customers purchasing new appliances, IPL works with appliance retailers and dealers to identify and recruit potential program participants who intend to replace or dispose of their existing 65 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan equipment. Additionally, IPL cross-promotes the Appliance Recycling Program to participants in its other residential programs. To target customers who currently own and operate secondary equipment, IPL promotes the program through direct mail, mass media advertising, digital advertising, point-of-purchase materials such as posters and flyers, various landfill websites in the service territory and the Alliant Energy website. 4.6.6. Participation Table 4-21 provides program participation assumptions. Table 4-20. Appliance Recycling Participation Assumptions 2019 2020 2021 2022 2023 Total 6,245 6,245 6,245 6,245 6,245 31,225 Electric Measures 6,245 6,245 6,245 6,245 6,245 31,225 Total Notes: According to the Assessment, the population of eligible participants is approximately 399,000 electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one appliance recycled. Source: Application Exhibit 11 Savings. 4.6.7. Energy and Demand Savings This program is expected to produce 36,262 MWh of electricity savings over the course of the Plan. This program accounts for 6.2% of electricity savings in the energy efficiency plan. Table 4-22 provides energy and demand savings goals. Table 4-21. Appliance Recycling Incremental Energy and Demand Savings Goals 2019 Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 7,252,456 892 2020 7,252,456 892 2021 2022 2023 Total 7,252,456 892 7,252,456 892 7,252,456 892 36,262,281 NA 4.6.8. Budget The total budget for this program is estimated at $5,558,978. Table 4-23 provides program budget assumptions. 66 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-22. Appliance Recycling Budget 2019 2020 Electric Budget Planning and Design $500 $500 Administration $30,809 $31,433 Advertising and Promotion $80,000 $80,000 Customer Incentive $312,250 $312,250 Equipment Cost $0 $0 Installation Cost $686,950 $686,950 Monitoring and Evaluation $0 $0 Electric Total $1,110,509 $1,111,133 Total Budget Planning and Design $500 $500 Administration $30,809 $31,433 Advertising and Promotion $80,000 $80,000 Customer Incentive $312,250 $312,250 Equipment Cost $0 $0 Installation Cost $686,950 $686,950 Monitoring and Evaluation $0 $0 Total $1,110,509 $1,111,133 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $500 $32,076 $80,000 $312,250 $0 $686,950 $0 $1,111,776 $500 $32,738 $80,000 $312,250 $0 $686,950 $0 $1,112,438 $500 $33,421 $80,000 $312,250 $0 $686,950 $0 $1,113,121 $2,500 $160,478 $400,000 $1,561,250 $0 $3,434,750 $0 $5,558,978 $500 $32,076 $80,000 $312,250 $0 $686,950 $0 $1,111,776 $500 $32,738 $80,000 $312,250 $0 $686,950 $0 $1,112,438 $500 $33,421 $80,000 $312,250 $0 $686,950 $0 $1,113,121 $2,500 $160,478 $400,000 $1,561,250 $0 $3,434,750 $0 $5,558,978 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.6.9. Cost-Effectiveness Results The Appliance Recycling Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 3.35. Table 4-24 provides program cost-effectiveness results. Table 4-23. Appliance Recycling Cost-Effectiveness Results Utility Electric Program $13,459,799 Benefits $6,193,391 Costs $7,266,408 Net Benefits 2.17 B/C Ratio $0.029 $/kWh Source: Application Exhibit 3 Benefit Cost. 67 Participant $18,969,369 $590,934 $18,378,435 32.10 $0.003 Ratepayer $14,050,733 $23,784,805 ($9,734,072) 0.59 $0.110 Societal $17,869,292 $5,339,136 $12,530,156 3.35 $0.021 Total Resource $16,351,599 $5,339,136 $11,012,463 3.06 $0.021 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.7. Application Exhibit 1 Energy Efficiency Plan Home Energy Reports Program 4.7.1. Program Description First piloted in 2016, Home Energy Reports is a new program in the Plan. Through the Home Energy Reports Program, IPL sends select residential customers personalized household reports containing tips, tools and energy efficiency program recommendations based on individual household energy use. IPL also offers an online portal through which customers may customize their home profile and create a plan to help them achieve their energy-savings goals. The objective of this program is to educate customers about their energy consumption and empower them to use energy more wisely. Key changes to the program in the Plan include: • Adding 100,000 new participants in 2019 and approximately 15,000 per year thereafter. • Decreasing the frequency of reports for the original pilot’s participants through 2022. • Considering the option to add high usage alerts as an early warning by phone, email or text if a customer’s energy usage is on pace to be higher than usual, giving them time to reduce their usage before their next bill and helping to prevent billing surprises. 4.7.2. Operations IPL contracts with a third-party vendor to deliver the program to customers. The vendor is responsible for identifying treatment and control groups of potential report 68 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan recipients, developing and delivering reports to customers (via mail and email) and tracking program outcomes. By combining utility data and available demographics data, the program vendor creates individualized home energy reports for IPL’s target customers. The reports include a comparison of the customer’s own energy usage to the prior year and to other similar homes, an explanation of how their home is using energy based on the home profile, a listing of energy efficiency education and tips that are specific to the customer and messaging to encourage recipients to visit the program web portal. IPL distributes eight home energy reports per year to participants in their first and second year of treatment, decreases frequency to six reports in the third year and provides four reports each year thereafter. Customers do not sign up to be part of the treatment group; however, they can opt-out of the program if they no longer wish to receive the home energy reports. Through the online portal, customers may view their monthly energy consumption compared to historical energy usage and other homes’ usage. The online portal also provides energy efficiency tips and educational content and the option for users to create a plan to achieve their energy-savings goals. To gain access to the online portal, treatment customers must be enrolled in Alliant Energy’s My Account. 4.7.3. Customer Targets IPL targets residential electric and combination customers with delivered home energy reports. All of IPL’s residential customers, regardless of the fuel provided by IPL, have access to the online portal. Table 4-25 outlines customer eligibility requirements. 69 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-24. Home Energy Reports Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Eligible Customers Residential All All All IPL service territory 4.7.4. Eligible Measures and Incentives IPL does not provide any specific incentives through this program and there are no direct costs incurred by customers. The program theory, which is based on established behavioral science, assumes that by providing energy conservation education, information and strategies, customers will make changes to their energy usage behavior, thereby producing energy savings. 4.7.5. Marketing and Promotion Once selected for participation, customers in the treatment group receive a welcome letter informing them that they have been selected to receive the reports. Those who wish to opt out of the program may do so by calling IPL’s Energy Efficiency Hotline. All customers will receive marketing (such as direct mail or digital advertisements) to access the online portal. 4.7.6. Participation Table 4-26 provides program participation assumptions. 70 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-25. Home Energy Reports Participation Assumptions 2019 2020 2021 2022 2023 Total Reports Electric Only 100,000 115,000 130,000 145,000 160,000 650,000 Reports Electric and Natural Gas 40,000 40,000 40,000 40,000 40,000 200,000 Total 140,000 155,000 170,000 185,000 200,000 850,000 Notes: According to the Assessment, the population of eligible participants is approximately 390,000 residential customers in single family homes in IPL’s Iowa territory. One participant is equivalent to one customer receiving reports. Source: Application Exhibit 11 Savings. 4.7.7. Energy and Demand Savings This program is expected to produce 68,192 MWh of electricity savings. As the home energy reports will focus on electric savings education, the Plan does not assume any natural gas savings. This program accounts for 11.6% of electricity savings in the energy efficiency plan. Table 4-27 provides energy and demand savings goals. Table 4-26. Home Energy Reports Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 2019 2020 2021 2022 2023 Total 7,096,500 0 10,360,563 0 13,872,694 0 16,724,962 0 20,136,936 0 68,191,655 NA 4.7.8. Budget The total budget for the program is estimated at $7,745,882. Table 4-28 provides program budget assumptions. 71 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-27. Home Energy Reports Budget 2019 2020 Electric Budget Planning and Design $4,750 $4,750 Administration $1,455,577 $1,456,494 Advertising and Promotion $9,500 $9,500 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $1,469,827 $1,470,744 Natural Gas Budget Planning and Design $250 $250 Administration $76,609 $76,658 Advertising and Promotion $500 $500 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $77,359 $77,408 Total Budget Planning and Design $5,000 $5,000 Administration $1,532,186 $1,533,152 Advertising and Promotion $10,000 $10,000 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $1,547,186 $1,548,152 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $4,750 $1,457,439 $9,500 $0 $0 $0 $0 $1,471,689 $4,750 $1,458,412 $9,500 $0 $0 $0 $0 $1,472,662 $4,750 $1,459,415 $9,500 $0 $0 $0 $0 $1,473,665 $23,750 $7,287,338 $47,500 $0 $0 $0 $0 $7,358,588 $250 $76,707 $500 $0 $0 $0 $0 $77,457 $250 $76,759 $500 $0 $0 $0 $0 $77,509 $250 $76,811 $500 $0 $0 $0 $0 $77,561 $1,250 $383,544 $2,500 $0 $0 $0 $0 $387,294 $5,000 $1,534,147 $10,000 $0 $0 $0 $0 $1,549,147 $5,000 $1,535,171 $10,000 $0 $0 $0 $0 $1,550,171 $5,000 $1,536,226 $10,000 $0 $0 $0 $0 $1,551,226 $25,000 $7,670,882 $50,000 $0 $0 $0 $0 $7,745,882 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.7.9. Cost-Effectiveness Results The Home Energy Reports Program is not cost-effective from a societal perspective, achieving a benefit/cost ratio of 0.32. Table 4-29 provides program costeffectiveness results. 72 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-28. Home Energy Reports Cost-Effectiveness Results Utility Electric Program $1,932,401 Benefits $6,494,125 Costs ($4,561,724) Net Benefits 0.30 B/C Ratio $0.106 $/kWh Natural Gas Program $0 Benefits $341,796 Costs ($341,796) Net Benefits 0.00 B/C Ratio $0.000 $/therm Total Program $1,932,401 Benefits $6,835,921 Costs ($4,903,520) Net Benefits 0.28 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 73 Participant Ratepayer Societal Total Resource $4,777,904 $0 $4,777,904 NA $0.000 $1,932,401 $11,272,028 ($9,339,627) 0.17 $0.184 $2,322,088 $6,944,851 ($4,622,762) 0.33 $0.104 $2,110,989 $6,944,851 ($4,833,861) 0.30 $0.104 $0 $0 $0 NA $0.000 $0 $341,796 ($341,796) 0.00 $0.000 $0 $365,518 ($365,518) 0.00 $0.000 $0 $365,518 ($365,518) 0.00 $0.000 $4,777,904 $0 $4,777,904 NA $1,932,401 $11,613,824 ($9,681,423) 0.17 $2,322,088 $7,310,369 ($4,988,281) 0.32 $2,110,989 $7,310,369 ($5,199,380) 0.29 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.8. Application Exhibit 1 Energy Efficiency Plan Low-Income Weatherization Program 4.8.1. Program Description Through the Low-Income Weatherization Program, IPL offers a comprehensive energy assessment with installation of cost-effective energy efficiency upgrades for customers who are at or below 200% of the FPL. Key changes to this program in the Plan include: • Adding advanced power strips as a direct install measure. • Adding duct sealing and repair as a standard retrofit measure. • Monitoring implementation of the EISA 2020 backstop provision to assess the ongoing cost-effectiveness of direct install LED bulbs in 2020 and beyond. • Discontinuing direct install measures that do not maximize savings or are not cost-effective, including water heater tank wrap and CFLs. 4.8.2. Operations IPL implements the Low-Income Weatherization Program jointly with the other Iowa IOUs through the Iowa Utility Association. IPL contributes program funding through the Iowa Department of Human Rights (IDHR) in conjunction with the Federal Weatherization Assistance Program. IDHR directs CAP agencies to perform energy assessments and install qualifying energy efficiency measures in residences occupied by low-income families, at no cost to the customer. There are 12 CAP agencies in IPL’s service territory that market and deliver the program to low-income customers. The CAP agencies first screen potential program participants to ensure they meet the program income qualifications. The CAP agency 74 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan energy assessors perform a comprehensive energy assessment, install a range of lowcost direct installation measures and provide energy education to participants. They install weatherization and equipment upgrades as needed, determined by energy assessment results. Upon completion of weatherization work and equipment installation, CAP agencies conduct a final home inspection to ensure quality work. 4.8.3. Customer Targets The Low-Income Weatherization Program is available to homeowners and renters whose income level is at or below 200% of FPL. Homes occupied by people who are elderly, disabled or who have children under the age of six are prioritized for weatherization assistance, as are households with high energy usage. Table 4-30 outlines customer eligibility requirements. Table 4-29. Low-Income Weatherization Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other Eligible Customers Residential electric or natural gas Homeowners and renters with owner approval Single family, duplex All Iowa: IPL, MidAmerican Energy Company or Black Hills Energy service territories Households ≤ 200% of FPL 4.8.4. Eligible Measures and Incentives IPL provides assessments, direct installation measures and all weatherization retrofit measures at no cost to customers. Table 4-31 provides eligible measures, qualification standards and incentive levels. 75 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-30. Low-Income Weatherization Incentive Summary Program/Measure Qualification Energy Assessment and Direct Installation Measures None On-Site Assessment LED Bulbs - Standard ENERGY STAR ENERGY STAR LED Bulbs - Specialty 1.5 gallons per minute (GPM); water heater fuel must be Faucet Aerators - Bathroom delivered by IPL Faucet Aerators - Kitchen 1.5 GPM; water heater fuel must be delivered by IPL Low-Flow Showerheads (standard 1.5 GPM; water heater fuel must be delivered by IPL and handheld) R-4 pipe insulation; water heater fuel must be delivered by IPL Water Heater - Pipe Insulation 120 degrees; water heater fuel must be delivered by IPL Water Heater - Thermostat Setback Programmable Thermostat Setback thermostat 5-1-1, 5-2 or 7-Day Tier 1 advanced power strips; four to eight plugs with Advanced Power Strips education Retrofits Customer meets weatherization income-qualification guidelines; any eligible measure based on assessor Energy Efficiency Upgrades recommendation; can include repairs Customer Incentive Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers 4.8.5. Marketing and Promotion The Iowa Division of Community Action Agencies, IDHR and CAP agencies lead marketing and outreach for the Low-Income Weatherization Program. 4.8.6. Participation Table 4-32 provides program participation assumptions. Table 4-31. Low-Income Weatherization Participation Assumptions 2019 700 903 256 2,440 4,299 2020 700 903 256 2,440 4,299 2021 700 903 256 2,440 4,299 2022 700 903 256 2,440 4,299 2023 700 903 256 2,440 4,299 Total 3,500 4,515 1,280 12,200 21,495 Assessments Direct Install Measures – Electric Direct Install Measures – Natural Gas Retrofits Total Notes: According to the Assessment, the population of eligible participants is approximately 52,000 low- and limited-income residential electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one assessment performed or one retrofit project. One direct install combo fuel measure is equivalent to one participant for each fuel category. Source: Application Exhibit 11 Savings. 76 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.8.7. Energy and Demand Savings This program is expected to produce 1,184 MWh of electricity savings and 389,013 therms of natural gas savings over the course of the Plan. This program accounts for 0.2% of electricity savings and 15.8% of natural gas savings in the energy efficiency plan. Table 4-33 provides energy and demand savings goals. Table 4-32. Low-Income Weatherization Incremental Energy and Demand Savings Goals 2019 Electric Impacts 242,032 Incremental Annual Energy (kWh) 5 Peak Demand (kW) Natural Gas Impacts Incremental Annual Energy (therms) 77,803 844 Peak-Day Demand (therms) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 2020 2021 2022 2023 Total 235,467 4 235,467 4 235,467 4 235,467 4 1,183,898 NA 77,803 844 77,803 844 77,803 844 77,803 844 389,013 NA 4.8.8. Budget The total budget for the program is estimated at $10,246,314. Table 4-34 provides budget assumptions for the Low-Income Weatherization Program. 77 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-33. Low-Income Weatherization Budget 2019 2020 Electric Budget Planning and Design $0 $0 Administration $89,860 $89,957 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $2,142 $2,142 Installation Cost $210,396 $210,396 Monitoring and Evaluation $3,500 $3,500 Electric Total $305,898 $305,995 Natural Gas Budget Planning and Design $0 $0 Administration $269,581 $269,872 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $1,240 $1,240 Installation Cost $1,461,244 $1,461,244 Monitoring and Evaluation $10,500 $10,500 Natural Gas Total $1,742,564 $1,742,855 Total Budget Planning and Design $0 $0 Administration $359,441 $359,829 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $3,381 $3,381 Installation Cost $1,671,640 $1,671,640 Monitoring and Evaluation $14,000 $14,000 Total $2,048,463 $2,048,851 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $0 $90,057 $0 $0 $2,142 $210,396 $3,500 $306,095 $0 $90,160 $0 $0 $2,142 $210,396 $3,500 $306,198 $0 $90,266 $0 $0 $2,142 $210,396 $3,500 $306,304 $0 $450,301 $0 $0 $10,709 $1,051,982 $17,500 $1,530,492 $0 $270,172 $0 $0 $1,240 $1,461,244 $10,500 $1,743,155 $0 $270,481 $0 $0 $1,240 $1,461,244 $10,500 $1,743,464 $0 $270,799 $0 $0 $1,240 $1,461,244 $10,500 $1,743,782 $0 $1,350,904 $0 $0 $6,198 $7,306,219 $52,500 $8,715,822 $0 $360,229 $0 $0 $3,381 $1,671,640 $14,000 $2,049,251 $0 $360,641 $0 $0 $3,381 $1,671,640 $14,000 $2,049,663 $0 $361,065 $0 $0 $3,381 $1,671,640 $14,000 $2,050,087 $0 $1,801,206 $0 $0 $16,907 $8,358,201 $70,000 $10,246,314 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.8.9. Cost-Effectiveness Results The Low-Income Weatherization Program is not cost-effective from a societal perspective, achieving a benefit/cost ratio of 0.37. Table 4-35 provides costeffectiveness results. 