Stepping into Resiliency

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Energy Intel is produced by: Association of Energy Services Professionals 15215 S. 48th St., Suite 170 Phoenix, AZ 85044 (480) 704-5900 AESP.ORG EDITORIAL TEAM Ian Perterer, Sr. Manager, Marketing & Communications Kimani Johnson, Marketing and Communications Coordinator DOER/MAKER EDITORIAL STAFF GRAPHIC DESIGN Aria Levanti Doer/Maker AESP STAFF Jennifer Szaro, President & CEO Jenny Senff, Vice President, Programs & Education Ashley Smith, Vice President, Member Engagement Kristi Hewitt, Senior Manager, Trainings Ian Perterer, Sr. Manager, Marketing & Communications Jennifer Lee, Program Manager Kimani Johnson, Marketing and Communications Coordinator Kelly Thorsgard, Manager, Management Information Systems Angela Glover, Membership Coordinator BOARD OF DIRECTORS Ariana Arguello, FortisBC David Backen, Backen Consulting Chris Baggett, APS Knox Cameron, DTE Art Christianson, The Home Depot Sarah Colvin, GE Digital Joyce Bodoh, Rappahannock Electric Cooperative Jeff Brown, Public Service Company of Oklahoma Sue Hanson, VEIC (BOARD CHAIR) Laura Schauer, ILLUME Advising Katie Vrabel, Buckingham Companies Scott Alan Davis, SEEL Laura Orfanedes, ICF Quinn Parker, ENCOLOR Consulting Katie Falk, Evergeen Consulting Group Brett Feldman Rhode Island Energy Elizabeth Freeman, AECOM Liz Haworth, Michaels Energy Eammon Urey, Salt River Project (SRP) Alvis Wright, Alabama Power Company All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written permission from AESP. The opinions expressed by the authors do not necessarily reflect those of AESP. 2

Table of Contents 4 A Letter From Our Board Chair 49 Planning Resiliency for Critical Facilities BY SUE HANSON BY DARA SALOUR 8 Re-envision serving vulnerable utility customers 55 Increasing Engagement in Energy Assistance by treating them as an Audience of One Programs Through Automatic Enrollment And BY BEN NATHAN AND JEFFREY DAIGLE Other Measures BY HEATHER POLONSKY 15 Identifying and Engaging with Traditionally 60 Solving the Grid Puzzle - Effective Shed, Shift, Ignored Energy Customers BY GILLIAN WARD and Stack with Behavioral Energy Efficiency and Demand Response 20 Canary in the Coalmine: Are you ready for the state BY HANNAH COURTNEY and federal regulations that will govern DERs, VPPs, 66 Thermal Energy Storage - 65GW of DERs Ready and other aggregators? BY RUBEN H. ARREDONDO for Deployment BY JEFF IHNEN AND STAN NABOZNY 26 Why We Need a Big Tent to Make Energy More 72 Resilience Planning and Implementation: What do Affordable for All BY JAYLAN JACOBS AND JOY WARD you need to consider when planning your resilience investment to mitigate the challenges of the future? 31 Resiliency, Ice Storage, and IRA Tax Credits BY HECTOR ARTZE AND MICHAEL LEVY BY BRUCE B. LINDSAY, P.E. 76 What Improv Can Teach Us About Funding the 38 Key Considerations for Developing a Utility Clean Energy Transition BY RACHEL DORTIN Fleet Electrification Advisory Program BY CHRIS WATSON AND STACY NOBLET 82 Pairing Traditional Energy Assessments with the New Frontier of Load Management BY GREG WASSEL 43 Meeting Multifamily Housing Transportation 84 Illuminating Your Life - How the Ameren Illinois Electrification Needs Energy Efficiency Program Brightens Underserved BY LEE ANN HEAD Communities BY ANGIE OSTASZEWSKI 45 Arizona Public Service is Committed to Clean 86 Living in the Customer Dimension: Integrating Energy with a Customer Focus BY KERRI CARNES Energy Efficiency and Distributed Energy Resources BY TILAK SUBRAHMANIAN 3

A Letter From Our Board Chair Sue Hanson, Director, Consulting, VEIC First, a huge thank you to everyone who attended the AESP Annual Conference held in New Orleans in February! We had a terrific conference with almost 900 attendees, a sold-out exhibit hall, and 39 sponsors. If you had a similar experience to mine, including having many great discussions with people, which resulted in missing a few sessions, you can find presentations in our member resource library. As a reminder, session tracks included: • Advancing system and climate resilience initiatives • Business issues and regulatory models • Diversity, Equity, and Inclusion • Emerging tools, technologies, and methods • Marketing and customer experience • Program lifecycle • Professional development As you may recall, the theme of the Annual Conference was “Doing Everything Differently.” Inherent in that theme is the concept of resilience, and discussions around it, which have been ongoing in our industry for a while now. Resilience carries through to the articles you will read in this quarter’s Energy Intel, crossing both community through energy equity and technology through distributed energy resources (DERs). We know that resilience is societal, economic, and ecological. But resilience goes far deeper than that – it is a trait that each of us develops over time to learn how to cope with stress and change, learning how to bounce back from whatever life throws at us. Resilience expert, Ann Masten, has found that resilience, far from being exceptional, is actually quite common. She called this the “ordinary magic” . While this may be true as part of our individual developmental process, in order to ensure we have resilient and equitable energy systems in place, there is nothing “ordinary” or “magic” about the path to get there. We need to work to understand the risk of not having resilient systems in place and prepare today, and we need to continually build and strengthen those systems. Let’s take a quick look at what’s in store for you in this quarter’s Energy Intel. 4

Energy Equity Incorporating equity in decarbonization and electrification programs is something the industry is continuing to figure out as it evolves. A resilient energy industry is an equitable one, and transportation electrification, energy efficiency, and distributed generation programs and policies are working hard to ensure all customers are included. This quarter’s Energy Intel includes articles highlighting resiliency through energy equity including: • Ben Nathan and Jeffrey Daigle of E Source recognize • Kerri Carnes of Arizona Public Service Company that it can be challenging to start an energy equity (APS) shares that in 2020, APS announced a goal to journey and provide some recommendations to help deliver 100% clean, carbon-free electricity to customers understand customer needs. They highlight a project E by 2050. APS’s Clean Energy Commitment (CEC) goal Source and the Edison Electric Institute (EEI) conducted includes a nearer-term 2030 target of achieving a with several US utilities to help them better understand resource mix that is 65% clean energy, with 45% of our and serve low- and moderate-income (LMI) customers. portfolio coming from renewable energy. She describes ways that APS and its employees are partnering with • Gillian Ward of MyHEAT highlights the challenges community organizations and offering inno-vative the energy industry faces with an aging grid, extreme programs to support all customer segments. weather events, increased demand, and global geo- politics. This confluence of factors has led to increased • Lee Ann Head of Franklin Energy notes that meeting energy prices and resulted in more than one-third of the electric vehicle charging needs of multi-unit households in the U.S that now experiencing energy dwelling (MUD) residents and equitably supporting poverty. She discusses ways to engage customers to the transportation needs of low-to moderate-income help deploy more energy efficiency measures that will households will continue to be a challenge for utilities. help make energy more affordable and accessible She describes a number of challenges faced across this to everyone. sector and offers some suggestions for consideration. • Heather Polonsky of ADM Associates notes that • Angie Ostaszewski of Ameren Illinois describes the numerous studies have demonstrated that anywhere success of the company’s Market Development Initiative from 20 to over 50% of eligible participants do not (MDI) that was established in 2018 to specifically target enroll in or utilize programs for which they are eligible. lower-income communities and populations that have She describes a case study of a utility exploring ways to previously not had access to energy efficiency education increase program engagement, followed by an overview and products. This initiative expanded beyond providing of engagement strategies that have proven successful in energy efficiency services and includes a partnership assistance programs, as well as suggestions for how to with Solutions for Energy Efficiency Logistics, LLC best engage traditionally hard-to-reach populations. (SEEL) to provide workforce development services to underserved individuals. • Jaylan Jacobs and Joy Ward of SEEA highlight the need to go beyond the energy sector to address energy • Rachel Dortin of Slipstream leverages lessons insecurity. They describe work completed by SEEA in learned from Improv to apply to funding the clean metropolitan Atlanta that shows energy insecurity is the energy transition. She notes that the most important product of multiple factors, from poor housing quality rule for good improv is “Don’t say no. Say, yes, and.” and low income, to a lack of access to greenspace. Slipstream applied this methodology to outside-the-box Broad coalitions in this area have connected the energy thinking for financing programs that help to equitably sector with housing, healthcare, transportation, planning, enable energy efficiency projects. and other sectors. The collaboration has supported interweaving funding with programmatic support to provide holistic solutions to complex problems. 5

DERs DERs can provide a key role in helping to ensure resiliency in the energy sector by helping solve many grid challenges, such as capacity constraints and voltage variation. But wire solutions continue to dominate the market. Providing load management and peak flexibility are vital as climate changes and weather extremes become the norm. At February’s AESP Annual Conference, there were a number of sessions that covered technologies able to provide grid-interactive flexible load from heating, ventilation, and air conditioning (HVAC) to water heaters and electric vehicles (EVs) to battery storage. Attendees learned about what these technologies can do at the distribution level, and how they can be appropriately aggregated on the bulk power system. They also learned about contractor and customer perspectives, as well as ideas on how to educate the market, enroll projects, and measure savings at the meter while completely changing the way the industry thinks about aggregation and demand flexibility. More examples of how DERs can support a resilient energy sector are included in this quarter’s magazine, including: • Tilak Subrahmanian of Eversource describes how the critical beneficial electrification efforts ramp up and company has applied lessons learned from implementing compounding stresses on our grid intensify, the ability its energy efficiency programs to implementing DERs. to flex the collective set of distributed resources on the Eversource has heavily leveraged segmentation analysis grid must grow in parallel. This includes both front-of- and has applied this methodology to understand the-meter resources and behind-the-meter resources. their commercial and industrial customers to give the Hannah describes these different approaches. company insights into deploying DERs. • Jeff Ihnen and Stan Nabozny of Michaels Energy • Greg Wassel of Franklin Energy highlights how dive into the details and benefits of thermal energy Franklin Energy has successfully paired traditional storage. They note that thermal energy storage provides in-person auditing programs with load management a “fantastic” DER opportunity for microgrids and strategies. In particular, Franklin Energy has adopted macrogrids. virtual and hybrid virtual/in-person experiences over the past several years, allowing programs to engage with • Ruben Arredondo of Regime reinforces the notion customers where they are comfortable—online, over the of a steady increase in typical behind-the-meter DER phone, or in person—in order to capture a deep, holistic resources, such as rooftop solar panels, battery storage, view of their opportunities, including efficiency, DER microgrids, smart home devices, and other demand adoption, EV readiness, and electrification. response solutions. Ruben notes that it is no surprise the energy sector is turning to DERs to participate in the bulk power system (BPS), and describes a number of systems that have allowed customers to reduce their reliance on transmission system owners and operators (TSOs) and distribution system operators (DSOs). • Hannah Courtney of Bidgely calls out that as 6

