1st Quarter 2025
Community Engagement and Empowerment | Layering Advanced EE and Demand Management
Innovaaons in Commercial Building Performance and Management | Decarbonizaaon Strategy and Technology Research
Energy Intel is produced by:
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BOARD OF DIRECTORS
Alexis Allan, Brio
Alvis Wright, Alabama Power Company
Angie Ostaszewski, MBA, SEEL, LLC
Antonia Ornelas, Elevate
Art Christianson, Resource Innovations
Paul Douglas, The JPI Group
Deb Dynako, Slipstream
Brett Feldman, Rhode Island Energy
Elizabeth Freeman, REAP Energy
Jeff Brown, Public Service Company of Oklahoma
Katie Falk, Evergreen Consulting Group
Knox Cameron, DTE Energy (BOARD CHAIR)
Derek Okada, Energy Solutions
Liz Haworth, Michaels Energy
Pamela Fann, Impact Energy
Quinn Parker, ENCOLOR
Sue Hanson, VEIC
Dena Jefferson, J.D., Franklin Energy
Lisa Rae, CIET
Luke Surowiec, ICF
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.
Table of Contents
BY KNOX W. CAMERON
A Letter From Our Board Chair
23
BY DAVE TRESTON
Engaging Communities and Streamlining Access to
Clean Energy and Efficiency Programs
39
BY KELLY MULDER AND SHELLY DOLBEER
From Challenges to Change: Engaging Communities in
the Clean Energy Transition
BY ANGELICA PEREIRA, DANNAH MOORE, AND
RACHEL COOPER
Rate Increases Are Inevitable: How Utilities Inform
Customers Will Make or Break Trust
12
BY CODE BRUDER AND UDVAL TSOLMONKHUU
Layering Energy Efficiency and Demand Management:
Pairing HPWH Upgrades With Demand Response
18
BY BEN LEVINE
Bridging Utilities and Building Performance Standards
for a Sustainable Win-Win
28
BY FELICIA FEDERICO AND JULIE CASTRO
Direct-to-Renter: A New Energy Program to Fill the
Equity Gap
36
BY ERIC SIENKOWSKI
Beyond the Grid: How the Energy Sector Can Empower
Employees and Strengthen Communities
43
BY LINDSAY RIDING AND MEHMUD IQBAL
Gas Heat Pumps: Another Option to Reduce
Building Emissions
50
BY LISA SCHMIDT AND STEVE SCHMIDT
Determining Electrical Panel Utilization With Smart
Meter Data
56
BY CHRIS KRAMER
Utility Program Strategies for Engaging With
Financing Providers
62
BY MEGHAN HARWOOD
Scaling Successful Pathways to Equitable Decarbonization
Through Procedural Equity
66
BY RAEGAN BOND AND SAM ROSS
Advanced DSMTM: Moving From Idea to Implementation
72
BY SAM HARTNETT
The Demand Stack: A New Approach to Managing
Load Growth
76
BY TANYA HUGHES
Empowering Communities: SRP’s Commitment to Energy
Efficiency and Education
To the entire AESP community,
Welcome to the first Energy Intel edition of 2025. As we step into a new year, it’s worth reflecting
on how much has changed in just the past twelve months. Throughout 2024, AESP members
embraced new technologies, adapted to shifting policies, and drove meaningful progress toward a
cleaner, more efficient energy future.
That momentum continues, even as we navigate an evolving landscape shaped by regulatory shifts,
economic adjustments, and the growing urgency to innovate. While the road ahead has a degree
of uncertainty, it also presents opportunity. The energy sector has always been one of resilience
and transformation, and together we will keep moving forward.
I’m thrilled to share the articles that follow, which highlight key developments in these areas:
Community Engagement and Empowerment
Energy efficiency and sustainability are not just technological challenges—they are people-centered
missions. Across the industry, we are seeing a renewed focus on empowering communities to
take an active role in energy transformation. Whether through grassroots initiatives, public-private
partnerships, or equitable access to clean energy programs, engagement is key to long-term
success.
Layering Advanced Energy Efficiency and Demand Management
The next frontier in energy management lies in the seamless integration of efficiency measures
with sophisticated demand response strategies. By layering these approaches, organizations can
optimize consumption, enhance grid reliability, and improve resilience—critical steps in our journey
toward a more flexible and responsive energy landscape.
Innovations in Commercial Building Performance and Management
Commercial buildings account for a significant portion of energy use, and innovative solutions are
transforming the way we manage performance. Smart technologies, AI-driven analytics, and data-
driven decision-making are unlocking new efficiencies, reducing waste, and ensuring buildings
contribute to, rather than strain, our energy systems.