78 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-34. Low-Income Weatherization Program Cost-Effectiveness Results Utility Electric Program $678,361 Benefits $1,355,073 Costs ($676,712) Net Benefits 0.50 B/C Ratio $0.115 $/kWh Natural Gas Program $1,589,661 Benefits $7,692,387 Costs ($6,102,726) Net Benefits 0.21 B/C Ratio $2.882 $/therm Total Program $2,268,022 Benefits $9,047,460 Costs ($6,779,438) Net Benefits 0.25 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 79 Participant Ratepayer Societal Total Resource $1,345,719 $1,775 $1,343,944 758.00 $0.000 $680,137 $2,687,727 ($2,007,590) 0.25 $0.228 $1,131,502 $1,450,393 ($318,892) 0.78 $0.087 $1,030,493 $1,450,393 ($419,900) 0.71 $0.087 $525,034 $0 $525,034 NA $0.000 $1,589,661 $8,209,846 ($6,620,185) 0.19 $3.075 $2,406,245 $8,226,004 ($5,819,759) 0.29 $2.321 $2,238,931 $8,226,004 ($5,987,073) 0.27 $2.321 $1,870,753 $1,775 $1,868,978 1,053.74 $2,269,798 $10,897,573 ($8,627,776) 0.21 $3,537,747 $9,676,397 ($6,138,650) 0.37 $3,269,424 $9,676,397 ($6,406,973) 0.34 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.9. Application Exhibit 1 Energy Efficiency Plan Low-Income Multifamily Program 4.9.1. Program Description Through its Low-Income Multifamily Program, IPL offers a comprehensive suite of energy efficiency services to address the unique needs of property owners, property managers, landlords and low-income tenants of eligible multifamily residences, defined as existing multifamily buildings with four or more units where at least 40% of units are qualified as Section 8 housing. This program also serves institutional facilities such as shelters, prisons and halfway houses. Through the Low-Income Multifamily Program, IPL offers free, on-site energy assessments, comprehensive assessment reports and technical assistance with the installation of recommended efficiency upgrades. Key changes to this program in the Plan include: • Adding advanced power strips as a direct install measure. • Defining eligible buildings as those with four or more living units, independent of the number of vertical stories at the property. • Formally changing the program name to Low-Income Multifamily (formerly Low-Income Multifamily and Institutional Efficiency Improvements). • Modifying the rebate for low-income multifamily properties to be consistent with offers from other IOUs in Iowa. • Adjusting customer eligibility parameters for low-income multifamily properties that are supported by Section 8, elderly, transitional housing or other subsidized housing. 80 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.9.2. Operations Through the Low-Income Multifamily Program, IPL offers free, on-site energy assessments and provides enhanced rebates to support energy efficiency improvements in eligible multifamily properties and institutional facilities. IPL contracts with a third-party vendor with experience in end-use technologies and energy-system interactions common in multifamily facilities to deliver the on-site energy assessments. While on the site, the energy assessor installs a range of free measures in common areas and low-income tenant units and provides energy educational materials and information on energy-efficient behaviors to the property owner or manager. The energy assessor also provides a comprehensive energy assessment report that identifies recommended building efficiency upgrades, such as heating and cooling systems, lighting equipment and building shell measures, and will assist customers with identifying qualified installation contractors and accessing applicable IPL rebates. 4.9.3. Customer Targets Table 4-36 outlines customer eligibility requirements. Table 4-35. Low-Income Multifamily Customer Eligibility Parameters Eligible Customers Customer Class Customer Status Building Type Building Vintage Geography Other 81 Electric Measures Natural Gas Measures Residential and nonresidential electric where IPL Residential and nonresidential natural gas where provides the primary heating fuel IPL provides the primary heating fuel Property owner Multifamily (four or more units); institutional Existing IPL’s Iowa service territory Forty percent of multifamily units must meet Section 8 housing qualifications Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.9.4. Eligible Measures and Incentives Through the Low-Income Multifamily Program, IPL provides energy assessments and direct install measures at no cost to the customer. Customers who wish to install larger, more costly efficiency upgrades identified in their energy assessment report will be eligible for an incentive equal to 40% of the total cost of cost-effective projects, or five times the first-year energy savings for non-cost-effective measures. Table 4-37 provides eligible measures, qualification standards and incentive levels offered through this program. Table 4-36. Low-Income Multifamily Incentive Summary Program/Measure Qualification Energy Assessments and Direct Installation Measures Walk through On-site assessment LED Bulbs - Standard ENERGY STAR LED Bulbs - Specialty ENERGY STAR Faucet Aerators - Bathroom 1.0 GPM; water heater fuel must be delivered by IPL Faucet Aerators - Kitchen 1.5 GPM; water heater fuel must be delivered by IPL Low-Flow Showerheads (standard 1.5 GPM; water heater fuel must be delivered by IPL and handheld) Pre-Rinse Sprayer 1.28 GPM; water heater fuel must be delivered by IPL Water Heater - Pipe Insulation R-4; water heater fuel must be delivered by IPL 120 degrees; water heater fuel must be delivered by Water Heater - Thermostat Setback IPL Programmable Thermostat Setback thermostat 5-1-1, 5-2 or 7-Day Tier 1 advanced power strips; four to eight plugs with Advanced Power Strips education LED Linear T8 Replacement Lamps DesignLights Consortium Retrofits Retrofit Project Low-income multifamily retrofit project Customer Incentive Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers Free to customers 40% of total cost for costeffective projects; five times first-year savings for noncost-effective measures 4.9.5. Marketing and Promotion IPL’s vendor conducts direct outreach to low-income multifamily property owners, managers and landlords to encourage their participation in the program. Additionally, 82 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan the vendor conducts outreach to health and human services agencies and nonprofit organizations that own or manage eligible institutional housing facilities. Finally, the Iowa Finance Authority provides referrals to eligible low-income properties. 4.9.6. Participation Table 4-38 provides program participation assumptions. Table 4-37. Low-Income Multifamily Participation Assumptions 2019 2020 2021 2022 2023 Total 770 770 770 770 770 3,850 Assessments 8105 8105 8105 8105 8105 40,525 Direct Install Measures – Electric 249 249 249 249 249 1,245 Direct Install Measures – Natural Gas 4 4 4 4 4 20 Retrofits General Total 9,128 9,128 9,128 9,128 9,128 45,640 Notes: According to the Assessment, the population of eligible participants is approximately 25,000 residential multifamily customers and property owners in IPL’s Iowa territory. One participant is equivalent to one assessment performed or one retrofit project. One direct install combo fuel measure is equivalent to one participant for each fuel category. Source: Application Exhibit 11 Savings. 4.9.7. Energy and Demand Savings This program is expected to produce 2,015 MWh of electricity savings and 10,145 therms of natural gas savings over the course of the Plan. This program accounts for 0.3% of electricity savings and 0.4% of natural gas savings in the energy efficiency plan. Table 4-39 provides energy and demand savings goals. Table 4-38. Low-Income Multifamily Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Natural Gas Impacts Incremental Annual Energy (therms) Peak-Day Demand (therms) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 83 2019 2020 2021 2022 2023 Total 463,155 69 388,066 58 388,066 58 388,066 58 388,066 58 2,015,418 NA 2,029 9 2,029 9 2,029 9 2,029 9 2,029 9 10,145 NA Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.9.8. Budget The total budget for this program is estimated at $1,537,953. Table 4-40 provides program budget assumptions. Table 4-39. Low-Income Multifamily Budget 2019 2020 Electric Budget Planning and Design $1,800 $1,800 Administration $54,676 $55,466 Advertising and Promotion $3,000 $3,000 Customer Incentive $0 $0 Equipment Cost $137,854 $137,854 Installation Cost $73,130 $73,130 Monitoring and Evaluation $1,500 $1,500 Electric Total $271,960 $272,750 Natural Gas Budget Planning and Design $200 $200 Administration $6,075 $6,163 Advertising and Promotion $1,000 $1,000 Customer Incentive $0 $0 Equipment Cost $25,291 $25,291 Installation Cost $756 $756 Monitoring and Evaluation $500 $500 Natural Gas Total $33,822 $33,910 Total Budget Planning and Design $2,000 $2,000 Administration $60,751 $61,628 Advertising and Promotion $4,000 $4,000 Customer Incentive $0 $0 Equipment Cost $163,145 $163,145 Installation Cost $73,886 $73,886 Monitoring and Evaluation $2,000 $2,000 Total $305,782 $306,660 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $1,800 $56,279 $3,000 $0 $137,854 $73,130 $1,500 $273,563 $1,800 $57,117 $3,000 $0 $137,854 $73,130 $1,500 $274,401 $1,800 $57,980 $3,000 $0 $137,854 $73,130 $1,500 $275,264 $9,000 $281,518 $15,000 $0 $689,268 $365,651 $7,500 $1,367,937 $200 $6,253 $1,000 $0 $25,291 $756 $500 $34,001 $200 $6,346 $1,000 $0 $25,291 $756 $500 $34,094 $200 $6,442 $1,000 $0 $25,291 $756 $500 $34,190 $1,000 $31,280 $5,000 $0 $126,456 $3,781 $2,500 $170,016 $2,000 $62,532 $4,000 $0 $163,145 $73,886 $2,000 $307,564 $2,000 $63,463 $4,000 $0 $163,145 $73,886 $2,000 $308,495 $2,000 $64,422 $4,000 $0 $163,145 $73,886 $2,000 $309,453 $10,000 $312,797 $20,000 $0 $815,724 $369,432 $10,000 $1,537,953 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 84 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.9.9. Cost-Effectiveness Results The Low-Income Multifamily Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 1.14. Table 4-41 provides program cost-effectiveness results. Table 4-40. Low-Income Multifamily Cost-Effectiveness Results Utility Electric Program $1,171,092 Benefits $1,237,076 Costs ($65,984) Net Benefits 0.95 B/C Ratio $0.077 $/kWh Natural Gas Program $32,622 Benefits $150,004 Costs ($117,382) Net Benefits 0.22 B/C Ratio $2.205 $/therm Total Program $1,203,714 Benefits $1,387,079 Costs ($183,366) Net Benefits 0.87 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 85 Participant Ratepayer Societal Total Resource $1,392,590 $182,127 $1,210,463 7.65 $0.011 $1,184,161 $2,497,796 ($1,313,635) 0.47 $0.156 $1,850,151 $1,510,643 $339,508 1.22 $0.073 $1,699,387 $1,510,643 $188,744 1.12 $0.073 $36,151 $15,121 $21,030 2.39 $0.222 $32,622 $162,653 ($130,031) 0.20 $2.391 $74,298 $176,608 ($102,309) 0.42 $2.067 $71,116 $176,608 ($105,491) 0.40 $2.067 $1,428,740 $197,248 $1,231,493 7.24 $1,216,783 $2,660,450 ($1,443,667) 0.46 $1,924,449 $1,687,251 $237,199 1.14 $1,770,503 $1,687,251 $83,252 1.05 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.10. LivingWise (School Kits) Program 4.10.1. Program Description LivingWise is a hands-on approach to learning about energy efficiency and home energy use offered to sixth-grade students. The program goals include increasing students’ knowledge and awareness about energy use and promoting the adoption of energy conservation actions, including the installation of energy efficiency measures at home. Key changes to this program in the Plan include: • Formally changing the program name to LivingWise (from School-Based Energy Education). • Moving LivingWise from Energy Awareness initiatives (formerly the Outreach, Education and Training Portfolio) to the residential energy efficiency plan as a stand-alone program. • Discontinuing the Alliant Energy Kids component, as it does not contribute energy savings to the energy efficiency plan. 4.10.2. Operations Annually, IPL identifies communities that qualify for LivingWise and provides a list of eligible schools to its third-party program vendor. The vendor enrolls teachers (via phone and email), answers enrollee questions about the program, develops and updates the program curriculum and assembles and delivers energy-saving kits to participating LivingWise schools. Using the program curriculum, participating teachers educate students on energy concepts and the benefits of efficiency and encourage 86 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan them to install the kit measures in their homes. Teachers then collect completed surveys and return them to IPL’s program vendor for tabulation and verification of energy savings. Each participating student receives a kit with low-cost measures, such as a faucet aerator, digital thermostat, low-flow showerhead and LED bulbs, as well as educational materials, such as a resource fact chart, water flow measurement bag and installation booklet. Kits also include a survey that participating students and their parents are asked to fill out and return, which allows IPL to track which measures are installed by participants and to obtain customer feedback on the program. 4.10.3. Customer Targets The program is targeted to sixth-grade teachers, who deliver it to students and parents in IPL’s Iowa electric and combined electric and natural gas service territories. Table 4-42 outlines customer eligibility requirements. Table 4-41. LivingWise Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other 4.10.4. Eligible Customers Residential electric or electric and natural gas Students and their parents All residential All IPL’s Iowa service territory Delivered through schools with sixth-grade students Eligible Measures and Incentives IPL provides all curriculum and energy-saving kits at no cost to schools or students when teachers agree to participate in the program. IPL provides a $50 grant to each participating teacher when they return completed measure verification surveys to IPL. 87 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-43 provides eligible measures, qualification standards and incentive levels for each component of this program. Table 4-42. LivingWise Incentive Summary Program Component/Measure LED Bulbs - Standard LED Bulbs - Specialty Faucet Aerators - Bathroom Faucet Aerators - Kitchen Low-Flow Showerheads (standard and handheld) Filter Tone Air Filter Alarm Behavioral: Water Heater Setback Behavioral: Heating System Setback Behavioral: Cooling System Setback Verification Survey 4.10.5. Qualification ENERGY STAR ENERGY STAR 1.0 GPM 1.5 GPM 1.5 GPM None Suggested setting: 120 degrees Recommend reducing setting by 5 degrees Recommend increasing setting by 5 degrees Return at least 80% of students’ surveys to IPL Customer Incentive Free to students $50 to teachers Marketing and Promotion IPL and the program vendor promote LivingWise through direct mail outreach to targeted sixth-grade teachers. 4.10.6. Participation Table 4-44 provides program participation assumptions. Table 4-43. LivingWise Participation Assumptions 2019 2020 2021 2022 2023 Total LivingWise Kits 6,000 6,000 6,000 6,000 6,000 30,000 30,000 Total 6,000 6,000 6,000 6,000 6,000 Notes: According to the Assessment, the population of eligible participants is approximately 13,500 six-grade students in IPL’s Iowa territory. One participant is equivalent to one kit distributed. Source: Application Exhibit 11 Savings. 4.10.7. Energy and Demand Savings This program is expected to produce 6,768 MWh of electricity savings and 348,054 therms of natural gas savings over the course of the Plan. This program 88 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan accounts for 1.2% of electricity savings and 14.2% of natural gas savings in the energy efficiency plan. Table 4-45 provides energy and demand savings goals. Table 4-44. LivingWise Incremental Energy and Demand Savings Goals 2019 Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Natural Gas Impacts Incremental Annual Energy (therms) Peak-Day Demand (therms) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 4.10.8. 2020 2021 2022 2023 Total 1,552,215 195 1,303,996 160 1,303,996 160 1,303,996 160 1,303,996 160 6,768,199 NA 69,611 335 69,611 335 69,611 335 69,611 335 69,611 335 348,054 NA Budget The total LivingWise budget is estimated at $1,571,548. Table 4-46 provides program budget assumptions. 89 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-45. LivingWise Budget 2019 2020 Electric Budget Planning and Design $3,000 $3,000 Administration $62,947 $63,296 Advertising and Promotion $4,500 $4,500 Customer Incentive $0 $0 Equipment Cost $143,197 $143,197 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $213,644 $213,994 Natural Gas Budget Planning and Design $1,000 $1,000 Administration $20,982 $21,099 Advertising and Promotion $1,500 $1,500 Customer Incentive $0 $0 Equipment Cost $76,223 $76,223 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $99,705 $99,821 Total Budget Planning and Design $4,000 $4,000 Administration $83,929 $84,395 Advertising and Promotion $6,000 $6,000 Customer Incentive $0 $0 Equipment Cost $219,420 $219,420 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $313,349 $313,815 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $3,000 $63,656 $4,500 $0 $143,197 $0 $0 $214,354 $3,000 $64,027 $4,500 $0 $143,197 $0 $0 $214,724 $3,000 $64,409 $4,500 $0 $143,197 $0 $0 $215,106 $15,000 $318,336 $22,500 $0 $715,987 $0 $0 $1,071,823 $1,000 $21,219 $1,500 $0 $76,223 $0 $0 $99,941 $1,000 $21,342 $1,500 $0 $76,223 $0 $0 $100,065 $1,000 $21,470 $1,500 $0 $76,223 $0 $0 $100,192 $5,000 $106,112 $7,500 $0 $381,113 $0 $0 $499,725 $4,000 $84,875 $6,000 $0 $219,420 $0 $0 $314,295 $4,000 $85,369 $6,000 $0 $219,420 $0 $0 $314,789 $4,000 $85,879 $6,000 $0 $219,420 $0 $0 $315,299 $20,000 $424,448 $30,000 $0 $1,097,100 $0 $0 $1,571,548 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.10.9. Cost-Effectiveness Results LivingWise is cost-effective from a societal perspective, achieving a benefit/cost ratio of 2.64. Table 4-47 provides cost-effectiveness results for LivingWise. 90 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-46. LivingWise Cost-Effectiveness Results Utility Electric Program $1,780,818 Benefits $967,300 Costs $813,518 Net Benefits 1.84 B/C Ratio $0.038 $/kWh Natural Gas Program $423,120 Benefits $440,987 Costs ($17,867) Net Benefits 0.96 B/C Ratio $0.450 $/therm Total Program $2,203,938 Benefits $1,408,287 Costs $795,651 Net Benefits 1.56 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 91 Participant Ratepayer Societal Total Resource $2,558,241 $9,982 $2,548,259 256.27 $0.000 $1,790,801 $3,026,943 ($1,236,142) 0.59 $0.118 $2,978,189 $1,037,415 $1,940,774 2.87 $0.034 $2,764,389 $1,037,415 $1,726,973 2.66 $0.034 $555,667 $0 $555,667 NA $0.000 $423,120 $617,106 ($193,987) 0.69 $0.629 $1,006,564 $471,612 $534,952 2.13 $0.410 $968,817 $471,612 $497,204 2.05 $0.410 $3,113,909 $9,982 $3,103,926 311.94 $2,213,920 $3,644,049 ($1,430,129) 0.61 $3,984,753 $1,509,028 $2,475,725 2.64 $3,733,205 $1,509,028 $2,224,178 2.47 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.11. Nonresidential Prescriptive Rebates Program 4.11.1. Program Description Through the Nonresidential Prescriptive Rebates Program, IPL encourages nonresidential customers to purchase high-efficiency electric and natural gas equipment and adopt energy-efficient behaviors. The program features a simple participation process and rebates for a range of energy efficiency measures for IPL’s nonresidential customers. Key changes to this program in the Plan include: • Discontinuing prescriptive rebates for measures that are not cost-effective, that have historically attracted limited participation, that do not offer sufficient economic potential to justify budget expenditures or that are impacted by upcoming federal standards. This includes most food service measures, clothes washers, photoluminescence exit signs, traffic lights, T-8 and T-5 lighting, induction lighting, time clock and bi-level lighting controls, duct repair and sealing and duct insulation, all insulation and infiltration measures, pool and spa covers, ENERGY STAR computers, scroll compressors, tune ups for boilers and furnaces, electronically commutated motor furnace fans, programmable and smart thermostats, boiler vent dampers, boiler and chiller pipe insulation, water heaters, drain water heat transfer systems, steam trap replacement, strip curtains for walk-in refrigerators and hotel key cards. • Discontinuing participating dealer incentives to help manage program costs for customers. 