Resiliency Fires and floods, hurricanes and blizzards, and multiple record-breaking natural disasters within the last few years have emphasized the need for resilience planning across all types of communities. At the AESP Annual Conference in February, attendees learned how the market adoption of energy efficiency, demand response, and renewable energy play a role in resiliency planning with community-based partners. There is more to learn, and our contributing authors share additional thoughts on resiliency strategies and opportunities related to utility DSM programs, policy, and community engagement, including: • Bruce Lindsay of Trane Technologies puts another • Hector Artze of Guidehouse addresses what spin on thermal energy storage, including some history needs to be considered when planning for resilience related to the evolution of thermal storage in the investment to mitigate the challenges of the future. context of transmission and distribution and regulation. He notes that while many utilities have implemented He notes that thermal energy storage provides an option resilience programs to improve the reliability and to help take on part of the needed peak reduction, and recovery of their assets, there is more to be done. He that the Inflation Reduction Act of 2022 (IRA) expanded describes the need to incorporate asset-level climate the technology base to include thermal energy storage, and extreme weather impact forecasts, as well as DER which is expected to encourage commercial building forecasts, into the resilience planning process. owners to add thermal storage to their chilled water plants to provide redundancy and resiliency. • Chris Watson and Stacy Noblet of ICF give us some insight into key considerations for developing • Dara Salour of AESC offers suggestions for planning a utility fleet electrification advisory program. Given for the resiliency of critical facilities. Dara notes that recent infrastructure funding from state and federal there are a variety of solutions, but the key is that sources, Chris and Stacy note that utilities are uniquely resiliency planning for critical facilities must be done in positioned as expert advisors at every stage of their an organized and intentional way, including minimizing customer’s electrification journey. In particular, they load and using location and operational considerations note that utilities can engage with their fleet customers to size the energy storage and generation to meet the by offering fleet electrification advisory programs and needs of the building, operators, and owners. offer some core questions for utilities to answer during the planning phase and key considerations to account for throughout implementation. Phew! There’s so much great information packed into these pages, highlighting the expansive amount of hard work and dedication our industry continues to show to achieving equitable climate resiliency. Don’t forget that gearing up and getting trained in these areas is the focus of the AESP Institute. I invite you to check out the list of trainings on AESP’s website. I think you will find that the menu of training opportunities offered continues to expand to meet the needs of our quickly evolving industry. Also take a look at the agenda for the EVDX Solutions Lab in Detroit from June 5–6. It’s a first-of-its-kind event! Sue Hanson, Director, Consulting, VEIC AESP Board Chair Sue is a Director of Clean Energy Consulting at VEIC and AESP Board Chair. She is a nationally recognized leader in the energy industry, with more than 20 years of energy efficiency and renewable energy industry experience working with utility companies, the federal government, and private industry. This ener- gy industry experience includes program evaluation, program planning, program implementation, and market research services. At VEIC, Sue works collaboratively to provide thought leadership and content to successfully engage with current and new clients, including developing and maintaining strategic relationships with key clients and business partners. Sue manages teams and advises clients at the highest strategic level on both big-picture and tactical matters, focusing on VEIC’s strategic offerings and enabling a wide range of successful business outcomes. 7

Re-envision serving vulnerable utility customers by treating them as an Audience of One Ben Nathan and Jeffrey Daigle Energy equity continues to be the priority Defining energy equity for many in the utility industry. And we According to the Pacific Northwest National don’t expect these important efforts to lose Laboratory (PNNL): momentum, because millions of citizens “Energy equity recognizes that disadvantaged are still disproportionately suffering from communities have been historically economic inequality in communities that marginalized and overburdened by pollution, are still often overlooked, with outdated underinvestment in clean energy infrastructure, and inefficient infrastructure, buildings, and and lack of access to energy-efficient housing transportation systems—the consequences and transportation. An equitable energy of historical and current discrimination and system is one where the economic, health, disinvestment. It’s going to be a long road to and social benefits of participation extend to achieve energy equity. The utility industry all levels of society, regardless of ability, race, largely lacks clear, agreed-upon definitions or socioeconomic status. Achieving energy of equity goals, metrics, and end results. But equity requires intentionally designing systems, utilities are making progress and the results technology, procedures, and policies that lead will be well worth it. If we collectively continue to the fair and just distribution of benefits in the to make progress in placing equity at the energy system.” forefront of our decision making, we can begin to redress historical wrongs and plot a better Utilities, along with federal, state, and future for the utility industry. local governments, are making progress in identifying, defining, and measuring equity. As we described in a previous volume of At the federal level, the US Department this publication, many utilities are applying of Energy’s Justice40 Initiative has an equity lens to their demand-side developed a comprehensive definition of management, distributed energy resource, disadvantaged communities. This is important EV, billing, and payment programs. They’re for determining where benefits of climate incorporating equity into marketing and and energy investments are—or aren’t— communications, supplier procurement, accruing, and for determining eligibility for and trade ally engagement. They’re learning future federal investments. At the state about customers’ unique needs so they can level, California, Illinois, Massachusetts, create or modify programs and services to New York, and Washington have passed meet those needs. Utilities prioritizing equity legislation to mandate or encourage utilities must act boldly and creatively to drive real, and municipalities to pursue energy equity. transformative changes in our energy system. And nongovernmental organizations, such as And they can use the strategies we discuss the Energy Equity Project, have continued to below as they work alongside underserved develop guiding principles and implementation communities to solve their energy challenges. practices for energy equity. 8

And utilities and their regulators are trying A better understanding of your to focus on target populations that often vulnerable customers span customer classes. Examples of target populations from the PNNL Review of Energy We know it can be challenging, not to mention Equity Metrics (PDF) include: overwhelming, to know where to start in your energy equity journey. We recommend starting • Underserved communities: Those with by obtaining a better understanding of the limited access to energy system services customers in your community. • Marginalized people: People who are Ask yourself, others at your utility, and the excluded from decision-making processes communities you serve the following questions: and lack access to economic, political, cultural, and social activities • Who are our underserved customers and communities? • Vulnerable populations: Those who are economically disadvantaged, racial and ethnic • What problem are we trying to solve for minorities, elderly, rural residents, linguistically customers who struggle to pay their utility bills isolated, or facing other socioeconomic or who face a high energy burden? challenges • How can we serve our customers equitably? • Disadvantaged communities: People And what’s the cost of not giving underserved who most suffer from economic, health, and communities equal access to new, clean- environmental challenges energy technologies? • Low- to moderate-income persons: Those There’s more than one solution to energy who make less than a certain income threshold equity. By understanding your unique for a particular jurisdiction customers and communities, you can identify their energy-related challenges and design programs to address them. Market research and ethnographic research can paint a real picture of this, making it easier for you to make the right connections with the right offerings and programs. And by leveraging big data and emerging analytical techniques, you can better understand customers and their behavior and make better serving them both an art and a science. Below, we highlight a project that E Source and the Edison Electric Institute (EEI) conducted with several US utilities to help them better understand and serve a vulnerable population: their low- and moderate-income (LMI) customers. Any utility that wants to meaningfully improve its service to LMI customers can—and should—explore this project approach. In addition, it can have applications beyond LMI customers, helping you better understand and serve other underserved and vulnerable populations. 9

Audience of One approach We need to treat them as an Audience of One and develop holistic, equitable solutions LMI customers have their own unique that will address the root causes of their challenges that make a homogenous approach challenges, not sweep them under the rug to serving them pointless. Historically, utilities while we hope for success. lumped LMI customers in with the rest, casting a wide net and hoping the right message or LMI customers can be a challenge to properly program would stick over time. That didn’t serve and support. They cost more to serve work then, and it won’t work now. To best and have an impact on customer satisfaction serve LMI customers, we need to understand scores. Not managing an LMI program them at a granular level and remember that effectively also risks driving up rates because they’re humans. regulators often allow utilities to recoup certain bad debt costs through rate hikes. Who are our underserved customers So how can utilities best help those in need? and communities? It’s become clear that “the way we’ve always done it” no longer works. We recommend the What problem are we trying to process below to improve the way you are solve for customers who struggle connecting with LMI customers and enhance to pay their utility bills or who face their customer experience. a high energy burden? How can we serve our customers equitably? The E Source Audience of One approach 10

One size fits all isn’t equitable for all customers Data science and machine learning are impressive tools that allow you to conduct analyses that are unlikely to be successful if performed by hand. As we kicked off LMI-focused projects, we wondered how data science could help and whether there was a way to amplify our efforts. We started to ask ourselves: What if we used machine learning to look at utility data related to arrears, discon- nects, past-due balances, and contact center actions? Our approach begins by defining LMI customers. Then we use modeling to create a segment of LMI customers and a digital replica of each customer, formed by combining utility and E Source data. Some of the proprietary data we work with in- cludes behavioral and lifestyle attributes such as: • Income • Size of household • Age of kids • Revolving credit card data • Mobile phone use Additionally, if advanced metering infrastructure data is available, we can use that to map energy profiles for each household. We use customer name and address information to fuse togeth- er customer records with our data. From there, our data scientists can identify customer cohorts based on similarities in the data profiles. 11

Our analyses revealed some interesting things intimate interview and bring the voice of the about each of the cohorts in our EEI project. The customer into projects. This face-to-face research analyses confirmed that LMI customers do not provides insights into customers’ emotions and struggle the same. Each utility analyzed cohorts needs, delivering the data required to create that struggle the most to pay their bill. Compared effective programs that aren’t just attractive, but to those who keep up with their bills, those who also the most beneficial to their unique needs. struggle the most generally: Develop customer-centric solutions with • Contact their utility more often a design-thinking workshop • Participate in energy efficiency programs at It’s not enough to simply gather data. Utilities lower rates must do something with it. This can be overwhelming, but we helped the utilities in • Are more weather sensitive (particularly those our EEI project use it effectively. who pay more per unit for electric heating) Design thinking is a radical way to flip the • Live in older homes with a lower market value product and service creation process on its head. Our approach brings together a cross-functional • Have younger heads of household group of employees to participate in a three- day workshop to develop products and services. But we struggled to understand why some Why a cross-functional group? It’s great for struggled with paying their bills when, design thinking because it helps prevent demographically, they looked the same. groupthink and provides different viewpoints. Performing ethnographic market research to dive deeper into customers’ wants and During our design-thinking LMI workshops, we needs was key. help utilities develop customer-centric, early- stage solution concepts based on the results Perform an ethnographic market research study of our data science and ethnographic market for a glimpse into your customers’ worlds research. We can help navigate new ideas and Ethnographic research focuses on the customer challenges while also identifying opportunities. as a unique individual, examining their behavior in real time through direct engagement. This approach puts customers’ needs at the core Traditional forms of data collection, such as of the solution development process, relentlessly surveys and email outreach, don’t capture keeping customers—real human beings—at the customers’ true sentiments and raw honesty. forefront to make sure we’re developing solutions We connect with customers one-on-one for an that have a high likelihood of resonating with our intimate interview and bring the voice of the target audience. This inverts the historical utility customer into projects. This face-to-face research product development process, which is typically provides insights into customers’ emotions and focused on developing solutions that meet needs, delivering the data required to create utility needs and then incentivizing customers to effective programs that aren’t just attractive, but participate to help meet those utility needs. also the most beneficial to their unique needs. Perform an ethnographic market Going beyond human-centered design: research study for a glimpse into your How utilities can advance equity through customers’ worlds community-centered design Ethnographic research focuses on the customer But to meaningfully advance equity for our as a unique individual, examining their behavior customers, we can go beyond this approach. in real time through direct engagement. The Harvard Business Review blog post What Traditional forms of data collection, such as Is Human-Centered Design? defines human- surveys and email outreach, don’t capture centered design as “a problem-solving technique customers’ true sentiments and raw honesty. that puts real people at the center of the We connect with customers one-on-one for an development process, enabling you to create 12

products and services that resonate and are We can explore the concept of community- tailored to your audience’s needs.” It seems centered design and how it can help us improve natural that we’d want to apply human-centered equity in the energy industry. Utilities should aim design to solve the challenges of vulnerable to improve equity on a community basis instead customers and facilitate the equitable transition of equipping the individual to pull themselves to a clean energy future. up by their bootstraps. They should focus on the root problems affecting entire communities But human-centered design has led to myriad in their program planning and design. And they patchwork solutions that often fail to address should incorporate the explicit and empowered vulnerable customers’ needs and perpetuate input of local stakeholders to understand, generational poverty. Through an individualist engage, and serve customers who haven’t lens, not being able to pay a utility bill and historically benefited from utility programs. mounting arrearages is considered an acute problem requiring a shot of financial aid so the Whether you’re interested in defining individual can get back on their feet. In reality, equity in your jurisdiction, gaining a better vulnerable populations have intersectional needs, understanding of your vulnerable customers which affect entire communities, that must be through ethnographic research and data science addressed simultaneously to make progress. approaches, or creating new equity initiatives using design-thinking or community-centered While it’s appropriate to focus on real people and solve their problems, using it as the sole design, E Source can help you navigate these approach to improving equity exposes more of strategies and develop a holistic and tailored our unconscious bias toward individualism and approach. We’re committed to enabling the takes us off the path of solving intersectional Sustainable Utility, and that includes equity for issues. Utilities can do better—we must do better. all utility customers. About the Authors “ There’s more than one solution to energy equity. Ben Nathan By understanding your unique Ben Nathan is the customers and communities, Director of Affordability you can identify their energy- and Equity at E Source, related challenges and design where he researches programs to address them. and advises power utilities and cities on energy equity and affordability strategies. Jeffrey Daigle Jeffrey Daigle is a Managing Director of Management Consulting at E Source, where he expertly advises utilities on contact center operations, customer experience, channel design, operations, digital engagement, and journey mapping. 13