A Letter From Our Board Chair
Knox W. Cameron, Director of Renewable Solutions, DTE
Decarbonization Strategy and Technology Research
Decarbonization remains at the heart of our industry’s evolution. From cutting-edge research into
low-carbon technologies to strategic implementation of electrification and grid modernization, we are
collectively advancing a future where energy production and consumption align with global climate
goals.
Content Highlights
Community Engagement and Empowerment
Dave Treston shows how New York’s MyEnergy and NY Energy Advisor platforms are turning the tide
for everyday people looking to make cleaner, smarter energy choices. These resources offer a simple
way to guide homeowners through the process of upgrading their homes with accessible solutions.
Layering Advanced Energy Efficiency and Demand Management
Code Bruder and Udval Tsolmonkhuu reveal how the future of energy efficiency is about combining
smart technology with smart strategies. By pairing heat pump water heaters with demand response
programs, they’re not just saving energy, they’re saving communities.
Innovations in Commercial Building Performance and Management
Ben Levine introduces us to a new era of building performance, where energy efficiency is the hero.
Through Building Performance Standards (BPS), utilities are partnering with building owners to reduce
emissions, cut costs, and create a more sustainable world.
Decarbonization Strategy and Technology Research
Felicia Federico and Julie Castro launch a bold new initiative with their Direct-to-Renter program,
bringing the power of clean energy directly to the people who need it most. By providing renters
with energy-efficient appliances, they’re offering a lifeline for those left behind by traditional energy
programs
The energy space will continue to evolve in 2025, but one thing remains constant: the strength of this
community. AESP members are driving the industry forward with expertise, collaboration, and a shared
commitment to progress. We are excited for the year ahead and the opportunities it holds.
Thank you for being part of AESP, and I hope you find this issue of Energy Intel insightful and inspiring.
Knox W. Cameron is currently director of DTE’s Renewable Solutions or-
ganization, where he has end-to-end responsibilities for MIGreenPower,
the largest utility Green Tariff program in the country. During his 14-plus-
year career at the company, he has served in a variety of roles, including
sales, marketing, and operations project management. Knox is an industry
leader with considerable experience designing, launching, and managing
utility programs. His professional affiliations include serving as the Chair-
man of AESP's Board of Directors, along with serving on the American
Wind Energy Association's DE&I Task Force. He has also chaired DTE’s
employee resource group for African American employees. Knox was
born and raised in Kingston, Jamaica. He currently resides in Ann Arbor,
Michigan, with his son, Drew. Knox has a passion for soccer, playing the
sport both on the collegiate level and professionally with the Columbus
Crew. He has an undergraduate degree from the University of Michigan
and is currently pursuing an MBA at the University of Michigan’s Ross
School of Business.
AESP Board Chair
Knox W. Cameron, Director of Renewable Solutions, DTE
Rate Increases Are Inevitable:
How Utilities Inform Customers
Will Make or Break Trust
by Angelica Pereira,
Dannah Moore,
and Rachel Cooper
Utilities must be as transparent as possible in communications about rates and billing increases with
residential customers. Customers want to know when their bills are going to go up, why, and how they
can lower their costs.
It’s important that utilities let customers know when bill increases will take effect and give them plenty
of advance notice to prepare. This can reduce customer frustration and decrease the number of calls
from customers to the contact center about bill increases.
Utility customers care about how a rate change will burden:
• Their families, their businesses, and their own lives
• The environment
• Future generations
• Their communities
Utilities can address these things in their communications about rate changes to keep their customers’
trust. We’ve analyzed E Source research and utility examples to see how utilities can build goodwill
with customers during a rate or bill increase.
Data Reveals What Customers Think About Utility Rates
We looked at data from the E Source U.S. Residential Customer Insights Center to see whether res-
idential customers think their utility rates are affordable or not. The E Source U.S. Residential Cus-
tomer Insights Center1 compiles data from the Claritas Energy Behavior Track annual online survey
of about 32,000 residential customers in the United States (conducted in partnership with E Source).
Utilities rely on this tool to understand their residential customers’ behaviors and attitudes around
energy consumption.
According to the data, just over half of U.S. respondents agreed their electric and dual fuel utility has
affordable rates in 2024, and fewer than half disagreed. About 60 percent of natural gas customers
agreed that their utility has affordable rates.
Utility Customers Want an Explanation
Utilities that explain the reasons why they’re increasing rates can build brand trust. When utilities use
plain language to tell customers how they’ll use the money they get from rate increases, they pave the
way for customer acceptance.
How the Utility Plans to Use the Money
It’s important that utilities justify the rate increase so customers don’t make incorrect assumptions.
We’ve also seen utilities explain to customers how rate changes could benefit them in the long run.