92 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.11.2. Application Exhibit 1 Energy Efficiency Plan Operations Nonresidential IPL customers who purchase qualifying high-efficiency measures directly from equipment vendors and retailers are eligible for prescriptive rebates. To participate in the program, customers must submit a program rebate application with documentation on the equipment purchase and installation to IPL’s rebate processing center (via mail, fax or email). Participants then receive prescriptive rebates in the form of a check. For some measures, an installation contractor verifies that the customer and measures meet all applicable program eligibility requirements. 4.11.3. Customer Targets IPL targets nonresidential customers and dealers of high-efficiency equipment. Customers who lease their facility must obtain the building owner’s approval for any permanently installed measure. Table 4-48 outlines customer eligibility requirements. Table 4-47. Nonresidential Prescriptive Rebates Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other 4.11.4. Eligible Customers Electric Measures Natural Gas Measures Nonresidential electric Nonresidential natural gas Building or business owners and landlords of IPL customers Commercial; industrial; agriculture; multifamily with commercial meter Existing IPL’s Iowa service territory NA Eligible Measures and Incentives Through the Nonresidential Prescriptive Rebates Program, IPL offers a wide range of energy efficiency measures for electric and natural gas customers, with tiered rebates for some measures to encourage customers to purchase higher-efficiency models. All measures must save energy supplied by IPL. 93 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan In general, IPL designed its rebates to cover approximately 40% of the incremental cost for typical measures and approximately 50% of the incremental cost for measures that reduce peak demand and save energy. Table 4-49 provides eligible measures, qualification standards and rebate levels for equipment offered through this program. Table 4-48. Nonresidential Prescriptive Rebates Incentive Summary Program/Measure LED Bulbs - Standard LED Bulbs - Specialty Exit Signs Daylighting Controls Occupancy Sensor Glass Door Refrigerators Glass Door Freezers Solid Door Refrigerators Solid Door Freezers Boiler Air-Source Heat Pumps Geothermal Heat Pumps Desuperheaters Package Terminal Heat Pumps Package Terminal Air Conditioners 94 Qualification ENERGY STAR ENERGY STAR Replaces non-LED exit signs Fixture-mounted; minimum 45 watts controlled per unit Remote-mounted; minimum 45 watts controlled per unit Switch (wall) mounted; minimum 45 watts controlled per unit Fixture-mounted; minimum 45 watts controlled per control Remote (ceiling) mounted; minimum 45 watts controlled per unit ENERGY STAR ENERGY STAR ENERGY STAR ENERGY STAR Tier 1 ≥ 90% AFUE; < 300 MBTUH; AHRI Certified Tier 2 ≥ 94% AFUE; < 300 MBTUH; AHRI Certified < 65 MBTUH: Tier 1 SEER/EER 15/12.5 and HSPF 8.5 (split system); AHRI Certified < 65 MBTUH: Tier 2 SEER/EER 16/13 and HSPF 9.0 (split system); AHRI Certified < 65 MBTUH: Tier 3 SEER/EER 18/13 and HSPF 10.0 (split system); AHRI Certified ≥ 65 and < 135 MBTUH: Minimum 13.8 IEER and minimum 3.4 COP; AHRI Certified ≥ 135 and < 240 MBTUH: Minimum 13.1 IEER and minimum 3.2 COP; AHRI Certified ≥ 240 and < 760 MBTUH: Minimum 12.0 IEER and minimum 3.2 COP; AHRI Certified Tier 1 ENERGY STAR; < 240 MBTUH; AHRI Certified Tier 2 ENERGY STAR variable speed; < 240 MBTUH; AHRI Certified Desuperheater geothermal AHRI Certified; Minimum EER efficiency of: < 8,000 BTUH = 12.6 EER, COP 3.5 8,000-9,999 BTUH = 12.1 EER, COP 3.5 10,000-11,999 BTUH = 11.4 EER, COP 3.3 12,000-13,999 BTUH = 10.7 EER, COP 3.1 > 14,000 BTUH = 10.4 EER, COP 3.1 AHRI Certified; Minimum EER efficiency of: < 8,000 BTUH = 12.6 EER 8,000-9,999 BTUH = 12.1 EER 10,000-11,999 BTUH = 11.4 EER 12,000-13,999 BTUH = 10.7 EER Customer Incentive $1 per bulb $1 per bulb $5 per fixture $20 per control $25 per control $20 per control $25 per control $40 per control $25 per unit $75 per unit $25 per unit $75 per unit $700 per unit $900 per unit $300 per unit $500 per unit $800 per unit $60 per ton $40 per ton $40 per ton $800 per ton $1,200 per ton $150 $40 per unit $40 per unit Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program/Measure Chillers Air Conditioning Furnaces Variable Refrigerant Flow/ Ductless Heat Pumps Anti-Sweat Heater Controls Electronically Commutated Motors for Refrigerated Display Cases and Walk-Ins Evaporator Fan Controllers for Walk-ins Auto-Closers for Walk-In Doors Night Covers for Display Cases Vending Machine Controllers Refrigeration System Remote Condensing Unit Tune-Ups Refrigeration System Self Contained Unit 95 Qualification > 14,000 BTUH = 10.4 EER Water cooled - positive displacement/reciprocating - size tons < 150: full load - kW/ton ≤ 0.738 IPLV - kW/ton ≤ 0.586; AHRI Certified Water cooled - positive displacement/reciprocating - size tons ≥ 150 and < 300: full load - kW/ton ≤ 0.648 IPLV - kW/ton ≤ 0.552; AHRI Certified Water cooled - positive displacement/reciprocating - size tons ≥ 300: full load - kW/ton ≤ 0.59 IPLV - kW/ton ≤ 0.514; AHRI Certified Water cooled - centrifugal - size tons < 300: full load - kW/ton ≤ 0.604 IPLV - kW/ton ≤ 0.568; AHRI Certified Water cooled - centrifugal - size tons ≥ 300 and < 600: full load - kW/ton ≤ 0.549 IPLV - kW/ton ≤ 0.523; AHRI Certified Water cooled - centrifugal - size tons ≥ 600: full load - kW/ton ≤ 0.543 IPLV - kW/ton ≤ 0.513; AHRI Certified Air cooled – size tons < 150: full load – EER ≥ 10.04 IPLV – EER ≥ 13.125; AHRI Certified Air cooled – size tons ≥ 150: full load – EER ≥ 10.04 IPLV – EER ≥ 13.388; AHRI Certified < 65,000 BTUH - Tier 1 SEER/EER 15/12.5 (split system); AHRI Certified < 65,000 BTUH - Tier 2 SEER/EER 16/13 (split system); AHRI Certified < 65,000 BTUH - Tier 3 SEER/EER 18/14 (split system); AHRI Certified ≥ 65 and < 135 MBTUH: minimum 14.6 IEER; AHRI Certified ≥ 135 and < 240 MBTUH: minimum 14.0 IEER; AHRI Certified ≥ 240 and < 760 MBTUH: minimum 13.1 IEER; AHRI Certified ≥ 94% AFUE Tier 1; maximum BTUH 225,000; AHRI Certified ≥ 96% AFUE Tier 2; maximum BTUH 225,000; AHRI Certified ≥ 5.4 tons variable refrigerant flow heat pumps (EER 11.1 and COP 3.4); ≥ 1 to < 5.4 tons ductless heat pumps (SEER/EER 15/12 and HSPF 8.5); must heat and cool, cooling-only units are ineligible; AHRI Certified Must sense the relative humidity in the air surrounding the display case and reduce or turn off the anti-sweat heaters on the glass door (if applicable) and door frame during periods of low humidity Must replace existing standard efficiency shaded pole or permanent split capacitor evaporator fan motors in refrigerated display cases and walk-in coolers Must manage a minimum fan load of 1/20 horsepower (hp) when the fan(s) operate continuously at full speed; must reduce fan motor power by at least 75% when the compressor(s) cycle off The auto-closer must be able to firmly close the main door of the walk-in whenever it is closed to within one inch of full closure; auto-closer applies to the main door of the walk-in cooler or freezer Must install a cover on an existing open refrigerated display case to decrease its cooling load during off hours. Vending Mi$er™ or comparable brand; for indoor machines that dispense non-perishable cold beverages only Non-self-contained refrigeration equipment including split systems, rack systems or similar; self-contained refrigeration equipment (such as plug-in coolers or ice machines), HVAC equipment, refrigerated warehouses and ammonia systems are not eligible; one incentive per 12-month period; tune-up service provided by internal staff are not eligible Self-contained refrigeration equipment including plug-in coolers, ice machines or similar; HVAC equipment, refrigerated warehouses and Application Exhibit 1 Energy Efficiency Plan Customer Incentive $10 per ton $10 per ton $10 per ton $20 per ton $20 per ton $20 per ton $30 per ton $30 per ton $150 per unit $300 per unit $600 per unit $50 per ton $50 per ton $15 per ton $180 per unit $220 per unit ≥ 5.4 tons $50 per ton; ≥ 1 to < 5.4 tons $200 per unit $35 per door controller $100 per motor $70 per controller $60 per autocloser $5 per linear foot $50 per unit $20 per ton $20 per unit Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program/Measure Qualification Tune-Ups ammonia systems are not eligible; one incentive per 12-month period; tune-up service provided by internal staff are not eligible Motors Ultra-premium-rated motors. 1 to 350 hp Variable Frequency Drives Variable frequency drives for HVAC pumps, HVAC supply and return fans and process must be 1-75 hp and control a system or process with a variable load; replacements for a working variable speed drive prior to failure or a variable speed drive that has failed are ineligible; process must be automatically controlled — manual controls do not qualify; variable speed drives installed for soft starting and installations where applicable code requires a variable speed drive do not qualify Electric Heat Pump Water Heaters LED Downlight Fixtures LED Interior Directional LED Display Cases T8 LED Linear Replacement Lamps LED Troffers: Recessed Light Fixtures LED Surface and Suspended Linear Fixtures LED Low Bay Fixtures LED High Bay Fixtures LED Exterior Fixtures 96 ≤ 55 gallons (UEF ≥ 2.00); > 55 gallons (UEF ≥ 2.16); AHRI Certified LED recessed, surface and pendant fixtures; must be DesignLights Consortium approved Track lighting; must be DesignLights Consortium approved Wall-wash fixtures; must be DesignLights Consortium approved LED display case light fixture; must be DesignLights Consortium approved LED under-cabinet shelf-mounted task light fixtures; must be DesignLights Consortium approved LED refrigerated case light, horizontal or vertical; must be DesignLights Consortium approved LED freezer case light, horizontal or vertical; must be DesignLights Consortium approved Refrigeration case lighting motion sensor controls < 1,200 lumens; must be DesignLights Consortium approved 1,200-2,400 lumens; must be DesignLights Consortium approved 2,401-4,000 lumens; must be DesignLights Consortium approved 2x2, 2,000-3,500 lumens; must be DesignLights Consortium approved 2x2, 3501-5000 lumens; must be DesignLights Consortium approved 2x4 3000-4500 lumens; must be DesignLights Consortium approved 2x4, 4,501-6,000 lumens; must be DesignLights Consortium approved 2x4, 6,001-7,500 lumens; must be DesignLights Consortium approved 1x4, 1,500-3,000 lumens; must be DesignLights Consortium approved 1x4, 3,001-4,500 lumens; must be DesignLights Consortium approved 1x4, 4,501-6,000 lumens; must be DesignLights Consortium approved ≤ 3,000 lumens; must be DesignLights Consortium approved 3,001-4,500 lumens; must be DesignLights Consortium approved 4,501-6,000 lumens; must be DesignLights Consortium approved 6,001-7,500 lumens; must be DesignLights Consortium approved 7,501-15,000 lumens; must be DesignLights Consortium approved ≤ 10,000 lumens; must be DesignLights Consortium approved 10,001-15,000 lumens; must be DesignLights Consortium approved 15,001-20,000 lumens; must be DesignLights Consortium approved 20,001-30,000 lumens; must be DesignLights Consortium approved ≤ 5,000 lumens; must be DesignLights Consortium approved 5,001-10,000 lumens; must be DesignLights Consortium approved 10,001-15,000 lumens; must be DesignLights Consortium approved 15,001-30,000 lumens; must be DesignLights Consortium approved Application Exhibit 1 Energy Efficiency Plan Customer Incentive $25-$2,670 varies per motor $30 per hp $300 per unit $15 per fixture $20 per fixture $20 per fixture $2 per linear foot $2 per linear foot $2 per linear foot $2 per linear foot $25 per control $5 per lamp $5 per lamp $5 per lamp $25 per fixture $35 per fixture $30 per fixture $40 per fixture $50 per fixture $10 per fixture $30 per fixture $40 per fixture $5 per fixture $25 per fixture $40 per fixture $65 per fixture $85 per fixture $20 per fixture $70 per fixture $100 per fixture $130 per fixture $20 per fixture $50 per fixture $100 per fixture $150 per fixture Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.11.5. Application Exhibit 1 Energy Efficiency Plan Marketing and Promotion IPL markets this program directly to end-use customers and dealers through a variety of channels, including general advertising through broadcast, print and online media (including the Alliant Energy website). Additionally, IPL conducts direct customer outreach through mailings and key account managers (KAMs). Equipment dealers, installation contractors and distributors have a lot of influence on customer purchasing decisions. IPL focuses on building strong, long-lasting relationships with dealers and maintaining its Dealer Network. IPL takes several actions to keep dealers engaged with nonresidential program activities: • Provides ongoing education about program procedures and benefits, qualifying measures and equipment and rebate structures. • Conducts seminars and workshops to familiarize participating dealers with new technologies, along with their proper installation, operation and maintenance. • Markets to dealers through direct contact, direct mail, e-newsletters and ad hoc special events, such as educational seminars and home shows. 4.11.6. Participation Table 4-50 provides program participation assumptions. 97 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-49. Nonresidential Prescriptive Rebates Participation Assumptions 2019 2020 2021 2022 2023 Total 827,790 Electric Measures 168,520 153,920 160,947 168,327 176,076 2,150 Natural Gas Measures 430 430 430 430 430 Total 168,950 154,350 161,377 168,757 176,506 829,940 Notes: According to the Assessment, the population of eligible participants is approximately 32,000 nonresidential electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one single fuel measure installed. One combo fuel measure is equivalent to one participant for each fuel category. Source: Application Exhibit 11 Savings. 4.11.7. Energy and Demand Savings This program is expected to produce 102,386 MWh of electricity savings and 274,520 therms of natural gas savings over the course of the Plan. This program accounts for 17.4% of electricity savings and 11.2% of natural gas savings in the energy efficiency plan. Table 4-51 provides energy and demand savings goals. Table 4-50. Nonresidential Prescriptive Rebates Incremental Energy and Demand Savings Goals 2019 Electric Impacts Incremental Annual Energy (kWh) 21,049,970 6,001 Peak Demand (kW) Natural Gas Impacts Incremental Annual Energy 55,772 (therms) Peak-Day Demand (therms) 668 Source: Application Exhibit 11 Savings. 4.11.8. 2020 2021 2022 2023 Total 19,628,401 5,560 20,114,236 5,721 20,548,611 5,859 21,045,186 6,021 102,386,403 NA 55,772 54,325 54,325 54,325 274,520 668 651 651 651 NA Budget The total Nonresidential Prescriptive Rebates Program budget is estimated at $17,538,583. Table 4-52 provides program budget assumptions. 98 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-51. Nonresidential Prescriptive Rebates Budget 2019 2020 Electric Budget Planning and Design $30,000 $30,000 Administration $1,075,438 $1,084,146 Advertising and Promotion $190,000 $190,000 Customer Incentive $1,965,136 $1,975,156 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $10,000 $10,000 Electric Total $3,270,574 $3,289,302 Natural Gas Budget Planning and Design $500 $500 Administration $53,444 $53,808 Advertising and Promotion $10,000 $10,000 Customer Incentive $91,247 $91,247 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Natural Gas Total $156,191 $156,554 Total Budget Planning and Design $30,500 $30,500 Administration $1,128,883 $1,137,954 Advertising and Promotion $200,000 $200,000 Customer Incentive $2,056,382 $2,066,402 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $11,000 $11,000 Total $3,426,765 $3,445,856 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $20,000 $1,093,115 $190,000 $2,029,991 $0 $0 $10,000 $3,343,106 $20,000 $1,102,354 $190,000 $2,071,391 $0 $0 $10,000 $3,393,744 $20,000 $1,111,869 $190,000 $2,125,287 $0 $0 $10,000 $3,457,156 $120,000 $5,466,923 $950,000 $10,166,960 $0 $0 $50,000 $16,753,883 $500 $54,182 $10,000 $91,247 $0 $0 $1,000 $156,929 $500 $54,568 $10,000 $91,247 $0 $0 $1,000 $157,314 $500 $54,965 $10,000 $91,247 $0 $0 $1,000 $157,712 $2,500 $270,967 $50,000 $456,233 $0 $0 $5,000 $784,700 $20,500 $1,147,298 $200,000 $2,121,237 $0 $0 $11,000 $3,500,035 $20,500 $1,156,922 $200,000 $2,162,637 $0 $0 $11,000 $3,551,059 $20,500 $1,166,834 $200,000 $2,216,534 $0 $0 $11,000 $3,614,868 $122,500 $5,737,890 $1,000,000 $10,623,193 $0 $0 $55,000 $17,538,583 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.11.9. Cost-Effectiveness Results The Nonresidential Prescriptive Rebates Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 3.38. Table 4-53 provides costeffectiveness results for the Nonresidential Prescriptive Rebates Program. 99 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-52. Nonresidential Prescriptive Rebates Cost-Effectiveness Results Utility Electric Program $86,494,529 Benefits $17,137,898 Costs $69,356,632 Net Benefits 5.05 B/C Ratio $0.021 $/kWh Natural Gas Program $1,623,942 Benefits $692,358 Costs $931,584 Net Benefits 2.35 B/C Ratio $0.278 $/therm Total Program $88,118,472 Benefits $17,830,255 Costs $70,288,216 Net Benefits 4.94 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 100 Participant Ratepayer Societal Total Resource $80,167,486 $28,956,757 $51,210,729 2.77 $0.035 $87,487,968 $80,888,340 $6,599,628 1.08 $0.098 $135,056,864 $39,332,378 $95,724,486 3.43 $0.037 $123,867,194 $39,332,378 $84,534,816 3.15 $0.037 $881,792 $992,507 ($110,716) 0.89 $0.399 $1,623,942 $1,171,480 $452,462 1.39 $0.471 $2,469,834 $1,371,250 $1,098,584 1.80 $0.408 $2,297,520 $1,371,250 $926,270 1.68 $0.408 $81,049,278 $29,949,264 $51,100,013 2.71 $89,111,910 $82,059,820 $7,052,090 1.09 $137,526,698 $40,703,628 $96,823,070 3.38 $126,164,714 $40,703,628 $85,461,086 3.10 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.12. Small Business Energy Solutions Program 4.12.1. Program Description Through the Small Business Energy Solutions Program, IPL provides a turnkey energy efficiency solution so that nonresidential customers instantly save money on their energy bills. Customers with facilities smaller than 50,000 square feet and annual electric billing of less than $100,000 can receive a free, on-site assessment to evaluate opportunities to improve the efficiency of their facility’s lighting and refrigeration systems and enhanced rebates for installing recommended energy efficiency projects. Small business customers are also eligible for rebates through the Nonresidential Prescriptive Rebates Program for measures that are not included in this program. Key changes to this program in the Plan include: • Adding a new measure package offering for refrigeration systems. • Reducing the maximum program incentive from 75% to 70% of project costs. 