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Incentives for Utility Programs

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Incentives for Utility Programs Robert Balzar, Director ... New Inputs Replaced 5Apr2006; correction of prior error by Collin Elliott/quantec. Lost Opportunities. – PowerPoint PPT presentation

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Title: Incentives for Utility Programs


1
Incentives for Utility Programs
  • Robert Balzar, Director
  • Seattle City Light Conservation

American Public Power Association Webinar May 8,
2008
2
Efficiency is a better energy choice Baltimore
Sun (March 10, 2008)Iowa needs to follow U.S.
lead on energyDes Moines Register (March 11,
2008)Thermal Power Heats Up NevadaTIME
Magazine (March 3, 2008)Corporate Social
Responsibility A Change in Climate The
Economist (January 17, 2008)
Nationwide Vision on Conservation working with
a public that Gets It
Seattle City Light CFL Campaign
3
Seattle City Light providing energy
efficient programs since 1977
  • One of the first in the nation to develop and
    promote conservation programs
  • Delivering a cost-effective energy resource
  • Reducing residential, commercial and industrial
    customer bills
  • Eliminating greenhouse gas emissions and other
    environmental impacts

4
Seattle City Light conservation is Seattles
energy resource of choice
  • Energy Efficiency Action Plan 2008 - 2012
  • Aggressive, accelerated conservation goals
  • Low hanging fruit has been picked
  • Challenges of stringent codes and standards
  • Competition for customers and trade allies with
    neighboring utilities
  • What can you afford to pay?

5
Seattle City Light a national leader in
conservation
  • Conservation Goals
  • Market transformation to improve energy
    efficiency
  • More stringent energy codes and standards
  • Help customers install energy efficient products
    by offering financial and technical support

6
2007 Energy Resources Net Zero Carbon Emissions
From BPA Contract and Market Purchases. These
and other operations-related GHG emissions are
offset.
7
Seattle City Light analytical framework for
conservation resources
  • Overriding Policy Conservation is the Utilitys
    resource of first choice to meet customer energy
    demands
  • Analytical Approach
  • Develop Conservation Potential Assessment (CPA)
    for SCLs service territory
  • Construct alternative conservation resource paths
    from CPA for assessment in the IRP
  • Analyze conservation paths as part of overall IRP
    resource portfolios for their effect on costs and
    risks
  • Develop findings and recommendations for long
    term conservation resource goals and policy

8
Seattle City Light achievable conservation
potential
9
Seattle City Light 2006 IRP preferred
portfolio
Conservation
  • Conservation in preferred portfolio acquired at a
    rate of 7 aMW per year or 140 aMW over 2007-2026
  • Portfolio with accelerated conservation path
    achieved greater economic benefits lower
    revenue requirements than the preferred portfolio
  • Study the feasibility, costs and benefits of
    accelerating conservation acquisition beyond the
    preferred option in SCLs 5 Year Conservation
    Action Plan

10
Seattle City Light alternative conservation
paths vs load growth
11
Utility Incentive Programs an important
component of an energy efficiency program
  • Monetary Incentives Change Customer Behavior
  • Types of Incentives
  • Calculation per kilowatt hour of savings
  • Make consistent between similar measures and
    market segments
  • Base in part on expected measure life
  • Ex All City Light Lighting Programs .20/kWh
    1st year savings
  • Fixed amount payment or rebate per unit or
    fixture
  • Simple to implement and understand
  • Ex City Light Refrigerator Recycling Program
    pays customer 30 per refrigerator or freezer
  • Payment as a percentage of job cost
  • Set cost caps to encourage customer stake in
    keeping costs down
  • City Light MF Common Area Retrofit program pays
    85 of qualifying costs

12
Utility Incentive Programs program design
principles
  • Determine program cost effectiveness
  • Service territory or Total Resource Cost
  • Includes financial incentive, program delivery,
    and customer share
  • Whats the value of savings?
  • Previous focus on incentives centered around cost
    of measures, now the shift to focus on value of
    savings
  • Pay as much as you need, but no more to meet
    conservation goals
  • Pay more if the value of savings are worth more

13
Utility Incentive Programs GOAL capture energy
savings and reduce overall costs
  • Guidelines for Effective Incentive Programs
  • Develop incentives specifically by sector and
    market
  • Where are you trying to affect change?
  • Start from existing base of incentives
  • Set incentive at certain level and see what kind
    of participation it generates
  • Split Incentive Whos getting the energy savings
    and the benefits of cost savings?
  • The commercial developer who sells a completed
    project wont see the long-term bill savings, so
    incentives can overcome these types of barriers
    by paying more

14
Utility Incentive Programs Risk overpaying to
capture maximum energy savings, but avoid paying
more than what the measure costs
  • Longer lived measures with long term benefits
    have greater benefits, more value
  • Commercial and MF shell upgrades will last longer
    (30-45 years) than commercial lighting (10-15
    years)
  • Understand Customer Needs
  • What will get them to use energy conservation
    measures?
  • Targeted needs for residential customers and
    small business
  • May need to pay more to get residents and small
    business owners to install EE measures
  • Communicate Creatively
  • Strategic Marketing, Communication and Outreach
    Plan