When Appalachian Power refiled a rate increase request with the Public Service Commission of West
Virginia, it put out a video on social media2 with its president and COO explaining how it would use
the rate increase. The video informs customers about resources they can use to help pay their bills,
including payment arrangement plans, temporary extensions, average monthly payment plans, and
federal programs. Its West Virginia Rate Review web page also details how the rate increase helps
customers by reducing outages, accommodating growing energy demands, and integrating new energy
sources.
Commitments to Safety and Reliability
Many utilities use rate increases to pay for repairs to grid infrastructure and to improve other areas of
safety and energy reliability. The most effective utility communications about rate increases say that:
• Customer and crew safety are of utmost importance.
• As technologies and resources advance, the customer is at the heart of all decisions
the utility makes.
Con Edison’s press release, Con Edison Proposes Investments to Maintain World-Class Reliability,4
emphasizes the utility’s plans to use rate increases to improve infrastructure:
“Con Edison is seeking state regulatory approval for infrastructure investments that would help the
company maintain its nation-leading reliable electric service and continue fortifying its energy systems,
as extreme weather events become more frequent and severe.”
Residential Customers’ Feelings About Their Utility Rates
There was a slight decline in perceptions about affordable electricity rates from 2023 to 2024, which
is something to keep an eye on. But customers’ perceptions of natural gas rates were similar between
2023 and 2024.
Electric utility has affordable rates:
Natural gas utility has affordable rates:
Simple and Transparent Messaging Matters
Open and honest messages build trust with customers, especially when utilities tell their customers
that they’ve applied for rate increases and how the change would affect their monthly bills if it’s ap-
proved. Customers should hear these updates from the utility leaders who make decisions on their
behalf.
In June 2023, SMUD’s CEO & GM released several reports5 to explain why the utility proposed rate
changes for 2024 and 2025, what those rate changes will be, and when they will go into effect. The
brief, accessible summary on SMUD’s website includes links to two volumes of detailed reports, an
archive of data, and the final resolution from September of that year.
SMUD shared details of what the rate increases pay for in Volume 1 of the General Manager’s report,
tying the rate increases to things its customers care about deeply: reliability, safety, and clean energy
programs.
Cost Breakdowns
Utilities can include a cost breakdown to show customers exactly what’s included in the rates they
collect. Nova Scotia Power’s CEO, Peter Gregg, put out a blog post titled A message from our CEO6
to help customers understand rate increases. He explained the breakdown of the rate increase as:
• About 1.8 percent for reliability investments
• About 4 percent for energy efficiency programs
• About 8 percent for fuel costs
This meant an average increase of $10 a month in 2023 and $11 a month in 2024 for residential
customers. The blog post also explained that provincial legislature requires NS Power to achieve 80
percent renewable energy by 2030, and that federal policy requires the utility to move off coal in that
time.
The Connection Between Energy Bills and Energy Efficiency
Customers who understand energy efficiency may feel empowered to lower their bills by changing
their behaviors and using energy-saving equipment. While the connection between energy efficiency
and energy bills is intuitive to people who work in utilities, not all customers know about the energy
efficiency programs they qualify for. An effective communication strategy is to combine messages
about rate increases or high-bill season with messages about energy efficiency programs that can help
with those bills.
Omaha Public Power District’s Smart Thermostat Program7 gives its customers comprehensive infor-
mation on how switching to a smart thermostat can reduce their energy spending. The program web
page walks customers through the other benefits of switching to a smart thermostat, like the conve-
nience of controlling their thermostat through a mobile application, and details the steps customers
can take to switch to a smart thermostat and take control of their energy bill.
Customers Want Empathy About Their Financial Burdens
For many people, higher utility bills strain their family’s tight budget and cause financial stress. Eco-
nomic factors like inflation, rising fuel costs, and changes in government only make it worse.
Financial Help and Payment Programs
Some residential customers need help managing their energy bills when rates increase. Utilities that
communicate up front about financial assistance options for customers who are struggling with the in-
crease can empower customers and build trust. Utilities can share programs they already have in place
to help customers like billing, energy efficiency, demand response, and other programs.
When rates are rising, it’s a good time for utilities to promote billing programs that go beyond the
traditional pay-for-what-you-use model. For example, budget billing can give customers a predictable
bill amount that lowers seasonal fluctuations. Another way utilities can help customers feel more in
control of their bill is by offering bill alerts.
Dedication to Keeping Costs Low
Utilities can show empathy for residential customers’ financial burdens by highlighting their dedication
to keeping costs low during economically challenging times.
In an Instagram post about changes in natural gas pricing,8 Entergy explains the factors that affect
the cost of natural gas. Entergy also highlights how it “charges the same amount that we pay for gas
without markup for profit.”