4.12.2. Operations A third-party program vendor manages the Small Business Energy Solutions Program, including recruiting and approving qualified dealers. Customers work with qualified dealers from IPL’s Dealer Network to evaluate their facility, provide a proposal with upgrade recommendations, project costs, paybacks and rebate information and install eligible lighting and refrigeration improvements. The program vendor verifies proper equipment installation then pays the dealer up to 70% of the project cost. The customer pays the balance directly to the dealer. 101 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.12.3. Application Exhibit 1 Energy Efficiency Plan Customer Targets The Small Business Energy Solutions Program is specifically targeted to the hardto-reach small business sector. Customers who lease their facility must receive landlord approval for permanent measure installations. Table 4-54 outlines customer eligibility requirements. Table 4-53. Small Business Energy Solutions Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other 4.12.4. Eligible Customers Nonresidential electric Building or business owners and landlords of IPL customers Commercial < 50,000 square feet Existing IPL’s Iowa service territory < $100,000 in annual electric billing Eligible Measures and Incentives Through Small Business Energy Solutions, IPL covers a large portion of out-ofpocket costs to help overcome market barriers and capture the savings potential available in the small business sector. Customers may also qualify for a rebate through any of IPL’s other nonresidential programs for qualifying equipment that are not included in this program. Participants are subject to all the rules and participation requirements associated with applicable programs. Table 4-55 provides eligible measures, qualification standards and rebate levels for equipment offered through both components of this program. Table 4-54. Small Business Energy Solutions Incentive Summary Program/Measure Lighting Retrofits Refrigeration Retrofits 102 Qualification Commercial buildings < 50,000 square feet; based on dealer recommendation; < $100,000 in annual electric billing Customer Incentive Up to 70% of project costs Up to 70% of project costs Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.12.5. Application Exhibit 1 Energy Efficiency Plan Marketing and Promotion IPL’s Business Resource Center (BRC) and dealers recruit participants into the Small Business Energy Solutions Program. Additionally, IPL markets this program directly to small business owners and managers, as well as to dealers (lighting and refrigeration contractors). IPL uses a variety of promotional methods, including: • Conducting customer outreach through direct mailings and the BRC. • Providing general advertising through broadcast, print and online media (including the Alliant Energy website). • Providing ongoing education for dealers about program procedures and benefits, qualifying measures and equipment and rebate structures. 4.12.6. Participation Table 4-56 provides program participation assumptions. Table 4-55. Small Business Energy Solutions Participation Assumptions 2019 Total Lighting Retrofits 260 260 260 260 260 1,300 55 55 55 55 55 275 Refrigeration Retrofits 315 315 315 315 315 1,575 Total Notes: According to the Assessment, the population of eligible participants is approximately 26,000 small business customers in IPL’s Iowa territory. One lighting and refrigeration participant is equivalent to one retrofit project performed. Source: Application Exhibit 11 Savings. 4.12.7. 2020 2021 2022 2023 Energy and Demand Savings This program is expected to produce 34,590 MWh of electricity savings over the course of the Plan. This program accounts for 5.9% of electricity savings in the energy efficiency plan. Table 4-57 provides energy and demand savings goals. 103 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-56. Small Business Energy Solutions Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 4.12.8. 2019 6,917,912 1,589 2020 6,917,912 1,589 2021 2022 2023 Total 6,917,912 1,589 6,917,912 1,589 6,917,912 1,589 34,589,558 NA Budget The total Small Business Energy Solutions Program budget is estimated at $7,347,410. Table 4-58 provides program budget assumptions for Small Business Energy Solutions. Table 4-57. Small Business Energy Solutions Budget 2019 2020 Electric Budget Planning and Design $20,000 $20,000 Administration $503,469 $505,613 Advertising and Promotion $75,000 $75,000 Customer Incentive $871,595 $871,595 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Electric Total $1,471,063 $1,473,207 Total Budget Planning and Design $20,000 $20,000 Administration $503,469 $505,613 Advertising and Promotion $75,000 $75,000 Customer Incentive $871,595 $871,595 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Total $1,471,063 $1,473,207 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $10,000 $507,821 $75,000 $871,595 $0 $0 $1,000 $1,465,416 $10,000 $510,096 $75,000 $871,595 $0 $0 $1,000 $1,467,690 $10,000 $512,439 $75,000 $871,595 $0 $0 $1,000 $1,470,033 $70,000 $2,539,437 $375,000 $4,357,973 $0 $0 $5,000 $7,347,410 $10,000 $507,821 $75,000 $871,595 $0 $0 $1,000 $1,465,416 $10,000 $510,096 $75,000 $871,595 $0 $0 $1,000 $1,467,690 $10,000 $512,439 $75,000 $871,595 $0 $0 $1,000 $1,470,033 $70,000 $2,539,437 $375,000 $4,357,973 $0 $0 $5,000 $7,347,410 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 104 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.12.9. Application Exhibit 1 Energy Efficiency Plan Cost-Effectiveness Results Small Business Energy Solutions is cost-effective from a societal perspective, achieving a benefit/cost ratio of 3.74. Table 4-59 provides cost-effectiveness results for Small Business Energy Solutions. Table 4-58. Small Business Energy Solutions Cost-Effectiveness Results Utility Electric Program $27,250,031 Benefits $7,853,476 Costs $19,396,555 Net Benefits 3.47 B/C Ratio $0.027 $/kWh Source: Application Exhibit 3 Benefit Cost 105 Participant $25,916,825 $6,064,789 $19,852,036 4.27 $0.021 Ratepayer $27,820,055 $29,923,966 ($2,103,910) 0.93 $0.103 Societal $39,331,346 $10,524,911 $28,806,435 3.74 $0.028 Total Resource $35,880,363 $10,524,911 $25,355,452 3.41 $0.028 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.13. Custom Solutions Program 4.13.1. Program Description Through the Custom Solutions Program, IPL promotes energy-efficient products and practices among C&I customers. IPL offers customers: • A range of incentives and technical support. • The flexibility to install a broad range of high-efficiency equipment not included in its other nonresidential programs due to size, scope or the unique characteristics of the equipment. • The ability to implement equipment optimization and operational and process changes that reduce energy consumption and peak demand. The program consists of seven components: C&I Audits, Retro-Commissioning, Feasibility Studies, Strategic Energy Management (SEM), Industrial New Construction, Find and Fix and Custom Rebates. Each component operates as a unique offering to C&I customers and has its own operating, eligibility and delivery protocols. Key changes to this program in the Plan include: • Formally changing the program name to Custom Solutions (from Custom Rebates). • Adding a new program component: SEM. • Adding a rebate for kW saved to reflect the value of reduced demand contributing to IPL’s long-term resource needs. 106 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan Modifying the rebate structure such that rebates are based on kWh and therm savings rather than energy dollar savings. • Removing the Building Operator Certification and Technology Training components due to low participation. 4.13.2. Operations IPL’s KAMs, energy efficiency staff and dealers conduct outreach to IPL’s nonresidential customers to promote the program or individual program components based on customers’ building conditions, operating structure and efficiency needs. Customers must obtain IPL’s approval prior to taking any action under the program. IPL uses a third-party engineering firm to analyze project documentation, calculate expected energy savings and rebate amounts and conduct pre- and post-installation metering and verification as needed. Each of the seven components offered under the Custom Solutions Program is outlined below. C&I Audits C&I Audits are targeted to commercial customers with a facility larger than 20,000 square feet and to all customers with a manufacturing facility. Audits are conducted by an engineering firm with experience evaluating complex energy-using systems and industrial processes. Customers receive information on their facility’s energy performance and advice to help them prioritize investments in energy efficiency upgrades. Participants may be eligible for rebates through the Custom Solutions or Nonresidential Prescriptive Rebates programs. 107 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Retro-Commissioning IPL offers retro-commissioning of large commercial buildings and industrial facilities. Retro-commissioning is a cost-effective method to fine-tune or correct problems in direct digital control systems, often resulting in notable energy and cost savings. IPL covers the full cost of retro-commissioning. A retro-commissioning project provides: • Information on reprogramming direct digital controls or process controls. • A design and control sequence and instructions for reprogramming. • Real time verification to ensure that all controls are working properly. • Building management training to maximize the new system parameters. • A 12-month comparison of pre- and post-retro-commissioning study energy and cost savings. Following completion of the study, IPL reimburses 50% of the study cost. Following implementation of recommended improvements, IPL reimburses the remaining 50% of the study cost. Participants must install all energy-saving measures that have a combined payback of two years or less, with no individual measure having greater than a five-year payback. Feasibility Studies IPL provides support for customers who are interested in having an investmentgrade feasibility study performed after an audit to quantify the benefits of their potential 108 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan energy-saving project. The study provides analysis of current energy use, expenses and projected energy savings to determine the cost-effectiveness of a potential project. Qualified third-party firms selected by the customer may perform feasibility studies. IPL reimburses 50% of the pre-approved study cost (up to $7,500) upon completion of the study. IPL reimburses the remaining 50% (up to $7,500) if the business implements 75% or more of the total energy-saving projects identified by the study within 18 months. Strategic Energy Management Through SEM, IPL promotes a set of processes that empower an organization to implement energy management actions and consistently achieve energy performance improvements. SEM promotes behavior-based energy savings and investment in energy-efficient capital improvements using a process of customer education and longterm planning. IPL provides customers with education, technical support, a baseline assessment of their energy management practices, benchmarking tools and energy usage data, as well as a platform to incorporate energy considerations and energy management into daily operations. IPL facilitates both individual coaching and ongoing engagement and knowledge sharing with energy managers at peer companies, as well as tracking and monitoring building energy and asset information. SEM is a data-driven approach to help customers design an energy plan to achieve sustainable energy performance and economic gains. 109 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Industrial New Construction Through Industrial New Construction, IPL promotes long-term energy savings by encouraging the adoption of high-performance building practices in the new construction of industrial facilities in IPL’s territory. IPL provides energy design assistance (EDA) and rebates to help customers integrate energy efficiency strategies into new construction projects that are designed for the unique needs of industrial customers. IPL uses EDA to identify recommendations focused on energy-efficient building systems, process systems and equipment measures offering the greatest impact, and provides design team incentives to help offset the cost of program participation. IPL offers two tiered rebates: customers who enter the program at the conceptual stage receive a total rebate package of 250% of the first-year annual savings, 12 while customers who enter the program at the design development stage receive a total rebate package of 150% of the first-year annual savings. The program is available to IPL electric or combined electric and natural gas customers who have new construction, addition or renovation projects that include industrial equipment or processes. New construction or additions must be at least 50,000 square feet and with at least 50% industrial/manufacturing load. All other nonresidential new construction projects may be eligible for rebates through IPL’s Commercial New Construction Program. 12 Limited to 50% of the total project costs. 110 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Find and Fix Find and Fix is a quick turnaround, limited disruption initiative, through which IPL may cover the full cost to optimize pumps and automated systems. This component provides customers with immediate benefits derived from targeted solutions with minimum investment. Customers are eligible to receive an on-site assessment of automated control systems and pumps to look for opportunities to improve their performance. Strategies may include adjusting automation system settings, installing or optimizing variable frequency drives, trimming impellors or replacing motor pumps. Find and Fix is similar to Retro-Commissioning, but differs in its narrow scope, real-time verification and condensed timeline (with projects typically completed in three months or less). Custom Rebates IPL offers custom rebates for energy efficiency measures and projects not included in its other nonresidential programs due to size, scope or the unique characteristics of the equipment. Eligible efficiency measures may include compressed air, energy management controls, HVAC, lighting, processing equipment, refrigeration systems, variable frequency drives, ventilation systems, process improvements, waste heat recovery systems and process heating and cooling. Prior to installation, customers must submit project specifications and all applicable program documentation. IPL’s third-party engineering firm reviews the documentation and calculates the anticipated energy and cost benefits that will result from the installed project. If approved, IPL presents the customer with a contract agreement that includes 111 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan expected energy savings and the rebate amount. IPL provides rebates and verifies the equipment installation, where appropriate. 4.13.3. Customer Targets IPL targets this program to large and mid-sized nonresidential customers; however, various components of the program may have individual limitations on customer eligibility. Table 4-60 outlines customer eligibility requirements. Table 4-59. Custom Solutions Customer Eligibility Parameters Eligible Customers Customer Class Customer Status Building Type Building Vintage Geography Other 4.13.4. Electric Measures Natural Gas Measures Nonresidential retail electric Nonresidential retail natural gas Building or business owners; landlords of IPL customers Commercial; industrial; agricultural All IPL’s Iowa service territory Restrictions on individual program components may apply Eligible Measures and Incentives Through the Custom Solutions Program, IPL offers incentives to electric and natural gas customers for a wide range of energy efficiency activities. To qualify for incentives, customers must obtain pre-approval for any program activity and submit all required documentation to IPL. Table 4-61 provides eligible measures, qualification standards and incentive levels offered for each component of this program. 112 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-60. Custom Solutions Incentive Summary Program/Measure C&I Audits Qualification Facility > 20,000 square feet or manufacturing facility RetroCommissioning Facility > 20,000 square feet; direct digital controls system or process controls that are two to 10 years old and do not need repairs; no major system renovation plans for the area under consideration Must obtain pre-approval from IPL Feasibility Studies Strategic Energy Management Industrial New Construction Find and Fix Custom Rebates 4.13.5. Customer must implement measures accounting for 75% or more of the total energy savings identified by the study within 18 months to qualify for post installation rebate Facility manager, sponsor or company leader involvement required; customer must sign a memorandum of understanding establishing their commitment to the program and must attend six workshop sessions New construction or addition must be at least 50,000 square feet with at least 50% industrial/manufacturing load; an application must be submitted before the building design is developed Pumps: individual pumps > 5 hp each and totaling > 30 hp; pumps must operate at least 4,000 hours per year Automated systems: buildings with computer-linked building automation systems < 10 years old; buildings with multiple HVAC systems Individual measures not offered through IPL’s Nonresidential Prescriptive Rebates or Agriculture Solutions programs Customer Incentive Free to customer 50% of study cost paid upon completion; remaining 50% of study cost paid after implementing all applicable measures that have a combined payback of two years or less, and no individual measure having greater than a five-year payback Post-study: 50% of study cost up to maximum $7,500 Post-installation: 50% of study cost up to maximum $7,500 Free to customer Conceptual/schematic phase: 250% of oneyear energy dollar savings Design development phase: 150% of oneyear energy dollar savings Assessment: no cost to customer Project rebate: $0.10/kWh, $1.00/therm and $200/kW saved Assessment and verification: no cost to customer Contractor labor: no cost to customer up to $2,000 Total of: $0.10/kWh, $1.00/therm and $200/kW saved Marketing and Promotion For program delivery, to promote the program and to sell qualifying custom projects, IPL relies on its energy efficiency product management team, KAMs, program vendor and third-party dealers. These include energy efficiency consulting and engineering firms, equipment dealers and project design and implementation contractors. Additionally, IPL promotes the program through direct mail and general 113 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan advertising through broadcast, print and online media (including the Alliant Energy website). 4.13.6. Participation Table 4-62 provides program participation assumptions. Table 4-61. Custom Solutions Participation Assumptions 2019 2020 2021 2022 2023 Total C&I Audits 100 100 100 100 100 500 Audits Retro-Commissioning 2 2 2 2 2 10 Retro-commissioning Custom Rebates 70 70 70 70 70 Small (Commercial) 350 110 110 110 110 110 Large (Industrial) 550 Agriculture 20 20 20 20 20 100 Strategic Energy Management 8 8 8 8 8 Participants 40 Industrial New Construction 6 6 6 6 6 Projects 30 Find and Fix 4 4 4 4 4 Commercial Track 20 10 10 10 10 10 Industrial Track 50 Automation Systems 6 6 6 6 6 30 Feasibility Study 12 12 12 12 12 60 Feasibility Study 348 348 348 348 348 1,740 Total Notes: According to the Assessment, the population of eligible participants is approximately 32,000 nonresidential electric and natural gas customers in IPL’s Iowa territory. One participant is equivalent to one assessment, retro-commissioning project, feasibility study or find and fix project performed, one business engaged in SEM, one new construction project completed or one measure installed. Source: Application Exhibit 11 Savings. 