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Identifying and Engaging with Traditionally Ignored Energy Consumers by Gillian Ward An Ever-Evolving Energy Landscape The deep freeze experienced in Texas in early February 2021 is a prime example of how “It is not too much to expect that our children extreme weather can have a staggering impact will enjoy in their homes electrical energy too on energy reliability and pricing. The aftermath cheap to meter, will know of great periodic of storm Uri has left Texas ratepayers with regional famines in the world only as matter almost $38 billion in excess energy costs to of history, will travel effortlessly over the seas cover. and under them and through the air with a minimum of danger and at great speeds, and Increased demand for energy and global will experience a lifespan far longer than ours.” geopolitics have led to an increase in energy - Lewis L. Strauss, Chairman, United States prices and unprecedented inflation. For some Atomic Energy Commission, 1954. households, continuing to pay energy bills has not been an issue. However, more than Over the last several decades, the vast majority one-third of households in the U.S are now of North Americans have not had to worry experiencing energy poverty. about accessing reliable and affordable energy to power and heat their homes. This has been Deploying greater energy efficiency measures made possible thanks to multiple sources throughout American homes will help reduce of electric generation coupled with robust the pressure on the energy ecosystem, and transmission systems, as well as an extensive play a critical role in making energy more natural gas pipeline distribution network that affordable and accessible to all Americans. reaches millions of homes across Canada and the US. It is no surprise that energy is a key input in every industry. It powers factories and However, our once reliable electrical grid and construction equipment, heats and cools gas pipeline networks are beginning to age. businesses, and fuels the vehicles used by The infrastructure is becoming constrained a multitude of personal, commercial and by growing demand from increasingly high industrial drivers. When the price of energy summer and winter peaks. Extreme weather goes up, it cascades through the rest of the events are also impacting the demand for economy, affecting the prices of all other energy to cool and heat homes. goods and services. 15

Who are the traditionally ignored energy consumers? The answer to this question is rather complex. The “traditionally ignored energy consumer” can vary depending on who defines it, and where it is being defined. Different areas of the US are facing different challenges—which, in turn, can influence the communities a utility prioritizes in its program strategy and engagement.vv Traditionally ignored customers may, for example, experience more severe energy burdens than other customers. Energy burden can be heavily influenced by a building’s heating source. A recent article from The Washington Post highlights how divided America’s home heating mix is. Across the US, home heating fuel types comprise roughly 47% natural gas, 40% electricity, 5% propane, 4% oil, and 2% other fuels. The Washington Post finds that in the South, electricity is the most prominent source of power. In the Midwest, it’s natural gas, and in the Northeast, fuel oil still remains a dominant heating source. photo courtesy credits to The Washington This divide highlights how there isn’t a one-size-fits-all solution when dealing with energy customers. For utilities to have success engaging customers, understanding the socio-economic, demographic and energy burdens across their service territory is critical. Knowing the heating fuel source for a building could heavily influence program design, as switching buildings from propane or oil to gas or electricity can yield a greater benefit-cost ratio. Engaging traditionally ignored customers requires taking the abstract concepts of energy consumption and energy efficiency, and making them accessible and easy to understand for the everyday consumer. It also requires us to look across the homeowner spectrum and find ways to have meaningful, easy to understand energy efficiency dialogue with a variety of different home dwellers. Resources for this article: 2. https://www.forbes.com/sites/adammill- 1. https://guidehouseinsights.com/news-and-views/ad- sap/2022/03/03/energy-abundance-is-possible-and-eu- dressing-energy-poverty-in-the-us rope-shows-us-why-it-is-necessary/?sh=168ef4155d27 16

Criteria to Define Ignored Customers There are many criteria that can be used to identify different segments of the “traditionally ignored customer” category, who will each have different needs and benefit from different program designs. Although not an exhaustive list, the following customer segments can fall under the category of “traditionally ignored customers.” Income Eligible - Defined by income levels below, or near, the national poverty levels, even average energy bills are concerning for this group. Asking these customers to take on upfront costs to improve the energy efficiency of their home through deep retrofits limits participation and is an ongoing challenge for utility program managers. Having limited finances means customers may be forced into having to choose between paying their energy bills and forgoing other basic necessities. For customers in this category who speak limited English, it could be even more of a challenge to understand the efficiency enhancements that are available to them. Renters & Landlords - Homeowners are frequently the focus of residential programs, so it’s important to ensure consideration is given equally to customers who are defined as renters. Those living in a rented space will likely have little control over the implementation of energy efficiency measures, especially more ‘invasive’ measures such as retrofits or weatherization. Landlord participation in energy efficiency is critical for this group. Rural Communities - Customers living in less densely populated areas could easily fall into the notion of “out of sight, out of mind.” In the Northeast, this could mean a large portion of heating oil or propane heated homes are not offered the same incentives as those in larger urban centers. Customers who have already engaged in a program - While perhaps not the typical “ignored customer,” it is easy to overlook those that have already participated in some programs, yet haven’t completed all of the programs available to them. 17

How do we Engage the Traditionally Ignored Customer? Engaging traditionally ignored customers requires taking the abstract concepts of energy consumption and energy efficiency, and making them accessible and easy to understand for the everyday consumer. It also requires us to look across the homeowner spectrum and find ways to have meaningful, easy to understand energy efficiency dialogue with a variety of different home dwellers. At MyHEAT, we pinpoint energy loss. By working with utility partners, we design targeted and tailored interventions to combine energy loss insights and education to serve traditionally ignored customers. These interventions result in a greater understanding around energy consumption and, consequently, reduce energy bills. By tailoring the messaging, we can ensure that the most impactful messages are sent to each homeowner. The data provided by MyHEAT to utilities empowers them to better understand the needs of all customers. In addition to MyHEAT’s award winning residential HEAT loss platform, MyHEAT also creates Commercial & Industrial platforms, and an Interactive Contractor Dashboard that allows approved contractors to access the MyHEAT data and use it in sales calls with homeowners. Whether it’s overburdened communities in equity zip codes, or rural homeowners, MyHEAT can help deliver savings to customers who need them most. About the Author Gillian Ward Gillian Ward is a Business Operations Coordinator for MyHEAT. She is passionate about learning more about how innovations in the CleanTech Industry can mitigate the effects of Climate Change. Gillian resides in Calgary, Alberta and holds a Bachelor of Business Management degree from Dalhousie University. 18

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CANARY IN THE COALMINE: ARE YOU READY FOR THE STATE AND FEDERAL REGULATIONS THAT WILL GOVERN DERs, VPPs, AND OTHER AGGREGATORS? by Ruben H. Arredondo The steady increase in typically behind-the-meter (BTM) resources, such as rooftop solar panels, battery storage, microgrids, smart home devices, and other demand side response solutions, has given distributed energy resources (DERs) a new role in national grids. Given the renewable energy transformation, increased demand for electricity, and the challenges facing the build-out of transmission or other utility scale generation and storage assets, especially in the USA, it is no surprise societies are turning to DERs to participate in the bulk power system (BPS), also referred to as the Bulk Electric System (BES). This article is aimed at a variety of DERs, be they virtual power plant providers participating in wholesale markets, DER aggregators selling ancillary services to TSOs, or demand response solutions (DRPs) allowing customers to reduce their reliance on TSOs and distribution system operators (DSOs). The rise of DERs has allowed historically BTM assets to provide electrical energy to the BPS and participate in wholesale electricity markets where such exist. BPS regulators, transmission system owners and operators (TSOs), and distribution service owners and operators (DSOs), have historically faced the greater weight of the balance of increased penetration of DERs, seeking to maintain system reliability and security given the changing resource mix through improved regulations, interconnection practices, business protocols, etc. Now, however, state and federal regulations are catching up to DERs. This may impact DERs’ bottom-line by increasing the compliance and regulatory burden they face as they operate within the BPS and within distribution systems. This article is a brief survey of some federal orders, federal initiatives, state laws and state law initiatives that may impact DERs. Just like coalminers used canaries to give them a heads-up of hidden dangers, DERs should ask if their regulatory and compliance teams, legal advisors, and subject matter experts are incorporating processes and procedures that help them gain a clear understanding of the laws and regulations impacting their business model, or risk seriously impacting their profitability and viability in the future. FERC Order 841 and 2222 FERC Order 841 is a rule issued by the Federal Energy Regulatory Commission (FERC) in 2018 to promote the integration of energy storage resources (ESRs) into the electricity grid in the United States. The primary purpose of the aparticipation of ESRs in wholesale electricity markets, where they can provide various grid services, such as balancing supply and demand, enhancing grid reliability, and reducing greenhouse gas emissions. Order 2222, issued by the Federal Energy Regulatory Commission (FERC) in September 2020, is a landmark ruling that has the potential to revolutionize the role of DERs in the electricity grid. Prior to these orders, DERs faced a range of obstacles that made it difficult for them to participate in these markets, including complex rules, technical limitations, and market design issues. Both orders seek to address these barriers by requiring regional transmission organizations (RTOs) and independent system operators (ISOs) to develop rules and market participation models that allow DERs to participate in wholesale energy markets on a level playing field with traditional power plants. The potential impact of Order 2222 is significant, and it is expected to unlock new opportunities for DERs to play a more substantial role in the electricity grid, e.g. providing valuable grid services such as energy storage, demand response, and voltage support, which can enhance grid reliability and reduce costs for consumers. 20

