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HomeMy WebLinkAboutRESPONSE - RFP - P1111 AIR CONDITIONING TUNE UP AND QUALITY INSPECTIONPROCTOR ENGINEERING GROUP Proposal to City of Fort Collins (City) Proposal for the Design and Implementation of a Fort Collins CheekMev@ Program February 25, 2008 Submitted by John Proctor, President Proctor Engineering Group, Ltd 418 Mission Ave m San Rafael, CA 94901 Phone (415) 451-2480 _ Email John@proctoreng com v by The Home of Quality Assurance PROCTOR ENGINEERING GROUP those who cannot meet program standards or simply choose not to participate, but to include those who will meet program standards and will build their businesses by producing results for the program Independent Customer Reports Proctor Engineering Group does not allow the contractors or their technicians to printout reports for the customers on the spot We have found from bitter " experience that this promotes cheating on the part of some technicians and contractors The data are captured at our central location, analyzed, and independent reports are mailed directly from Proctor Engineering to the customer This system has totally changed the way technicians deal ` with their customers Since they know the independent report will be coming, the technicians do a much more complete job of informing the contractor about what they did, what the current situation is with their air conditioner and, if additional work would be justified, what that work is The independent customer reports are mailed within one week of the technician visit These reports are accompamed by a semi -anonymous postage free customer satisfaction card, details about air conditioner performance and, information about other programs offered by the City P The customer satisfaction cards provide valuable information not only about the customers' satisfaction, but also why they are so pleased with the service The most common written comment is how pleased they are that, "the technician explained everything to me" " The customer evaluations on the satisfaction cards exceed 95% "good" or "excellent" EVERY customer satisfaction card that indicates less than that is followed up with phone calls to the customer Most of less than good evaluations occur when the technician did not explain what they were doing In all cases where we need the contractor to make good, or change their behavior we work with the customer and contractor to ensure satisfaction Data to the City Proctor Engineering Group captures data at the phone center on two different databases on two different computers immediately This eliminates the problem of lost data and the resultant problems for the City, the contractors, and us Software programs review the stored data on the primary database and report any suspected problems for resolution These programs are run nightly As a result Proctor Engineering Group supplies fall, clean, accurate data to the sponsoring organization on regular intervals as needed by the sponsor PEG develops and manages comprehensive program monitoring databases and tracking systems to support its programs These systems are designed to manage the types of data and provide the reporting that City will want in this program, including customer information, pre -repair, post - repair results, and equipment data PEG has developed and managed custom applications to support program implementation since our inception, updating systems with changing technology requirements Our staff is composed of people with both technical and operations backgrounds who understand tracking and have a long time focus on energy efficiency Pay Contractors Since the CheckMef quality assurance system captures data at a central location immediately, we process incentive payments to contractors in a very short time We have found this is essential for the contractors, many of whom have cash flow problems or are unwilling to wart to see when they will be paid We set up an incentive escrow fund that makes it possible for us to pay the contractors by the 1 Oth business day of the month following the work Supporting Contractor Marketing and Sales We will support contractor marketing efforts through the design of materials to be used by contractors Many medium to large HVAC contractors send out a mailing or newsletter 2 or 4 times per year to their customers promoting tune-ups and specials These newsletters have proven very effective in carrying the program message Fort Collin Utlhhes' Roles We understand that the City's roles will include • Providing general marketing and promotion for the program We look forward to discussing with the City's staff what their current thoughts are on marketing and promotion It is possible that we can add our experience with these programs to your experience and knowledge of the local situation in Fort Collins • Reviewing marketing materials for approval prior to our use or the use of the contractors in the program We know that it is essential to safeguard the good name of the Fort Collins Utilities and to help the citizens appreciate the efforts undertaken on their behalf • Providing a customer database for the purposes of checking eligibility PEG recognizes the importance of safeguarding customer confidentiality and will work with the City to ensure that high confidentiality standards are maintained PEG has utilized and managed customer account information for over 9 million customers of major IOUs in the course " of administering their energy efficiency programs with great success PEG understands that all program data are the property of the City and will not share data with any other entity • Providing payment to PEG for documented completions of the program measures Contractor and Technician Roles The contractors and technicians are the critical link in projects where they deliver the services Their roles include • aggressively market the measures to their customer base • provide quality installation of the measures in accordance with the program standards • work with Proctor Engineering Group to continuously improve the system of delivery • solve any problems that occur with customer satisfaction or with the measure installations 0 Recruiting, Training, and Equipment Recruitin¢ HVAC contractors PEG manages several contractor -focused programs for utilities and other systems benefit administrators In every case, the program requires a combination of cutting edge technical excellence, strong marketing, the right incentives to encourage energy efficient choices, professional and ethical sales methods, great customer service, strong quality ` assurance and quality control (QA/QC) systems, and the ability to effectively manage and report data A key goal is to understand the local residential HVAC contractor community and determine which contractors will be most likely to succeed in this type of program environment ` Many contractors attracted to CheckMeI are quality providers selling name brand equipment They complain of losing business to "bottom feeders" who offer low first -cost and little else We r have found that these quality contractors typically have already demonstrated an aptitude and desire for high levels of training, adoption of new technologies and methods, and computer savvy Often, these contractors will implement a vast proportion of program jobs, especially in the first 1-2 years of a program Contractors who fit this profile will often already be in one of the "elite dealer networks" coordinated by such major manufacturers We will use our national contacts to gam access to these networks in the City Training HVAC technicians The PEG CheckMel quality assurance system provides the ` smoothest transition for the technician to achieving proper refrigerant charge and improved airflow on each unit CheckMef uses the common tools with which the technician is already familiar This allows the fastest and most widespread implementation of the program Proctor Engineering Group trains each technician, reviewing the refrigeration circuit and the processes within that circuit This information, when understood, provides a firm