4.13.7. Energy and Demand Savings This program is expected to produce 191,451 MWh of electricity savings and 830,966 therms of natural gas savings over the course of the Plan. This program 114 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan accounts for 32.5% of electricity savings and 33.8% of natural gas savings in the energy efficiency plan. Table 4-63 provides energy and demand savings goals. Table 4-62. Custom Solutions Incremental Energy and Demand Savings Goals 2019 Electric Impacts 38,290,195 Incremental Annual Energy (kWh) Peak Demand (kW) 4,292 Natural Gas Impacts 166,193 Incremental Annual Energy (therms) 1,994 Peak-Day Demand (therms) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 4.13.8. 2020 2021 2022 2023 Total 38,290,195 4,292 38,290,195 4,292 38,290,195 4,292 38,290,195 4,292 191,450,973 NA 166,193 1,994 166,193 1,994 166,193 1,994 166,193 1,994 830,966 NA Budget The total Custom Solutions Program budget is estimated at $38,327,147. Table 4-64 provides combined program budget assumptions for the Custom Solutions Program components. 115 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-63. Custom Solutions Budget 2019 2020 Electric Budget Planning and Design $50,000 $50,000 Administration $2,586,747 $2,614,050 Advertising and Promotion $200,000 $200,000 Customer Incentive $4,466,753 $4,466,753 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $25,000 $25,000 Electric Total $7,328,500 $7,355,803 Natural Gas Budget Planning and Design $1,500 $1,500 Administration $102,418 $103,761 Advertising and Promotion $10,000 $10,000 Customer Incentive $174,975 $174,975 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Natural Gas Total $289,893 $291,235 Total Budget Planning and Design $51,500 $51,500 Administration $2,689,165 $2,717,811 Advertising and Promotion $210,000 $210,000 Customer Incentive $4,641,728 $4,641,728 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $26,000 $26,000 Total $7,618,393 $7,647,039 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $30,000 $2,642,173 $200,000 $4,466,753 $0 $0 $25,000 $7,363,926 $30,000 $2,671,139 $200,000 $4,466,753 $0 $0 $25,000 $7,392,893 $30,000 $2,700,975 $200,000 $4,466,753 $0 $0 $25,000 $7,422,728 $190,000 $13,215,084 $1,000,000 $22,333,766 $0 $0 $125,000 $36,863,850 $1,500 $105,143 $10,000 $174,975 $0 $0 $1,000 $292,618 $1,500 $106,567 $10,000 $174,975 $0 $0 $1,000 $294,042 $1,500 $108,034 $10,000 $174,975 $0 $0 $1,000 $295,509 $7,500 $525,923 $50,000 $874,874 $0 $0 $5,000 $1,463,297 $31,500 $2,747,316 $210,000 $4,641,728 $0 $0 $26,000 $7,656,544 $31,500 $2,777,707 $210,000 $4,641,728 $0 $0 $26,000 $7,686,935 $31,500 $2,809,009 $210,000 $4,641,728 $0 $0 $26,000 $7,718,237 $197,500 $13,741,007 $1,050,000 $23,208,640 $0 $0 $130,000 $38,327,147 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.13.9. Cost-Effectiveness Results The Custom Solutions Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 3.53. Table 4-65 provides cost-effectiveness results for all seven components of the Custom Solutions Program combined. 116 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-64. Custom Solutions Cost-Effectiveness Results Utility Electric Program Benefits $125,517,255 Costs $32,523,157 Net Benefits $92,994,098 B/C Ratio 3.86 $/kWh $0.019 Natural Gas Program Benefits $4,585,670 Costs $1,290,704 Net Benefits $3,294,965 B/C Ratio 3.55 $/therm $0.179 Total Program Benefits $130,102,924 Costs $33,813,861 Net Benefits $96,289,064 B/C Ratio 3.85 Source: Application Exhibit 3 Benefit Cost. 117 Participant Ratepayer Societal Total Resource $147,574,152 $37,035,370 $110,538,783 3.98 $0.022 $125,517,255 $160,385,589 ($34,868,334) 0.78 $0.096 $188,736,336 $53,311,426 $135,424,910 3.54 $0.024 $171,578,487 $53,311,426 $118,267,061 3.22 $0.024 $2,145,061 $1,434,593 $710,468 1.50 $0.199 $4,585,670 $2,663,604 $1,922,065 1.72 $0.370 $6,765,812 $2,089,063 $4,676,749 3.24 $0.219 $6,293,779 $2,089,063 $4,204,716 3.01 $0.219 $149,719,213 $38,469,963 $111,249,251 3.89 $130,102,924 $163,049,193 ($32,946,269) 0.80 $195,502,148 $55,400,489 $140,101,659 3.53 $177,872,266 $55,400,489 $122,471,777 3.21 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.14. Commercial New Construction Program 4.14.1. Program Description Through the Commercial New Construction Program, IPL promotes long-term energy savings by encouraging the adoption of high-performance building practices in the construction of commercial facilities. IPL offers EDA and construction incentives to commercial builders, developers and owners who design and build new energy-efficient buildings and facilities that exceed the current State of Iowa commercial building energy code. The program is targeted to customers with a project in the planning stage who have enough time to integrate new ideas and strategies into the design. Key changes to this program in the Plan include: • Adding an ongoing performance track, where IPL targets previous program participants (who completed new construction projects in the last five years) for an assessment and equipment adjustments to optimize performance and ensure the facility is still running as efficiently as possible. • Increasing design team incentives for non-multifamily projects. • Expanding eligibility to include multifamily projects (previously in the Multifamily Program). • Moving industrial new construction eligibility to the Custom Solutions Program. • 118 Offering incentives for electric savings only. Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.14.2. Application Exhibit 1 Energy Efficiency Plan Operations IPL, in collaboration with the other Iowa IOUs, relies on a professional commercial design consulting firm (the vendor) for program outreach, EDA, project management and verification. The vendor works with customers to qualify projects based on the program track, outlined below. Program Track I (Small Track) Program Track I is targeted to small buildings (5,000 to 15,000 square feet). Participants in this track must exceed current commercial energy-efficient code requirements by 5%. IPL’s program vendor provides three measure bundle options, based on the building type and needs, for the architect or general contractor to present to the customer. Program Track II (Fast Track) Program Track II is targeted to buildings larger than 15,000 square feet that are straightforward in design and may be on a fast design schedule. Developers in this track must achieve energy savings between 5% and 40% above the current commercial energy code. IPL’s program vendor presents customers with a range of available design and construction strategies that may achieve desired savings levels. Program Track III (Comprehensive Track) Program Track III is targeted to buildings larger than 15,000 square feet that require more customized energy design. The vendor provides energy modeling of custom efficiency strategies selected by the owner and design team, and then works with developers in this track to achieve energy savings between 5% and 40% above the 119 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan current commercial energy code. The vendor conducts engineering analysis and building performance simulation modeling for the strategies that customers would like to explore. The analysis includes modeling the performance of various energy-savings design strategies and equipment measures to calculate the customer’s relative energy savings, incremental costs, estimated rebates and payback and to support the customer’s final design decisions. Program Track IV (Certification Track) Program Track IV includes rebates and assistance to help building owners or developers achieve energy savings that are greater than 40% above current energy code. This track also includes technical and certification support for participants to meet the requirements of Leadership in Energy and Environmental Design, ENERGY STAR, Energy Policy Act of 2005, 2030 Challenge and other built-environment initiatives. Program Track V (Ongoing Performance Track) Program Track V is focused on ongoing management of previous participants’ facilities. The vendor targets facilities built through the Commercial New Construction Program within the prior five years that are operating 20% or more beyond original energy model projections. The vendor recruits participants and updates the original energy model with current operational, physical and weather information to assess the building’s actual performance. The vendor then prepares a range of new strategies that yield additional energy savings for the customer to implement. In all program tracks, the vendor works with customers and their architects and developers during the planning and design stage to incorporate energy-efficient design 120 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan features into pre-construction drawings and to specify energy-efficient equipment in buildings’ plans. Because architect and design engineers must allocate resources to the energy design process, IPL provides incentives to cover some of their cost to participate in EDA, rather than having them pass additional costs on to the customer. Following the EDA process, the customer’s design team works with the vendor to identify the energy efficiency strategies they will incorporate into the project construction documents. The customer must submit completed construction documents to the vendor for review and verification that the strategies have been included and will result in the expected savings. The resulting construction document initiates IPL’s internal program contract approval and triggers distribution of the customer’s design team incentive. Following construction of the project, the vendor provides customers with information to support long-term energy savings (for example, appropriate system settings and maintenance) and conducts field verifications of the new building to ensure that energy-efficient systems and components are installed and functioning properly. Finally, IPL issues the customer’s construction rebate. 4.14.3. Customer Targets IPL targets builders, developers and owners engaged in the construction of new commercial buildings, including qualifying multifamily residential housing. Table 4-66 outlines customer eligibility requirements. 121 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-65. Commercial New Construction Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography 4.14.4. Eligible Customers Nonresidential retail electric (single service or in combination with retail natural gas service) Building owners Commercial; multifamily (four or more units) New construction IPL’s Iowa service territory Eligible Measures and Incentives Through the program, IPL offers incentives for components resulting in at least 5% energy savings above code, based on ASHRAE-90.1-2010 (referenced by IECC 2012). Multifamily rebates are based on the percentage above energy code rather than on the verified energy savings achieved by the project. IPL provides the following incentives throughout the design and implementation process. • EDA: IPL provides free consulting to help customers identify the optimal mix of cost-effective energy efficiency strategies. • Design Team Incentive: IPL provides a design team incentive, in an amount based on the customer’s construction track. This incentive is intended to offset some of the expenses incurred by participating in the EDA process. • Construction Rebates: IPL provides a new construction rebate that covers a portion of the cost of implementing strategies that result in energy savings of at least 5% above the State of Iowa commercial building energy code. Rebate levels are based on the completed building’s verified savings. Table 4-67 provides qualification standards and incentive levels for each component offered through this program. 122 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-66. Commercial New Construction Incentive Summary Program Track Energy Design Assistance Track I (Small Track) Track II (Fast Track) Track III (Comprehensive Track) Qualification Must obtain pre-approval from IPL Buildings 5,000 to 15,000 square feet; must achieve energy savings > 5% above current energy code;2 multifamily buildings must have four or more units Buildings > 15,000 square feet; must achieve energy savings > 5% above current energy code;2 multifamily buildings must have four or more units Buildings > 15,000 square feet; must achieve energy savings > 5% above current energy code;2 multifamily buildings must have four or more units Commercial Incentive Free to customer $0.06/kWh $0.06/kWh Design Team Incentive1 NA NA 5%-10% above code: $100/unit 11%-15% above code: $250/unit 16%-20% above code: $350/unit $1,250 $3,800 21%-25% above code: $450/unit $0.06/kWh Track IV Buildings > 15,000 square feet; must achieve (Certification energy savings > 40% above current energy $0.19/kWh Track) code2 Track V Buildings that participated in Commercial New (Ongoing Construction Program two to five years prior $0.06/kWh Performance and where building is performing > 20% Track) beyond original energy model projections 1 Design team incentives are not eligible for multifamily new construction projects. 2 The current energy code is based on ASHRAE-90.1-2010. 4.14.5. Multifamily Incentive >26% above code: $550 /unit $3,800 NA $5,500 NA $1,000 Marketing and Promotion The vendor facilitates joint utility marketing efforts for all five program tracks through a combination of education and direct outreach, targeting both the demand and supply sides of the commercial new construction market. IPL leverages its relationships with appropriate participants in its Dealer Network (consisting of architectural and engineering firms, construction firms, design/build contractors, developers and mechanical, electrical and equipment contractors) to promote the program. IPL uses several marketing tactics to increase program awareness and participation: 123 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan Direct outreach to commercial building owners, the nonresidential building community and related industries. • Promotional and educational initiatives, such as workshops for building owners and members of trade organizations. • Participation in architectural and building industry conferences and trade shows. • E-newsletter to architects and design professionals. • Advertising in trade magazines, newspapers and via sponsorships. • Earned media through press releases and customer success stories. 4.14.6. Participation Table 4-68 provides program participation assumptions. Table 4-67. Commercial New Construction Participation Assumptions 2019 2020 2021 2022 2023 Total 10 10 10 10 10 50 Commercial Track I 10 10 10 10 10 50 Commercial Track II 8 8 8 8 8 40 Commercial Track III 1 1 1 1 1 5 Commercial Track IV Commercial Track V 3 3 3 3 3 15 7 8 9 10 11 45 Multifamily (Track I, II and III) 39 40 41 42 43 205 Total Notes: According to the Assessment, the population of eligible participants is approximately 220 nonresidential builders, developers and building owners in IPL’s Iowa territory. One participant is equivalent to one commercial or multifamily building constructed through the program. Source: Application Exhibit 11 Savings. 4.14.7. Energy and Demand Savings This program is expected to produce 46,150 MWh of electricity savings over the course of the Plan. This program accounts for 7.8% of electricity savings in the energy efficiency plan. Table 4-69 provides energy and demand savings goals. 124 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 4-68. Commercial New Construction Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 4.14.8. 2019 2020 2021 2022 2023 Total 9,055,937 2,137 9,143,013 2,207 9,230,089 2,277 9,317,165 2,346 9,404,241 2,416 46,150,446 NA Budget The total Commercial New Construction Program budget is estimated at $5,648,161. Table 4-70 provides program budget assumptions. Table 4-69. Commercial New Construction Budget 2019 2020 Electric Budget Planning and Design $35,000 $25,000 Administration $194,887 $204,386 Advertising and Promotion $50,000 $50,000 Customer Incentive $707,836 $725,261 Equipment Cost $89,400 $89,400 Installation Cost $0 $0 Monitoring and Evaluation $6,500 $6,500 Electric Total $1,083,623 $1,100,547 Total Budget Planning and Design $35,000 $25,000 Administration $194,887 $204,386 Advertising and Promotion $50,000 $50,000 Customer Incentive $707,836 $725,261 Equipment Cost $89,400 $89,400 Installation Cost $0 $0 Monitoring and Evaluation $6,500 $6,500 Total $1,083,623 $1,100,547 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $25,000 $213,965 $50,000 $742,686 $89,400 $0 $6,500 $1,127,550 $25,000 $223,625 $50,000 $760,111 $89,400 $0 $6,500 $1,154,636 $25,000 $233,370 $50,000 $777,536 $89,400 $0 $6,500 $1,181,805 $135,000 $1,070,233 $250,000 $3,713,428 $447,000 $0 $32,500 $5,648,161 $25,000 $213,965 $50,000 $742,686 $89,400 $0 $6,500 $1,127,550 $25,000 $223,625 $50,000 $760,111 $89,400 $0 $6,500 $1,154,636 $25,000 $233,370 $50,000 $777,536 $89,400 $0 $6,500 $1,181,805 $135,000 $1,070,233 $250,000 $3,713,428 $447,000 $0 $32,500 $5,648,161 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 125 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.14.9. Application Exhibit 1 Energy Efficiency Plan Cost-Effectiveness Results The Commercial New Construction Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 5.20. Table 4-71 provides program costeffectiveness results. Table 4-70. Commercial New Construction Cost-Effectiveness Results Utility Electric Program $42,692,287 Benefits $4,970,852 Costs $37,721,435 Net Benefits 8.59 B/C Ratio $0.012 $/kWh Source: Application Exhibit 3 Benefit Cost. 126 Participant $42,675,059 $9,774,720 $32,900,338 4.37 $0.023 Ratepayer $42,692,287 $44,378,355 ($1,686,068) 0.96 $0.105 Societal $63,874,871 $12,290,343 $51,584,528 5.20 $0.022 Total Resource $58,068,065 $12,290,343 $45,777,722 4.72 $0.022 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 4.15. Agriculture Solutions Program 4.15.1. Program Description Through the Agriculture Solutions Program, IPL helps farm and agribusiness customers improve their overall energy efficiency and reduce operating costs. IPL provides farm energy assessments and prescriptive rebates for agriculture-specific energy efficiency products and services. Additionally, customers may be eligible for technical support and a rebate for a range of efficiency measures through IPL’s other applicable commercial and residential programs. Key changes to this program in the Plan include: • Formally changing the program name to Agriculture Solutions (from Agriculture Sector Program). • Adding dairy refrigeration tune ups as an eligible program measure. • Shifting measures not specific to agricultural applications to the Nonresidential Prescriptive Rebates Program, including standard commercial LED retrofits, air-source heat pumps and geothermal heat pumps. • Discontinuing measures that are no longer cost-effective, including fluorescent lighting, low pressure irrigation, dairy scroll compressors and highvolume low-speed fans. • Discontinuing participating dealer incentives to help manage program costs for customers. 