Sample Communication Strategies
Utilities that send out communications about rate increases on multiple channels make sure as many
people as possible have access to the information they need. We looked at E Source market research
and utility examples to find the most effective channels utilities can target.
Market Research
E Source developed the new E Source Metrics and Insights dashboard9 in early 2024 that analyzes
marketing campaign metric data from hundreds of utility campaigns stored in our database, Energy
AdVision. E Source Energy AdVision includes more than 8,500 examples of utility marketing and ad-
vertising campaigns.
We populate this database with ads submitted to the annual E Source Utility Ad Awards.
These submissions include information like:
• Campaign background and goals
• Strategy and tactics
• Timeline
• Target market
• Results
Users can look at metrics by market sector or campaign audience, campaign channel, campaign topic,
and more. We reviewed seven utility campaigns focused on billing and rates and found that:
• Digital display or paid advertisement was the channel used most often by utilities (6 of 7)
• Social media was second (4 of 7)
• Company website was third (2 of 7)
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The Channels Customers Use
Here are some examples across multiple channel types:
Website update or blog post: One of the most important places utilities put information about an
upcoming rate increase is directly on their website. Website updates or blog posts are good because
they’re stationary resources for customers who visit the website to refer to.
FortisBC’s website notifies customers that gas rates will change on January 1, 2025.10 The update
includes information on when the increase will happen, how much it could be, and why it’s happening.
The update has icons where customers can quickly share the information to their own social media
accounts.
Updates on social media: Social media is a great way to spread the word about upcoming rate or bill
increases since many types of customers learn news from social media posts.
Local news press release: We recommend utilities write press releases for news outlets to pick up and
cover the story in their local service territories. Utilities host copies of their press releases on the news
or media sections of their websites.
EPB’s press release, EPB Board approves electric rate increase set for October billing,11 emphasizes
that this is the “first local increase in eight years.” The press release starts with the increase amount
and the date, then follows the information with a direct quote from the utility president and CEO.
Bill inserts: Physical bill inserts are a helpful way to reach customers who aren’t good with technology
or who may have missed other digital media announcements.
Based on our research and data, we concluded that the most effective ways utilities can communicate
rate changes and how rates are set are: (1) highlight dedication to keeping costs low and empowering
customers; (2) keep messages transparent and simple; and (3) use market research to determine your
communication channels.
1 “US Residential Customer Insights Center.” 2020. Es-
ource.com. 2020. https://www.esource.com/about-rcic.
2 “176 Reactions · 77 Shares | Upcoming Electric Rate
Changes in West Virginia: What You Need to Know |
Today, We Refiled a Request with the Public Service
Commission of West Virginia to Adjust Our Base Rates.
Our Request Includes Two Aggressive Solutions... | by
Appalachian Power | Facebook.” 2022. Facebook.com.
2022. https://www.facebook.com/AppalachianPower/vid-
eos/1773976016688534/.
3 “West Virginia Rate Review.” 2023. Appalachianpower.
com. 2023. https://www.appalachianpower.com/company/
about/rates/wv-rate-review.
4 “Con Edison Proposes Investments to Maintain World-
Class Reliability | Con Edison.” 2025. Coned.com. 2025.
https://www.coned.com/en/about-us/media-center/
news/2025/01-31/con-edison-proposes-invest-
ments-to-maintain-world-class-reliability.
5 “GM Report on Rates and Services.” 2023. @Smudup-
dates. 2023. https://www.smud.org/Corporate/About-us/
Company-Information/Reports-and-Statements/GM-Re-
ports-on-Rates-and-Services.
6 “A Message from Our CEO.” 2023. Default. 2023.
https://www.nspower.ca/about-us/articles/details/arti-
cles/2023/03/28/a-message-from-our-ceo.
7 “Smart Thermostat Program.” n.d. Www.oppd.com. https://
www.oppd.com/residential/products-services/save-mon-
ey-save-energy/smart-thermostat-program/.
8 “Entergy on Instagram: ‘the Price of Natural Gas Has
Nearly Doubled When Comparing June 2021 Prices with
June 2022. You Are Seeing That Increase on Your Utility
Bills. Click the #LinkInBio to Learn More about Natural Gas
and Its Impact on Energy Costs. #WePowerLife.’” 2021.
Instagram. 2021. https://www.instagram.com/p/CgvAp-
pwuUP1/.
9 “Metrics and insights | E Source Energy AdVision.” 2025.
Esource.com. 2025. https://energyadvision.esource.com/
metrics-insights.
10 “Gas Rates Will Change on January 1 for FortisBC
Customers.” 2022. Www.fortisbc.com. FortisBC. 2022.
https://www.fortisbc.com/news-events/media-centre-de-
tails/2024/12/06/gas-rates-will-change-on-january-1-for-
fortisbc-customers.