“ Just like coalminers used canaries to give them a heads-up of hidden dangers, DERs should ask if their regulatory and compliance teams, legal advisors, and subject matter experts are incorporating processes and procedures that help them gain a clear under- standing of the laws and regulations impacting their business model, or risk seriously impacting their profitability and viability in the future. NERC and DERs Generally The North American Electric Reliability These practices may impose obligations on DERs, Corporation (NERC) is the FERC designated including who is considered a DER; the provision electric reliability organization (ERO) and of data relative to the planning and operation responsible, in part, for promulgating the Reliability models and simulations; how often DERs must Standards and working with industry stakeholders provide that data; who gets access to that data; to ensure the overall security and reliability of data related to the operational and physical the BPS. The NERC Reliability Standards have operations of the DERs. The NERC White Paper the effect of law in the USA for users, owners, outlines a new approach to managing DERs, and operators of the BPS. Though NERC and its including operational standards for aggregators. six Regional Entities (collectively ERO) do not take a roll in wholesale market operations, the The new approach will help ensure that DERs ERO recognizes that the introduction of DER are integrated into the grid in a way that is safe aggregators to the overall electricity ecosystem and reliable, helping to ensure that DERs are will have an impact on BPS planning, operations, managed effectively and that any potential issues design, and overall grid reliability. are identified and addressed in a timely manner. Presumably, the new approach could also include In July 2022, the NERC DERs Working Group new Reliability Standards. issued a white paper (NERC White Paper) titled “BPS Reliability Perspectives for Distributed Energy Resource Aggregators.” It provided RTOs and ISOs guidelines and recommended practices when developing tariff revisions or business practices responsive to Orders 841 and 2222. 21

NERC Registration and Reliability Standards NERC Reliability Standards apply to users, Therefore, determining whether a DER may be owners, and operators of the BPS. More subject to NERC registration as a user, owner, specifically, NERC promulgated rules that govern and operator of the BPS-BES, and subject to the registration of these users, owners, and current or future NERC Reliability Standards, operators in its “Bulk Electric System Definition may be a more nuanced question than simply Reference Document” (Definition). The Definition reading through the definitions and related defines the BES as follows: “Unless modified by documents. It may sometimes involve a thorough the lists shown below, all Transmission Elements analysis by subject matter experts (usually operated at 100 kV or higher and Real Power and electrical engineers with NERC expertise) and Reactive Power resources connected at 100 kV an NERC-experienced attorney. Not registering or higher. This does not include facilities used could expose the entity to forced registration by in the local distribution of electric energy.” At NERC and FERC, and subsequent compliance first glance, this definition may readily exclude obligations with NERC Reliability Standards, DERs. However, the Definition also contains four without the staff and processes in place needed Inclusions and 5 Exclusions that may affect a to comply. particular DER’s inclusion into the BPS. These, in addition to the NERC’s Rules of Procedure Appendix 5B “Statement of Compliance Registry Criteria,” which states that “[a]n entity that does not meet (i.e., falls below) the criteria may nevertheless be registered if it can be demonstrated that the entity has a material impact on the reliability of the BES,” work in tandem with other NERC procedures and applicable FERC rulings to govern the registration of users, owners, and operators of the BES. 22

DER Risks to the BPS and distribution systems While FERC Orders 841 and 2222 aim to promote the integration of DERs into the BPS, there are potential risks associated with DERs that affect the reliability of the bulk power system and distri- bution systems, including, for example: 1) voltage fluctuations: can lead to equipment the security of the grid and potentially damage, outages, and other disruptions that impacting the reliability of the bulk power could affect the reliability of the bulk power system and distribution systems. Additionally, system and distribution systems; the exchange of data between at increasing points of exchange increases the risk of data 2) interconnection challenges: the integration breaches and loss, as well as the violation of of DERs into the grid can pose challenges for laws governing customer data; interconnection, including technical challenges related to grid stability and safety, resulting in 4) capacity constraints: as more DERs are delays and increased costs for interconnection, added to the grid, there is a risk of capacity impacting the reliability of the grid; constraints that could impact the reliability of the grid. This could result in increased 3) cybersecurity risks: the integration of DERs congestion, outages, and other disruptions into the grid also poses cybersecurity risks, as that could affect the reliability of the bulk many DERs use internet of things (IoT) and can power system and distribution systems; be vulnerable to cyber-attacks, compromising 5) weather-related risks: DERs can be vulnerable to extreme weather events such as hurricanes, floods, and wildfires. These events can damage or destroy DER infrastructure, which could impact the reliability of the grid. DERs, IBRs, and possible NERC Reliability Standards Many DERs incorporate elements that use inverter-based resources (IBRs) such as solar photovoltaic (PV) systems and wind turbines. Despite the rise in use of IBRs, they can present challenges to the reliability of the electric grid, particularly in terms of voltage stability and frequency response. To address these challenges, FERC has directed NERC to develop new or modified reliability standards that specifically address inverter-based resources. These new standards would aim to fill the following reliability gaps: 1) frequency response; 2) voltage stability; 3) communications and monitoring; 4) testing and verification. Some of the first NERC reliability standards that may be amended to impact inverter-based DERs are those impacting the interconnection and coordination of DERs, system vegetation management, critical cyber asset identification, security management controls, and incident reporting and response planning. The proposed standards would help ensure that inverter-based resources can be integrated into the electric grid in a way that maintains grid reliability and stability. Like other Reliability Standards, they would not be mere guidelines or industry best practices but have the weight of law. 23

State Data/Privacy Condsiderations State data and privacy regulations may also impact DERs. One of the key considerations when it comes to privacy and DERs is the collection, storage, and use of customer data. DERs generate a significant amount of data, including energy usage patterns, location data, and even personal information such as names and addresses. This data is highly sensitive and must be protected to prevent unauthorized access or use. The vulnerabilities facing DERs raise concerns about privacy and data considerations. For example, California has implemented the California Consumer Privacy Act, which requires businesses to disclose the personal information they collect about consumers and allows consumers to opt-out of the sale of their personal information. Given the volume of potential data stemming from possible thousands of disparate DER elements, connected via the cloud, the costs of protecting these assets could increase the costs associated with compliance, affecting DER pricing models. Given the vulnerability of DERs to cyberattacks, the National Association of Regulatory Utility Commissioners (NARUC) has launched an initiative focused on cybersecurity in solar projects. As part of this initiative, NARUC formed the Cybersecurity Advisory Team for State Solar (CATSS). The CATSS team will work to develop best practices and guidelines for securing solar projects against cyberattacks. This will include developing recommendations for how solar projects can be designed and implemented in a way that minimizes the risk of cyberattacks. The team will also work with state energy officials and regulatory utility commissioners to help ensure that these best practices are implemented effectively. Conclusion The deployment of DERs presents significant economic and environmental opportunities to transform the energy landscape and promote a cleaner, more sustainable energy future. However, increased DER penetration into the BPS and distribution systems are not without their challenges to regulators, TSOs, DSOs DERs, and other users, owners, and operators of the BPS. Some DER providers may lack experience navigating the sometimes-tortuous layers of state, regional, and federal regulations governing the BPS, and how those regulations overlay the engineering, market and economics facets of their solutions. It’s vital for DER providers to prepare now to understand their compliance obligations at the federal level. The risks for failure to comply with federal regulations, like the NERC Reliability Standards, that impact DERs can be significant. For example, for those subject to FERC jurisdiction and required to comply with NERC Reliability Standards, penalties for their violation subject covered entities to a maximum fine of $1,307,164 per violation, per day. The growing proliferation of DERs also expose them to state data and privacy laws, with their own sets of state regulations, and legal risk. DERs must take steps now to understand the regulatory risks, at both the state and federal level, that their failure to comply with federal regulations governing their operational technology, data, and systems, as well as state regulations governing the data and privacy, will pose to their business model. About the Author Ruben H. Arredondo experts, and energy professionals tasked with prosecuting some of Western North Amer- 24 Ruben is a former administrative law judge for ica’s top energy companies for violations of a public utilities commission and prosecutor utility standards. He has experience advising for federal energy regulator WECC (NERC). A clients across the nation on a wide range of seasoned energy professional, he has advised renewable energy matters, including: virtual both domestic and international regulators in power plant and DER solutions; microgrids Canada, Mexico, the USA, and Europe. With and other non-wires alternatives; develop- sophisticated legal and technical experience in ment of utility scale generation and storage the electrical industry, he works with subject projects; interconnection agreements; inter- matter experts to help clients navigate the connection-related disputes; cybersecurity and swamp of regulations governing the electrical critical infrastructure protection; transmission industry, from the state or Canadian provincial line-related issues like path rating, planning, level to the FERC and cross-border level. He siting, modeling and capacity issues; advising presided over technically complex dockets on generation and storage matters He has involving ratemaking and cost recovery, utili- a passion for stepping into already existing ty-IPP centered litigation, interconnection dis- teams and helping them solve tough problems putes, transmission access, etc. At the federal with creative and well-reasoned solutions. and international level, he guided an in-house enforcement team of engineers, cybersecurity

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Why We Need a Big Tent to Make Energy More Affordable for All by Jaylan Jacobs and Joy Ward Access to affordable energy is a pressing While these programs provide needed support national issue. More than 30 million Americans for families struggling with their finances and have difficulty paying their electric and gas bills at risk for utility disconnection, the case study every month. People in these circumstances live conducted by the Southeast Energy Efficiency in a state of energy insecurity, in which they Alliance (SEEA) in metropolitan Atlanta shows struggle to maintain vital, and potentially life- that energy insecurity is the product of multiple saving, energy services like heating and cooling. factors, from poor housing quality and low income, to a lack of access to greenspace. Many decision-makers, funders, governments Broad coalitions that leverage both research and advocates view these challenges as and community engagement strike at the root strictly an “energy” issue that can be tackled of energy insecurity by connecting the energy by directing people to income-qualified sector with housing, healthcare, transportation, weatherization or energy efficiency programs planning, and other sectors. This collaboration to reduce energy bills. supports braiding funding with programmatic support to provide holistic solutions to this complex problem. Figure 1: The Percentage of Energy Insecure Homes by State (2020) Map Source: Southeast Energy Efficiency Alliance 26

“ According to the American Council for an Energy-Efficient Economy, Black families have a median energy burden, the per- centage of income spent on energy bills, that’s 43% higher than white families, and Hispanic families have a median energy burden that is 20% higher than white families. Energy insecurity affects 9.3 million households economic inequities instilled into city planning, in the Southeast, where incomes fall below the zoning practices, and the siting of highways national average, the weather is often hot and and hazardous facilities. These systems still humid, and many homes have inefficiencies shape the region’s energy and housing sectors that result in excess energy use. Despite and limit access to affordable power and comparatively low electric rates, most people healthy, affordable housing. The legacies of in the region spend around 6% of their income racial segregation and disenfranchisement have each month on energy, compared to the national magnified these challenges in the South. median of just over 3%. This disparity contributes In 2022, SEEA partnered with Georgia State to the highest number of energy insecure Representative Marvin Lim and the Gwinnett households in the country, leading to nearly one Housing Corporation (GHC) to identify in three households in the South struggling to challenges to, and opportunities for, efficient pay their utility bills. and healthy housing challenges in Gwinnett County, Georgia. Focusing on Norcross, an The ripple effects of energy insecurity extend far unincorporated suburb of Atlanta, SEEA beyond a family’s ability to pay their bills. Millions conducted an energy insecurity analysis to of Americans make tradeoffs that prioritize understand community needs and identify paying utility bills at the expense of other federal opportunities for investment to address household necessities and personal health. In the them. The research shows the ways history has South, 4.7 million households keep their home created overlapping burdens that converge in at an unhealthy temperature because of the cost people’s homes and daily lives, disproportionately of energy, while 10.7 million households reduce affecting disadvantaged communities. their consumption of food or medicine to pay utility bills. The map below shows the Southeast While the geographic area of Norcross is unique is a clear hot spot for energy insecure households in demographic and economic diversity, SEEA’s compared to the rest of the country. research shows that it is like many communities across the Southeast who experience similar The burdens associated with energy insecurity barriers to energy security. fall mostly on low-income households and people of color. According to the American Council If you drew a Venn Diagram of the factors that for an Energy-Efficient Economy, Black families contribute to energy insecurity based on SEEA’s have a median energy burden, the percentage of research, every section would overlap, because income spent on energy bills, that’s 43% higher energy insecurity touches nearly every aspect of than white families, and Hispanic families have the lives of those who experience it. High energy a median energy burden that is 20% higher bills, drafty spaces, and inefficient appliances than white families. The disproportionate and make homes uncomfortable and unaffordable, overlapping burdens faced by people of color while driving up energy costs. and low-income individuals is no coincidence. These disparities are rooted in historic racial and 27