127 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.15.2. Application Exhibit 1 Energy Efficiency Plan Operations IPL relies on a third-party program vendor, energy efficiency program staff and equipment dealers that serve the agricultural sector to recruit customers and deliver the program. The two individual program components offered under the Agriculture Solutions Program are outlined below. Farm Energy Assessments IPL provides free on-site energy assessments for agribusiness customers at their request. The program vendor conducts walk-through assessments to inspect energyusing equipment and provide the customer with a written report recommending costeffective energy efficiency upgrades and information about IPL’s rebate programs. To encourage equipment installation, the vendor follows up with participants within three to six months after assessments are completed. IPL monitors governmentsponsored agriculture energy efficiency programs that become available to identify additional energy efficiency–related services for qualifying agriculture customers. Agriculture-Specific Prescriptive Rebates IPL offers prescriptive rebates for energy efficiency measures intended for agriculture-specific applications. To participate, customers must submit a program rebate application with documentation on the equipment purchase and installation to IPL’s rebate processing center (via mail, fax or email). IPL provides rebates for eligible equipment in the form of a check. 128 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.15.3. Application Exhibit 1 Energy Efficiency Plan Customer Targets This program is targeted to agricultural-sector customers. Table 4-72 outlines customer eligibility requirements. Table 4-71. Agriculture Solutions Customer Eligibility Parameters Eligible Customers Nonresidential electric Owners or tenants with owner approval Agricultural Existing buildings and new construction IPL’s Iowa service territory Customer Class Customer Status Building Type Building Vintage Geography 4.15.4. Eligible Measures and Incentives Qualifying measures in this program include energy-efficient farm and agricultural production equipment. IPL offers rebates for equipment replacement or for the purchase of new high-efficiency equipment. Rebates are also available for constructing new facilities or expanding and upgrading existing facilities for various and diverse operations, such as for grain, swine, poultry, dairy or beef. Table 4-73 provides eligible measures, qualification standards and rebate levels for equipment offered through this program. Table 4-72. Agriculture Solutions Incentive Summary Agricultural facility ≤ 125 watts Customer Incentive Existing New Buildings Construction Free NA $2 per lamp $1.20 per lamp Dry cows not eligible $5 per cow NA $3.40 per cow NA $5 per cow NA Program/Measure Assessment Heat Lamps Dairy Automatic Milker Takeoff Dairy Milk Precooler Dairy Variable Speed Drive Vacuum Pumps 129 Qualification Dry cows not eligible Dry cows not eligible; must be controlled by ULlisted device that meets applicable IEEE standards for harmonic control Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program/Measure Dairy Heat Reclaimer Dairy Refrigeration Tune-Up Ventilation Fan 14-23 Inch Ventilation Fan 24-35 Inch Ventilation Fan 36-47 Inch Ventilation Fan ≥ 48 Inch Ventilation Fan Controls Circulating Fan 12-23 Inch Circulating Fan 24-35 Inch Circulating Fans 36-47 Inch Circulating Fans ≥ 48 Inch Variable Frequency Drives Motors Qualification Dry cows not eligible; qualifying units include Freheater and Therma-store One incentive per 12-month period 10.1 cfm/watt; rated at 0.05 static pressure; wall mounted system under static pressure; must be tested by Air Movement and Control Association (AMCA) or Bioenvironmental and Structural Systems (BESS) Laboratory 13.5 cfm/watt; rated at 0.05 static pressure; wall mounted system under static pressure; must be tested by AMCA or BESS 17.4 cfm/watt; rated at 0.05 static pressure; wall mounted system under static pressure; must be tested by AMCA or BESS 20.3 cfm/watt; rated at 0.05 static pressure; wall mounted system under static pressure; must be tested by AMCA or BESS Programmable ventilation controller 10.7 cfm/watt; mounted inside the building with zero static pressure; must be tested by AMCA or BESS 11.5 cfm/watt; mounted inside the building with zero static pressure; must be tested by AMCA or BESS 19.0 cfm/watt; mounted inside the building with zero static pressure; must be tested by AMCA or BESS 21.5 cfm/watt; mounted inside the building with zero static pressure; must be tested by AMCA or BESS Variable frequency drives for HVAC pumps, HVAC supply and return fans and process must be 1-75 hp and control a system or process with a variable load; replacements for existing variable speed drive prior to or at failure are ineligible; process must be automatically controlled — manual controls do not qualify; units installed for soft starting and installations where applicable code requires a variable speed drive do not qualify Ultra-premium-rated motors; 1 to 350 hp Livestock Waterers Grain Dryers 130 Must have > 2-inch insulation surrounding inside of water heater and an electric heating element, plus an adjustable thermostat with an element > 250 watts < 500 bushels/hr; only electric projects are eligible; manufacturer-rated bushels/hr must be 5 pts of moisture removal per bushel ≥ 500 bushels/hr and < 1,000 bushels/hr; only electric projects are eligible; manufacturer-rated bushels/hr must be 5 pts of moisture removal per bushel Application Exhibit 1 Energy Efficiency Plan Customer Incentive Existing New Buildings Construction $5 per cow NA $100 per tune-up NA $45 per fan $25 per fan $75 per fan $45 per fan $125 per fan $75 per fan $150 per fan $90 per fan $20 per controller NA $25 per fan $16 per fan $25 per fan $16 per fan $50 per fan $30 per fan $75 per fan $46 per fan $30 per hp $18 per hp $25 to $2,670 varies per motor $15 to $1,600 varies per motor $40 per waterer $40 per waterer $750 per unit $450 per unit $1,500 per unit $900 per unit Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program/Measure Grain Bin Aeration Fan Controls Hog Farrowing Heat Mat T8 LED Linear Replacement Lamps LED Interior Fixtures 131 Qualification ≥ 1,000 and < 2,000 bushels/hr; only electric projects are eligible; manufacturer-rated bushels/hr must be 5 pts of moisture removal per bushel ≥ 2,000 and < 3,500 bushels/hr; only electric projects are eligible; manufacturer-rated bushels/hr must be 5 pts of moisture removal per bushel ≥ 3,500 and ≤ 5,000 bushels/hr; only electric projects are eligible; manufacturer-rated bushels/hr must be 5 pts of moisture removal per bushel Bins used for grain drying are not eligible; controls must have integrated temperature and/or moisture sensors; the reported height must be eave height (not peak height) Single heat mat rated at 100 watts or less (typically sized at 14" x 60"); for existing construction, must replace existing heat lamp system Double heat mat rated at 200 watts or less (typically sized at 24" x 60"); for existing construction, must replace existing heat lamp system < 1,200 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 1,200 to 2,400 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 2,401 to 4,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications ≤ 2,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 2,001 to 4,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 4,001 to 6,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 6,001 to 8,000 lumens; must be DesignLights Consortium or meet Alliant Energy's agriculture lighting specifications 8,001 to 12,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 12,001 to 16,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 16,001 to 20,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 20,001 to 30,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's Application Exhibit 1 Energy Efficiency Plan Customer Incentive Existing New Buildings Construction $2,500 per unit $1,500 per unit $5,500 per unit $3,300 per unit $8,500 per unit $5,100 per unit $1,500 to $25,000 per control — varies by bin size $900 to $15,000 per control — varies by bin size $70 per single mat $40 per single mat $100 per double mat $60 per double mat $5 per lamp $3 per lamp $5 per lamp $3 per lamp $5 per lamp $3 per lamp $10 per fixture $6 per fixture $20 per fixture $12 per fixture $30 per fixture $18 per fixture $40 per fixture $24 per fixture $60 per fixture $36 per fixture $80 per fixture $48 per fixture $100 per fixture $60 per fixture $130 per fixture $78 per fixture Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program/Measure LED Exterior Fixtures Lighting Controls 4.15.5. Customer Incentive Existing New Buildings Construction Qualification agriculture lighting specifications ≤ 5,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 5,001 to 10,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 10,001 to 15,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications 15,001 to 30,000 lumens; must be DesignLights Consortium approved or meet Alliant Energy's agriculture lighting specifications Dimming and scheduling controls; minimum 45 watts controlled per control Application Exhibit 1 Energy Efficiency Plan $20 per fixture $12 per fixture $50 per fixture $30 per fixture $100 per fixture $60 per fixture $150 per fixture $90 per fixture $40 per controller $24 per controller Marketing and Promotion The vendor and IPL’s energy efficiency program staff lead promotional efforts for the Agriculture Solutions Program, conducting direct outreach aimed at forming longterm relationships with and educating farm and agribusiness customers and retail stores specializing in agricultural equipment. IPL promotes the program at trade shows, community meetings, builder open houses, commodity expos and fairs. 4.15.6. Participation Table 4-74 provides program participation assumptions. Table 4-73. Agriculture Solutions Participation Assumptions 2019 2020 2021 2022 2023 Total Assessment 10 10 10 10 10 50 18,960 19,096 19,237 19,386 19,535 96,214 Electric Measures 18,970 19,106 19,247 19,396 19,545 96,264 Total Notes: According to the Assessment, the population of eligible participants is approximately 4,000 farm and agribusiness owners in IPL’s Iowa territory. One participant is equivalent to one assessment performed or one measure installed. Source: Application Exhibit 11 Savings. 132 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 4.15.7. Application Exhibit 1 Energy Efficiency Plan Energy and Demand Savings This program is expected to produce 40,035 MWh of electricity savings over the course of the Plan and accounts for 6.8% of electricity savings in the energy efficiency plan. Table 4-75 provides energy and demand savings goals. Table 4-74. Agriculture Solutions Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. 4.15.8. 2019 7,983,841 1,239 2020 7,991,775 1,241 2021 2022 2023 Total 8,036,236 1,243 8,007,727 1,245 8,015,274 1,247 40,034,853 NA Budget The total Agriculture Solutions Program budget is estimated at $6,940,000. Table 4-76 provides program budget assumptions. Table 4-75. Agriculture Solutions Budget 2019 2020 Electric Budget Planning and Design $2,000 $2,000 Administration $482,746 $484,628 Advertising and Promotion $50,000 $50,000 Customer Incentive $846,233 $846,937 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Electric Total $1,381,979 $1,384,565 Total Budget Planning and Design $2,000 $2,000 Administration $482,746 $484,628 Advertising and Promotion $50,000 $50,000 Customer Incentive $846,233 $846,937 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $1,000 $1,000 Total $1,381,979 $1,384,565 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 133 2021 2022 2023 Total $2,000 $486,567 $50,000 $851,284 $0 $0 $1,000 $1,390,851 $2,000 $488,564 $50,000 $848,372 $0 $0 $1,000 $1,389,936 $2,000 $490,621 $50,000 $849,048 $0 $0 $1,000 $1,392,669 $10,000 $2,433,127 $250,000 $4,241,873 $0 $0 $5,000 $6,940,000 $2,000 $486,567 $50,000 $851,284 $0 $0 $1,000 $1,390,851 $2,000 $488,564 $50,000 $848,372 $0 $0 $1,000 $1,389,936 $2,000 $490,621 $50,000 $849,048 $0 $0 $1,000 $1,392,669 $10,000 $2,433,127 $250,000 $4,241,873 $0 $0 $5,000 $6,940,000 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 4.15.9. Cost-Effectiveness Results The Agriculture Solutions Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 2.37. Table 4-77 provides cost-effectiveness results for the Agriculture Solutions Program. Table 4-76. Agriculture Solutions Cost-Effectiveness Results Utility Electric Program $26,867,657 Benefits $6,123,691 Costs $20,743,966 Net Benefits 4.39 B/C Ratio $0.018 $/kWh Source: Application Exhibit 3 Benefit Cost. 134 Participant $33,055,946 $14,829,768 $18,226,178 2.23 $0.044 Ratepayer $26,867,657 $32,248,609 ($5,380,953) 0.83 $0.095 Societal $43,685,637 $18,405,145 $25,280,492 2.37 $0.042 Total Resource $40,088,249 $18,405,145 $21,683,104 2.18 $0.042 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 5. Demand Response Plan IPL’s demand response plan serves two objectives: (1) provides IPL with a flexible means of managing its peak load and (2) affords IPL customers the opportunity to receive an incentive for reducing usage during critical peak events. IPL’s Plan includes two demand response programs targeting residential and nonresidential customers. IPL’s Residential DLC Program provides a bill credit to customers who allow IPL to control their central air conditioner via a remote-control device during the summer peak season. Through the Nonresidential Interruptible Program, IPL offers bill credits to C&I customers who, when requested, can curtail a minimum of 200 kW. These are both mature programs with consistent customer participation and high satisfaction. IPL’s objectives in the Plan period are to retain customers already in the programs, maintain its high standards of service and capture the programs’ benefits to both the utility and customers. 5.1. Demand Response Targets The Assessment provided estimates of achievable potential for the two demand response programs IPL currently operates: Residential DLC and Nonresidential Interruptible. The Assessment indicated a market potential for the Residential DLC Program of 39 MW under the base-case scenario. Currently, over 58,000 switches are available to IPL for controlling air conditioning and water heater units through the Residential DLC Program. IPL plans to remove approximately 7,500 switches that control water heaters because of their limited 135 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan contribution to demand savings. IPL will maintain the remaining switches over the course of the Plan. The Residential DLC Program will provide IPL with a peak load reduction capability of 40 MW, which is slightly higher than the 39 MW of load reduction potential identified by the Assessment in its BAU+ scenario. The Plan assumes that 138 large C&I customers will continue to participate in IPL’s Nonresidential Interruptible Program. These participants provide IPL with a peak load reduction capability of 225 MW, which represents nearly 74% of the achievable load reduction opportunities identified in the Assessment. The Residential DLC and Nonresidential Interruptible programs supply IPL with dispatchable load management capability of 265 MW over the five-year Plan (Table 5-1). Table 5-1. Estimated Demand Response Achievable Potential BAU+ (MW) and Plan Goals Plan Year 2019 2020 2021 Peak Savings Potential Residential Direct Load Control 39 39 39 Nonresidential Interruptible 305 305 305 Total Potential 344 344 344 Plan Goals Residential Direct Load Control 40 40 40 Nonresidential Interruptible 225 225 225 Total Plan 265 265 265 Source: Application Exhibit 2 Assessment of Potential, Volume II and AOP Model BAU+. 5.2. 2022 2023 39 305 344 39 305 344 40 225 265 40 225 265 Demand Response Budgets Table 5-2 presents annual demand response program costs. Table 5-2. Demand Response Plan Budget Program 136 2019 2020 Plan Year 2021 2022 2023 Total Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Residential DLC Program $2,687,590 $2,689,168 Nonresidential Interruptible $16,468,098 $16,469,391 Program Demand Response Plan $19,155,688 $19,158,559 Source: Application Exhibit 4 Budget/Accounting for Costs 5.3. Application Exhibit 1 Energy Efficiency Plan $2,682,793 $2,184,467 $2,186,191 $12,430,208 $16,470,723 $16,472,095 $16,473,507 $82,353,814 $19,153,516 $18,656,561 $18,659,698 $94,784,022 Residential Direct Load Control Program 5.3.1. Program Description IPL offers bill credits to customers who are willing to reduce their energy consumption during the peak summer season (from May to September). A control device, installed on a customer’s central air conditioning system, allows the unit to be cycled off during peak periods. During a cycling event, IPL shuts off a participant’s air conditioner compressor for half of each 30-minute cycle then returns the compressor to the individual’s thermostat control for the other half of the cycle. A typical cycling event lasts six hours (1:00 p.m. to 7:00 p.m.) and never occurs on a weekend or holiday. Key changes to this program in the Plan include: • Reviewing the feasibility of adding a pilot program that leverages the controlling capabilities of advanced thermostats. • Replacing existing, end-of-life air conditioner cycling switch devices with new technology. • Discontinuing water heater eligibility. 5.3.2. Operations IPL delivers the Residential DLC Program with the support of certified installers who install and maintain cycling switches and provide paging and testing services. Participants receive a bill credit and cycling switch for each air conditioner at their 137 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan residence. Cycling switch installation and maintenance is performed at no cost to the customer. IPL calls a cycling event under two circumstances: (1) in response to system reliability issues, which may result from a Midcontinent Independent Transmission System Operator, Inc. (MISO) directive, congested transmission or when available generation cannot meet consumer demand or (2) when IPL’s electric service territory is forecasted to reach a minimum temperature. To determine circumstance 2 applicability, at approximately 8:00 a.m., Monday through Friday, an IPL staff representative reviews the hourly forecast through 7:00 p.m. for each of three climate zones in its service territory (southern zone-Burlington, central zone-Cedar Rapids, northern zone-Mason City) at weather.com (The Weather Channel). If, at that time, the weather forecast for any specific zone meets one of the temperature triggers shown in Table 5-3, IPL initiates a cycling event for the affected zone and issues a public service announcement to notify customers. Table 5-3. Residential DLC Zonal Temperature Triggers City Burlington Cedar Rapids Mason City Temperature Trigger 94°F or above 92°F or above 92°F or above Zone Southern Central Northern 5.3.3. Customer Targets The Residential DLC Program is offered to residential customers throughout IPL’s electric service territory; participants must have a central air conditioning unit to participate. Table 5-4 outlines customer eligibility requirements. 138 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 5-4. Residential DLC Customer Eligibility Parameters Eligible Customers Residential electric Homeowners; tenants Single family (up to three units) All IPL’s Iowa service territory Central air conditioning required; primary residence only1 Customer Class Customer Status Building Type Building Vintage Geography Other 1 Customers with more than one air conditioner at their residence are required to enroll all air conditioners. 