11 EPB Chattanooga. 2023. “EPB Board Approves Electric
Rate Increase Set for October Billing.” Epb.com. June 23,
2023. https://epb.com/newsroom/press-releases/epb-
board-approves-electric-rate-increase-set-for-october-bill-
ing/.
References
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About the Authors
Angelica Pereira is senior solution director at E Source. Angelica advises utilities and municipalities on
how they can improve their corporate communications, marketing, and customer engagement. She
also leads the development of the marketing and communications research and advisory products.
Angelica Pereira
Solution Director, E Source
Dannah Moore is staff writer at E Source, where she works closely with industry experts
to deliver innovative information and help utilities make sustainable decisions.
Dannah Moore
Staff Writer, E Source
Rachel Cooper is senior director of market research at E Source, where she is responsible for strategic
planning, account engagement, team management, and project execution. She manages and oversees
the market research studies conducted at E Source and works across the research department to
publish data and findings.
Rachel Cooper
Senior Director of Market Research, E Source
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Layering Energy Efficiency and Demand
Management: Pairing HPWH Upgrades
With Demand Response
by Code Bruder
and Udval Tsolmonkhuu
Introduction
As California advances its decarbonization and climate resilience strategies, integrating energy efficien-
cy and demand management becomes increasingly critical. This article explores the synergy between
heat pump water heater (HPWH) upgrades and demand response programs, demonstrating how these
complementary strategies enhance energy optimization, grid stability, and emissions reductions.
The Role of HPWH in Electrification and Decarbonization
HPWH technology offers a highly efficient alternative to traditional natural gas water heating systems.
Through advanced heat exchange mechanisms, HPWHs significantly reduce energy consumption and
greenhouse gas emissions, contributing to California’s broader electrification and decarbonization
goals.
12
Electrification of water heating is an essential component of transitioning away from natural gas-based
systems. Standard gas water heaters contribute to greenhouse gas emissions while also exacerbating
strain on gas infrastructure and increasing price volatility, as they typically offer no means of shifting
peak gas demand. By adopting HPWH systems, buildings and facilities gain enhanced energy efficien-
cy, reduced operational costs, and greater occupant comfort with a reliable and consistent hot water
supply.
HPWHs advanced heat exchange mechanisms
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Combining HPWHs With Demand Flexibility
The Southern California Regional Energy Network’s (SoCalREN) public sector programs are designed
to help public agencies upgrade their facilities with advanced energy efficiency and decarbonization
technologies. The Technology and Equipment for Clean Heating (TECH) Clean California initiative
complements these efforts by accelerating the adoption of clean heating technologies and encourag-
ing customer participation in demand response events. Together, these initiatives drive a comprehen-
sive approach to enhancing energy efficiency, reducing carbon emissions, and supporting grid stability
through peak demand reduction.
Several public agencies enrolled in the SoCalREN — including school districts, cities, healthcare dis-
tricts, and counties — have successfully installed HPWHs in partnership with TECH Clean California.
The majority of these projects involved the installation of a Bradford White HPWH equipped with
Bradford White Connect™ for smart scheduling, which aligns the HPWH’s heating schedule with the
facility’s Time-of-Use (TOU) rate, along with the facility’s enrollment in the OhmConnect1 demand
response program. Participants received incentives for the initial adoption of a HPWH and were also
encouraged to optimize energy usage through smart scheduling and participation in the demand re-
sponse program.
Demand response capabilities further enhance the effectiveness of HPWH systems by providing end
users with real-time energy use insights, allowing adjustments based on grid conditions and peak
pricing periods. This enables the HPWH to preheat and store water before peak demand windows,
optimizing energy efficiency and cost savings. This level of optimization enables both cost savings and
a more sustainable approach to energy consumption, reducing stress on California’s power grid.
Demand response
in action, signaling
buildings to reduce
energy consumption
during peak periods.
1 OhmConnect is a demand response platform that sends real-time alerts to users, encouraging them to reduce energy
usage during peak demand periods, and in return, participants earn rewards while helping to stabilize the grid and promote
sustainability.
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Success Stories: Case Studies and Key Metrics
The SoCalREN has successfully completed 46 HPWH installations in collaboration with TECH Clean
California. Case studies from two of the participating public agencies are provided below, offering
valuable insights into the real-world benefits of integrated energy strategies, including:
• Energy Savings: Facilities achieve significant therms reduction and overall energy
optimization following HPWH installations.
• Grid Support: In addition to daily smart scheduling, participating buildings receive real-time
notifications to adjust energy usage during peak hours, helping to alleviate grid strain and
support California’s transition to clean energy.
