UC Los Angeles Campus & Medical Center Strategic Energy Plan ...

step within the Strategic Energy Plan, commitments were made to the IOUs to coincide with
CPUC filing deadlines and it is anticipated that funding levels will be granted for the
commitment. Current UC/CSU/IOU Partnership incentive rates are $0.24 per kilowatt-hour
saved in the first year and $1.00 per therm saved in the first year, and the Partnership will pay
up to 80% of the project cost. This incentive structure is anticipated to remain unchanged in the
future program years.
Publicly-Owned Utilities, such as Los Angeles Department of Public Works (LADWP),
Sacramento Municipal Utility District (SMUD), Riverside Public Utilities (RPU) also manage
energy efficiency incentive programs that have historically paid substantial incentives to
Universities in their territories. There have been discussions with each of these utilities to
negotiate similar incentive rates, and LADWP has agreed to match the $0.24/kWh incentive rate
for project completed by UCLA.
13.2.2 UCOP Energy Efficiency Financing
UCOP has designed a program to work in concert with the Utility incentive programs to provide
low-interest loan to cover the cost to the campuses after the incentives. Campuses will pay
back the loans to UCOP using the energy cost savings. To do so will require Department of
Finance approval to allow for capital debt service to be paid with energy cost savings. In order
to be eligible for the UCOP borrowed funds, a portfolio of projects must meet minimum,
although liberal, project cost return requirement. The anticipated criteria include a 85% ratio of
loan payment to energy savings, which equates to approximately 15 year simple payback on the
portfolio of projects.
UCOP is prepared to lend up to $500 million to campuses through 2014 to support energysaving
projects.
To learn more about UCOP Energy Efficiency Project Financing, contact
Dirk van Ulden
Associate Director
Energy & Utilities Services
University of California Office of the President
510-987-9392
Dirk.vanulden@ucop.edu
2413.01/Reports/UC SEP Final Report – UCLA.doc 13-2 December 31, 2008
Newcomb | Anderson | McCormick