5.3.4. Eligible Measures and Incentives Participants receive an aggregated electric bill credit (reflecting the number of enrolled air conditioners) each month of the four-month program season (mid-May through mid-September). Participants also receive free cycling switches and device maintenance. Table 5-5 provides eligible measures, qualification standards and incentive levels offered through this program. Table 5-5. Residential DLC Incentive Summary Program/Measure Air conditioner cycling Qualification Central air conditioning system installed Customer Incentive $8/month/unit controlled for four months (mid-May through mid-September) 5.3.5. Marketing and Promotion IPL sends information to existing Residential DLC Program customers each spring to remind them of their participation in the program, explain how the program works and cross-promote other IPL residential programs. IPL plans to maintain current participation levels and recruit new customers at a rate based on the attrition of previous 139 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan participants. IPL promotes the Residential DLC Program through multiple channels, including direct mail, bill messaging, brochures and the Alliant Energy website. 5.3.6. Participation Participation in the Residential DLC Program is not cumulative; the same customers participate each year. Table 5-6 provides program participation assumptions. Table 5-6. Residential DLC Participation Assumptions 2019 2020 2021 2022 2023 Total 50,000 50,000 50,000 50,000 50,000 250,000 Central Air Conditioners Notes: According to the Assessment, the population of eligible participants is approximately 282,000 residential electric customers with central air conditioning in IPL’s Iowa territory. One participant is equivalent to one operational control device. Source: Application Exhibit 11 Savings. 5.3.7. Energy and Demand Savings This program is expected to produce 993 MWh of electricity savings over the course of the Plan and 40 MW of demand savings each year. This program accounts for 15.1% of demand savings in the demand response plan. Table 5-7 provides electricity and demand savings goals. Table 5-7. Residential DLC Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. 2019 2020 2021 2022 2023 Total 198,620 40,000 198,620 40,000 198,620 40,000 198,620 40,000 198,620 40,000 993,099 NA 5.3.8. Budget The total Residential DLC Program budget is estimated at $12,430,208. Table 5-8 provides program budget assumptions. 140 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 5-8. Residential DLC Budget 2019 2020 Electric Budget Planning and Design $10,000 $10,000 Administration $1,052,590 $1,054,168 Advertising and Promotion $25,000 $25,000 Customer Incentive $1,600,000 $1,600,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $2,687,590 $2,689,168 Total Budget Planning and Design $10,000 $10,000 Administration $1,052,590 $1,054,168 Advertising and Promotion $25,000 $25,000 Customer Incentive $1,600,000 $1,600,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $2,687,590 $2,689,168 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $2,000 $1,055,793 $25,000 $1,600,000 $0 $0 $0 $2,682,793 $2,000 $557,467 $25,000 $1,600,000 $0 $0 $0 $2,184,467 $2,000 $559,191 $25,000 $1,600,000 $0 $0 $0 $2,186,191 $26,000 $4,279,208 $125,000 $8,000,000 $0 $0 $0 $12,430,208 $2,000 $1,055,793 $25,000 $1,600,000 $0 $0 $0 $2,682,793 $2,000 $557,467 $25,000 $1,600,000 $0 $0 $0 $2,184,467 $2,000 $559,191 $25,000 $1,600,000 $0 $0 $0 $2,186,191 $26,000 $4,279,208 $125,000 $8,000,000 $0 $0 $0 $12,430,208 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 5.3.9. Cost-Effectiveness Results The Residential DLC Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 4.07. Table 5-9 provides cost-effectiveness results for the Residential DLC Program. Table 5-9. Residential DLC Cost-Effectiveness Results Utility Electric Program $34,218,612 Benefits $11,055,637 Costs $23,162,975 Net Benefits 3.10 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 141 Participant $7,121,853 $5,295,583 $1,826,270 1.34 Ratepayer $34,218,612 $11,116,713 $23,101,900 3.08 Societal $40,268,670 $9,885,679 $30,382,991 4.07 Total Resource $36,607,882 $9,885,679 $26,722,203 3.70 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 5.4. Application Exhibit 1 Energy Efficiency Plan Nonresidential Interruptible Program 5.4.1. Program Description The Nonresidential Interruptible Program provides IPL with flexible peak demand resources and supports the reliability of its distribution system. IPL offers bill credits to its large C&I customers who reduce their demand during times of system peak conditions or high market prices. Participating customers must commit to providing a minimum of 200 kW of load reduction when requested by IPL. IPL provides participants with advanced notice of curtailment events and notifies them at the time of the interruption and when the event is terminated. Key changes to this program in the Plan include: • Updating conditions of the IPL electric tariff Interruptible Service Option. • Creating a three-year contract period for program participation. • Updating remote displacement fees to reflect current costs to IPL. • Revising monthly bill credit levels. 5.4.2. Operations IPL staff manage, administer and implement the program. Participants receive incentives in the form of a monthly bill credit throughout the entire year. IPL uses the automated Power Manager Communication System to dispatch multiple notifications simultaneously for each event. Each participant may assign as many notice recipients as necessary through phone, fax, text message and email. 142 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan IPL may call events based on any of four conditions listed in the IPL electric tariff, Interruptible Service Option: • Condition One - Reliability. Interruptions that are necessary to maintain safe and reliable electric system operations and to meet obligations to other interconnected electric systems. • Condition Two - Energy Efficiency–Reducing Peak Demand. Interruptions when IPL would expect to experience less than MISO planning reserve margin under Module E for the current year. • Condition Three - Energy Efficiency–Reducing Energy Usage. Interruptions to ensure that the day-ahead MISO locational marginal price (LMP) for IPL’s load zone is based upon IPL’s highest-cost resource for at least four consecutive hours or the rolling four-hour average real-time LMP for IPL’s load zone exceeds IPL’s highest-cost resource. IPL will define a predetermined LMP annually. • Condition Four - Program Quality Control. Reasonable interruptions as necessary to test the capabilities of participating customers. If, by year three of a three-year contract, a given participant experiences no interruptions for conditions one, two or three, then IPL will conduct a test interruption between August 1 and September 16, under circumstances as close as possible to a condition two or condition three interruption. 143 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 5.4.3. Customer Targets The Nonresidential Interruptible Program is available to large C&I customers capable of shedding at least 200 kW of load to reach a predetermined, contractual, firm demand within a specific timeframe. Table 5-10 outlines customer eligibility requirements. Table 5-10. Nonresidential Interruptible Customer Eligibility Parameters Customer Class Customer Status Building Type Building Vintage Geography Other Eligible Customers Nonresidential electric Building or business owner Large C&I Existing IPL’s Iowa service territory Able to shed at least 200 kW of load; must sign three-year program contract 5.4.4. Eligible Measures and Incentives There are no specific measures prescribed by this program. Rather, customers are asked to implement their own strategies, such as shifting or shedding load or using onsite generators. Those customers who commit to a minimum 200 kW reduction and achieve the contracted kW reduction amount qualify for an interruptible bill credit, calculated each month. IPL provides a buy-through provision for conditions two and three, allowing the customer to elect to buy through the curtailment period and be compliant with the electric tariff Interruptible Service Option. IPL computes the customer buy-through cost at each hourly kW priced at the MISO ALTW.ALTW node real-time LMP price, plus a 10% adder for any incremental administrative and MISO-related charges, less the energy adjustment clause factor for the month. 144 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Participants who fail to respond to an event and have not selected the buy-through option are levied a one-time financial penalty of $36.50 per kW for each excess kW over their firm contract demand. In such cases, IPL also bills the customer at the buy-through cost, as defined in the buy-through provision of IPL’s Interruptible Service Option, for any energy (in kWh) consumed during an interruption period above its contract amount. The participant’s contract firm demand will then be set at the highest level experienced during the failure to interrupt. Table 5-11 provides eligible measures, qualification standards and incentive levels offered through this program. Table 5-11. Nonresidential Interruptible Incentive Summary Program/Measure Summer Season Curtailment Winter Season Curtailment Qualification Achieve contracted curtailment amount, June 16 through September 15 Achieve contracted curtailment amount, September 16 through June 15 Customer Incentive $5.37 per kW curtailed $3.46 per kW curtailed 5.4.5. Marketing and Promotion IPL will focus on retaining existing program participants and does not plan to recruit new customers. 5.4.6. Participation Participation in the Nonresidential Interruptible Program is not cumulative; the same customers participate each year. Table 5-12 provides program participation assumptions. 145 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 5-12. Nonresidential Interruptible Participation Assumptions 2019 2020 2021 2022 2023 Total 138 138 138 138 138 690 Participants Notes: According to the Assessment, the population of eligible participants is approximately 138 large C&I customers in IPL’s Iowa territory. One participant is equivalent to one customer account. Source: Application Exhibit 11 Savings. 5.4.7. Energy and Demand Savings The Nonresidential Interruptible Program is expected to produce 21,414 MWh of electricity savings over the course of the Plan and 225 MW of demand savings each year. This program accounts for 84.9% of demand savings in the demand response plan. Table 5-13 provides energy and demand savings goals. Table 5-13. Nonresidential Interruptible Incremental Energy and Demand Savings Goals Electric Impacts Incremental Annual Energy (kWh) Peak Demand (kW) Source: Application Exhibit 11 Savings. Totals may not sum due to rounding. 2019 4,282,759 225,000 2020 4,282,759 225,000 2021 2022 2023 Total 4,282,759 225,000 4,282,759 225,000 4,282,759 225,000 21,413,793 NA 5.4.8. Budget The total Nonresidential Interruptible Program budget is estimated at $82,353,814. Table 5-14 provides program budget assumptions. 146 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 5-14. Nonresidential Interruptible Budget 2019 2020 Electric Budget Planning and Design $0 $0 Administration $43,098 $44,391 Advertising and Promotion $0 $0 Customer Incentive $16,425,000 $16,425,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $16,468,098 $16,469,391 Total Budget Planning and Design $0 $0 Administration $43,098 $44,391 Advertising and Promotion $0 $0 Customer Incentive $16,425,000 $16,425,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $16,468,098 $16,469,391 Source: Application Exhibit 4 Budget/Accounting for Costs. 2021 2022 2023 Total $0 $45,723 $0 $16,425,000 $0 $0 $0 $16,470,723 $0 $47,095 $0 $16,425,000 $0 $0 $0 $16,472,095 $0 $48,507 $0 $16,425,000 $0 $0 $0 $16,473,507 $0 $228,814 $0 $82,125,000 $0 $0 $0 $82,353,814 $0 $45,723 $0 $16,425,000 $0 $0 $0 $16,470,723 $0 $47,095 $0 $16,425,000 $0 $0 $0 $16,472,095 $0 $48,507 $0 $16,425,000 $0 $0 $0 $16,473,507 $0 $228,814 $0 $82,125,000 $0 $0 $0 $82,353,814 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 5.4.9. Cost-Effectiveness Results The Nonresidential Interruptible Program is cost-effective from a societal perspective, achieving a benefit/cost ratio of 3.9. Table 5-15 provides cost-effectiveness results for the Nonresidential Interruptible Program. Table 5-15. Nonresidential Interruptible Cost-Effectiveness Results Utility Electric Program $193,288,479 Benefits $72,684,479 Costs $120,604,000 Net Benefits 2.66 B/C Ratio Source: Application Exhibit 3 Benefit Cost. 147 Participant $73,654,662 $54,362,472 $19,292,190 1.35 Ratepayer $193,288,479 $73,855,845 $119,432,634 2.62 Societal $227,468,672 $58,348,439 $169,120,233 3.90 Total Resource $206,789,701 $58,348,439 $148,441,262 3.54 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 6. Other Funding Initiatives The Plan includes a summary of various initiatives that contribute to IPL’s energy efficiency costs, but do not produce savings. The projected five-year budget for these funding initiatives is $18.7 million in total costs. They include funding to support: • Energy Awareness (including Non-Targeted Energy Awareness, Branching Out and the Dealer Network). • Research, Development and Demonstration (RD&D). • Legislative assessments. • Regulatory and next plan. • Evaluation, measurement and verification (EM&V). The following sections provide detailed program and operation descriptions, anticipated participation, projected savings, budgets and cost-effectiveness for each funding initiative in IPL’s proposed Plan. 6.1. Other Funding Initiatives Budgets Table 6-1 presents annual costs for IPL’s other funding initiatives. Table 6-1. Other Funding Initiatives Budget Funding Initiative 2019 $1,387,464 2020 $1,397,423 Energy Awareness Research Development and NA NA Demonstration Legislative Assessment $1,800,000 $1,800,000 Regulatory and Next Plan $578,774 $649,387 EM&V $27,946 $1,521,274 Other Funding Initiatives Total $3,794,184 $5,368,084 Source: Application Exhibit 4 Budget/Accounting for Costs 148 Plan Year 2021 $1,407,681 2022 $1,418,246 2023 $1,429,129 $7,039,944 NA NA NA NA $1,800,000 $910,319 $511,612 $4,629,612 $0 $1,171,578 $18,961 $2,608,785 $0 $833,175 $19,320 $2,281,624 $5,400,000 $4,143,233 $2,099,113 $18,682,290 Total Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 6.2. Application Exhibit 1 Energy Efficiency Plan Energy Awareness IPL has encouraged customers to reduce their energy use and develop sustainable behaviors since launching its energy efficiency programs in 1990. IPL understands the importance of education and training to increase customer awareness of energy-efficient technologies, conservation strategies and IPL’s programs, as well as to increase dealer knowledge of best practice equipment installation. Energy Awareness continues its history of customer and trade ally engagement and education through Non-Targeted Energy Awareness, Branching Out, and the Dealer Network. Key changes to IPL’s Energy Awareness initiatives in the Plan include: • Formally changing the name of the Tree Planting Program to Branching Out. • Discontinuing Builder Training. • Discontinuing Hometown Rewards and Bright Ideas due to declining participation. • Discontinuing the IPL speakers’ bureau, Trees for Kids, Operation ReLeaf and Tree Storm Fund to help manage costs for customers. • Reducing the maximum annual Branching Out grant to $5,000 per community. 6.2.1. Operations IPL manages Energy Awareness using its energy efficiency staff and vendors specifically selected based on their capabilities and experience to support each initiative. Customer participation varies depending on the initiative. Individual components offered under Energy Awareness are outlined below. 149 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 6.2.1.1. Application Exhibit 1 Energy Efficiency Plan Non-Targeted Energy Awareness Customers are becoming increasingly aware of the economic and environmental costs of using energy and of the opportunities to capture energy savings through efficiency. IPL provides general energy awareness information to customers through its PowerHouse television program and through advertising. PowerHouse is an educational television program focused on home energy efficiency projects and information. Produced by a third-party vendor, PowerHouse airs once each weekend across four Iowa television markets in IPL’s service territory. PowerHouse episodes are also available to customers online (through YouTube™ and the PowerHouse website). IPL often includes contractors and homeowners on the show for testimonies about and demonstrations of energy efficiency improvements, do-ityourself projects and new technologies. Advertising is used to promote general efficiency awareness to customers via mass media, including events and sponsorships. IPL provides general information and education on energy use, promotes energy efficiency and conservation and provides useful tips to help customers save energy. 6.2.1.2. Branching out Through Branching Out, IPL offers annual grants of up to $5,000 per community to help fund community tree-planting projects. Communities can receive grants for projects located at schools, libraries, community buildings, streets and more. Community treeplanting events and planting demonstrations emphasize correct placement for energy savings, safe planting techniques and ongoing care for the trees. Branching Out is administered and delivered by a third-party vendor who helps IPL solicit and review 150 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan applications and who works with communities to help plan projects, select trees and coordinate planting events. IPL provides strategic oversight and coordination with its third-party vendor. 6.2.2. Dealer Network IPL builds strategic relationships with dealers and trade organizations that sell high-efficiency equipment in its Dealer Network. Through the Dealer Network, IPL informs dealers about its programs, provides support for dealers to promote the programs to their customers and promotes dealers’ businesses on the IPL Dealer Locator. 6.2.3. Customer Targets Non-Targeted Energy Awareness is targeted to residential customers and Branching Out is targeted to community groups, while the Dealer Network is targeted to dealers who are active in all markets related to IPL program measures and offers. 6.2.4. Marketing and Promotion The following describes IPL’s approach to promoting Energy Awareness. • Non-Targeted Energy Awareness. In addition to television, PowerHouse reaches customers through the Alliant Energy website, Facebook page and YouTube channel. IPL markets PowerHouse through television promotions and in various energy efficiency marketing materials. IPL uses a broad range of advertising channels to deliver its general awareness advertising, including the Alliant Energy website, social media pages, local sponsorships, participation in events and mass media advertising. 151 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 • Application Exhibit 1 Energy Efficiency Plan Branching Out. IPL’s Branching Out vendor primarily works with community groups and other market partners (such as educators and school administrators, municipality and city/town administrators, community foresters and non-profit organizations) to promote the initiative, distribute trees and educate IPL customers about the benefits and proper care of trees. • Dealer Network. IPL conducts ongoing outreach to educate dealers about program procedures and benefits, qualifying equipment and rebates. IPL markets the program to dealers (such as vendors, equipment dealers and contractors) through direct contact to dealers, trade associations, building organizations and other industry groups; an e-newsletter; advertising in trade publications and participating in trade shows and other appropriate events. 