• Financial Benefits: Rebates and incentives helped offset upfront costs, making these
upgrades more accessible to public agencies.
For example, through the SoCalREN Streamlined Savings Pathway, the city of Carson and East Kern
Healthcare District implemented large-scale HPWH upgrades at their public facilities and enrolled in
the TECH Clean California program.
City of Carson Case Study
The city of Carson has taken a proactive approach to improving energy efficiency and sustainability
across its public facilities. With support from SoCalREN, the city identified aging natural gas water
heaters at four parks — Calas Park, Carriage Crest Park, Foisia Park, and Veterans Park — as an op-
portunity to transition to more efficient technology. The installation of HPWHs in these community
spaces enhances energy efficiency and ensures operational cost savings that can be redirected toward
other community needs. By leveraging available incentives, the city of Carson has successfully demon-
strated the economic and environmental benefits of strategic electrification.
Project Highlights:
• Five HPWH units were installed across four parks
• Lifecycle therm savings of 203,870
• Lifecycle energy cost savings of $126,000
• Lifecycle GHG emissions reduction of 514 MT CO2
• Fully funded through incentives and rebates, covering 100 percent of the total cost
Shown are three of the five HPWH units installed at Veterans Park, Ca-
las Park, and Carriage Crest Park (from left to right).
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East Kern Healthcare District Case Study
The East Kern Healthcare District (EKHCD) has also been proactive in adopting energy-efficient
solutions to reduce its environmental impact. The district identified their inefficient, outdated, and
GHG-emitting gas water heaters at Bartz-Altadonna Community Health Center as a key target for
energy efficiency upgrades. Replacing the gas-powered water heaters with HPWHs improved energy
efficiency, enhanced reliability, and reduced operational costs. As a rural healthcare provider, EKHCD
faced unique challenges in accessing clean energy solutions, making this upgrade a significant step
toward a more resilient and sustainable energy system.
Project Highlights:
• Two natural gas water heaters were replaced with high-efficiency HPWHs
• Lifetime therm savings of 37,400
• Lifetime energy cost savings of $13,300
• Lifecycle GHG emissions reduction of 133 MT CO2
• Fully funded through incentives and rebates, covering 100 percent of the total cost
Best Practices to Maximize the Benefits of HPWH Installations and Demand Response
• Site-Specific Assessment: Conduct plumbing load calculations to determine the most effi-
cient placement and sizing of HPWHs based on facility needs
• Leveraging Incentives and Rebates: Utilize available funding opportunities from incentive
programs to offset project costs
• Integration with Demand Response Programs: Pair HPWHs with smart scheduling and/or
demand response capabilities to enhance grid flexibility and optimize energy consumption
• Stakeholder Engagement: Collaborate with facility managers and contractors to streamline
project implementation and maximize impact
What’s Next: Expanding Impact with SCE Smart Shift
Building on the success of the SoCalREN and TECH Clean California partnership, the next phase
involves expanding demand response participation through Southern California Edison’s (SCE) Smart
Shift program. This initiative, which is launching its commercial component this year, aims to enroll ad-
ditional facilities that have completed HPWH upgrades, enabling them to leverage demand response
capabilities more effectively.
Successful installation of two
HPWH units at Bartz-Altadonna
Community Health Center.
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SCE Smart Shift represents a crucial step toward a more adaptive and flexible energy grid. Through
this program, the usage data of HPWHs is closely monitored, and water heating is adjusted according
to actual consumption patterns and TOU rates. Demand response signals, sent directly to participating
HPWHs, enable customers to avoid expensive peak usage while helping to better balance energy con-
sumption across Southern California. This expansion is particularly relevant as California continues to
electrify. Facilities participating in Smart Shift will not only benefit from reduced energy costs but also
contribute to statewide efforts to maintain a stable and reliable electricity grid.
These advancements will allow facilities to monitor their energy usage more effectively, identify areas
for further optimization, and make informed decisions regarding energy management. Increased col-
laboration between utilities, program implementers, and facility managers will be essential in ensuring
the continued success of demand response initiatives.
Conclusion
Pairing HPWHs with smart scheduling and demand response programs exemplifies the potential of
layered energy strategies to drive meaningful change. These initiatives not only reduce emissions and
energy costs, but also do it in a way that bolsters grid stability through smarter, more adaptive energy
use. California’s regulatory framework is also evolving to support these initiatives through policies pro-
moting electrification, financial incentives for energy efficiency upgrades, and demand management
programs. Stakeholders, including public agencies and program implementers, must continue working
together to streamline program implementation, increase customer awareness, and optimize financial
support mechanisms.