Figure 2: The Average Investment on Home Improvements per Household by Census Tract in Norcross and Gwinnett County, GA (2022) Map Source: Southeast Energy Efficiency Alliance Affordable and Efficient Housing and difficult decisions, like putting off home improvements and efficiency upgrades that would In Norcross, the most direct impact of energy significantly improve the energy performance insecurity on residents is financial. SEEA’s work and home health. In 2020 and 2021, there were has found that home energy costs take up a virtually no building permits issued for energy high proportion of income for thousands of efficiency updates in Norcross, aside from new residents. There are more than 5,000 households construction. The map below indicates the in Norcross with either extreme (>10%) or high average investment per household on home (6-10%) energy burdens as a percentage of their improvements in Norcross and the greater income. This strains household finances and Gwinnett County by census tract in 2022. The forces people to make difficult choices about smaller, light pink shape outlined in black shows how to pay the bills and prevent a utility shutoff, that Norcross has seen the smallest investment particularly for the district’s low-income residents. in home improvements in the entire county during 2022. Home improvement updates are a High energy costs are especially problematic key strategy to upgrade the efficiency of one’s for people living in Norcross, where the poverty home and combat energy insecurity. This case rate is nearly double the national average. study on energy insecurity will provide Norcross Rent and mortgage cost increases in Norcross with the necessary data to continue applying have outpaced the rest of Gwinnett County for additional funding opportunities to make and the metropolitan Atlanta region, putting upgrades and improvements. additional pressure on residents’ financial commitments. For those who live in a constant battle of affordability, the high cost of energy can be the catalyst to a host of other challenges 28

Building Resistance to Climate Impacts Housing and energy efficiency upgrades not only lower energy consumption, by lowering energy costs, they also build resilience. According to FEMA, resilience is having the capacity to adapt to changing conditions and to prepare for, withstand, and rapidly recover from disruptions to everyday life, such as struggling to maintain daily energy services or having a home that is susceptible to damage from extreme weather events. Building resilience for families and their homes in Norcross is necessary to combat energy cost burdens, provide protection from increasing climate impacts, and lower energy use to reduce greenhouse gas emissions that contribute to climate change. In Norcross, nearly 60% of all households are low- or moderate-income. The homes in the lowest income bracket experience energy costs that make up almost 15% of their income. The combination of extreme energy insecurity and poor-quality housing can leave families vulnerable without heating, cooling, or electricity during extreme temperatures or climate-related disasters like hurricanes, flooding and tornadoes This can have devastating consequences when people are required to shelter in place for safety during these events, as the need to power essential appliances and to stay informed could mean the difference between life and death. Healthy Spaces for a Healthy Life According to our findings, many people in Norcross Homes that are not properly sealed and ventilated live in close proximity to hazardous facilities or heavily are more susceptible to infiltration of polluted outside trafficked roadways, experience poor air quality, and air, which may lead to increased asthma symptoms, lack tree canopy and greenspace in their communities. coughing, wheezing, or chronic respiratory issues. While these characteristics are not typically associated Inefficient and aging housing stock is more likely to with housing or energy insecurity, SEEA’s research have issues with mold, asbestos, lead pipes and paint has made clear the complex interactions between and structural safety concerns. These hazards put energy affordability, housing quality, and the decisions residents, especially children, older adults, and those of the planning, industrial, transportation, healthcare, with preexisting disabilities, at a higher risk for chronic environmental, and other sectors. illnesses like cardiovascular disease, cancer, and even neurological effects like cognitive development The U.S. Department for Health and Human Services and mental health issues. Due to historic practices now recognizes quality of housing as a key social and policies, these exposures and experiences are determinant of health, which is defined as the common in Norcross and disproportionately effect condition(s) in the environments where people live, people of color and those with low incomes. The learn, work, play, and worship that affect a wide range map below shows the percentage of the population of health, and quality-of-life outcomes and risks. Poor in Norcross and Gwinnett County living in fair or housing quality in Norcross impacts residents’ health poor health. The crude prevalence across Norcross is in far-reaching ways, especially when layered with and among the highest for percentage of people in fair or exacerbated by energy insecurity. poor health, meaning they experience more negative health outcomes than the rest of the county. Figure 3: The Crude Prevalence of Residents in Fair or Poor Health by Census Tract in Norcross and Gwinnett County, GA (2022) Map Source: Southeast Energy Efficiency Alliance 29

Conclusions and Takeaways The federal government has developed guidelines for identifying disadvantaged Energy insecurity is just a small portion of the communities through data tools, including challenges residents of unincorporated Norcross the White House Climate and Economic face, where high energy costs make them more Justice Screening Tool (CEJST), but we urge vulnerable to financial, housing, health, and stakeholders, where possible, to engage in deep resilience crises. work to understand community needs and pair these with funding opportunities. These issues converge in people’s homes and Collaborative research is the foundation of our impact their daily lives. Valuing housing and approach in Gwinnett. The SEEA team took stock investing in home efficiency offers a pathway of community needs through extensive research, to increase housing affordability and stability, ultimately engaging community decision-makers improve health, enhance community resilience, and other stakeholders with our findings to and reduce greenhouse gas emissions. better identify community priorities and find The federal government is making historic pathways in federal funding opportunities to investments in energy, climate, and environ- address them. Our research is foundational to mental justice, which offer unprecedented our community engagement and efforts to build opportunities for communities like Norcross a strong collaborative in the region. Research to address longstanding housing and energy like the case study conducted in Norcross risks. While initiatives like Justice40 attempt to offers a pathway to identify community needs, prioritize disadvantaged communities by ensuring engage stakeholders, and ultimately build broad they receive forty percent of the benefits of coalitions that can effectively leverage federal federal funding allocations, addressing the root funding along with other sources to address causes of inequities requires customized, holistic, community risks. and community-driven approaches, particularly for the most vulnerable communities. About SEEA: The Southeast Energy Efficiency Alliance (SEEA) promotes efficient energy as a catalyst for economic growth, workforce development, and energy security across 11 southeastern states and several island territories in complementary climate zones. We provide research, consultation and education, stakeholder facilitation, program management and financial services to a diverse set of companies and organizations in the energy sector. Visit us at seealliance.org to learn more. Jaylan Jacobs Joy Ward Jaylan Jacobs is a program associate at SEEA. She is an em- Joy Ward is an experienced environmental and urban studies pathetic communicator with expertise in stakeholder engage- researcher with expertise in sustainability and environmen- ment, public health, and environmental justice principles. In tal science. Joy has a strong background in academic and data her current role, she works across teams on energy-efficient research methods and analysis, and her academic research is buildings and transportation, relevant health research, and focused primarily on sustainability and urban resilience issues in workforce development to provide a people-centered focus Atlanta, Georgia. Joy recently completed an M.I.S thesis at Georgia to electrification and decarbon- State University’s Urban Studies ization. Jaylan has a master’s Institute on “The Distribution of degree in public health, with a Green Infrastructure in Downtown certificate in climate and health, Atlanta, Georgia.” At SEEA, Joy from Emory University Rollins has experience conducting com- School of Public Health. She plex analyses of energy insecurity, also serves on the Advisory housing, and health issues, and us- Board for the American Public ing data to tell compelling stories Health Association’s Center for about the South’s challenges and Climate, Health, and Equity. opportunities. 30

Resiliency, Ice Storage, and IRA Tax Credits by Bruce B. Lindsay, PE Trane Technologies Thermal energy storage has been successfully longer wanted to subsidize the generation applied to large commercial buildings for over 30 business, and some thermal storage rebates years to reduce peak electric demand and reduce were lowered or withdrawn. Deregulation the size of mechanical systems. It can typically also removed the requirements for capacity shift 40% of a building’s load to off-peak and reserves and utilities could now accept bids take advantage of low-cost off-peak energy. In from independent power producers who were the 1990s, almost every utility offered rebates to not prohibited from using natural gas for power promote thermal storage and reduce the need to generation. This ultimately led to a proliferation build new, expensive central power plants. of combustion turbine plants and a decline in coal-fired steam plants. That also saw further As the utility industry deregulated, the erosion in rebates and promotional support for transmission and distribution businesses no thermal storage. 31

In the past decade, we have seen growing The Inflation Reduction Act of 2022 (IRA) was demand for clean energy and growth in solar and signed by President Biden in August. It is a wind power. We are committed to being 100% massive legislation, with $369 billion in funding renewable energy by 2050 or sooner. With the for clean energy and climate change. It extended transition away from fossil fuels to clean energy, the 30% tax credits for solar, wind, geothermal, the industry is increasingly focused on energy and electric vehicles. It expanded the technology storage as an essential tool to maintain the base to include CHP, microgrids, and stand- grid. Wind and solar are intermittent. We will alone energy storage, and specifically included eventually produce too much solar energy or thermal energy storage. It provided incentives too much wind. The grid has to take that power to use Prevailing Wage and Apprenticeship and find a place where it can be used or stored. Programs, move manufacturing to the US, and Ultimately, utility-scale electric batteries will assist communities negatively impacted by clean enable utilities to charge the batteries with clean energy (coal plant closures). Finally, it made the energy and dispatch it when needed to displace tax credits available to tax exempt organizations. dirty energy. Unfortunately, utility-scale batteries K12, local government, state government, and are still in development. They are expensive, use tribal nations can receive the tax credits directly scarce materials, degrade over time, and no end- from the IRA. of-life recycling options are available yet. Over the near term, we will have to rely on thermal Most of the US thermal energy storage energy storage to take part of the needed peak businesses now qualify for a 40% investment reduction. Thermal batteries will be coupled with tax credit. That is expected to encourage electric batteries as a hybrid solution, with the commercial building owners to add thermal electric batteries being integrated in the future storage to their chilled water plants to provide when cost reductions are achieved. Thermal redundancy and resiliency. It will also enable batteries are proven, reliable, and cost-effective, them to participate in Demand Response and the obvious choice. programs and generate revenue. 32

