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City of Palo Alto Utilities
CITY OF PALO ALTO UTILITIES
Since 2009, Enovity’s pay-for-performance efficiency program has delivered more than $3.5 million in utility cost savings for Palo Alto businesses and schools.
The City of Palo Alto Utilities (CPAU) had offered energy audits and efficiency rebates to its business customers for many years. Many of these audits did not convert into installed projects, and the rebates did not accommodate whole-facility efficiency treatments such as retrocommissioning. Seeking to meet aggressive savings goals and improve cost effectiveness, CPAU sought out best practices in efficiency programs from other utilities. The third-party, pay-for-performance program designs already in use with California’s investor-owned utilities showed promise.
Enovity designed the “turnkey” Commercial and Industrial Energy Efficiency Program for CPAU that provides end-to-end technical services to see projects through to implementation: everything from marketing and customer enrollment to project development, implementation support, and measurement and verification. The pay-for-performance contract model reduces the utility’s risk of paying for services that don’t deliver real savings.
The program’s comprehensive measure mix allows for whole-facility energy optimization strategies that are highly customized for each customer’s business. Working in partnership with CPAU’s customer representatives, the Enovity team takes a long-term approach to customer engagements, with a focus on optimizing existing equipment and systems before recommending capital-intensive retrofits. As a result, more than 95% of participating customers have returned to implement multiple projects.