California serves as a model for other states and regions looking to enhance their energy efficiency and de-
mand response capabilities. The ongoing expansion of demand-side programs and the increasing adoption of
clean energy technologies can pave the way for a cleaner, more resilient energy future.
Southern California Regional Energy Network helps public agencies identify cost-saving, energy-efficient
solutions. Agencies interested in partnering with SoCalREN can visit socalren.org/join.
About the Authors
Code Bruder has five years of experience in California's energy efficiency sector. His focus
is successfully managing incentive programs to install energy-efficient equipment. Programs
he oversees have installed over 100 heat pump water heaters, amongst other technolo-
gies. He has collaborated extensively with diverse stakeholders to deliver state-of-the-art
equipment and cost-effective solutions to customers. In 2024, he was honored with the
Heat Pump Water Heater Equity Program Excellence Award by the Advanced Water Heat-
ing Initiative.
Code Bruder
Udval Tsolmonkhuu has over three years of experience in California's energy efficiency
sector, focusing on incentive programs and supporting public agencies in implementing
energy-efficient projects. As a project manager at The Energy Coalition, she has overseen
numerous projects, including initiatives that involve the adoption of high-efficiency tech-
nologies like heat pump water heaters. Her expertise in project coordination, stakeholder
engagement, and energy data analysis positions her as a valuable advocate for clean energy
solutions in the public sector.
Udval Tsolmonkhuu
Senior Technical Program Manager, The Energy Coalition
Project Manager, The Energy Coalition
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Bridging Utilities and Building Performance
Standards for a Sustainable Win-Win
by Ben Levine
The Growth of Building Performance Standards (BPS)
Building Performance Standards (BPS) have emerged as a key policy tool in cities and states across
the United States to drive energy efficiency improvements and emissions reductions in the built en-
vironment. These policies are proliferating around the country and set minimum energy performance
thresholds for buildings, requiring owners to make efficiency upgrades and implement operational
changes to meet the prescribed standards.
As cities and states strive to meet ambitious climate goals, BPS policies mandate energy performance
improvements for existing buildings, setting benchmarks and compliance timelines that require pro-
active engagement from building owners and operators. As the National BPS Coalition states, these
policies focus on buildings because they "are the largest contributor to greenhouse gas emissions,
representing 35 percent of total energy-related emissions.”
BPS policies vary in structure, with some prioritizing carbon and greenhouse gas (GHG) emissions
reductions, such as New York City’s Local Law 97. Others focus on energy consumption and Energy
Use Intensity (EUI) reductions, like those in Denver and St. Louis. Some, like Boston’s BERDO program,
offer flexibility, allowing compliance through either EUI improvements or GHG emissions reductions.
Despite these differences, all jurisdictions impose financial penalties for non-compliance or exceeding
prescribed energy or emissions limits.
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In many jurisdictions the local utilities are increasingly called upon to support these efforts through
providing technical assistance. Their role is essential not only in aligning incentives with BPS objectives
but also in ensuring that compliance efforts translate into meaningful energy savings and emissions
reductions. While many utilities are supporting these efforts like Consolidated Edison, Pepco, and the
Mass Save program, Puget Sound Energy (PSE) serves as a prime example of how utilities can assist
building owners in meeting these requirements while fostering a culture of energy efficiency.
By integrating BPS mandates with existing energy efficiency programs, utilities can play a pivotal
role in creating long-term sustainability and economic benefits for communities, while increasing the
amount of energy savings claimed by their demand-side management and energy efficiency programs.
The Role of Utilities in BPS Success
The successful implementation of BPS depends on collaboration between utilities, regulators, ener-
gy service providers, and building owners. The American Council for an Energy-Efficient Economy
(ACEEE) highlights that permitting utilities to claim energy savings from their BPS support programs is
crucial for motivating their participation in advancing building performance standards and enhancing
compliance.
In order to guide owners on compliance, utilities can offer critical support in several ways:
• Energy benchmarking assistance: Providing data access and tools to help building owners
track energy usage and measure performance against BPS targets. By providing a more fric-
tionless process for accessing utility consumption data, utilities can facilitate easier compli-
ance for building owners and operators. In Maryland, Pepco's Energy Benchmarking Services
provide building owners with automated access to whole-building energy consumption data,
simplifying compliance with benchmarking regulations. By integrating directly with ENERGY
STAR® Portfolio Manager (ESPM), the service streamlines reporting, reduces administrative
burden, and helps owners track and report their building’s energy performance.