Example 1—Retrofit Air-Cooled Chillers at Brevard Schools Brevard County Public Schools are located in chillers have protective devices to detect and central Florida. Seventy-five thousand students isolate these voltage fluctuations, and they are are served in 84 schools consisting of 13 very sensitive. It was not unusual for Monday million square feet. All of the schools are air- mornings to have 12-15 schools calling about no conditioned, and most are equipped with a air conditioning. We would dispatch technicians central chilled water plant. Twenty of the schools to manually inspect and restart the chillers. This have ice storage systems to reduce peak electric could take hours, and after several Monday demand. The local utility, Florida Light & Power, outages, students responded by leaving. The has offered rebates for over 30 years and has a district’s response was to start the chillers earlier, special time-of-use rate structure to encourage check operations and dispatch technicians before shifting peak load. Many of the ice storage schools opened. It was noted that the schools systems are well over 20 years old and some with ice storage did not have a problem with have had operating problems. students leaving. If the school had power to run the pumps and fans, it could pump the water • Some of the tanks have developed glycol leaks. through the ice and cool the building. It was The plastic tubing that circulates the 24F water/ suggested that ice be added to all the schools glycol solution was attached to supply and return with chillers, but even with the FPL rebate, it was headers using compression fittings. These fitting not in the budget. could work loose. The tank design was changed in 1999 to weld the tubing to the headers. Older That has now changed with the availability of tanks are refurbished—the tubing is removed and IRA tax credits. Existing air-cooled chillers can replaced. be easily modified to produce 24F water/glycol to make ice. The ice system will consist of ice • Some of the steel tanks have ruptured and had storage tanks, piping assembly, pump package, to be replaced. glycol management system, heat exchanger, and CEP controls, all mounted on a concrete pad. A • Building automation controls are obsolete after 600-ton system will need 20 ice tanks. The ice 10 years. The software platform is no longer storage system will cost $693,000. The 40% tax supported. New controls are added to the entire credit will refund $277,200. The FPL rebate of school and the chiller plant. The technician is $600/kW, assuming 1.2 kW/ton (example table not familiar with TES and does not program the uses 1.3 kW/ton), will provide $432,000. The chiller to operate using the original sequence of school will show a profit of $16,200 and should operations. “We can’t make the ice work.” see demand charge savings of $75,000 per year. The only problem is that the school will need One of the most aggravating problems is to pay for the ice storage system up front and nuisance shutdowns. Brevard Schools are located wait 6-12 months for the checks to arrive. If the in “lightning alley,” where there are more lightning district would enter a performance contract for strikes than anywhere in the US. A lightning 20 schools, $14 million could be financed as a strike on the grid will send a power quality bridge loan and the district could obtain $1.5 disturbance through the system. Expensive million in utility savings per year. It should be noted that water-cooled chillers may be capable of making 24F water/glycol and could be retrofitted with ice storage. The economics are not as compelling since FPL assumes 0.66 kW/ton. The 600-ton system would still require 20 tanks and $693,000 in ice storage. The 40% tax credit remains the same $277,200, but the FPL rebate drops to $237,600, totaling $514,800. The $178,200 difference could be recovered in 4.3 years from the $41,200 in demand savings each year. 33

Example 2— Increasing Chiller Capacity During Supply Chain Disruption As schools recover from COVID, they are This is due to supply chain disruption and is receiving major funding to improve the indoor industry wide and effecting not just HVAC, air quality of their classrooms. ASHRAE but electric transformers and switchgear. recommends that schools upgrade their vent- One option if the buildings are unoccupied ilation systems to meet the minimum airflow at night is to use the existing chillers in an ice rates in the most recent building codes. ASHRAE storage system. A building can basically double also recommends that schools adopt MERV 13 its cooling capacity by making ice at night. This filters. Most schools will see an increase in their is especially attractive if the electric rates are air conditioning loads and will need to increase expensive. chiller capacity. Unfortunately, schools will experience a shock when they order new chillers The ice tanks are not subject to the supply chain and are told the deliveries are 25-50 weeks out disruption. They are manufactured in the US. (normally 12-16 weeks). There are no chips or wiring harnesses that have to be shipped from China. Delivery time is now 10-12 weeks. 34

Example 3 — Redundancy and Resiliency for Government Facilities Brevard County and the City of Melbourne have recently started construction of two new buildings that incorporated ice storage. The county is building an Emergency Operations Center and the city is building a new Police HQ. Four ice storage tanks were specified for the EOC and nine tanks for Police HQ. The tanks will allow the buildings to reduce their electric demand costs, but the primary justification is the 8-hour window the tanks provide for chiller repairs and/or emergency chiller rental. Both projects were started in July, prior to the pas- sage of the IRA. Neither project was expecting to receive a tax credit. As long as the projects are not finished before December 31, 2022, and started prior to December 31, 2024, they will qualify for the 40% investment tax credit and should receive a tax refund from the IRS. The city is now planning to use the expected FPL rebate and the unexpected IRA tax credit to fund a similar project. They will retrofit the two 100-ton air-cooled chillers at City Hall to make ice. An engineering student at Florida Institute of Technology is conducting the feasi- bility study using the ASHRAE Building Energy Quotient benchmarking platform to develop the Level 1 energy audit. Preliminary analysis shows a 5-6 ice tanks system will cost $240,000 and the tax credit and FPL rebate will be $96,000 and $144,000. The city is hoping to start the project in time to receive the tax refund and rebate, and start a third project on the city’s municipal auditorium. 35

Beyond Florida Most of these examples have been in Florida. The local utility has been supporting thermal storage for 30 years and the engineering community is very comfortable recommending the technology to building owners. Other areas of the country are also offering rebates. • United Illuminating offers $1,000/ • Orlando Utility Commission offers kW in Connecticut. $550/kW in Orlando • Eversource offers $1,000/kW in • Xcel Energy offers $500/kW in Connecticut. parts of Colorado • Los Angeles Department of Wa- • Omaha Public Power District of- ter & Power offers $750/kW in Los fers $500/kW Angeles • Austin Energy offers $350/kW • FPL offers $600/kW in most of Florida • El Paso Electric offers $350/kW One of the more interesting developments is utility support for electric batteries, either as stationary batteries or batteries on wheels (electric vehicles). ConEdison is considering a $3,000/kW rebate for electric batteries. Hawaiian Electric is offering a $850/kW for batteries on solar PV installations. Since the Inflation Reduction Act defined energy storage systems to include both electric batteries and thermal energy storage, ice storage should qualify for these new rebates as a thermal battery. Up to now, ice storage has not been effectively used in Demand Response programs. With a 40% federal subsidy, more owners will consider installing ice storage as a revenue source. United Illuminating is paying $50/kW per event with up to six events per year. That is $300/kW per year. 40% of the building peak demand can be shed and it is invisible to the tenants. There is no need to change temperature setpoints or lower lighting levels. The key will be aggregating all of the ice storage systems and dispatching them intelligently. CALMAC has over 250 ice storage systems in California alone. If the average size is 500 tons, we can take 125MW off CAISO. About the Author Bruce B. Lindsay, PE Bruce B. Lindsay, PE recently joined Trane Technologies’ Ice Storage Products as Business Development Leader. Prior to Trane, he was the Manager of Energy and Resource Conservation for Brevard County Public Schools in central Florida, the 50th largest school district in the US. He managed 84 schools, of which 20 had ice storage systems. Early in his career, he worked for the Electric Power Research Institute and was Executive Director of the EPRI Thermal Storage Research Center. 36

Net Zero. Leveraging past success to deliver future decarbonization solutions. 37

Key Considerations for Developing a Utility Fleet Electrification Advisory Program Chris Watson and Stacy Noblet At least 15 million electric vehicles (EVs) are PowerMIFleet™ Program conducts a one-time expected to be part of corporate fleets in the assessment of fleet performance data to inform U.S. by 2040, with millions more expected from a customized electrification plan, including municipal, university, and non-corporate fleets. vehicle and charging station recommendations, Adoption will accelerate thanks to infrastructure estimated cost savings, and environmental funding from the Infrastructure Investment benefits. The program incorporates a site and Jobs Act (IIJA) and tax incentives for assessment to estimate incremental power transportation electrification from the Inflation demand at each EV charging site, providing Reduction Act (IRA), including a commercial the utility with insight into the impact that electric vehicle tax credit. electrification will have on the grid. Utilities are at the center of this opportunity, Another program, National Grid’s MA Fleet uniquely positioned as expert advisors at Advisory Service, serves customers across every stage of their customers’ electrification municipal, school bus, transit, state, and federal journey. Utilities can take a more proactive role fleets. The utility supports participating fleets in engaging with fleet customers by offering through the full term of the program, providing fleet electrification advisory programs. Program ongoing technical, analytic, training, and market objectives can range from helping to reduce support as customers move forward with EV emissions by encouraging adoption of light-, adoption. medium-, or heavy-duty vehicles and equipment or planning for future load and grid impacts, to As utilities evaluate the benefits of different increasing customer satisfaction and cost savings. types of fleet electrification advisory programs, To successfully launch fleet electrification there are many perspectives to consider. A few advisory programs, there are core questions key questions that should be part of the planning utilities must answer during the planning phase and development phase include: and key considerations to account for throughout implementation. ● What impacts are you trying to achieve, and how will they be measured and reported? Determine program focus, goals, ideal candidates, and support structure ● Which customers are the ideal targets for the program and why? The current fleet electrification programs across the country are not homogeneous. Their goals ● In what ways and for how long will you vary or offer different levels of support to support those customers? customers. For instance, Consumers Energy’s 38

Begin with intent and determine the utility’s There are many possible program elements to primary goals related to fleet electrification in the consider. For example, web-based tools can service territory. Take the opportunity to discuss help estimate total cost of ownership as well as and align with stakeholders on what a successful emissions reduction potential; localized mapping program looks like in terms of outcomes. This tools can aid EV charging development by can help inform who or what organizations the providing insight to utility distribution system program targets and how to support them. Some capacity, disadvantaged communities, and of the primary and secondary metrics defining proximity to transit; site design and support can fleet advisory programs today include: offer utility and customer-side infrastructure estimates, preliminary charging site designs, or ● Number of fleets engaged, supported, or full permitting packages. Additional components adopting EVs that utilities and customers find valuable include: ● Total number of vehicles electrified ● Information or dedicated support on applicable local, state, or federal grants and funding ● Net, site, or regional emissions reductions ● Current or planned availability of targeted EVs ● Percent of EV adoption that involves some type of managed charging (including off-peak ● Local and national EV news, events, and rates, direct load control, and other carrots or case studies sticks to support efficient use of energy) ● Concierge support to collect and analyze ● Increased resilience of the grid or community fleet data ● Improved positioning as technical experts in ● Utility rate comparisons and analysis the field ● Internal/external business case support (e.g., With a clear sense of program goals, the next summary reports for budgeting committees or step is to identify the ideal candidates or targets board meetings) for the program. Some utilities are focused on medium- and heavy-duty fleets only, while ● Procurement support, including RFI/RFP others provide support and advisory services for support for vehicles and equipment all vehicle classes, even non-road equipment. Target customer groups can include, but aren’t ● Phone or web-based EV & EV charging support limited to, commercial customers, school bus owners and operators, minority-owned business fleets, environmental justice fleets, and non-road equipment users. Once the program customer focus is determined, utilities should decide how and for how long to offer support. The answer may have notable program budget implications, allowing the utility to map how to support customers through each component. 39

