A New View on Energy Efficiency An Introduction for Public Power Utilities (Approximately 30 minute presentation)

Energy efficiency is a demand-side resource  Energy conservation  Load management  Demand-side management  Integrated resource planning  Demand response  Peak clipping  Load shifting  Fuel switching  Market transformation  Energy efficiency Demand-side resources: In contrast to supply-side resources, the effective energy (kWh) and capacity (kW) harnessed from changes in customer energy use patterns, including improving energy efficiency, in order to provide long-term, system-wide utility benefits as well as direct benefits to program participants. This definition assumes the demand- side resources chosen also will support net emissions-reduction goals.

Is Energy Efficiency Yet One More Concern?

Energy efficiency and demand-side planning increase flexibility in uncertain times Energy efficiency helps:  Keep energy dollars home  Reduce retail and wholesale electricity bills  Support utility modernization efforts  Support clean energy goals

River Falls, WI, a city of 14,000, has saved more than 2 million kWh in about 2 years.

Utility programs work with market-driven changes (better building materials and equipment) plus policies, such as codes and standards. Energy Efficiency Affects Resource Needs Supply Side Resources Market- and Policy-Driven EE Utility-Driven EE

Business Case for Demand-Side Resources Utility View Reduce marginal costs, improve net benefits Beat the compliance clock Hedge against risks Support utility modernization Primary focus on electricity Community View Relief through bill savings Promote better buildings Provide economic stimulus Support sustainability Serve special groups Increase comfort & convenience Cross-cut with regional planning (water, electricity, natural gas, transportation, food, etc.) Public power sees both sides

Energy Star offers many EE programs that need little customization  Quick-Start programs from Energy Star  ARRA turnkey programs  Joint Action Agency programs  Statewide agency support  Regional Market Transformation Center programs  Sustainable-city partnerships

This chart shows dozens of measures for 2020 that will be cheaper than predicted energy costs. Today’s average cost for EE: 2¢ – 4¢ per kWh saved.

Address Technical Needs 1.Are products and services are locally available? 2.Are trade allies (sales, installation, service) prepared? 3.Are there problems with disposal of old products? 4.What can we do to help? The Sacramento (SMUD) refrigerated case lighting promotion relied on products that could be hard for buyers to find. Fixing that problem was job #1.

Address Marketing Needs 1.Understand the target audience’s concerns 2.Choose the right tools at the right times:  Targeted outreach  Advertising and PR  Trade ally campaigns  Pricing – Rates  Pricing – Incentives 3. Cover administration details Working with the Chamber of Commerce in Spencer, IA

 Count all avoided costs & review revenue requirements  If a rate increase is needed, check rate structure, too  Focus on marginal cost – the cost of the next kW or kWh, which is usually much higher than average cost  Help customers achieve bottom-line bill savings  An investment in energy efficiency today is a hedge against greater rate increases tomorrow  Public power utilities can be lean and strong

Peak without EE Programs Peak with EE Programs Waverly Light and Power (IA) improves EE economics by combining programs that save energy and demand.

From Anchorage to Key West, municipal utilities have promoted LED stoplights and other quick-payback improvements. Other ideas:  Generating plant efficiency checkup  Reducing distribution line losses  Citywide lighting improvements  City-building load management  Improving water & wastewater operations

 Get best-practices case studies from APPA and CEEP  Programs for business customers – often greater savings and economic development impact per dollar invested  Programs for residential customers – broader reach, more ways to make a difference  Reach beyond the low-hanging fruit A sampling of programs from Springfield, IL City Water, Light, and Power

Wind Pioneer Bowling Green, OH, started with energy efficiency and direct load control programs. Partnerships with other public power utilities and with the community help us to build our future.

 American Public Power Association Energy Efficiency Resource Central –  Your Joint Action Agency or  Your Public Power Supplier New View Guidebooks and other resources are available from APPA,