base for technician F understanding We train on the basics behind the charge, airflow, and economizer measurements We train on repairs as well as on program requirements and details We insist that each technician physically demonstrate the procedure from start to finish Proctor Engineering Group ry will provide the 'classroom" training and field training for each technician with no more than four technicians to each experienced, hands-on framer Our training has been studied and cited as a best practice in multiple studies including the SDG&E Residential Contractor Program Evaluation by Wirtshafter Associates, Inc In part that evaluation said "The f eld training support offered by Proctor Engineering for SDG&E was given very strong marks by both experienced and novice contractors These contractors felt that the hands-on experience was the most important component of the training " It was clear that contractors who had participated in more than one utility s ` RCP program preferred the hands-on (CheckMe) training offered by SDG&E 10 This approach allowed the training to happen under real conditions and let the contractors ask questions as they occurred over the first several jobs " One interesting observation offered from the League (of California Home Owners) was that they had noticed lower complaint rates and greater voucher activityfor duct services where field training had been available (The only RCP program that offered field training was CheckMe) If the City accepts our additions to the program we will also train on installation of the BPM " motor and enhanced time delay relay Deliverables Proctor Engineering Group sees the proper installation of the measures listed in this program as the number one group of deliverables for this program The installations will be supported by ^ • An initial meeting with the City's program manager • A finalized plan submitted to the City's program manager Bi-weekly reports on local staff recrwting • Introduction of hired program staff to the City's program manager • Monthly reports on production, energy savings, peak savings, the critical variables that effect energy savings and peak reduction, as well as customer satisfaction • Monthly reports on contractor and technician recruiting and training • Submission of marketing materials to the City • Annual Review Meeting and Annual Report • Additional deliverables as negotiated and needed by the City The timing of these deliverables is shown in Section 7 Schedule %y Elements The primary key feature of the PEG plan is Immediate Response This means not one day, one week or one month after the job is done It means when thejob is done The CheckMef Quality Assurance System immediately verifies the work done in the field while the installing technician is still on site There is no delay between the technician's action and the evaluation of that action by human oversight and computer expert systems A schematic of the system is included as Appendix A Proctor Engineering will manage the program to achieve both high production and high quality — which translates to meeting the energy savings goals PEG graphs each program's energy savings against their goals These graphs are updated weekly and posted in the Staff meeting room where -- they are reviewed every week If there are shortfalls, we work as a team to deternune the reasons and to correct the trajectory of the project Based on our past experience, the following pattern has emerged for success 11 W 1 Support the contractors and their technicians This includes making sure that the contractor is paid expeditiously 2 Make sure the contractor pay is structured so that they can come out whole when they are faced with a number of units that do not require repair — provide sufficient remuneration for test only jobs 3 Do not over compensate for test only jobs since that drives the contractors to avoid the real work (repairs) that produce savings 4 Track every critical variable from week to week to ensure that there are not problems ansing that go undetected Some of the critical variables are the amount of refrigerant adjustment and size (tonnage) of the units 5 Keep on top of customer satisfaction by providing multiple avenues for customer response and by immediately solving any potential problems 6 Support the contractors in their legitimate business plans with training and marketing assistance 7 Support the technicians in providing a superior job to each customer through positive reinforcement and solid enforcement 8 Immediate response to technician calls on the toll free line Many market transformation programs provide some background assistance to market change and hope that change will occur as a result This program is much more direct and as a result provides true market transformation and certain resource acquisition The contractors are installing equipment and making adjustments that acquire lower kWh for the customer and reduced kW for the City We note that the City has a goal of reducing per capita peak day electric demand 15%, from the 2002 level by the year 2012 This program will put a contractor system into place that can assist efforts toward that goal '- CheckMe Call Center Techmcian data calls and technical assistance calls are processed at our two call centers One in Fall River, Massachusetts for early morning calls and one in San Rafael, California Both are served by T-1 circuits capable of simultaneously processing any combination of inbound and outbound calls at any given time The Centers are equipped with a state-of-the-art computerized phone systems that give mcoming CheckMeI calls immediate live human contact within 3 rings The two centers are interlinked to ensure service even at peak times The phone systems incorporate technology for reporting on historical and real-time statistics of calls and feature live monitoring capabilities for management staff As part of our 'customer -first" orientation, the ultimate satisfaction of the customer is our primary goal In that respect, the quality of technician interaction is critical to the success of the program All Call Center personnel are trained and experienced in telephone protocol that guides the technician to the appropriate level of service including mmnediate connection with our technical experts when appropriate 12 ..Pol The on -site supervisors regularly monitor performance through direct observation and real-time coaching Feedback and training is provided to every staff person Complaints are very rare If a complaint from a technician, contractor, or City staff occurs it will be immediately investigated and complaint resolution achieved within two working days of the complaint There are regular trainings schedule for staff to receive updated information on programs, procedures and new initiatives These trainings also provide feedback on strengths and weaknesses of the staff 3 Costs To avoid contractor confusion, the prices are set to provide incentives equal to the incentives offered in the Xcel program for single family residences We propose to be paid using all -in unit prices • Initial diagnostic test of refrigerant charge and coil airflow up through 2 5 ton $104 3 through 5 ton $114 >5 ton $129 (includes $79 which covers all PEG costs for refrigerant charge, indoor coil airflow, r outdoor coil cleaning, and enhanced fan time delay) • Successful Post -repair test and verification of charge and indoor coil airflow up through 2 5 ton $40 3 through 5 ton $50 >5 ton $100 • Outdoor Coil Cleamng up through 2 5 ton $25 3 through 5 ton $35 >5 ton $50 • Enhanced Fan Time Delay all sizes $55 • Install Brushless Permanent Magnet Motor on Indoor Fan all sizes $205 (includes $55 which covers PEG costs associated with this measure) ^' • Economizer Repair all sizes $155 ry (includes $55 which covers PEG costs associated with this measure) We propose to increase these unit prices at January 1 of each year by 3% to account for inflation We would be amenable to tying actual increases to real annual inflation rates for the City area Unit prices include the cost of contractor incentives, contractor recruitment, training, and management, marketing, software, program management and administration incentive processing, reporting, and startup plan development No costs are excluded 13 r z PROCTOR ENGINEERING GROUP On some measures we estimate that the customer will also pay a portion of the total cost as follows .