Item 3: Fiscal Year 2021-2022 Customer Energy Solutions Proposed Budget — original pdf

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FY 2022 CES Proposed Budget - Overview ITEM 3 Manuel “Manny” Garza III, PE Manager, Energy Efficiency Solutions July 20, 2021 © 2018 Austin Energy Achieve Council-Established Goals Efficiency: Achieve energy efficiency savings equal to at least 1% per annum of retail sales, targeting a total of at least 1,200 MW Demand Side Management (DSM) by 2030 (of which 225 MW economic peak demand response capacity by 2030). Solar: 375 MW local solar by 2030 with 200 MW customer sited. Carbon Free: 86% of Austin Energy’s electricity generation will be carbon-free by year- end 2025, 93% will be carbon-free by ear-end 2030, and all generation resources will be carbon-free by 2035. Limited Income: Target serving at least 25,000 residential and business customer participants per year for all CES programs (Energy Efficiency, Austin Energy Green Building, Demand Response and Solar) with at least 25% of those customers being limited-income customers. 2 FY 2022 Customer Energy Solutions Budget Summary 140 130 120 110 100 90 80 s e e y o p m E l $ f o s n o i l l i M $50.0 $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $5.5 $16.9 $4.0 $18.1 Actual FY16Actual FY17Actual FY18Actual FY19Actual FY20 Amended FY21 Proposed FY22 O&M Budget Employees Labor and Benefits Contractuals Resource Plan to 2030 goals • FY22 proposed budget is in alignment with all Council and Generation Energy Efficiency Incentives Solar Program • Demand side management budget of $45M – 40 MW target; 1% annual savings of ~132,000 MWh • Solar incentive budget totals $5.25M – 12 MW target 3 On track to achieve 1,200 Megawatts (MW) of demand reduction savings and 375 MW of local solar by 2030. CBC - ENERGY EFFICIENCY INCENTIVES BUDGET COMPONENT CAP Weatherization D.I. CUSTOMER ASSISTANCE PROGRAM (CAP) INCENTIVES AE Weatherization - D.I. Multi-Family Rebates Multi-Family WX-D.I. Loan Options Commercial-Existing Construction Small Businesses Res. Solar Program Comm Solar Performance Based Incentive Residential Power Partner-Aggr Load Coop Home Performance w Energy Star School Based Education Appliance Efficiency Program Water Heater Timers Direct Install Partners and Events SPUR Strategic Partnership w/Utilities & Retailers Municipal Conservation Program TOTAL ENERGY EFFICIENCY SERVICES INCENTIVES TOTAL INCENTIVES *as of 6/8/2021 FY 2021 FY 2022 APPROVED BUDGET $ 1,000,000 PROPOSED BUDGET* 1,000,000 VARIANCE PROPOSED FY22 TO APPROVED FY21 - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,000,000 1,277,000 900,000 1,800,000 100,000 2,250,000 1,100,000 2,500,000 2,750,000 1,499,910 1,850,000 1,500,000 200,000 1,800,000 200,000 100,000 1,150,000 60,000 21,036,910 1,000,000 1,577,000 $ 900,000 $ 1,800,000 100,000 $ 2,250,000 $ 1,100,000 2,500,000 2,750,000 1,499,910 2,000,000 1,600,000 200,000 1,500,000 - 150,000 1,000,000 60,000 20,986,910 - 300,000 - - - - - - - - 150,000 100,000 - (300,000) (200,000) 50,000 (150,000) - (50,000) $ 22,036,910 21,986,910 (50,000) 4 Progress to 2030 Demand Side Management MW Goal Remaining to 1200 MW Goal, 218.75 FY07, 65.41 FY08, 64.15 FY22, 40.40 FY21, 69.48 FY20, 67.54 FY19, 74.74 FY09, 52.36 FY10, 41.23 FY11, 46.30 FY12, 47.56 FY13, 57.36 FY14, 67.03 FY15, 65.91 FY18, 70.88 FY17, 65.18 FY16, 85.72 5 Local Solar 2030 Goals 104.5 MW Remaining to 375 MW Goal Community Solar In Progress Municipal, Schools, and Non- Rebated Residential Commercial 103.5 MW Remaining to 200 MW Goal 4.3 52 25 5 10.2 5 10.2 144 30 4.3 52 25 2 0 3 0 L O CAL S OLAR GO AL ( CUSTOMER S ITED) 2 0 3 0 L O CAL S OLAR GO AL East Blackland PPA Webberville Project Community Solar In Progress Municipal, Schools, and Non-Rebated Residential Commercial 6 Residential Program Annual MW Goals 20.13 MW 7 MW 5.09 6.40 1.20 0.75 1.30 2.60 1.75 0.53 7 MW 15.73 MW 0.95 6.40 1.00 0.65 1.30 2.60 1.75 0.57 GB- Residential Energy Code DR- Power Partner (Residential) EES- Multifamily WX-D.I. EES- Multifamily Rebates EES- Home Performance ES - Rebate EES- Appliance Efficiency Program EES- Strategic Partnership Between Utilities and Retailers EES- AE Weatherization & CAP Weatherization - D.I. GB- Residential Ratings EES-School Based Education 0.50 0.01 0.50 0.01 2 0 2 1 M W P R OJECTIONS 2 0 2 2 P R OPOSED M W S AVI NGS *CBC Recoverable Programs, unaudited, SPUR Strategic Partnership between Utilities and Retailers (point of sale discounts). For GB Residential Energy Code, FY22 baseline change to savings over State code 7 Commercial Program Annual MW Goals 51.48 MW 7.00 5 MW 20.39 2.50 2.00 7.84 0.20 9.00 1.45 5 MW Commercial Rebate Commercial Energy Code Small Business Load Coop Multifamily Energy Code Water Heater Timers Commercial Ratings Multifamily Ratings 24.71 MW 6.00 2.00 2.00 1.71 9.00 2.90 2 0 2 1 M W P R OJECTIONS 2 0 2 2 P R OPOSED M W S AVI NGS *CBC Recoverable Programs, unaudited. ERS demand savings from program inception is 17 MW. For GB Commercial Energy Code, FY22 baseline change to savings over State code 8 Transportation Electrification Recommendations include electric vehicle miles travelled (e-VMT) to increase from 1% today to 40% by 2030 Austin Climate & Equity Plan Public charging infrastructure Continues to expand to include addition of 26 Fast Chargers and over 1,100 level 2 charging ports Strong growth with over 13,700 registered EVs and growing, supported by the Austin Energy EV Buyer’s Guide at ev.austinenergy.com Consumer EV adoption 9 Transportation Electrification (cont.) Strong continued growth in Austin Energy EV programs 10 In Closing Reach more customers and help them now, more than ever. • Weatherization • Multifamily o Program changes projected to show a 500% increase over FY20 o Bundled offerings to drive for deeper impacts on energy burden and DOE grant to increase demand response reach (providing $425,000 in budget match) • Demand Response o Drive for more value and in turn higher incentives that will lead to increased capacity Strategic Initiatives • Green Building o Project Zero - strategic initiative geared to removing embodied carbon from new construction, starting with concrete • Equity o Continue to strive to reach more customers with a keen focus on equity 11 12 Confidential & Proprietary ©2018 Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. 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