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   EXECUTIVE SUMMARY



Southern California Edison’s Energy Management Hardware Rebate Program (EMHRP) has been providing incentives for energy efficiency improvements to commercial, industrial, and agricultural (CIA) customers since 1978. Measures range from lighting and space conditioning improvements to building envelope enhancements to motor upgrades. As a function of the program all installations are preapproved and cash rebates are issued for up to 30% of the installed cost of the measures with no maximum rebate.



Customers are guided through the simple rebate process by an SCE Energy Services Representative who conducts an energy survey, recommends applicable energy-efficient measures, and issues a coupon authorizing the customer to proceed with installation of selected measures. After installation is completed, the representative returns and performs an inspection, receives copies of the invoices, and validates the coupon. Customers then redeem the coupon, receiving a check within four to five weeks after the coupon is received by SCE.



Although the EMHRP has existed in one form or another since 1978, several program enhancements have been made over the years including adding measures to the list of eligible measures and changing rebate amounts. In 1988 a new customized rebate category was added that allows customers to receive rebates for measures not on the eligible measure list.



Rebate amounts are calculated in a number of ways. In no case will a rebate be paid for more than 30% of the customer’s investment. SCE awards rebates based on savings of kW and kWh, based on tonnage of cooling saved, square footage of windows treated, thousands of BTUs saved (water heating improvements), and horsepower saved through motor retrofits.



Between 1987 and 1991, EMHRP generated a total of 596.4 GWh in annual energy savings, and 147.5 MW in annual capacity savings. Lifecycle savings have totalled 8,312 GWh. The program has shown significant progress since the Collaborative stimulated activity in 1990. Annual savings between 1990 and 1991 more than doubled to 192 GWh, with capacity savings in 1991 of 35.8 MW. Most of the 1991 savings were attributed to projects within the commercial sector, where 123.8 GWh in annual savings were realized.



Program expenditures in 1991 far exceeded expenditures in any other year, and were accompanied by unprecedented participation rates and energy savings. In fact, the budgeted incentive funds were depleted by April, 1991, and program managers had to reapportion the budget in order to meet program needs without requesting additional funding. Expenditures on incentives in 1991 were $20.5 million, with total program cost of $23.8 million. The Results Center calculates the cost of saved energy for the program, using a 5% discount rate, ranging from 0.26 ¢/kWh in 1987 to 1.23 ¢/kWh in 1991.

  

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