- • Initial diagnostic test of refrigerant charge and coil airflow all sizes $0 to $10 • Successful Post -repair test and venfication of charge and indoor coil airflow up through 2 5 ton $0 3 through 5 ton $0 to $10 >5 ton $30 • Outdoor Coil Cleaning all sizes $0 • Enhanced Fan Time Delay all sizes $25 • Install Brushless Permanent Magnet Motor on Indoor Fan all sizes $200 p • Economizer Repair all sizes $50 The actual pricing will be up to the contractors Our experience has shown that the highest volumes will come from contractors who do not charge for any of the services except the motor replacement IV 4 Peak Demand Reduction and Energy Savings The savings calculations are contained in the embedded spreadsheet in Appendix B The savings are based on the assumptions in Table 1 Table 1 Inrouts and Assumptions Source Residential EER 9 stimate for average SEER 10+ —Average Tonnage Single Family 34stimate for Residential Units CheckMel Database Average Tonnage Mufti Family 2CheckMel Database Connected Load Single Family453efinition annected Load Multi Famtl 267efinition 7kWoefinition C Coinc Peak Diverse 50%stimate for Avera a Peak Da in Coolin Months CCoinc Peak Diversity Annual Peak Da 70%stimate for Peak Da in Peak Month Heatin Coinc Peak Diverse 40%stimate for Average Peak Day in Heating Months C Intense 078 kWh/CDD/ s ft 1000 (Note 1) Table CE3 1 c Electric Am Conditioning Energy onsum tion in U S Households by Climate Zone 2001 ooled Area 2336 s ft able CE3 1c Electric Air Conditioning Energy onsum tion in U S Households by Climate Zone 2001 C Energy Consumption Single Familv 873 kWh alculation C Energy Consumption Multi Famtl 513 kWh alculation E urvalent Full Load AC Hours 193 hours alculation not used Energy Star Calc Equry Full Load C Hrs 628 hours htip //energystar govha/business/bulkyurchasing/bpsawn s calctCalculatorAirSouroeHeatPump As Avg Summer Peak kW Single Farm!diversified 2 3 kW alculation Avg Summer Peak kW Multi Family (diversified) 13 kW alculation Heatin Intense R 6 222 cuft/HDD/ s t 1000 (Note 1) Table CE2 is Space Heating Energy Consum hon in U S Households b Climate Zone 2001 Heated Area R 2003 s ft able CE2 1c Space Heating Energy Consumption in U S Households b Climate Zone 2001 urnaceInput 100000 btuh Estimate urnace Energy Consumption in le Familv 79362 1 cult Calculation herms Heating Single Family 818 Therms alculation dFamilv nnual Heating Run Hr 818 hours alculation vg Heating Fan kWh Single 447 kWh alculation v Heaem Fan kWh Multi Family 263 kWh alculation vg Heating Fan Peak kW Single Family022 kW alculation rvg Heating Fan Peak kW Multi Famtl 013 kW iCalculation Commercial ER C 5 or less 9 BTU per Waft fir Estimate for average SEER 10+ ER C 5 plus 8 BTU per Watt hrEstimate for Larger Commercial Units vera a Tonne e 5 and less 3 4 tons CheckMel Database HECCoinc vera a Tonnage 5 plus 7 5 tons CheckMel Database onnected Load 5 and less 4 53 kW Definition onnected Load Commercial 5 plus 11 25 kW Definition C Come Peak Diversity 70% Percent Estimate for Average Peak Days in Cooling Months Peak Diversity Annual 90% Percent Estimate for Peak Day in Peak Month 15 r PROCTOR ENGINEERING GROUP Peak Da Heating Coinc Peak Diversity 06 Percent Estimate for Average Peak Day in Heating Months Avg Summer Peak kW diversified 32 kW alculation Avg Winter Peak kW diversified 04 kW alculation Avg Summer Peak kW >5 diversified 79 kW alculation Avg Winter Peak kW >5 ton diversified 08 kW alculation Fort Collins Weather HOD 6368 Heating Degree Da s City RFP 1111 COD 479 Cooling Degree Days City RFP 1111 oolinci Months 3 Months Estimate Months with cooling at coincident peak Heating Months 5 Months Estimate Months with heating at coincident peak Fort Collins Economics Energy Cost Wholesale 00170 $ per kWh i RFP 1111 holesR12 Demand Cost 1205 $ er kW l RFP 1111 Ena Cost Retail1 00691 1 $ perkWh City RFP 1111 Savings and Misc Refrigerant Charge and Airflow Say Summer 10% Enhanced Cooling Time Delay avin s 8% Outdoor Cod Cleaning 7 5% —Motor Brushless Motor Replacement kWh Savings 50% Motor Replacement AC Effect 8% ETDR on Brushless Motor Savings 20% Economizer Re air Sawn s 10°� an Motor kW er 1000 cfm 0 51 very a CFM per ton 350 Lifetimes C Refrigerant Charge and Airflow 10 years C Outdoor Cod Cleaning 5 ears C Brushless Motor Replacement 15 years ETDR 15 years Economizer Repair 5 years Customer Ma Single Family 62% Multi Fami 20% mall Commercial 5 to or less 15% Email Commercial >5 ton 3% Note 1 Energy Information Administration 2001 Residential Energy Consumption Survey Household Energy Consumption and Expenditures Tables 16 r Based on the assumptions in Table 1 and the calculations in Appendix B, we estimate the savings shown in Table 2 Table 2 Energy Savings and Peak Reduction Summer and Program Annual Peak Peak Annual Winter Single Family Costs ($) kWh Summer kW Winter kW Winter Therm kWh AC Refrigerant Charge and Airflow 144 87 021 0 0 AC Outdoor Coil Cleaning 35 65 015 0 0 293 AC Brushless Motor Replacement 205 (summer 70) 017 Oil 95 223 Enhanced Cooling Time Delay 55 70 017 0 0 ETDR on Brushless Motor Replacement 55 175 041 0 0 .-- Multi Family AC Refrigerant Charge and Airflow 128 51 012 0 0 AC Outdoor Coil Cleaning 25 39 009 0 0 173 AC Brushless Motor Replacement 205 (summer 42) 010 006 56 131 Enhanced Cooling Time Delay 55 41 010 0 0 ETDR on Brushless Motor Replacement 55 103 024 0 0 Note that Commercial Run Times will actually be longer with higher kWh savings Commercial 5 ton or less AC Refrigerant Charge and Airflow 144 87 027 0 0 o-. AC Outdoor Coil Cleaning 35 65 020 0 0 293 AC Brushless Motor Replacement 205 (summer 70) 021 016 95 223 .- Enhanced Cooling Time Delay 55 70 021 0 0 ETDR on Brushless Motor Replacement 55 175 053 0 0 r Commercial >5 ton AC Refrigerant Charge and Airflow 189 193 077 0 0 AC Outdoor Coil Cleaning 50 144 063 0 0 647 AC Brushless Motor Replacement 205 (summer 154) 047 036 210 493 �- Enhanced Cooling Time Delay 55 154 047 0 0 ETDR on Brushless Motor Replacement 55 385 1 17 0 0 Ewnomizer Repair 155 193 000 0 0 17 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 Program Objectives 2 1 Required Services 4 Turnkey Program Delivery 4 Services 4 2 Program Structure and Processes 5 Minimum Services 5 Enhanced Services 5 Program Delivery 6 Proctor Engineering Group Roles 7 Fort Collins Utilities' Roles 9 Contractor and Technician Roles 9 Recruiting, Training, and Equipment 10 Deliverables 11 Key Elements 11 3 Costs 13 4 Peak Demand Reduction and Energy Savings 15 5 Participation Rates 18 6 Cost Effectiveness 19 7 Schedule 20 8 Quality Assurance Processes 20 9 Market Transformation 21 10 Staffing 21 11 Qualifications 22 Staff Qualifications 22 Corporate Qualifications 23 12 References 27 Appendix A CheckMel Schematic 29 Appendix B Calculations (embedded Excel Workbook) 31 PROCTOR ENGINEERING GROUP 5 Participation Rates The production, total savings, and budget are based on the customer participation estimates in Table 3 The percentage of commercial units with economizers vanes substantially from region to region In most cases they are only on larger units If the number is as small as we have projected then it would not be worthwhile to run trainmgs on testing and repairing them There may be one or two contractors who have a fair number of economizers in their customer base If so they should be trained Table 3 Production Measure 2006 2009 2010 Total Single Family AC Refrigerant Charge and Airflow 372 620 1240 2232 AC Outdoor Coil Cleaning 225 372 744 1341 AC Brushless Motor Replacement 150 248 496 894 Enhanced Cooling Time Delay 150 248 496 894 ETDR on Brushless Motor Replacement 150 248 496 894 Multi Family AC Refrigerant Charge and Airflow 120 200 400 720 AC Outdoor Coil Cleaning 72 120 240 432 AC Brushless Motor Replacement 48 80 160 