Industrial System Optimization Program
Upgrade your industrial site for less
If your business site performs manufacturing or processing, or its subsystems maintain long run-hours, PSE's Industrial System Optimization Program (ISOP) can help you find and perform energy efficiency improvements that lower your bills. You can also earn a valuable incentive to help cover the cost.
What you get
If you qualify for PSE's Industrial System Optimization Program (ISOP), you may receive some or all of the following:
- Hands-on guidance throughout the process from PSE's ISOP contracting partner.
- Optional performance tracking systems (PTS)—hardware or software add-ons that deliver energy usage data for your high-energy-usage equipment or industrial subsystems that don't already have built-in energy tracking.
- An action plan report, which includes:
- A listing of low-cost/no-cost action items that your staff completed with PSE's ISOP contracting partner during your Optimization Event, with estimated yearly cost and energy savings for each measure.
- Recommended low-cost/no-cost action items for you to perform after your Optimization Event, with estimated yearly cost and energy savings for each measure.
- Recommended capital energy project opportunities, should you decide to invest more heavily in energy efficiency upgrades for your business site in the future.
- Information about your business site's energy usage, including overall percentages by equipment category (lighting, HVAC, refrigeration, etc.).
If you complete the requirements, the value of the implementation incentive is the lesser of:
- $0.05 per verified kWh and/or $0.80/therm saved, or;
- A percentage of the total of all eligible costs related to the installation of performance tracking systems (PTS) and the implementation of action items completed at your business site.
- Up to 100% if the list of action items is completed within 120 days of receipt.
- Up to 50% if the list of action items is completed after 120 days of receipt.
* Funding availability subject to annual program budgets.
How to qualify
To be eligible for PSE's Industrial System Optimization Program (ISOP):
- You must be a current PSE business electric customer.
- Your business site must be within PSE's electric service area and use electricity from PSE.
- Your business site must be considered industrial, which often (but not always) means either:
- The majority of its electric load is associated with processing or manufacturing, or;
- Its subsystems maintain long run-hours, rely on industry-standard technology and keep relatively stable control setpoints and loads.
- Sites whose principal use is office or retail are almost always not eligible for this program.
Implementation incentive requirements
- Only costs for recommended action items that you completed at your business site during or following the Optimization Event are eligible for this incentive. Any large expenses (over $5,000) must be pre-approved by PSE in order to be considered an eligible cost through this program.
- You must provide PSE's ISOP contracting partner with conditional site data concerning variables that may cause energy usage fluctuation at your business site (e.g., weather, production levels, shifts, etc.) for all of the following times:
- Before ISOP participation
- Throughout your Optimization Event
- Throughout a 120-day action-item-completion period
- Additional data may be required if participant elects to extend the program beyond the initial 120-day action item completion period
- Throughout a minimum 60-day performance period
- You must submit an action item completion report containing documentation for all incentive-eligible costs, including but not limited to:
- Materials/equipment invoices
- Internal labor costs
- Contracted labor costs
For help verifying your qualifications, call an Energy Advisor at 1-800-562-1482, Monday through Friday from 8 a.m. to 5 p.m.
How to apply
PSE typically approaches select business customers whom they believe have sites that would qualify for and benefit from ISOP, based on criteria including but not limited to:
- If the customer has a relatively high volume of energy usage.
- If the customer's electrical load is used for an industrial process (food processing, cold storage, manufacturing, etc.)
You can also apply for ISOP by calling an Energy Advisor at 1-800-562-1482, Monday through Friday from 8 a.m. to 5 p.m.
Frequently Asked Questions (FAQ)
What can ISOP do for my facility?
The goal of ISOP is to identify and perform low-cost/no-cost operations and maintenance (O&M) improvements and procedural adjustments at your business site that, when consistently applied, can lower your bills by improving your energy efficiency.
How is ISOP different from programs that offer incentives on capital energy projects?
ISOP helps you achieve cost and energy savings at your business site using low-cost/no-cost operations and maintenance (O&M) measures, as opposed to larger capital energy projects. It is designed to help significantly lower your yearly energy bills with measures that take less time, require a smaller investment to implement and have a shorter payback period.
Improving your energy efficiency through O&M measures has the potential for non-energy benefits, such as improved equipment reliability and safety, as well as reduced maintenance costs.
What types of industrial sites and/or subsystems does ISOP focus on?
All industrial business sites are viable candidates for ISOP. However, the sites that typically have the highest potential gains from the program—whether or not they perform manufacturing and/or processing—are those that have long run-hours, rely on industry-standard technology and keep relatively stable control setpoints and loads.
An ISOP project may target an entire business site or only select industrial subsystems at that site, whichever is deemed appropriate by program administrators and agreed upon by customers.
What's the overall energy savings target and participation deadline for ISOP?
ISOP's overall energy savings target is 6.5 million kilowatt-hours (kWh) and 25,000 therms for the current program term, which runs from January 2018 through December 2019. Due to the time needed to run an ISOP project from start to finish, the deadline to apply for participation in the program is June 1, 2019.
How are energy savings earned in ISOP?
Energy savings are earned through the combined efforts of your business site's staff, an optimization engineer and a subsystem-trained technician (if required). These parties collaborate to identify and quantify potential areas for energy savings and develop an action plan to implement the operations and maintenance (O&M) measures to achieve the savings.
The optimization engineer and subsystem-trained technician work with your staff during your Optimization Event, an intense one-to-two-day effort to identify and perform as many energy-saving O&M measures as can be reasonably completed in the allotted time.
Following your Optimization Event, the optimization engineer will give you an action plan report, which outlines:
- Energy-saving O&M measures that the team completed during the Optimization Event.
- Recommended energy-saving O&M action items that you must complete to qualify for an implementation incentive.
- Recommended larger capital energy projects and suggested PSE incentives that they may qualify for, should you decide to invest more heavily in energy efficiency upgrades for your business site in the future.
You'll receive continued support from the optimization engineer as you perform your recommended energy-saving O&M action items over the 120-day action item completion period.
How are my actual energy savings measured and verified?
PSE's ISOP contracting partner asks you to provide conditional site data—data concerning variables that may cause energy usage fluctuation at your business site (e.g., weather, production levels, shifts, etc.)—and uses this to create an energy-usage regression model that calculates a predicted baseline energy usage for your facility.
After your Optimization Event and the completion of your recommended action items, your actual energy usage is measured for a minimum of 60 days. Your actual energy savings are the difference between your predicted baseline energy usage and your actual energy usage.
If you have any other questions, call an Energy Advisor at 1-800-562-1482, Monday through Friday from 8 a.m. to 5 p.m.
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