Key learnings and experiences to consider: Once program design elements start to take shape, there are key learnings and best practices utilities should keep in mind and revisit during implementation and continuous improvement. First, find and engage the right partners and supporters. In every state and service territory there are likely organizations and individuals willing to help recruit and build awareness of the program. For example, the local Clean Cities Coalitions are keenly aware of the fleet market dynamics and key players. Trade ally networks can help raise customer awareness of a program or partner on EV procurement or charger installations. It’s also crucial to consider equity at every step. Disadvantaged communities are the most negatively impacted by transportation pollution. By targeting fleets that traverse these areas (rather than just those that domicile in these areas), a program can magnify the emissions benefits of transportation electrification. Leverage tools like EJ Screen or the Climate and Economic Justice Screening Tool to make informed decisions about target areas and customers. Further, understand that keeping up with the EV landscape is difficult for customers, and each stakeholder group will have varying levels of expertise. The market is evolving quickly, and fleet managers are bombarded with information about new vehicles, equipment, and vendors advertising their wares and solutions. Provider-neutral introductory trainings (i.e., EV charging 101-level trainings) have been well received across the country. The need for similar offerings will only grow as more and more customers evaluate electrification opportunities. Developing support mechanisms for new and experienced stakeholders across the range of business and financial operations serves to bridge the gaps in differing levels of EV and charging infrastructure knowledge—what is a simple spreadsheet evaluation to some may have much deeper implications for others. Additional Insights ● Understand the business value of electrification ● Federal and state incentive programs can be and decarbonization. Beyond total cost of ownership, complicated. Incentive programs, like the commercial get familiar with Scope 1, 2, and 3 emissions, and how EV tax credit in the IRA, are making the business case for customers can build stronger businesses and extract more electrification more appealing. However, the incentive value from fleet electrification than just operational costs. eligibility requirements are nuanced, and funding avail-ability windows are moving targets. Customers may need technical ● Don’t underestimate the need for recruitment. There and administrative support throughout the application may be low(er) cost of acquisition or pent-up demand for process. this type of service initially, but utilities should be ready to find and engage customers to build a strong pipeline of ● Consider developing a tiered approach to fleet eligible candidates. offerings. Maximizing the benefit and reach could take the form of no- or light-touch services for all eligible customers, ● Enlist utility account and relationship managers to and more technical and hands-on support for customers that identify customer champions. Account managers are meet defined characteristics (e.g., established sustainability great resources that can introduce the program to fleet, plans, stated commitment to EV acquisitions, etc.). sustainability, facilities, and corporate contacts. Some existing customer contacts may lie outside the teams tasked ● Capitalize on the experience of existing EV fleets. with evaluating and deploying EVs. But utility relationships Utilities and other fleet managers can leverage the real- are strong—with the potential to grow stronger—as utilities world experience of fleets to better understand the are increasingly seen as the EV experts by their customers. costs, timelines, and challenges. Even virtual gatherings that connect fleet managers are well-received by fleets ● Have a plan to engage multi-site/multi-utility considering EV implementation. customers. This could be a national account customer or a local business with multiple locations and operations in more ● Understand the motivation and barriers behind than one electric service territory. What level of support, each fleet’s electrification journey. There are a variety if any, will you provide for fleets that are not domiciled of internal and external forces that make fleets consider within your territory? It should be recognized that a lack of electrification. Lower cost of ownership is a key factor comprehensive fleet support may dissuade the customer for many fleets, for example, while others may prioritize from participating. Gathering fleet data is a non-trivial task, emission reduction targets. so if the customer can only assess a small portion of their fleet, they may not participate at all. ● Finally, don’t overlook the low-hanging fruit. Despite incentives and/or the push toward electrification, fleet operators may be resistant to change. Converting a single light-duty vehicle to electric can spark subsequent 40 EV purchases as fleet operators realize the operational,

Shaping the path forward on fleet electrification As utilities consider developing a fleet advisory services program, we encourage them to evaluate both the quantifiable costs and benefits of this type of program, as well as the opportunity costs of non- action. As fleet interest in electrification increases, utilities will play a role by supplying more energy. A key benefit of fleet electrification advisory programs is to help understand and inform fleet deployment plans long before the customer calls looking for new service. This customer evaluation and decision-making period is the ideal time for utilities to educate customers on everything from rates to load management strategies to distributed energy resources they may want to integrate into their plans. In short: help inform the conversation and shape the path forward rather than observing from the outside. Fleet electrification advisory services provide valuable tools for utilities and their customers to better understand the opportunities to electrify and decarbonize in a cost-effective manner. By utilizing these insights and carefully answering core questions, utilities can craft well-designed programs, effectively support customers throughout their electrification journey, and ensure both the utility and customers reap the benefits. ICF combines a long history of successful utility program delivery with clean transportation and beneficial electrification subject matter expertise to design, launch, and implement EV charging, non-road electrification, and fleet advisory programs across the country. In addition to a growing number of utility-led transportation and beneficial electrification programs, ICF currently implements nearly a dozen fleet assessment programs for investor-owned and municipal utilities. Authors Chris Watson (Portfolio Director, Electrification) and Stacy Noblet (VP, Transportation Electrification) have over 35 years of combined experience supporting utilities, as well as other public and private sector clients. About the Authors Chris Watson Stacy Noblet Chris leads ICF’s With more than 15 years beneficial electrification of experience, Stacy is a program with more than transport electrification 20 years of experience specialist helping federal in the clean energy, agencies, state and renewables, and energy local governments, and efficiency sectors. Chris’s utilities to plan, design, expertise in electrifying and implement clean transportation, buildings, transportation strategies and programs. Stacy’s expertise is on-road electric and industrial equipment and processes helps vehicles (EV) and charging infrastructure. She’s utilities and customers reap the benefits through contributed to nationwide and local efforts to increase reduced emissions, improved grid efficiency, and EV adoption through supportive infrastructure and lower operational costs. He works with a range of policy development since modern-day EVs hit the established and emerging technologies, original roads in 2010. Stacy leads EV readiness plans, utility equipment manufacturers, and trade allies across EV charging program design and execution, regulatory commercial, industrial, and residential markets to and policy tracking, and outreach and engagement. deliver results for utilities and the industry. 41

Clean Energy is our business. A sustainable future is our mission. Our Primary Tierra Resource Consultants Practice Areas Industry-leading clean energy program and sustainability consulting services Strategy Tierra delivers meaningful impacts to clients through our primary practice areas, which span the full scope of energy, carbon and resource management consulting services. Research Our Services • Market Research and Delivery Potential Studies Evaluation • DER Program Design • Implementation • DSM Portfolio Support Optimization • Carbon Action Plans • Impact Evaluation & Verification • Customer Insights • ESG Advisory and Process Research Services • DSM Policy and Regulatory Support Sustainability LET’S tierrarc.com CONNECT [email protected] (925) 954-7363 42

Meeting Multifamily Housing Transportation Electrification Needs Lee Ann Head Senior Manager, Emerging Solutions, Franklin Energy Meeting the electric vehicle charging needs of service and/or panel upgrades are often required, multi-unit dwelling (MUD) residents and equitably and there can be a significant increase in monthly supporting the transportation needs of low- kWh/demand charges. Finally, residents often to moderate-income households is a growing balk at having to move their cars once parked— challenge for utilities. In terms of funding support, making a shared charger solution challenging. $3.5 billion has been approved for EV make- ready (equipment and installation cost) incentives Adding to the challenge, few commercial across 55 utilities in 34 states. Of that incentive electricians, engineers, or construction firms have money, 60% of residential filings are specifically the expertise to support the planning, site design, directed to MUD installations, and there are and construction requirements of these projects. often specific MUD incentives in commercial And few electric vehicle supply equipment (EVSE) make-ready program filings. Most often, utilities manufacturers have developed specialized include specific carve-outs or incentive “kickers” solutions for this application. for charging infrastructure located in low- to moderate-income or environmental justice areas MUD vehicle chargers must work for both to help address equity issues. This is a start, traditional parking lot and covered parking but we have a long way to go in supporting EV deck applications, and need side-by-side space growth within the multifamily sector. “shared” functionality and a networked platform that allows for “load sharing” across multiple A 2022 JD Power study found that while 27% chargers. EVSE equipment should be smart/ of American homeowners shopping for a vehicle connected, so that facility owners can benefit are very likely to consider an electric vehicle, from participation in managed charging pro- only 17% of renters are likely to do so, with grams. Chargers should be pre-set to time-of- 34% of them saying they’re not considering use (TOU) periods and/or respond to load control EVs due to lack of charging access. A 2021 Pew signals to “throttle back” during critical peak Research study found that 39% of current and demand events. likely EV owners live in attached single family or multi-family dwellings. Finally, in a 2021 survey, Franklin Energy found that 88% of urban middle- to upper-income renters with EVs consider charger availability when apartment hunting. While many multi-family facility owners and managers would like to meet this need, retrofitting existing MUD parking can be expensive and many can’t bear the up-front costs. Beyond construction and equipment costs, 43

Not all communities have assigned parking. Urban electric transportation solutions should Facility owners and managers need the flexibility include micromobility charging infrastructure to offer either free or fee-based charging, with to solve for the “last mile” needs of low-income the ability to terminate charging once vehicles pedestrians reliant on public transportation. are charged to a set percentage and “nudge” These small charging hubs can be located in residents to move their vehicles. This requires metro stations, at bus stops, and on school the ability to set tiered pricing that increases grounds. They cost less to install, have significantly after a certain time, or when the significantly lower amperage requirements, vehicle reaches a specific charge level. It also and should be included in utility transportation requires a platform that can send notifications electrification filings. Read more on micro- to residents—reminding them that their charging mobility here. session is complete and warning them of impending excess usage fees/fines. The best MUD electric transportation solution is one that includes specialized partners, charging Owners and property managers need an equipment, and software platforms. Large and administrative platform for monitoring and small urban areas, particularly those with high controlling chargers and billing/fee structures, concentrations of low- to moderate-income and the platform needs to be integrated with, residents, also need a hybrid approach that and monitored by, a servicing company that includes micromobility charging. can respond to automated maintenance signals. In an MUD setting, chargers are heavily used. Widespread EV adoption is crucial for achieving Residents will be counting on this service, and climate goals, and equitably supporting the most will be paying for it. Rapid maintenance transportation needs of MUD residents and is required to avoid dissatisfaction and time- low- to moderate-income households will help consuming billing credit processing. the nation overcome EV adoption barriers while ensuring no communities are left behind. Your Finally, micromobility (think e-bikes and utility needs a partner who understands your e-scooters) is an emerging piece of the puzzle unique goals and challenges and is equipped with that holds great potential in addressing equity a solution to meet all your needs. At Franklin concerns. While the U.S. Census Bureau reports Energy, our electric vehicle solution can help that approximately 92% of U.S. households with all the above, from beginner-level education have access to at least one vehicle, this varies to charger purchasing, installation, and managed dramatically by urbanicity and household income. charging enrollment. For example, a 2022 analysis by TitleMax found that over 37% of residents of Washington D.C. Reach out today to [email protected] to and 54% of those living in New York City don’t learn more about our EV solution. have a car. And less than 16% of vehicle owners earn less than $50,000 a year. About the Author Lee Ann Head Lee Ann Head, Senior Manager of Emerging Solutions for Franklin Energy, leads product development and innovation for emerging solutions with- in the energy service industry to support client needs. For the past two years, she has been focused on developing electric vehicle and vehicle charging education tools, and managed charging, EV make-ready, and micromobility solutions for utilities. 44

Arizona Public Service is Committed to Clean Energy with a Customer Focus by Kerri Carnes Director, Customer to Grid Solutions Arizona Public Service Company Arizona Public Service Company (APS) is We are constantly designing and offering committed to serving our customers with clean, innovative programs that aspire to create a reliable and affordable energy. Bringing clean frictionless customer experience for everyone. energy to approximately 1.3 million customers in Our Consumer Advisory Board gives us a direct Arizona is a top priority for APS; its employees line to customers and their feedback, which and partnering with community organizations provides direction on how to best meet our and offering innovative programs to support all customers’ needs and interests in developing customer segments is equally important. After all, solutions that will help them save energy and the people of APS live and work in every corner money. Our modern Demand Side Management of Arizona. (DSM) and renewable energy portfolios were created to support energy affordability with cost- In 2020, APS announced a goal to deliver 100% effective energy education tools. Within these clean, carbon-free electricity to customers programs there is a special emphasis on serving by 2050. APS’s Clean Energy Commitment limited-income and Spanish-speaking customers, (CEC) goal includes a nearer-term 2030 target as well as other segments that can uniquely of achieving a resource mix that is 65% clean benefit from support, such as nonprofits, schools, energy, with 45% of our portfolio coming from small businesses, and tribal communities. renewable energy. As we work toward achieving each milestone in our CEC, we are partnering with customers along the way. 45