288 Enhanced Cooling Time Delay 48 80 160 288 ETDR on Brushless Motor Replacement 48 80 160 288 Commercial 5 ton or less AC Refrigerant Charge and Airflow 90 150 300 540 AC Outdoor Coil Cleaning 54 90 180 324 AC Brushless Motor Replacement 36 60 120 216 Enhanced Cooling Time Delay 36 60 120 216 ETDR on Brushless Motor Replacement 36 60 120 216 Commercial >5 ton AC Refrigerant Charge and Airflow 20 30 60 110 AC Outdoor Coil Cleaning 10 20 35 65 AC Brushless Motor Replacement 0 0 0 0 Enhanced Cooling Time Delay 10 10 25 45 ETDR on Brushless Motor Replacement 0 0 0 0 Economizer Repair 2 2 4 8 r We estimate that 6 to 8 contractors will be active in the first year, 12 to 14 contractors in the second and third years 18 I PROCTOR ENGINEERING GROUP 6 Cost Effectiveness The cost effectiveness calculations are contained in the embedded workbook in Appendix A the following important assumptions include " • City kW benefits accrue for three summer months for all the measures and for five winter months for the high efficiency fan motor (Brushless motor) replacement • We have used a discount rate of 0% and a net to gross of 1 for simplicity These numbers can be adjusted to the City's standard practice " • Measure lives and other assumptions are listed in Table 1 is TRC = Lifetime Avoided Supply Costs/(Participant Costs + Utility non -rebate Costs) is UCT = Lifetime Avoided Supply Costs/(Rebate Costs + Utility non -rebate Costs) PCT = Lifetime Participant Benefit / Participant Costs • The value of the additional customer purchased gas therms in the winter that makes up for the reduced heat from the high efficiency fan motor has not been figured into the calculations It would slightly reduce the PCT on the Enhanced Program The cost effectiveness results are given in Table 4 Table 4 Cost Effectiveness Minimum Program Total Program with Enhancements Utility (non rebate) Cast $ 7918 $ 10056 Rebate Costs $ 6364 $ 18566 Utility Cost per kW $ 65876 $ 47824 Utility Cost per lifetime kWh $ 0 170 $ 0 073 Participant Cost per unit $ 807 $ 10566 Avoided Supply Cost $ 6549 $ 25527 Participant Benefit $ 5800 $ 271 87 TRC 075 1 24 UCT 046 089 PCT 719 257 19 PROCTOR ENGINEERING GROUP 7 Schedule A realistic schedule will have the majority of the 2008 production taking place in the later summer and early fall In following years, the largest percentage of the production will take place in the spring when the contractors are not busy with furnaces or ACs and homeowners are receptive to offers concerning AC tune-ups In the winter we expect some production associated with the brushless fan motor measure, but customers are not concerned with their ACs at that r time and proper AC testing requires warmer temperatures We project the following schedule for 2008 PEG Deliverables Sign Contract Week 0 Recruit Additional Local Staff (part time) Week 0 Progress reports bi weekly Planning Meeting Week1 or 2 Written Final Plan by Week 6 Part Time Staff Hired by Week 8 Introduction to City Staff Recruit Contractors Week 4 on Monthly Report of Activity and Sgnups Materials Design Week 3 to 6 Submission to City by Week 6 Technician Training Week 8 on Monthly Report of Activity and Signups Production Begins Week 8 on Monthly Report of Activity kWh savings and kW Reductions AC Production Phases out for 2008 October Annual Review Meeting November Final report and plan for 2009 by Dec 15 8 Quality Assurance Processes Proctor Engineering Group has been refining their technician quality assurance program since the late 1970s when it was started in Colorado to provide furnace tune-ups for low-income households The original furnace tune up and safety program has been adopted across the country because of its effectiveness The CheckMel quality assurance system is the picture of elegant simplicity For the technician it is as simple as a phone call It requires no unusual equipment, it uses simple voice communication, and it is supportive and technically accurate The simplicity is achieved by the "behind the scenes" elegance The elegance is the computerized expert system refined by over a quarter of a million runs The elegance is the sophisticated training that ensures that technicians are aware and capable of completing the tune-ups successfully The elegance is the weekly ` statistical analysis of each technician's performance The elegance is the human oversight that r_ reviews performance, solves problems, gathers customer feedback, and provides immediate technical assistance to the technicians Proctor Engineering Group provides a high level of protection of the City's customer data files The files can only be queried for information specific to a particular location or meter number 20 I PROCTOR ENGINEERING GROUP Only the IT department has access to the raw data Only one individual in the IT department handles that data and he has signed a sworn confidentiality agreement The program establishes both immediate and longer term communication channels with the customer The installing technician provides every customer with a write up explaining the measures, how they will change the performance of their air conditioner, and a toll free number to contact Proctor Engineering with any questions, comments, or complaints This is followed up with a mailing to the customer within one week This mailing reinforces the information supplied by the technician and provides a postage paid customer satisfaction card for the customer as well �- as a repeat of the toll free number Historically, the majority of the feedback is by satisfaction cards and is over 95% good or excellent Any customer whose satisfaction is lower than "good" is called and the problem addressed This close contact with the customers results in strong feedback to PEG to ensure that the program is progressing as designed In addition we will inspect both random and specially selected units Proctor Engineering Group will respond to any customer questions or complaints within twenty- four (24) hours by telephone and will include the HVAC contractor directly or indirectly, if necessary, to provide immediate guidance corrective work Proctor Engineering Group has always provided this service to the customers and we are proud of our personnel who are truly service onented We maintain a customer service log to track such customer calls and the service that was provided If any complaint cannot be resolved to the satisfaction of the customer within five (5) days, Proctor Engineering group will immediately provide the City with a detailed description of any such complaint, which will include the name and contact information of the customer complaining and any other information requested by the City 9 Market Transformation Market transformation is more than a criterion of the sponsoring entity to Proctor Engineering Group We are deeply involved in the market transformation of the HVAC industry We have originated many of the improvements that are gaining momentum and we have seen what works and what doesn't work for 30 years Market transformation does not take place either over night or even in two years Our plan for market transformation would be an eight year plan Incentives would build participation and knowledge by both the contracting community and the larger community for the first four years of the plan Beginning in the fifth year the incentives would be reduced year by year The fifth through eighth years would see an increase in co -marketing and a progressive reduction in the overall budget 10 Staffing John Proctor, P E will be overall responsible for the quality and performance of Proctor Engineering Group in this project 21 Tom Downey will be responsible for the quality of the technical and training aspects of the program Potential framers for the program include Mike Suns, Tom Downey, Rob deKieffer, John Proctor and Lou Manongelli Abram Conant will be the project manager and will be responsible for all aspects of this project including the primary interactions with the City and with HVAC Contractors All program personnel will report to him Proctor Engineering Group will engage one additional