6.2.5. Participation Table 6-2 provides participation assumptions for Branching Out. IPL does not forecast or track participation for other Energy Awareness components. Table 6-2. Branching Out Participation Assumptions 2019 2020 2021 30 30 30 Branching Out Note: One Branching Out participant is equivalent to one grant provided. Source: Application Exhibit 11 Savings. 2022 2023 30 Total 30 150 6.2.6. Budget The total Energy Awareness budget is estimated at $7,039,944. Table 6-3 provides program budget assumptions. 152 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 6-3. Energy Awareness Budget 2019 2020 Electric Budget Planning and Design $4,000 $4,000 Administration $730,166 $739,627 Advertising and Promotion $452,500 $452,500 Customer Incentive $135,000 $135,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $1,321,666 $1,331,127 Natural Gas Budget Planning and Design $3,000 $3,000 Administration $35,798 $36,296 Advertising and Promotion $12,000 $12,000 Customer Incentive $15,000 $15,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $65,798 $66,296 Total Budget Planning and Design $7,000 $7,000 Administration $765,964 $775,923 Advertising and Promotion $464,500 $464,500 Customer Incentive $150,000 $150,000 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $1,387,464 $1,397,423 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 2021 2022 2023 Total $4,000 $749,372 $452,500 $135,000 $0 $0 $0 $1,340,872 $4,000 $759,409 $452,500 $135,000 $0 $0 $0 $1,350,909 $4,000 $769,747 $452,500 $135,000 $0 $0 $0 $1,361,247 $20,000 $3,748,322 $2,262,500 $675,000 $0 $0 $0 $6,705,822 $3,000 $36,809 $12,000 $15,000 $0 $0 $0 $66,809 $3,000 $37,337 $12,000 $15,000 $0 $0 $0 $67,337 $3,000 $37,881 $12,000 $15,000 $0 $0 $0 $67,881 $15,000 $184,122 $60,000 $75,000 $0 $0 $0 $334,122 $7,000 $786,181 $464,500 $150,000 $0 $0 $0 $1,407,681 $7,000 $796,746 $464,500 $150,000 $0 $0 $0 $1,418,246 $7,000 $807,629 $464,500 $150,000 $0 $0 $0 $1,429,129 $35,000 $3,932,444 $2,322,500 $750,000 $0 $0 $0 $7,039,944 IPL’s anticipated needs for internal FTE staff and outside services for this program are outlined in Section 7, Plan Management. 6.3. Research Development and Demonstration Current customer needs and expectations are fundamentally changing the electric utility industry. IPL understands that to remain competitive and continue meeting the needs of its customers, it must keep pace with these changes. To this end, IPL looks for opportunities to enhance its energy efficiency plan by experimenting with new, 153 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan innovative program models and emerging technologies, monitoring and responding to changing market dynamics and incorporating new market intelligence into its Plan. RD&D funding allows IPL to test new technologies and program delivery approaches on a pilot basis and to conduct research relevant to its market, regulatory and operating environment, as part of its integrated approach to increasing energy efficiency, reducing greenhouse gas emissions and improving environmental outcomes. IPL has not yet determined its priorities for implementing specific pilot programs for the Plan; examples could include the following options and research initiatives that align with its objectives: • Efficient Electrification. IPL will consider pilot options related to efficient electric technologies and expanding marketing for high-efficiency electric space and water heater technologies already included in the Plan, such as air-source heat pumps, ground-source heat pumps and heat pump water heaters. • Carbon reduction strategies, market dynamics and regulatory frameworks. IPL will consider pilot options that could range from research on new technologies and program strategies to broader, longer-term market initiatives and regulatory changes. IPL considers new technologies and program strategies based on multiple factors, such as their ability to produce reliable, cost-effective energy savings or secondary benefits; whether they contribute to market transformation, underserved markets or 154 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan other goals; their market-readiness and the availability of sufficient market and infrastructure resources to support technology or pilot program deployment. Before IPL conducts any pilot or research within this program, it will update stakeholders with information required in 199 IAC 35.8(10), propose adequate budget allocations and provide all necessary supporting documentation. IPL staff typically conduct all planning, coordination, outreach and other tasks needed to launch and implement a RD&D Program pilot and uses internal and outside technical resources when appropriate. IPL will report on the status of the research activities and the implementation of the research findings in its annual report filed on May 1 of each year and in periodic stakeholder meetings. 6.4. Legislative Assessment IPL has allocated budget for two legislatively authorized programs through 2021: the Iowa Energy Center and the Center for Global and Regional Environmental Research at the University of Iowa. 6.4.1. Budget The total Legislative Assessment budget is estimated at $5,400,000. Table 6-4 provides Legislative Assessment budget assumptions. 155 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 6-4. Legislative Assessment Budget 2019 2020 Electric Budget Planning and Design $0 $0 Administration $1,500,000 $1,500,000 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $1,500,000 $1,500,000 Natural Gas Budget Planning and Design $0 $0 Administration $300,000 $300,000 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $300,000 $300,000 Total Budget Planning and Design $0 $0 Administration $1,800,000 $1,800,000 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $1,800,000 $1,800,000 Source: Application Exhibit 4 Budget/Accounting for Costs. 6.5. 2021 2022 2023 Total $0 $1,500,000 $0 $0 $0 $0 $0 $1,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,500,000 $0 $0 $0 $0 $0 $4,500,000 $0 $300,000 $0 $0 $0 $0 $0 $300,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $900,000 $0 $0 $0 $0 $0 $900,000 $0 $1,800,000 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,400,000 $0 $0 $0 $0 $0 $5,400,000 Regulatory and Next Plan IPL will allocate budget for regulatory and next plan activities associated with planning; program design; calculating savings, costs and cost-effectiveness and for related collaboration with Iowa IOUs and other stakeholders. 6.5.1. Budget The total budget for regulatory costs and development of the next plan is estimated at $4,143,233; Table 6-5 provides these budget assumptions. 156 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 6-5. Regulatory and Next Plan Budget 2019 2020 Electric Budget Planning and Design $30,000 $75,000 Administration $511,835 $521,918 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Electric Total $541,835 $596,918 Natural Gas Budget Planning and Design $10,000 $25,000 Administration $26,939 $27,469 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Natural Gas Total $36,939 $52,469 Total Budget Planning and Design $40,000 $100,000 Administration $538,774 $549,387 Advertising and Promotion $0 $0 Customer Incentive $0 $0 Equipment Cost $0 $0 Installation Cost $0 $0 Monitoring and Evaluation $0 $0 Total $578,774 $649,387 Source: Application Exhibit 4 Budget/Accounting for Costs. Totals may not sum due to rounding. 6.6. 2021 2022 2023 Total $112,500 $722,303 $0 $0 $0 $0 $0 $834,803 $150,000 $922,999 $0 $0 $0 $0 $0 $1,072,999 $150,000 $601,517 $0 $0 $0 $0 $0 $751,517 $517,500 $3,280,571 $0 $0 $0 $0 $0 $3,798,071 $37,500 $38,016 $0 $0 $0 $0 $0 $75,516 $50,000 $48,579 $0 $0 $0 $0 $0 $98,579 $50,000 $31,659 $0 $0 $0 $0 $0 $81,659 $172,500 $172,662 $0 $0 $0 $0 $0 $345,162 $150,000 $760,319 $0 $0 $0 $0 $0 $910,319 $200,000 $971,578 $0 $0 $0 $0 $0 $1,171,578 $200,000 $633,175 $0 $0 $0 $0 $0 $833,175 $690,000 $3,453,233 $0 $0 $0 $0 $0 $4,143,233 Evaluation, Measurement and Verification In addition to conducting regular internal quality control reviews, capturing customer feedback and implementing program and process improvements, IPL will assess its programs once during the Plan using an independent, third-party EM&V vendor. Application Exhibit 8 provides a summary of IPL’s anticipated EM&V Plan for its 2019–2023 Energy Efficiency Plan. 157 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan 7. Plan Management IPL expects to formally adjust its operations to focus on the programs and other activities outlined in this Plan beginning on or before April 1, 2019. IPL has had more than two decades of successful program management and implementation and will use its knowledge and experience, lessons learned, best practices and relationships to deliver programs that are effectively managed by its energy efficiency staff and implementation vendors. 7.1. Program Labor For its implementation strategy, IPL relies on experienced internal program staff to promote, deliver and support the deployment of its programs. Table 7-1 provides a summary of IPL’s FTE staff and a description of staff roles in delivering IPL’s programs. 158 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 7-1. Full-Time Equivalent Staff Assigned to 2019–2023 Plan Program Regulatory Residential Prescriptive 0.2021 Rebates Home Energy Assessments Be Bright Appliance Recycling Home Energy Reports Low-Income 0.0001 Weatherization Low-Income Multifamily LivingWise Nonresidential Prescriptive 0.0384 Rebates Small Business Energy Solutions Custom Solutions 0.2032 Commercial New Construction Agriculture Solutions Residential DLC 0.0042 Nonresidential Interruptible 0.0001 Energy Awareness Legislative Assessment Regulatory and Next Plan 0.4075 EM&V 0.0075 Total by Role 0.86 Totals may not sum due to rounding. 159 Corporate Communications Account Management Analysis Product Management Information Technology General Support Executive Total by Program 0.4743 0.0857 0.3278 1.1511 0.0118 0.2149 0.3500 2.8177 0.0900 - 0.0631 0.2408 0.2408 - - 0.6347 0.0004 0.0647 0.0652 0.0006 0.0001 0.0008 0.0026 0.0140 0.0165 0.0879 0.0890 0.1769 - - - 0.0915 0.1679 0.2594 - - 0.0024 0.1016 - - - 0.1041 0.0100 0.0293 0.0004 - 0.0077 0.0006 0.2168 0.0960 0.0003 - - - 0.2353 0.1259 0.2825 0.3583 0.2482 0.9094 0.0360 - 0.0745 1.9473 0.1372 0.0008 0.0453 0.3916 - - - 0.5748 0.2958 4.7186 0.0553 1.0243 - 0.2154 0.6943 7.2068 0.0241 0.2852 0.0288 0.3342 - - 0.0660 0.7383 0.0759 0.0151 0.0028 0.3089 1.88 0.0456 0.0531 0.0261 5.58 0.0167 0.0044 0.0020 0.0501 0.0128 0.0312 0.93 0.3680 0.3804 0.2895 2.2896 0.0955 0.0440 8.29 0.0150 0.0027 0.0569 0.36 0.0006 0.0057 0.44 1.18 0.5061 0.4191 0.3474 2.6779 0.5785 0.0827 19.52 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 7.2. Application Exhibit 1 Energy Efficiency Plan Outside Services In addition to internal staff, IPL uses a series of program implementation vendors to deliver a range of services in support of its energy efficiency and demand response programs. For new program components and for programs with expiring implementation contracts, IPL will use a competitive bidding process to solicit proposals from qualified vendors and will select appropriate implementation consultants based on their qualifications, confirmed client references and value to IPL customers. The outside service providers IPL currently uses to deliver its programs are listed in Table 7-2. Table 7-2. Outside Service Providers Program Residential Prescriptive Rebates Vendor TBD1 Appliance Recycling Michaels Energy TBD1 Wisconsin Energy Conservation Corporation CLEAResult LivingWise Resource Action Program Home Energy Reports Tendril Home Energy Assessments Be Bright Low-Income Weatherization Low-Income Multifamily Nonresidential Prescriptive Rebates Small Business Energy Solutions Custom Solutions Commercial New Construction Agriculture Solutions Residential DLC 160 Role On-site verification inspections of a percentage of equipment installations Energy efficiency hotline and rebate processing Online audit administrator Manage daily activities for upstream mechanism Michaels Energy Turnkey program administration and delivery Program administration including developing and distributing energy-saving kits Program implementation including customer selection, report development and delivery and savings calculation Marketing and program delivery Weatherization administration on behalf of collaborative utilities and IUA Turnkey program administration and delivery On-site verification inspections of a percentage of equipment installations Energy efficiency hotline and rebate processing CLEAResult Program administration and incentive processing The Energy Group Business assessments Business assessments and retro-commissioning studies, provide customer technical support, review customer study results, calculate project energy savings and rebates, conduct site verification, implement SEM and implement industrial new construction Recruit customers, provide EDA consulting services, calculate rebates and verify project results Third-party implementation, farm assessments and follow up CAP agencies Iowa Department of Human Rights The Energy Group CLEAResult Michaels Energy The Weidt Group Franklin Energy Brockway Co, ESCO Electric, Trebil Electric, Web Electric, Replace, install and maintain cycling switch devices Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Program Vendor Zemler Electric Electronic Engineering Michaels Energy Cannon Technologies, Inc. NA Gate House Trees Forever Iowa Energy Center Center for Global and Regional Environmental Research Cadmus Application Exhibit 1 Energy Efficiency Plan Role Switch communications Maintenance plans, switch testing Hardware (switches) and software provider Nonresidential Interruptible NA Produce Powerhouse TV program Energy Awareness Administer Branching Out Develop research, education and demonstration projects Legislative Assessment Research global climate change and consult on climate change issues Regulatory and Next Plan Energy efficiency plan development support Independent evaluation of program performance and EM&V TBD1 measurement and verification of achieved energy savings 1 Vendors have not yet been identified. IPL will select these vendors using a competitive bidding process. Finally, IPL works with a range of market partners and dealers engaged in energy efficiency to engage customers, promote programs, evaluate projects, furnish and install energy-efficient equipment and provide ancillary energy efficiency services. • Dealers provide products and services directly to customers in support of IPL’s programs but are not under contract to IPL. IPL uses several types of dealers to deliver its programs: o Lighting and other contractors, retailers, distributors/dealers and installers. o Commercial builders. o Technical engineering and energy services firms. • Market partners are independent market participants that may provide support or services to IPL customers, typically to achieve mutually beneficial results or to serve mutual target populations. Market partners are not generally supported by IPL funding and are not under contract to IPL. For example, schools that participate in LivingWise are market partners because 161 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan they act as a conduit for reaching the school community, but they do not receive a direct financial benefit from the program. Stakeholders and community-based organizations are additional market partners. 7.3. Quality Assurance and Quality Control Quality assurance and quality control (QA/QC) are integral to program design and implementation, customer and vendor management and EM&V. IPL has designed QA/QC procedures to help ensure optimal outcomes for a given program by establishing standards that help the utility or program implementer avoid faults, guide the repair errors and improve performance over time. IPL has formal QA/QC protocols in place for all major programs. These protocols establish performance quality indicators and procedural documents that link program processes to objectives, specify technical qualification requirements for third-party contractors, establish verification and inspection procedures for each program, address prior EM&V findings and recommendations, document steps for handling contractor deficiencies (if any) and include guidelines for sample-based QC activity for on-site or other primary research. While QA generally involves proactive actions IPL takes to optimize program delivery and outcomes (such as establishing performance expectations and providing trade ally training), QC typically entails specific post-installation inspection activities intended to inform the current state of program quality. IPL conducts QC for its largest programs to assess conformity with performance expectations at the program and plan 162 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan levels at regular intervals throughout the program lifecycle. The following activities are part of IPL’s current QC procedures across all programs: • Reviewing to ensure that all program rebate applications contain complete and accurate data for calculating rebates and program savings. • Reviewing participant, measure and savings data in the Tool for Reporting Energy Efficiency Services (referred to as TREES) database to ensure it aligns with customer-reported data and enables accurate calculation of program savings. • Following up with a sample of program participants to verify that installations comply with program guidelines. • Conducting verification activities for a sample of program-installed measures or key program activities. Table 7-3 lists the planned program-specific inspection and verification activities for the Plan. 163 Filed with the Iowa Utilities Board on July 5, 2018, EEP-2018-0003 Application Exhibit 1 Energy Efficiency Plan Table 7-3. Verification Procedures Program Residential Prescriptive Rebates Percentage of Sample 3 Inspection Procedures On-site verification of all high-impact measures TBD Wisconsin Energy Conservation Corporation CAP agencies Be Bright 100 Appliance Recycling 100 Home Energy Reports Low-Income Weatherization Program NA On-site retailer verification of proper placement and use of point-of-purchase materials All appliances verified to be working when collected NA 100 All measures Low-Income Multifamily 100 3 LivingWise 100 Verification of direct install measures On-site verification of installed retrofit measures Self-verify installed kit measures via mail-in surveys On-site verification of major commercial appliances, motors, HVAC, refrigeration and lighting measures On-site verification of lighting and refrigeration projects On-site pre- and post-installation inspections of all projects over $20,000 Nonresidential Prescriptive Rebates 3 Inspector CLEAResult Tendril The Energy Group Participants CLEAResult Small Business Energy Solutions 100 Custom Solutions 100 Commercial New Construction 100 All projects The Weidt Group 100 New construction Existing structures: on-site verification of installed measures Switch testing and maintenance as part of rolling maintenance process Because no measures are installed, inspections are not required No savings are claimed Franklin Energy Agriculture Solutions Residential DLC Nonresidential Interruptible Other Funding Initiatives 164 3 ~25% per year over four years NA NA CLEAResult Michaels Energy Franklin Energy Michaels Energy NA NA