Snake Oil Technologies Help your customers avoid getting bit by one of these snakes

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Snake Oil TechnologiesHelp your customers avoid
getting bit by one of these snakes!

• Jeff Springer
• GENSYS Energy

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In Todays World Let the Buyer Beware!
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A Family Story
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This is the consumer protection watchdog that we
need
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This is the consumer protection watchdog that we
have
Fraud
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Surge suppressors that save energy

• Called to a Minnesota grocery store to advise on
  the energy savings from a proposed surge
  suppression installation
• Unknown to me the salesman had also been invited
  to the meeting
• Presented material from FTC and EPRI debunking
  claims of energy savings from surge suppression

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Grocery Store continued

• After my attempt to disclaim the energy savings
  merits of surge suppressors, the salesman became
  agitated and asked if he could call the head
  office
• The head office salesman explained how he was
  glad that the FTC was fining the other guys
  because they were selling junk but his stuff
  actually works

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The Rest of the Story

• He then informed us that his product would
  remove electrical rust and reduce swelling in
  electric motors
• When pressed to show the savings by letting us
  meter it he first claimed our meter would not be
  fast enough and then shifted to saying that it
  would take time to get the rust out of the system
  and reduce the swelling in the motors!
• 25 savings is guaranteed but

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Residential Power Factor Correction

• This type of product has been around for years
  under various names
• Claims to reduce your power bill up to 25 by
  correcting power factor
• A very convincing demonstration shows the
  amperage of a motor dropping by over 50 when the
  device is added

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Residential Power Factor Correction Selling Points

• Reduced amperage reduced cost
• References to U.S. Government publications on the
  merits of power factor correction for C I
  customers
• Just one problem Residential customers do not
  pay a power factor penalty so there is NO savings!

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Power Save (my ass) 1200

• Note these slides are the opinion of Jeff
  Springer and may not reflect the views of GenSys
  Energy or Dairyland Power
• That said, these things are a load of bull the
  likes of which I havent seen since I left the
  farm!

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Why doesnt it work?

• Power factor correction is good for commercial
  accounts, why not residential?
• Residential members buy electricity by the Watt
  (kWh) which ignores power factor
• So how much will one of these puppies save a
  residential customer? about as close to zero as
  you can get!

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But the demo is so convincing
Demo setup uses an unloaded motor and measures
the amps before and after the magic box is
switched on looks like a 50 savings yee ha!
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But wait there is more

• Order now and well include a set of faux
  stainless steak knives so you can slit your
  wrists when your power bill does not go down and
  you realize you have been taken

Sparky the electrician brings in the big gun
meter to provide professional verification of the
claims
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Again, the before and after is pretty compelling
Whoo Hoo my power factor jumped from 0.47 to 0.85
thats gonna save me how much again??
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Look closer or quicker
Before case shows kiloWatts of 0.502 (we will
ignore the fact that Sparky has the meter
backwards so the power is leaving the house
causing the meter to display negative watts)
After case shows kiloWatts of 0.497 (well within
the range of load fluctuations)
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Assuming the difference is real

• 0.502 kW - 0.497 kW 0.005 kW
• 0.005 kW x 8760 hours/year 43.8 kWh/yr
• 43.8 kWh/yr x 0.10/kWh 4.38/year
• Cost is 299.95 shipping, handling, install
• 300/4.38 a simple payback of 68.5 years which
  is just a little worse than the stock market!

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Competition
Save even more! Just goes to show that the first
liar doesnt have a chance!
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You too can be a Myth Buster

• A Google search on residential power factor
  correction returned numerous sites that debunked
  the savings claims
• Some of these sites are better than others, one
  featured an advertisement for one of the
  offending products guess that free web site has
  its price after all!