part time staff person in Colorado to provide ongoing local support for the program at all levels including training, recruiting, logistics, and inspections This person will be trained in the CheckMef system from top to bottom and will be supervised by Mr Conant with support by Mr Downey Randy Larson will be responsible for the performance of the CheckMeI call centers 1 11 Qualifications Staff Qualifications ABRAM CONANT, Project Engineer, Proctor Engineering Group, Ltd, has worked on several projects targeting energy efficiency improvements for residential and commercial HVAC equipment Mr Conant is the program manager for the Pacific Gas and Electric Company Enhanced Time Delay Relay program as well as the Glendale, Burbank, and Colorado Xcel Energy CheckMeI programs He has designed equipment and procedures to be used by HVAC service technicians He has been the lead engineer on experimentation, data acquisition and analysis for product development MIKE SIMS, Field Manager, is a licensed California HVAC contractor and highly rated trainer He has extensive experience in the application of advanced air conditioning and duct diagnostic techniques Mike has been an HVAC supervisor, HVAC framer, auditor framer, duct and blower door technician and framer, as well as consultant on combustion safety testing and repair E A "SKIP" MANDRACCHIA, IT/Engmeenng Manager, Proctor Engineering Group, Ltd is an electrical engineer with over 23 years of engineering and managerial experience He is - internationally recognized for his development of State -of -the -Art ultrasonic measurement instrumentation JOHN PROCTOR, P E , President, Proctor Engineering Group, Ltd is an M I T engineer who has conducted field and research investigations of energy systems since 1979 John matches his superior technical capability with years of practical hands-on energy systems experience Under his direction, evaluations and research are grounded in the integrity of the numbers being analyzed This combined approach ensures that the results are practical, meaningful, and statistically accurate Mr Proctor is a nationally recognized expert in energy efficiency, whose 22 PROCTOR ENGINEERING GROUP advice concerning the monitoring and analysis of electrical and gas equipment is solicited by state utilities and HVAC professionals Mr Proctor has been the primary researcher on several PEG projects, (e g , Peak Load Impacts of High SEER Residential HVAC Units) and has been Principal on a series of AC and Heat Pump pilot projects, including the AC2 Field Test, High Efficiency Commercial AC Savings Persistence Project, and the Nevada Appliance Doctor project Working on the Pacific Gas & Electric Heat Pump Efficiency and Super Weathenzation Pilot Project, conducted in Auburn, CA in 1989, he found charge and an -flow problems in the majority of units studied When numerous subsequent studies in different service territories revealed similar results, he began development of a system to detect and correct airflow and charge This early research led to the creation of CheckMel® in 1997 CheckMeIO's computerized expert systems are now helping contractors bring air conditions up to optimal performance in California, Nevada, Washington, Florida, Oregon, Massachusetts, Rhode Island, and Idaho The program has achieved national acclaim (Energy Design Update, Vol 21, No 3) with industry professionals TOM DOWNEY, Senior Project Manager, has been involved in energy efficiency since 1981, primarily as a project manager/researcher/tramer Mr Downey has been Project Manager on numerous PEG research projects including assessment of HVAC installations to California, Nevada, Arizona, New Jersey, and New York He has also managed research projects for the installation and testing of innovative air conditioning systems (for example, Assembly, Testing, and Investigation of a Reduced Peak Load Air Conditioner, and Investigation of the AC2 Air Conditioner) He is the Senior Project Manager of the Innovative Peak Load Reduction Program for the Califorma Energy Commission, and has managed CheckMeI0 programs for San Diego Gas & Electric, Southern California Edison, Sacramento Municipal Utility District, Florida Power Corporation, and Glendale Water and Power He has extensive experience with field monitoring projects and is responsible for designing and implementing production and research projects and managing data acquisition and retrieval, installation and management of monitoring systems and data analysis r Mr Downey is also recognized as one of the top trainers in the nation on the topics of HVAC systems and building science As a trainer he is responsible for developing and delivering training sessions on a wide variety of topics including proper sizing and installation of air conditioners and heat pumps, duct systems and installation, combustion safety and HVAC diagnostics Corporate Qualifications Proctor Engineering Group grew out of non-profit organizations founded by John Proctor These organizations concentrated on evaluating and monitoring the true effects of energy efficiency measures to select measures that would save energy for low-income households and the general public From intensive scientific study, PEG developed programs that applied only the measures 23 that were effective The cornerstone of these programs is a quality assurance system called CheckMel PEG is dedicated to developing and delivering energy efficiency and peak reduction programs that ensure both economic and environmental benefits to our customers As a leader in energy efficiency solutions, our team of experts has been pioneering technological innovations in the residential and small commercial sectors for over 30 years Our strong history in and deep commitment to energy efficiency and peak reduction has enabled us to achieve technical advancements and develop an array of products and services that help companies meet energy challenges or drive new directions We deliver proven energy efficiency and peak reduction solutions to electric and gas utilities, government agencies, municipalities, energy services companies, as well as property and facility management companies nationwide Our expertise and ongoing commitment to providing creative and effective solutions for the growing needs of our clients make us the ideal partner for any company looking to achieve energy savings, peak reduction, and cost efficiencies Customers in all of the markets we serve value our knowledge of the industry and continuing focus on future trends, as well as our unwavering dedication to a collaborative partnership, responsive and flexible customer service, and quality assurance The description of the CheckMeI program by ACEEE in its award provides a good summary of the program Large utility companies have invested in the CheckMet® system because it combines multiple elements to produce a cost effective comprehensive system delivering real savings The CheckMei system is elegant in its apparent simphcity HVAC technicians are able to perform CheckMei tests using standard equipment Training is personalized and in -the -field Technicians have immediate access to expert help throughout the program while the performance of every technician is tracked and corrective actions are taken The system is applicable wherever the actual energy savings or peak reduction is dependent on the performance of field personnel Exemplary Program Award, American Council for an Energy Efficient Economy (ACEEE) A number of related programs are listed below Client California Energy Commission (CEC), Sacramento CA Project Name Innovative Peak Load Reduction Program 2001 2002 • 30,000 systems serviced _ • Delivered deemed peak reduction of 30 32 MW • 118% of goal achieved on schedule at cost of $ 03 per kWh saved The program serviced residential and commercial HVAC energy consumers throughout California in rural and urban communities Proctor Engineering recnnted, trained and monitored 517 technicians employed by 211 HVAC contractors Incentives were used to motivate contractors to adopt the CheckMel System of air conditioner retro commissioning 