Energy Efficiency in Iowa

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					Energy Efficiency in Iowa
           John Norris
   Chairman, Iowa Utilities Board


Energy Efficiency Plans and Programs
          Study Committee
           November 13, 2008


                                       1
    2008 Kicks Off New Energy
         Efficiency Plans

All Iowa utilities
      investor-owned utilities
      municipal utilities
      rural electric cooperatives
are working on new energy efficiency plans.

                                              2
       Investor Owned Utilities
• Investor owned utilities develop new energy efficiency
  plans every 5 years. The plans filed in 2008 will be
  effective 2009 – 2013.
• January 2008 – Board directed the IOUs to include in
  their new plans a scenario of achieving 1.5% energy
  savings on or before December 31, 2011 (IOUs currently
  at 0.8%)
• April/May 2008 – IOUs filed their new plans
• First quarter 2009 – Plans likely to become effective

                                                           3
       Investor Owned Utilities

• Iowa IOUs have been doing a good job on
  energy efficiency
• While comparisons are difficult, the level of
  spending on energy efficiency is frequently
  used as a measurement
• Typically, for every dollar spent on EE, $2
  of benefits are realized

                                              4
                         Iowa #3 in U.S.
    Per Capita Spending on Energy Efficiency

             State             Total per Capita EE $$          Average Residential
                                                               Electric kWh Cost *
Vermont                                  $40.89                       $0.1413
California                               $33.11                       $0.1437
Iowa                                     $31.73                       $0.0934
U.S. Median                              $ 2.27                       $0.0934

*Sources: Consortium for Energy Efficiency for the amount each state budgeted for energy
efficiency and load management in 2007; Energy Information Administration 2007.




                                                                                           5
IOU Spending for Energy Efficiency and
  Load Management from 2000 - 2007


$120,000,000

$100,000,000
                                                                   Natural Gas

 $80,000,000

 $60,000,000

 $40,000,000                                                        Electric

 $20,000,000

         $0
           2000   2001   2002   2003   2004   2005   2006   2007



                                                                                 6
Iowa IOU MWh Saved from Energy
Efficiency Programs Initiated in 2007


     IPL/Alliant   MidAmerican      Total
    120,000 MWh    162,000 MWh   282,000 MWh




                                               7
Iowa IOU Natural Gas MCfs Saved
 from Energy Efficiency Programs
        Initiated in 2007

  Black Hills   IPL/Alliant   MidAmerican      Total
  145,000 MCf   289,000 MCf   372,000 MCf   806,000 MCf




                                                          8
    New IOU Plans for 2009 - 2013

Composite Goals for IPL and MEC:
• Electric savings of about 520,000 MWh in
  2013. This is approximately 1.4% of retail
  electric sales compared to 0.8% in 2007.
• Natural gas savings of about 1,000,000 MCf
  in 2013. This is approximately 1% of retail
  natural gas sales compared to 0.8% in 2007.

                                            9
  IOU Goal: Increase Electric Energy
Savings from 0.8% to 1.4% of Retail Sales


    600,000

    500,000             520,000
                         MWh
    400,000              Saved
    300,000                       2007
              282,000             2013
    200,000    MWh
               Saved
    100,000

         0
                MWhs Saved

                                         10
IOU Goal: Increase Natural Gas Savings
   from 0.8% to 1% of Retail Sales


   1,000,000
     900,000             1,000,000
     800,000               MCfs
     700,000   800,000     Saved
     600,000    MCfs
     500,000    Saved                2007
     400,000                         2013
     300,000
     200,000
     100,000
           0
                 MCfs Saved
                                            11
Cost of Achieving New Goals

$140,000,000
$120,000,000
$100,000,000
 $80,000,000
 $60,000,000                             2007
 $40,000,000                             2013
 $20,000,000
         $0
                Electric   Natural Gas
               Program      Program
               Spending     Spending

                                                12
New Programs Proposed by
 Investor Owned Utilities



                            13
    IPL/Alliant New Programs

• Customer rebates to include retro-
  commissioning and incentives for combined
  heat and power
• Commercial new construction to include
  “green” consultation/design assistance
• Expanded outreach, education, training


                                          14
   MidAmerican New Programs

• Home Performance with ENERGY STAR
• LEED certification options in commercial
  new construction program
• New incentives for quality installation,
  thermostats, lighting and appliances
• New options for volume builders, design-
  build strategies and follow-up monitoring

                                              15
     Black Hills New Programs

• Boilers added to residential programs
• New appliance rebate program
• Expanded non-residential rebates
• New non-residential new construction
  program
• New industrial sector outreach program

                                           16
    Municipal Utilities
            and
Rural Electric Cooperatives



                              17
   Municipal Utilities and RECs
SF 2386 (2008 Session)
Directs municipal utilities and RECs to:
• Assess their maximum potential energy and
  capacity savings
• Establish an energy efficiency goal based
  upon this assessment
• Establish cost-effective programs to meet
  their goal
                                          18
   Municipal Utilities and RECs

Summer 2008 – Munis and RECs began
  process to examine their plans

August 2008 – Munis, RECs, and IUB met to
 share information on EE planning



                                            19
               What Is Next?
• January 1, 2009 – Munis and RECs to provide
  progress reports to IUB
• January 1, 2009 – IUB to submit a report on the
  IOUs to the General Assembly
• First Quarter 2009 – IUB to rule on new IOU 5-
  year plans
• January 2010 – Munis and RECs to submit final
  reports to IUB
• January 2011 – IUB to evaluate Muni and REC
  reports and submit a report to General Assembly
                                                    20
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