Energy Efficiency by Ba3B23vM


									         Successes, Opportunities and Challenges

                  Marsha Smith
        Commissioner, Idaho Public Utilities Commission
President, National Association Regulatory Utility Commissioners

               EPRI Summer Seminar
                  August 4, 2008
 Near Universal Utility Acceptance As A Resource
 Many Successful Program Models
    Spanning all customer segments
    Utility operated and non-utility programs
 Improved Building Codes & Appliance Standards
    i.e. 2007 Energy Act phase out of incandescent bulbs
 Move towards “Smart Grids”
 Idaho Governor, Public Utilities Commission, Energy Division and
  Department of Environmental Quality: Fixed-cost adjustment mechanism pilot,
   expanding by 6 times money available for low-income weatherization, 2007 Idaho Energy Plan
   requires cost-effective conservation, EE and demand response as priority resources in IRP filings.
 California MOU (also captures Governor, Utilities, State Government):
   EE institutionalized as first priority resource for IOUs and POUs; CPUC adopted new performance-
   base EE risk/reward mechanism; new Big Bold EE Strategies extends goals through 2020; continued
   support for best practices database

 NJ Board of Public Utilities: With other state agencies, set goal to reduce projected energy
   use by 20% by 2020

 NY PSC: Energy Efficiency Portfolio Standard (EPS) for a 15% reduction in electricity usage below
   the 2015 forecasted level; to establish goal for gas
 Hawaii PUC: EE Order determined cost recovery and incentives mechanisms
 Vermont Public Service Board: 2008 budget is 76% higher than previous EE statutory
   cap; EE and DSM receiving capacity payments in ISO-NE
 BPA: on track to achieve its higher 260 aMW 5-year target savings
 Duke Energy: hosted Energy Efficiency Summits and stakeholder collaboratives in its five states;
   increased efficiency program offerings

 Entergy: new programs in Arkansas; co-funding New Orleans collaborative
 Exelon: expanded program offerings across sectors
 Great River Energy: savings goal of 1.5% of annual energy sales
 MidAmerican Energy Company: 2006 program savings of 36 MW and 160,000 MWh of
   electricity, and 457,000 Mcf of gas
 PNM Resources: EE and DR evaluated and modeled consistent and comparable to supply-side
   resources in IRP; joined with 7 other utilities under Clinton Global Initiative to focus on EE as
   strategy to reduce GHG emissions.
 Seattle City Light: Efficiency is "Resource of First Choice" in IRP—140 average MW of cost
   effective EE over the next 20 years
 Southern Company: Recent IPR process resulted in 6 new Georgia Power efficiency
   initiatives, increasing annual spending by $9.4 million
Successes - Idaho
  Idaho Power: Irrigation Peak Rewards Program
      Voluntary, 75 horsepower or larger
      Weekdays, 4-8 p.m.
      Incentives :
          $4.36 per kW demand for 3 days/week
          $3.36 per kW for 2 days per week
          $2.01 per kW for 1 day/week
      Nearly 20% of qualifying irrigators participate
      Average peak reduction of 28.9 MW
      Maximum peak reduction of 37.4 MW

  Avista Third-Party Contracting
      Avista seeks out third-party contractors to augment its programs when specific
       measures or market segments can benefit from their specialized expertise.
          HVAC efficiency program,
          commercial refrigeration,
          government buildings and
          multifamily residential customers.
      This represents approximately 20,000 MWh (10%) of Avista's annual DSM savings.
 Address Capacity as well as Energy
    Demand response efforts
        AC cycling - Idaho Power’s Cool Credits Program
 Building Codes and Appliance Standards - continue upgrading
 Market Transformation
    Compact Fluorescent Bulbs In PNW
 Pricing Options
     AMI enhances multiple options
 Automation Of End Use Controls
    Occupancy sensors, set back thermostats,
    Smart Homes - Stagger timing of high demand applications
        delay water heating if household demand is already high
 Federal, State, Municipal and Utility Buildings As Demonstrations
 Overall “Green” movement
    Conservation is boring; Green is trendy.
 Market Transformation
       Make EE standard consumer practice
         Cities with most major buildings lit all night long.

         Look at buildings you visit – are they using EE??

 Lack of Management Commitment/Priority
       Misperception that energy efficiency is not a guaranteed, reliable
        cost effective resource
       Actions not equal to words - Funding allocations may not reflect
        claimed priorities
         Possible Solutions

            Fixed Cost Recovery

            Third party implementers; Energy Trust of Oregon, Wisconsin Energy
              Conservation Corporation
             New Regulatory Approaches???
Challenges, continued
 Uncertainty - What is the marginal cost?
         Is nuclear acceptable, financeable, reliable, economical?
         Will carbon capture be an option? When?
         Volatility of natural gas prices.
         Conflicting Studies/Reports
             McKinsey Study - “How Much At What Cost” – Supports More EE
             CERA Study – “The Cost of Energy Efficiency Investments” – Questions low EE cost

 Improve evaluation/analysis tools
         How much EE really is available at any specific price?
         Setting Appropriate Incentive Levels
             Most DSM currently acquired at a utility cost that is well below marginal cost.
              Are higher incentives prudent? Are we cream skimming?

 Constrained Delivery Resources
          Staff needs growing while experienced staff is retiring

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