APS Solar Communities In 2018, we launched the APS Solar Communities Post 41 solar covered parking structure. program, which was a three-year program. The program provides a unique opportunity for customers, who may not have considered solar as an option. The program connects residential customers with limited-to-moderate incomes and nonprofits, schools, and government organizations with rooftop solar technologies at no cost. We cover the cost of installation and maintenance, while participants earn bill credits for helping advance clean energy in the state. In 2022, the program was extended for an additional three years. A recent example of how a Solar Communities partnership can have a positive impact on our customers and the community is the American Legion, Thunderbird Post 41 installation. We constructed a parking structure with solar panels to harness the sun’s rays and help power the state with clean solar energy. Not only will the customer benefit from monthly bill savings, the structure will provide shade and comfort to visitors during our extreme summer months. Additionally, the solar panels are expected to generate enough power to serve approximately 70 APS customer homes. Since the program’s inception, we have installed rooftop solar panels on 738 limited-and moderate- income residential rooftops, 17 multifamily systems, and 22 nonprofits, Title I schools and rural or government buildings and/or parking structures. Virtual Energy Checkup and Home Performance with ENERGY STAR® We value the importance of customer education and are always looking for ways to help our customers understand their energy use and find ways to save. Our Energy and Demand Education initiatives are available to all customers and include multiple channels for delivering energy and demand management education. Virtual Energy Checkup and Home Performance with ENERGY STAR® checkup are key educational resources and program services to help customers better understand their energy use and take advantage of recommended energy-efficiency home improvement tips and rebates. Virtual Energy Checkup is a free service for residential customers to learn how their home uses energy by connecting to an expert energy advisor who provides them with customized recommendations in real-time via a smart phone or tablet. The customer takes the advisor through their home virtually using their device’s camera and an energy auditing application that evaluates the age and efficiency of their heating and cooling unit, home appliances, thermostats and more. The advisor reviews the finding with the customer and offers personalized energy saving opportunities in and around their home. For example, the advisor may recommend no-cost behavioral changes such as opening or closing the blinds (depending upon the time of year), point out simple energy efficiency upgrades such as LED lightbulbs and power strips, and help customers adjust their thermostats and appliance settings to save energy. Depending on the outcome of the virtual audit the advisor may also suggest an in-person audit and can assist the customer in processing and scheduling the audit. APS finds that both customers and participating contractors greatly appreciate these Virtual Energy Checkups. For customers, they offer a combination of convenience, safety, and education. Contractors in turn find that customers who have previously been through a Virtual Energy Checkup seem to be better informed, pre-qualified (which saves a truck roll and reduces carbon emissions), and more interested in moving forward with energy efficiency upgrades. An advisor working virtually with a customer using video conferencing and smartphone tech- nology to identify energy saving opportunities. 46

For customers looking to receive an in-home energy checkup, the award-winning APS Home Perfor- mance with ENERGY STAR program is an alternative to the Virtual Energy Checkup, connecting cus- tomers with specially trained and certified contractors who can diagnose home performance issues, identify potential energy efficient improvements, and complete home energy upgrades. The improve- ments can qualify for APS rebates and result in significant savings on customers’ energy bills, as well as improved indoor air quality. Customers can receive a Home Performance with ENERGY STAR® checkup for as low as $99. The program has been well received among participants, and customers complete more than 1,000 checkups a year that provide them with ways to save energy and money. APS Marketplace APS Marketplace is an online shopping site available to residential customers looking to gain insights, compare prices, and find energy efficient appliances and equipment. APS Marketplace plays a role in removing barriers to access energy efficient products by connecting customers with unbiased infor- mation, special discounts, APS rebates applied at checkout, and price comparisons to help reduce the upfront cost of higher efficiency. It also is invaluable in scaling programs such as APS Cool Rewards, a demand response program. Customers can purchase a new, qualifying smart thermostat on APS Marketplace and instantly receive rebates and discounts by pre-enrolling the devices(s) in the Cool Rewards program. Once the device is installed in the customer’s home, it is automatically enrolled in the program. In addition, customers can claim rebates for eligible thermostats and smart electric vehicle (EV) char- gers purchased through other retailers on the site. APS Marketplace has also been leveraged to en- gage with targeted customer segments, like our APS Energy Support program (E-3) customers who need assistance paying their monthly energy bills. Eligible customers who enroll in E-3 can receive a 25% discount on their energy bill each month. In October 2022, we launched a targeted welcome campaign to newly enrolled E-3 customers. Over 7,700 customers were emailed (with a 40% open rate) and 4,300 customers received a postcard. The E-3 Welcome Kits include 4 LEDs, a note pad with energy saving tips and a Home Energy Savings checklist. As of the end of 2022, we are proud to report over 950 kits were ordered, and APS looks forward to continue engaging with this customer segment to educate them on ways to save and manage their energy usage. Energy Support Welcome Kit Cars Marketplace, now powered by ZappyRide, is an opportunity for customers to shop and compare car models based on fuel efficiency, available incentives, and the total cost of ownership. In 2022, improvements to Cars Marketplace were made which includes the ability to toggle between English or Spanish, offering more customers the ability to visit and utilize the site. About 3% of our customers receive their bill in Spanish, so this was another important milestone that has allowed us to remove existing barriers and make sure all our customers feel supported during the energy transition. 47

Demand Side Management Portfolio The Tribal Energy Efficiency program serves the Navajo Nation and Hopi tribal community members Our DSM portfolio supports energy affordability for by providing no-cost direct install weatherization of all customer types by providing a comprehensive their homes, and free energy efficiency assessments suite of programs designed to address a wide variety for qualifying nonprofits, businesses, and government of energy end uses and segment needs. In our 2023 buildings in order to identify opportunities for DSM plan, we seek to ensure our portfolio provides efficiency upgrades that will help them save money enhanced support for limited-income customers and energy. In our 2023 plan we have proposed to and disadvantaged communities. The 2023 plan is expand the program. currently pending Arizona Corporation Commission (ACC) approval. In addition to the focus on disadvantaged communities, educational efforts that provide timely The Limited Income Weatherization program is and meaningful information about energy use and designed to improve the energy efficiency, safety, and opportunities for efficiency improvements will health attributes of homes occupied by customers continue to be provided to all residential and non- whose income falls within 200% of the federal poverty residential customers. This will help our customers level. Nonprofits and municipal entities who own make more informed decisions when adopting new and operate multifamily housing for limited income energy-saving technologies in an effort to better qualifying residents can also benefit from funds to manage energy usage in their homes and businesses, weatherize their complexes. while also supporting our clean energy goals. The Multifamily Energy Efficiency program seeks to APS strives to align these DSM programs to meet improve the efficiency of multifamily properties and regional resource needs, and uses DSM programs to dormitories. In the 2023 plan, the program plans to support system affordability and reliability in several support improvements for low- and moderate-income ways, including reducing peak demand, shifting load to rental communities. help alleviate low-load conditions, and improving the reliability of intermittent resources. As part of these Our Residential Conservation Behavior program efforts, APS recognizes the importance of partnering provides participating customers with information with customers to conserve energy when demand on designed to help them adopt energy efficient the grid is highest, with programs like Cool Rewards. behaviors. To drive conservation behavior, the program Demand response benefits all customers and the provides 500,000 participants with direct mail, email, grid by reducing peak demand needs, while also and online reports that show how the energy usage encouraging the use of clean, solar energy when it is in their homes compares with similar homes, as abundantly available. well as customized energy savings tips. APS targets specialized Home Energy Reports to limited-income APS is committed to doing our part by providing customers that focus on low-/no-cost energy savings 100% carbon-free electricity for our customers by tips and information about energy assistance programs 2050. Achieving this goal is only possible through that are available. partnerships and support. The programs and technologies in our DSM and renewable energy The newly approved Shade Tree program is designed portfolios play a huge role in collaborating with all to offer customer incentives towards the purchase of customers to be able to achieve our Clean Energy qualifying shade trees. The program includes a focus Commitment. We will continuously work to improve on providing shade for disadvantaged communities program design with all customer segments in mind that currently lack shade. APS incentives will be during this clean energy transition. Arizona is a offered on a sliding scale between 25% to 75% of tree beautiful place to live. Together, we can keep it that costs depending on the areas being targeted, with way, and we’re committed to doing our part. higher incentives for trees planted in disadvantaged communities that lack shade, which is important for Arizona’s extreme summers. About the Author Kerri Carnes Kerri Carnes has worked at Arizona Public Service since 2003 in various roles, including nuclear, transmission and distribution construction, supply chain, regulatory and customer technology. Her current role is director, customer-to-grid solutions. Serving as the bridge between what customers want and the grid needs, her team helps create innovative customer-focused solutions to help better manage the grid while helping customers achieve their own clean energy goals. These solutions include: DERs, Renewables, Demand Side Management, Electric Vehicles, microgrids and other Sustainability products, which are some of the important offerings her team is working to deliver on behalf of APS’s customers. 48

Planning Resiliency for Critical Facilities by Dara Salour AESC According to the U.S. Department of Energy, resilience is defined as “The ability of a power system and its components to withstand and adapt to disruptions and rapidly recover from them.” With climate change directly impacting power supply, both in risk to infrastructure from fire and from demand that exceeds capacity at peak hours, the need for energy resilience is ever more present, and nowhere is that felt more than in our critical facilities. In California, increasing temperatures and dry conditions are causing more frequent and severe wildfires. Pacific Gas & Electric (PG&E) and other California utilities routinely perform public service power shutoffs (PSPS) to help avoid triggering wildfires, especially during wind events. California businesses and governmental agencies need to keep their most critical facilities up and running during PSPS events to prevent loss of revenue and to provide needed services and safety for their constituents. As you can see from the graph here, over 35 years, as the average temperature in California has risen, so has the number of acres burned. The areas in PG&E territory that are under a high fire threat can be seen in this map from the California Public Utility Commission (CPUC). Historical Acres Burned and Temperature Rise in California 49

The orange areas on the map are tier 2 or high fire threat districts and the red areas are tier 3 or extreme fire threat districts. It is clear that the majority of PG&E’s territory is threatened by wildfire, and that there are some major population centers that could be affected, making resiliency for critical facilities that much more important in this region. Critical facilities vs. critical loads California Public Utilities Commission Fire Map There are certain facilities where the operation of the whole building is considered critical and where backup of the whole building load is required. Examples of these are: • Police stations • 911 call centers • Fire stations • Medical facilities • Emergency operations centers • Jails and prisons In other facilities, continued operation of certain parts of the building are considered critical and it is only necessary to backup critical loads, for example: • Commercial Offices: IT room or data center • Libraries: HVAC and lighting systems, security access system • Grocery Stores: Coolers and refrigerators, cash registers • Community Center: HVAC and lighting systems, kitchens • Schools: Cafeterias, auditoriums • Gas Stations: Pumps, communications system How long a facility or load needs to stay self-sufficient will vary. A critical facility may need enough power to stay operational for multiple days. An occupied facility may need enough power to safely evacuate, complete the school or workday, or just safely shut down. Some critical loads may need enough power to keep systems on for several days, for example: • Security systems • Refrigeration systems • Data centers • Communication systems And some loads may only need enough power to keep systems on for a few hours, such as: • Process loads with a short run time • Electric vehicle charging loads Backup duration varies based on a number of factors, one of which is the facility’s load shape. Questions that need to be asked in assessing the backup needs of a critical facility include: • Are the peaks seasonal? • Are there extreme peaks in the load shape during the day? • Are the peaks associated with particular equipment that needs to stay on? It is important to determine the type and number of loads to be backed up, the type of generation installed and its availability, and whether it will be base loaded like combined heat and power or intermittent such as solar or wind. Also important is the energy capacity and duration of discharge of the energy storage system based on the average and critical daily load. The bottom line is that the system must be sized to support the length of time required for the business need. 50