15
Energy Smart Services financial incentives and
technical assistance for existing facilities
and new construction projects
  • Commercial and Industrial Customers
  • Family of Measure Incentives Include

Lighting HVAC
Water Heating / Cooling Treatment Compressed Air
Building Envelope Plug Loads
Data Management Industrial Process Lamps
Food Service Equipment Elevators Escalators
Power Supply Measures
16
Incentives Simple Rebates Incentives Simple Rebates
Standard Measures Funded Incentive Amounts (applied to first-year savings)
LIGHTING UPGRADES T-12 to T-8 or T-5 Replaced Incandescent, Exit Signs, Instant Motion Sensors, others 20 per kWh saved 20 per kWh savings
HVAC Efficient chillers, heat pumps, variable speed drives for fans. Up to 29 kWh savings
High Efficiency Industrial Equipment Expected 15-year service life 23 per kWh savings
NEW PC Power Management 8/pc Estimated savings up to 375 kWh/PC
NEW Hot Food Holding Cabinets Up to 500 per cabinet
17
Built Smart Programbuildings designed and built
to conserve resources while providing a
tranquil living environment
  • Program Incentives
  • Building materials, windows, walls, ceilings
  • Insulation and HVAC
  • Interior and exterior common area lighting
  • Energy efficient fans, controls, in-unit
    appliances, thermostats, elevators
  • certified BUILT SMART
  • BUILT SMART standards exceed the highest
    recommendations of the State Building Code for
    energy efficiency and comfort.
  • Every BUILT SMART apartment and condominium
    building undergoes rigorous inspection during
    construction.
  • When the building is successfully completed, it
    is awarded a BUILT SMART certification plaque
    that can be displayed in the lobby.

18
Built Smart Incentive Schedule Simple Rebates Built Smart Incentive Schedule Simple Rebates
Standard Measures Funded Incentive Amounts (applied to first-year savings)
Built Smart Full Measure Program (Market Rate and Affordable Housing components) Requirements New construction residential building 5 units or more, no more than 7 stories Electrically heated 0.75/kWh saved over code in wall, window, ceiling floor insulation
Built Smart Full Measure Program (Market Rate and Affordable Housing components) Requirements New construction residential building 5 units or more, no more than 7 stories Electrically heated 0.20/kWh saved over code in common area lighting
Built Smart Full Measure Program (Market Rate and Affordable Housing components) Requirements New construction residential building 5 units or more, no more than 7 stories Electrically heated 25/fixture for energy efficient in-unit lights
Multifamily New Construction Common Area Lighting Requirements New construction residential building, gas or electrically heated 5 units or more, no limits on number of stories 0.20/kWh saved over code in common area lighting
Multifamily New Construction Common Area Lighting Requirements New construction residential building, gas or electrically heated 5 units or more, no limits on number of stories 25/fixture for energy efficient in-unit lights
19
Refrigerator Recycling Program we pick up your
old fridge...and you pick up 30 bucks
  • Old second appliances use three times as much
    energy as newer ones, significantly running up
    the electric bill and contributing to global
    warming.
  • Fixed rebate program 30 per refrigerator or
    freezer
  • Partnership with leading appliance recycling
    company
  • JACO Environmental
  • Picks up the appliance from resident homes
  • Uses a state-of-the-art process to recycle 95 of
    the materials that make up the old refrigerators
    and freezers

20
Twist Save Program compact fluorescent bulbs
to transform the lighting market
  • Inexpensive Energy Star Compact Fluorescent
    bulbs for less than 1 at participating retailers
  • Easy No coupons or rebates forms
  • Opportunities
  • CFL Saturation
  • Almost 3 out of 10 homes do not have at least one
    CFL installed
  • Challenges in reaching these homes include
    cultural and language barriers that will require
    creative communication techniques to reach and
    persuade these customers
  • CFL Bulb Recycling and Mercury Concerns
  • Take it Back Network Program
  • City Light Recycling Bins at Service Centers

21
Utility Incentives for a world-class
conservation power plant
Seattle City Light Conservation Resources
Click on screen to play video
conservation is Seattles energy resource of
choice www.seattle.gov/light/conserve
22
Robert Balzar 30 years experience in
engineering, marketing and utility management
  • Past experience
  • Director of Marketing and Product Development for
    Pinnacle Homes in Las Vegas
  • 21 years at Sierra Pacific Power and Nevada Power
    Companies, including five years leading a team
    that developed and expanded the Energy Efficiency
    and Conservation Department
  • Member of
  • Board Member, Northwest Energy Efficiency
    Alliance
  • Served on the State of Nevada Task Force on
    Renewable Energy and Energy Conservation
  • Served as a Board member of Southwest Energy
    Efficiency Program in Boulder, Colorado
  • Education
  • B.S. in Electrical Engineering from the U of NV,
    Reno
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