24 GROUP ` Client California Public Utilities Commission (CPUC) and Southern California Edison (SCE) Project Name HVAC Retro Commissioning for Hard to -Reach Energy Consumers 2003 2004 • 13,000 AC systems serviced • 1,300 duct systems serviced • Production and savings goals exceeded and extended The program was made available to all SCE customers with specific efforts directed at hard to reach customers throughout Southern California Local contractors were recruited in hard to reach areas to help serve thew customers and enhance business in thew communities Production goals were 5 500 residential air conditioners, 7 500 light commercial air conditioners 1 300 residential duct systems Using both the CheckMe' AC retro commissioning system and the CheckMe' Duct Sealing System local contractor were able to address the three primary sources of cooling system inefficiency duct leakage incorrect refrigerant charge and poor awflow Program production goals were exceeded for duct and AC testing and repair The program was extended to achieve additional savings and peak reduction Hard to reach customers who had not previously benefited from energy efficiency programs received an average savings of 15% on thew cooling bills plus longer equipment life and unproved comfort in thew homes and businesses Program Evaluation The process of calling in measurements to the CheckMe f® center during a customer visit received the highest average rating of all aspects of the Program Contractors were very satisfied with all aspects of the Program and were enthusiastic about continued ` participation Customers indicated a high level of overall satisfaction with the Program SCE CheckMe' Program, Independent Interim Report, Itron, Inc and kW Engineering Client San Diego Gas & Electric, San Diego CA Project Name Residential Heating and Coolmg Training and Equipment Demonstration/Sales 2000 2001 • 5000 AC & Duct systems services ~ • >250 HVAC technicians trained • Exceeded cost and savings goals ~ Proctor Engineering Group trained evaluated and monitored more than 250 HVAC technicians in advanced techniques of air conditioner retro-commissionmg and duct testing and sealing The program tested (and repaired when necessary) close to 5,000 systems, exceeding program cost and savings goals in both years of operation Monthly reporting, verification, and customer support were also provided throughout the life of the program Program Evaluation "The field training support offered by Proctor Engmeering for SDG&E was given very strong marks by both experienced and novice contractors These contractors felt that the hands-on experience was the most important component of the training " 1 25 ` It was clear that contractors who had participated in more than one utility s RCP program preferred the hands-on (CheckMe9 training offered by SDG&E This approach allowed the training to happen under real conditions and let the contractors ask questions as they occurred over the first severallobs One interesting observation offered from the League (of California Home Owners) was that they had noticed lower complaint rates and greater voucher activity for duct services where field training had been r- available (The field training program was CheckMei®) SDG&E Residential Contractor Program Evaluation, Wirtshafter Associates, Inc Client Imperial Irrigation District (IID) Project Name HVAC Residential and Commercial Retro-Commissioning for Imperial Valley Homes and Businesses 2004 — 2007 • 12 372 AC systems serviced • 812 Duct systems serviced • 34 area contractors recruited • 155 technicians trained Proctor Engineering is currently implementing a program in IID service territory to retro-commission 2000 residential and 2000 light commercial air conditioners using the CheckMei system The program employs contractor incentives customer education, and quality assured training and monitoring to address refrigerant charge and airflow inefficiencies, and to transform maintenance practices within the HVAC market Fifteen contractors are participating and 43 technicians have been trained and certified The program also employs a residential duct testing and sealing measure using CheckMei® for Ducts Client California Energy Commission Project Name Hot Dry Climate Air Condition Development Project • Two hot -dry climate air conditioners designed • Design exceeded goal of reducing peak load by 15 o 20% with energy savings of 10 to 20% • Goals met on schedule The project goals were to design two hot dry climate air conditioners that would reduce peak load by 15 to 25% and have an energy saving of 10 to 20% Results have exceeded both of these goals The system has gained support from Carver Trane Lennox, Goettl and Rheem as well as compressor fan motor and heat exchanger manufacturers Five project reports have been reviewed by project advisory committee consisting of national laboratory, utility academic, and industry representatives 26 12 References Reference 1 Company Name San Diego Gas & Electric Project Name Residential Contractor Program Address 8335 Century Park Ct CP127 San Diego CA 92123 Title Senior Energy Program Advisor Contact Name Neil Sybert Contact Phone # 619 636 5795 email Reference 2 Company Name nsybert@semprautilrties com Pacific Gas & Electric Project Name PG&E AC Retro Commissioning & Duct Sealmg Program Address 245 Market St San Francisco CA 94105 Title Customer Energy Efficiency/Senior Program Manager Contact Name Tom Morrison Contact Phone # 415 973 8212 email Reference 3 Company Name Tfml@pge com Imperial Irrigation District Project Name HVAC Residential & Commercial Retro Commissioning & Duct Sealing Program for Imperial Valley Address 333 E Banom Blvd Imperial CA 92251 Title Supervisor/Public Programs Contact Name Phil Falkenstein Contact Phone 760 339 9473 email prfalkenstem@nd com O#fl Average Effect of Each Residential AC on Fort Collins Utility Annual Revenue $ 6031 Annual Demand Cost $ 8194 Annual Energy Cost $ 1484 Annual Net $ (36 47) Appendix B Table 1 Assumptions Tab EXECUTIVE SUMMARY Proctor Engineering Group, Ltd (PEG) is pleased to submit this proposal to The City of Fort Collins (City) for the design and implementation of a CheckMeIa Program for the years 2008- 2011 We look forward to discussing this proposal with City personnel and making any needed adjustments to meet the needs of the City of Fort Collins Residential air conditioners represent the worst of all possible loads for the City of Fort Collins If our understanding of the wholesale rate structure is correct, every residential air conditioner represents an annual revenue loss to the City For this reason Proctor Engineering Group is focused on providing a comprehensive approach with this proposal This summary is focused on the enhanced program and we submit that the program should be coupled with a large push on demand control to maximize the City's benefits The body of this proposal includes details on both the minimum and the enhanced program We propose to produce substantial summer peak demand reduction as well as energy savings through improving central air conditioning efficiency in homes and small businesses in the City We will work with HVAC contractors to use CheckMel to repair refrigerant charge as well as indoor and outdoor coil airflow (retrocommissioning) on a significant number of central air conditioners On commercial units we will also retrocommission economizers where they are present As an addition we propose to install high efficiency fan motors to further reduce peak, and install adaptive cooling fan time delays to provide increased sensible cooling specific to the local climate The PEG Team believes that quality installation and service is an essential component of any air conditioning program AC programs around the country have tended to focus on incentivizmg customers to install more efficient equipment without bringing refrigerant charge and airflow into line with manufacturers' specifications The EPA is moving to include air conditioner efficiency services under its Energy Star label Leading air conditioner manufacturers such as