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How to Myth Bust

• Use your Kill-A-Watt but set it to Watts!
• Measured Watts should be just about exactly the
  same with the device switched in or out
• Since we sell members Watts (kWh) the savings
  from the device will be just about exactly zero

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Real Residential Power Factor Math

• Watts Amps Volts Power Factor
• From the vendor example
• The amps without the correction read 5.76 with
  the correction the amps read 2.36... looks like a
  59 savings right?? However, since members are
  billed for kilowatts, the math goes like this
• Uncorrected 5.76 amps x 120 volts x a .4 power
  factor 277 watts
• Corrected 2.36 amps x 120 volts x a .98 power
  factor for total of 277 watts.
• Since the watts are the same, the kilowatts and
  kilowatt-hours will be the same and the member's
  bill will be unchanged

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Dont expect the sales guy to convert

• Most of the sales folks you will bump into really
  believe that this works and will think you are on
  crack for questioning them
• The folks who really know that it doesnt work
  made the video so unless they develop a sudden
  fear of the fires of hell, dont expect them to
  convert either!

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Confused? Join the Crowd

• Power factor is difficult to explain at best and
  downright incomprehensible for many
• The fact that it has real benefit for CI
  customers who pay a power factor penalty only
  adds to the confusion
• Hot Damn You mean I can save 25 with this
  thing Golly give me four of them and Ill get my
  power for free!

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While we are on the subject

• What about the low power factor on compact
  fluorescent lamps
• Does it affect members savings?
• Is it worth it to pay four times as much for a
  power factor corrected lamp??
• Should we skip CFLs and use LEDs???

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GE 20 Watt Spiral
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LED Reflector Array
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CFL Power Factor Summary

• Again, residential customers do not pay for power
  factor so the cost of operation is the same with
  the uncorrected or corrected CFL
• Almost all CFLs tested had a slight leading power
  factor they even provide a little bit of
  correction for lagging loads!
• LEDs (white) are only half as efficient and cost
  20 to 50 times more than CFLs so stick to CFLs
  for now

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Miracle Electric Heaters

• All manner of magic and miracles are used to
  create a savings of up to 50 on your home
  heating bill
• Some have copper plates, others use infrared
  lamps, silicone fluid no doubt there are more
  miracle sources just waiting to be discovered.
• Examples of claims from advertisements

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The Truth of the Matter

• All resistance electric heaters are created
  equal they convert electricity into heat with
  100 efficiency at a rate of 3413 BTUs per kWh
  (infrared is no exception)
• Savings claims are based on heating one room in
  the home while the rest of the home is kept 20-30
  degrees cooler

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Free Electricity Generator

• 30 kW of free electricity Join the club for just
  7.50 to 15
• Some of the dealers are charging 15 while the
  direct registration is only 7.50
• How cool is this??!!

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Credibility on loan from Paris Hilton

• I spent two years in prison without anyone ever
  proving I had committed the civil code
  infraction. I got out in 1995. Dennis Lee
  inventor of the Hummingbird Sundance generator
• Due to previous experience the inventor refuses
  to show his invention because he knows the
  government would (falsely) declare it a fraud and
  throw him in jail

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Why arent they making it now?

• I am glad you asked that question they have
  determined that it is necessary to sign up 1.6
  million participants to witness the technology so
  that the Government will not be able to stop it
• 1.6 million 7.50 must be a magical
  mathematical quotient that is geometrically
  superior to the pyramid
• Not available in Maine or Idaho Injunctions
  prohibiting it there brought to our attention by
  a customer attending a recent meeting near the
  Twin Cities!

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Other Product Promotions on the Same Web Site

• Pre Ignition Catalytic Converter increases the
  efficiency of your car by 9 times
• If a car is typically 20 efficient, it would now
  be 180 efficient
• As you drove it down the road, the tank would
  fill with gasoline until it eventually began to
  spill out on the highway this alone is reason
  enough to be opposed to this device

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Why Should We Care?

• Is it really our job to protect customers from
  consumer fraud?
• If we are to be considered a credible resource on
  energy matters we have to take on the bad as well
  as the good
• Ultimately these misspent investments reduce the
  capital available for real energy saving (or
  producing) technologies

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How about a little hope here?

• There are many technologies that save energy and
  our implementation of them has only scratched the
  surface of the potential
• Compact fluorescents, advanced air source heat
  pumps, ground source heat pumps available now
• Waste to energy, plug in hybrid cars and LED
  lighting in the near future
• Additional savings through lifestyle adjustments
  work from home, teleconference, learn by webinar,
  use clotheslines etc

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Questions