Marshall Cherry, COO Roanoke Electric Cooperative

Marshall Cherry, COO Roanoke Electric Cooperative Marshall Cherry, COO Roanoke Electric Cooperative - Start

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Marshall Cherry, COO Roanoke Electric Cooperative - Description

October 12, 2016 . Inclusive Financing for . Housing Energy Upgrades. Source: NC Electric Membership Cooperative. 2.5 million North Carolinians are served by an electric co-op. 93 of the 100 counties are served by an electric co-op. ID: 726996 Download Presentation

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Marshall Cherry, COO Roanoke Electric Cooperative




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Presentations text content in Marshall Cherry, COO Roanoke Electric Cooperative

Slide1

Marshall Cherry, COO

Roanoke Electric CooperativeOctober 12, 2016

Inclusive Financing for

Housing Energy Upgrades

Slide2

Source: NC Electric Membership Cooperative

2.5 million North Carolinians are served by an electric co-op

93 of the 100 counties are served by an electric co-op

Electric Cooperatives in NC

i

nvest in local economic development

Roanoke Electric

Slide3

`

1,500 square mile service area

2,210 miles of line

$39 million

operating

revenue

$84 million

asset

value

52 employees

14,700 meters

95% residential5% commercial/industrial

Slide4

Slide5

More people

reporting high bills

Slide6

Slide7

Efficiency upgrades can lower bills

Slide8

Our initial loan offer wasn’t enough get to “Yes”…

We offered cost effective upgrades and on-bill financing…

Yet major barriers remained:Creditworthiness

Renter eligibility

D

isinterest in additional debt

So, we sought a solution that would be

more inclusive

and generate

more value for

more members

Slide9

Capital Provider

Utility

Metered Site

Solution Providers

Utility

ON-BILL

COST RECOVERY

TIED TO METER

Customer: Current & Future

INVESTMENT

IN UPGRADES

Opt-In Tariffed Approach

Program Operator

Based on the Pay

As You Save

®

system developed by EEI.

REC

USDA RUS - EECLP

TRC

Local Contractors

REC

REC

Member-Owners

Slide10

PassSavings are sufficient for the utility to recover its investment within 10 years through a tariff capped at 75% of estimated savings

25% of estimated savings stay with member Purchase of EE Credits capped at $.02/kWh for total savings

Co-PayAmount needed from member (if any) in order to make the investment Pass

No Go

Assessment doesn’t identify savings that are cost effective enough to warrant investment

Assessment identifies major repairs needed first

Where We Invest

Slide11

Sample of over 75 homes

Average cost of upgrades

$7,135.00

Average buy-down for

EE Credits

$350.00

Average monthly savings per site

$105.00

Average monthly

tariff

$64.00

Average monthly savings for member

$41.00

% of savings kept by member during cost recovery (Target: 25%)

39%

Actual Results for Initial Participants

Slide12

Results

$1 million of in investment in the first yearBetter buildings

Jobs and workforce developmentLower costs for the utilityLower bills for the participants

Higher customer satisfaction

Slide13

www.roanokeelectric.com/pays

Offer: We can help more communities

Millions of dollars of capital for cost effective investment can finally reach renters and low-income households.

We have extended an open offer of assistance to cooperatives in NC and across the country.

Investor owned utilities like Duke can use the same solution.

Slide14

Request: Reaching beyond efficiency upgrades

We find good investments in the majority

of the houses we evaluate for cost effective upgrades.The #1 reason we decline to invest:

The house is unlikely to be fit for service for the life of

upgrades.

Major

repairs needed.

We seeking experts who can help us explore options to address this chronic problem in a systemic way – including developing better housing stock in our service area.

Slide15

Marshall Cherry, COO

Roanoke Electric CooperativeOctober 12, 2016

Inclusive Financing for

Housing Energy Upgrades

Slide16

Appendix

Slide17

Harnessing Our Business

Members

contact us seeking assistance with cost savings.

Roanoke

EC,

through The Roanoke

Center, identifies the

best efficiency

upgrades for investment.

C

ontractor installs upgrades at no upfront cost to member, with quality assurance oversight from The Roanoke Center.

U

tility recovers its costs for the upgrades with a fixed charge on the bill that is less than the estimated savings.

Slide18

Path to Investment & Returns

Slide19

The

Offer & Investment

Avoids

purchasing solar, poultry, swine and wind renewable energy credits that are mandated by the State of NC

Lowers

demand costs for the electricity Roanoke EC buys

Allows more

member-owners

to access capital for energy efficiency

improvements

to their properties/dwellings on a debt-free basis

Helps local qualified contractors gain steady and consistent work

Slide20

Up to

$5 Billiona

vailable annuallyat Treasury rates

$6 Million

Investment

program

~$7,000

i

n upgrades

per participant

Roanoke Electric

Cooperative

Upgrade to $

ave

EECLP

PAYS

®

Using PAYS

®

Pay As You Save

®

and PAYS

®

are trademarks of Energy Efficiency Institute, Inc.

We are financing our investments with financing from the Energy Efficiency & Conservation Loan Program

Slide21

www.roanokeelectric.com/usda-eeclp

Decision

Tool for Utility Managers: Key considerations before investing in resource efficiency and rooftop solar through a tariffed on-bill program

 

January 2016

 

Slide22

Bill Size & Member-Owner Satisfaction


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