• Technical guidance: Educating building owners on energy conservation measures, operations,
and maintenance strategies that enhance efficiency and provide a clear pathway to compli-
ance. This can include providing guides, hosting webinars or community training sessions, and
offering one-on-one coaching sessions to facilitate compliance. Utilities in Massachusetts,
including Eversource and National Grid, collaborate through the Mass Save program to assist
building owners in complying with the Building Emissions Reduction and Disclosure Ordi-
nance (BERDO) and the forthcoming Massachusetts BPS. Owners are offered technical guid-
ance through workforce training for upskilling building professionals as well as onsite support
through subsidized energy assessments.
• Financial incentives and rebates: Aligning existing incentive programs with BPS compliance
measures to reduce the financial burden on building owners. Ensuring that these incentives
are easily accessible and well-communicated is crucial for their effective utilization. These sub-
sidies drive more action and make compliance more economically viable while also enabling
utilities to be able to claim increased savings for their incentive programs. The New York State
Energy Research and Development Authority (NYSERDA) collaboration with utilities like
Consolidated Edison offers the FlextTech Program, which provides cost-shared energy studies,
covering 50 to 75 percent of the costs, to identify energy-saving opportunities and integrate
clean energy solutions into capital planning. Utilities like ConEd and National Grid then offer
subsidies in the form of rebates and incentives to reduce implementation costs for the proj-
ects identified during these energy studies.
• Customized programs: Offering tailored support initiatives, such as PSE’s Clean Buildings
Accelerator, to guide customers through compliance processes. These programs provide in-
dustry-specific strategies, ensuring that the support offered is relevant to a variety of building
types, from commercial office spaces and multifamily residential complexes to smaller foot-
print buildings that are going to be required to comply with Tier 2 of the Washington State
BPS. The Clean Buildings Accelerator program “unpacks the complex law” and teaches owners
how to comply through a hands-on approach using their own buildings and data.
By actively engaging with BPS programs, utilities can help streamline compliance and reduce compli-
ance costs for owners.
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Key Utility Strategies for Scaling BPS Support
1. Targeting and Benchmarking
Benchmarking is the foundation of BPS compliance, as it enables building owners to assess their ener-
gy performance and identify opportunities for improvement, while also laying the data-driven ground-
work for jurisdictions developing a target-based BPS. Many jurisdictions require owners to submit
annual benchmarking reports to track progress and this has shown to lead to continuous optimization
and energy reduction. According to a study by the Lawrence Berkeley National Laboratory (LBNL),
jurisdictions that implement a required energy disclosure policy with mandated benchmarking found
energy savings of 3 to 6 percent within four years after policy implementation.
Utilities play a crucial role in this process by providing energy data and integrating with tools like
ESPM. Through data-sharing partnerships, utilities can help building owners automate the benchmark-
ing process, ensuring accurate and timely reporting.
Many utilities in BPS jurisdictions focus on helping building owners establish benchmarking practices,
ensuring they have accurate data to assess compliance needs and plan energy efficiency measures
effectively. By providing energy reports and trend analyses, utilities can help customers proactively
identify areas where efficiency upgrades can yield the greatest impact.
2. Simplified Opportunity Identification
For many building owners, identifying the most effective efficiency improvements can be a challenge.
Utilities can facilitate this by:
• Offering low cost or free energy audits to highlight areas for improvement. Comprehensive audits
adhering to ASHRAE Level 2 standards provide detailed insights into how a building consumes
energy and specific recommendations for reduction opportunities, allowing owners to make da-
ta-driven decisions. For example, Con Edison in New York offers subsidized energy audits through
its Commercial and Industrial (C&I) Energy Efficiency Program, which helps building owners identify
energy-saving opportunities to comply with Local Law 97 (LL97). The program provides free or
low-cost energy assessments which lay out the most cost-effective pathway to compliance.
• Providing decision-support tools that help prioritize cost-effective measures. Digital tools and
retrofit navigation software help predict the impact of specific interventions, guiding building own-
ers toward the most effective solutions. Many utilities now offer remote or virtual audit tools for
owners to engage with.
• Developing custom roadmaps for buildings to achieve compliance through phased improve-
ments. These roadmaps allow owners to distribute costs over multiple years while ensuring that
they remain on track to meet BPS targets. This model ensures an economically viable multi-year
energy and capital plan is developed to create a glide path to compliance.
For example, PSE’s Clean Buildings Accelerator provides ongoing coaching and technical assistance,
helping building owners navigate the complexities of the Washington State Clean Buildings Perfor-
mance Standard (CBPS) and plan upgrades accordingly.
By providing technical assistance, benchmarking tools, and financial
incentives, Puget Sound Energy is committed to making compliance
with building performance standards more accessible and achievable
for our customers."
“
– Chris Boroughs, Program Manager, Puget Sound Energy
Source: LinkedIn (https://www.linkedin.com/in/chris-boroughs-9b1b195/)
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