Lennox, Trane, and others are beginning to emphasize to their networks of "elite dealers" the provision of quality services as a means to r P Reference 4 Company Name Oregon Department of Energy Project Name Oregon Residential AC and Heat Pump Tax Credits Address 625 Marion St N E Salem OR 97301 Title Residential Energy Analyst Contact Name Tom Hewes Contact Phone 503 373 7875 email Reference 5 Company Name Tom Hewes@state or us California Energy Commission Project Name California Residential Energy Standards (Title 24) Address 1516 9th St Sacramento, CA 95814 Title Manager of Building Standards Development Contact Name Bill Pennington Contact Phone 916 654 5013 email bpennmgton@state ca us 28 � �? .;MQO r�:lf CORRCSPONDI NG SATURATION TEMPS AND CONDENSER AIR ENTFIZING TEMPERATURE OPERATOR PUTS YOUR PATA INTO CHECKME►® REPORTS DIAGNOSIS TO YOU PLEASE RECORD TARGETANP ACTUAL TEMPERATURE SPLIT, SUPERHEAT OR SUBCOOLING PERFORM REPAIRS CHECK TARGETS AND NUMBERS AS YOU MAKE ADJUSTMENTS WHEN CORRECT, RECORD TOTAL REFRIGERANT ADDED OR REMOVED RUN AT LEAST 15 MINUTES AFTER EXPLAIN REPAIRS TO CUSTOMER LET THEM KNOW ABOUT THE VERIFICATION CERTIFICATE ©2002 PROCTOR ENGINEERING GROUP LTD c g103Calculations xls I Appendix B 31 — zv� PROCTOR ENGINEERING GROUP ` build customer loyalty and an ongoing connection with customers between equipment purchases that occur every 15-20 years ` The first key feature of the PEG plan is the CheckMeI Quality Assurance System that immediately venfies the work done in the field while the installing technician is still on site A schematic of the system is included as Appendix A The second key feature of the PEG plan is to pay incentives directly to the HVAC contractors rather than to use a consumer rebate approach The program achieves multiple goals by directing the incentives to the contractors • First, it allows the contractor to embed the incentive in the value proposition the contractor presents to the customer • Second, it reduces the number of payments the program makes by aggregating them at the contractor level • Third, it makes it possible for the contractors to be paid within a month and ten business days of the work This feature alone brings many contractors into the program Program Objectives We have set tentative quantitative goals and qualitative goals for the program and expect to be evaluated on our achievement of both PEG will • Deliver parts and services to 3600 air conditioners that will, • Reduce system peak demand by about 2 2 MW, save approximately 1 13 Million annual kWh over the three years of the program, and have a lifetime savings of 14 million kWh • Have a cost benefit ratio of $478 24 per kW exclusive of any demand control reductions • Maximize the support of the City's demand control program with delivery of consumer materials and training of HVAC contractors to support the program • Expand the expertise of local HVAC contractors in performance optimization of installed equipment Training and certification in PEG's CheckMel is the technical foundation of these efforts The budgets we propose are designed for maximum cost effectiveness We propose to fully charge all costs in unit prices, thus fully bearing the risk of performing or not getting paid We have therefore included startup costs in unit prices, assuming the additional risk of recovering these costs over time as we deliver value to City, its customers, and its ratepayers 2 PROCTOR ENGINEERING GROUP The following tables summarize expected program production, energy savings, demand reduction, costs, and cost effectiveness Enhanced Proaram Production Production 2008 2009 2010 Total AC Refrigerant Charge and Airflow 602 1000 2000 3602 AC Outdoor Coil Cleaning 361 602 1199 2162 AC Brushless Motor Replacement 244 398 801 1443 Cooling Time Delay 244 398 801 1443 ETDR on Brushless Motor 244 398 801 1443 Economizer Repair 2 2 4 8 Enhanced Proaram Demand Reduction and Lifetime Enerov Savinas 2008 2009 2010 Total Units 602 1 000 2000 3 602 kW Reduction Peak 360 595 1 189 2 144 Annual kWh Savings 189 924 313 824 627 696 1 131 444 Lifetime kWh Savingg 2 368 548 1 3 909 772 1 7 827 485 1 14 105 804 Enhanced Proaram Costs and Cost Effectiveness (constant Zoos Q) 2008 2009 2010 Total Total Cost $ 172 303 $ 285 400 $ 570 825 $ 1 028 528 Cost per kW $ 47824 $ 47824 $ 47824 $ 47824 Cost per lifetime kWh $ 0 073 $ 0 073 $ 0 073 $ 0 073 Notes Costs per kWh and kW are not additive They are the same costs viewed from an energy saving or demand reduction perspective All costs are listed to 2008 dollars Budget will increase at 3%per year to cover inflation Per measure energy savings and diversified demand reduction are calculated using standard engineering assumptions, Energy Information Agency cooling and heating use intensities, pre - and post -equipment specifications, as well as cooling and heating degree-days for Fort Collins Calculations are attached as Appendix 13, an embedded Excel document 3 PROCTOR ENGINEERING GROUP ._ 1 Required Services It is Proctor Engineering Group's understanding that the minimum required services are Turnkey Program Delivery At PEG, turnkey program delivery is our specialty We take the maximum amount of load off the sponsoring organization This approach allows substantial streamlining, reduces overall administration, allows quality assurance to proceed with less political pressures, and improves program responsiveness to the needs of the sponsor, the contractors, and the customers We are able to fill this role because we have the widest range of experience in the United States in running these programs We were the originator of refrigerant charge, airflow, and economizer -- programs reaching back into the 1980s The entire CheckMel system grew out of our research into how technicians worked and how to support them while ensuring that the systems were properly diagnosed and repaired Services For the residential customer of the City, we will provide refrigerant charge and airflow diagnostics as well as supervise and verify successful repairs Our research combined with the research at North Carolina Alternative Energy Corporation (NCAEC) provided the first scientific studies of the actual performance of air conditioners in the field, the causes of their underperformance, and of systems to effectively and reliably correct those causes While NCAEC moved in the direction of technician training, Proctor Engineering Group moved in the direction of a comprehensive quality assurance system that, after extensive testing, became CheckMel For the commercial customer, we will not only provide refrigerant charge and airflow diagnostics and repair, but also economizer diagnostics and repair Proctor Engineering Group's study of commercial rooftop package units in Milwaukee Wisconsin in the 1980s produced the first published reports of widespread economizer malfunctions Since that time we have developed a system of economizer testing and repair verification that ensures proper performance in all modes of operation Refrigerant Charge Overcharged air conditioners produce higher peak watt draw Undercharged ACs produce less than design capacity, which reduces the efficiency of the system The results of Proctor Engineering's testing of more than 250,000 air conditioners and heat pumps show that systems are charged incorrectly more than 60% of the time This is wasted energy that customers aren't aware of and technicians don't commonly address The CheckMel system assures that technicians diagnose and correct charge every time through our immediate on -site monitoring Coil Airflow Airflows across both the inside and outside coils are critical to efficient operation of air conditioners The correct flow through the inside coil in dry climates approaches 400 CFM - per ton of nominal capacity The airflow across the outside coil is critical to avoid high compressor watt draw at summer peaks 4 PROCTOR ENGINEERING GROUP 2 Program Structure and Processes Minimum Services For the residential customers, we will deliver the minimum services described in Section 1 and summarized here • provide refrigerant charge and airflow diagnostics • supervise and verify successful repairs For the commercial customers, we will deliver the minimum services described in Section 1 and summarized here • provide refrigerant charge and airflow diagnostics and repair • provide economizer diagnostics and repair • supervise and verify successful repairs I Enhanced Services Proctor Engineering Group identified peak electrical demand as a significant problem from our earliest work with air conditioners and heat pumps Through our intensive monitoring of systems in homes and in businesses we have been able to identify additional means of peak reduction that are not offered by others We are offering two of these items within tlus proposal As you are aware the climate in Fort Collins is a drying climate in the summer While there are afternoon thunderstorms, on the whole mfiltration of outside air will reduce the humidity within the house or commercial building Given this climate, the dehumidification AC manufacturers have designed into their products is a wasteful use of electric power Proctor Engineering Group has developed a patent pending electronic time delay that harvests the moisture on the inside AC coil at the end of the compressor cycle This moisture is evaporated off the inside coil providing . _ cooling to the building by running the fan after the compressor finishes its cycle The Enhanced Time Delay Relay (ETDR) automatically adapts the "tail' length to the amount of moisture on the coil While some modern air conditioners use a short "tail' to improve their SEER rating, the length of that tail is not sufficiently long to recapture the majority of the energy stored on the coil The second unique item that we offer in this proposal is a drop -in replacement for the standard furnace/AC fan motor The typical Permanent Split Capacitor (PSC) motor is quite inefficient In addition, while it has multiple speed taps, the watt draws between high speed and low speed are R_ nearly the same Top end furnaces now offer Brushless Permanent Magnet (BPM) motors most often referred to as ECMs These motors offer higher efficiency particularly at lower speeds where the watt draws are extremely small When a BPM motor replaces a PSC motor two advantages accrue First the watt draws while the compressor or furnace is operating is reduced Second, and of greater importance, the fan motor can be switched to low speed for the "tail' making it possible to run the fan for a much longer time and harvest a larger percentage of the energy stored on the AC coil In addition to these two unique offerings, Proctor Engineering Group is interested in integrating the program with the new AC load control program In order for customers to be happy about the performance of their systems when the City uses the load control, it is advantageous for the systems to be operating at their maximum efficiency In particular, if the load control device only controls the outside unit (compressor and condenser fan) then the inside fan will run continuously using approximately 0 6 kW per hour Replacing the PSC motor on the inside fan will save about half that power in addition to the savings it will provide over the entire heating and cooling season Proctor Engineering Group is also interested in providing the City with information on a CheckMeI duct sealing program Program Delivery The CheckMeI System is delivered to all the markets (existing residential systems, cut -ins in existing residential structures, installation in new residences, and existing small commercial systems) in the same basic manner The differences are primarily in the marketing aspects of the four markets For existing residential and small commercial systems as well as cut -ins, the contractors are the primary routes to the customer and PEG works directly with those contractors to support and enhance their marketing For new residences, PEG will not only work with the contractors but also meet with builders to encourage their participation in the program The CheckMeI system proceeds in the following steps 1 Recruit and screen contractors and technicians 2 Ensure that they have the proper equipment and that it is properly calibrated 3 Tram technicians in short classroom setting and complete with field training 4 Test the technicians to ensure that they can perform the tests properly 5 Utilize the CheckMef protocols and reporting process in both the test in and test out 6 Support the technicians with a dependable call center 7 Support the technicians with immediate technical assistance 8 Reinforce superior performance 9 Enforce standards with immediate corrective action 10 Continuously monitor the performance of each technician .- 11 Analyze their performance weekly 12 Utilize strict standards with serous consequences for failure to meet standards 13 Perform targeted and random inspections PROCTOR ENGINEERING GROUP Proctor Engineering will manage the program to achieve both high production and high quality — which translates to meeting the energy savings goals PEG graphs each program's energy savings against their goals These graphs are updated weekly and posted in the Staff meeting room where " they are reviewed every week If there are shortfalls, we work as a team to determine the reasons and to correct the trajectory of the project ` Proctor Engineering Group Roles We understand that the PEG roles will include Recruiting HVAC contractors, training HVAC technicians, and ensuring that the technicians have the needed equipment as detailed in the Recruiting, Training, and Equipment Section, which follows the HVAC Contractor and Technician Roles Section below Verify Clients are Fort Collins Utilities The PEG CheckMel operations provided immediate efficient venfication of customer eligibility based on the utility database When the technician calls in the initial test, the operator and computer interface ask for the customer's meter number that number is immediately checked in the utility database and verified against the address of the " customer This process maintains the confidentiality of the utility database by keeping it at a secure central location rather than on laptops or other devices in the hands of the technicians ` Oversee Technician Work and Provide Ouality Assurance Proctor Engineering Group staff oversees every job done by every technician There is human interaction on every test The operators are trained not only to accurately obtain and record data from the technician, but also to sense when anything is "not quite right" This human interaction provides the benefit of higher quality data coupled with immediate help to any technician who is having a problem in general or on a particular unit With immediate telephone transfer to our technical experts, the technician " learns more and more over time With competing static systems, the technician is left to their own devices to develop a means of "getting through the program" ` The human interaction and the specific training is only the beginning of the CheckMel quality assurance system With CheckMel every technician's data is examined in multiple ways a) on the spot — does it make sense in the physical world — this is very extensive and based on over " 250,000 systems of data, b) on the spot — is it possible in the physical world, but unlikely, c) do the relationships between the numbers make sense, d) after the fact — are there statistical signs undetectable to the human eye that the technician's data are incorrect — either measurement errors or falsification, e) after the fact — do inspections reveal abnormalities, and e) customer interactions back to PEG through the customer satisfaction survey cards that are followed up on by our customer service staff Dealers and contractors will be eligible for program participation only if a) the contractors and the technicians are trained and certified on CheckMeI and b) they live up to program technology, QA/QC, and customer service standards All HVAC contractors with appropriate licenses will be eligible to participate but experience shows that only some will The intent is not to exclude