1. Appendix Putting H.R. 2454 in Context

2. President Obama’s Energy / Environmental Views
Climate Change
Renewable Portfolio
Standards
80% reduction by 2050
25% by 2025
H.R % reduction by 2050
H.R % by 2020
Energy Efficiency
Smart Grid
Overhaul of
Federal Efficiency Codes
Increased Government Support
In H.R and stimulus package
In H.R. 2454

3. Benefits of Allocations
Reduces customer cost impact significantly
Customers pay for costs of carbon reductions, but not for cost of allowed emissions
Benefits all electricity users, including business and commercial customers
Can target low-income customers
Accommodates regional differences in cost and electricity use

4. Auctioning Allowances Would Sharply Increase Costs to Customers

5. Financial Impacts of Climate Change
EPA
Household spending would drop by about $140 / year by 2020; gas prices would increase 33 cents / gallon by 2030
CRAI (for National Black Chamber of Commerce)
By 2015; $730 / year less in household purchasing power, electric rates would increase 7.3% by 2015; gas prices by 12 cents / gallon
Heritage Foundation
By 2035 electricity rates would increase by 90%, gas prices by 74%, household energy bills by $1500
It’s ALL About the Assumptions!

6. Percentage Black Population-Electricity Costs By State
This map superimposes the concept that the states with the greatest concentration of African Americans are in the southeastern part of the US. These are the same dates with the lowest average per family income.
Retail Cost Per kWh ME
0.6 WA
3.3% MT
0.3% ND
0.6% MN
4.1% OR
1.7% ID
0.3% WI
5.7% SD
0.8% MI
14.% WY
0.8% PA
10.% IA
2.2 NE
3.6% IN
8.1% OH
11.7% NV
6.9% IL
14.7% CA
6.2% UT
0.8%
5.0¢ CO
4.0% VA
19.3% KS
5.1% MO
11.2%
KY 6.8% NC
21%
TN 16.3% OK
7.1% SC
28.9%
NH 0.8%
VT 0.5%
MA %
RI 5.5%
CT 9.3%
NY 15.8%
NJ 13.1%
DE %
MD 28.5%
DC 57.8% AZ
3.0% NM
2.3%
AR 15.%
¢ = average retail price per kilowatt hour through CY 2006 AL
26.0% GA
28.7% MS
37% TX
11.0% LA
32.5% FL
15.1
< 6.5¢
> 6.5¢ - < ¢
> ¢ - < 9.5¢ > ¢ - < 11.0¢
> 11.0¢
Hydro
20.7¢
12.9¢
Source: Energy Information Administration – March 2007

7. Important Issues Needing Attention
Targets & timetables
Timing of transition to full auction
Price collar / safety valve
Offsets
Combined efficiency and renewable energy standard

9. Planned capacity additions reflect state RPS requirements
US Generation Capacity in 2008
(1,061 GW in Service)
Planned Capacity Additions to 2020
(352 GW)
Hydro 9%
Gas
41%
Coal
30%
Nuclear
10%
Oil 6%
Non-Hydro
Renewable 4%
Hydro
16%
Gas
23%
Coal
14%
Nuclear
13%
Oil 0%
Non-Hydro
Renewable
34%
Source; Ventyx Global Energy and Bernstein Analysis
Non-hydro renewables make up 4% of US capacity today but 34% of planned capacity additions through 2020.

10. Wind dominates proposed renewable capacity additions
Planned Renewable Capacity Additions to 2020
Wind
78%
Solar Thermal 8%
Small Hydro 6%
Wood 2%
Solar PV
Waste
Geo
Source; Ventyx Global Energy and Bernstein Analysis
Wind accounts for 78% of planned renewable capacity additions. Solar thermal accounts for 8% and solar photovoltaic for another 2%.
The tendency of wind to blow during off-peak hours limits its usefulness on power grids, motivating utilities to explore ways of increasing the use of solar resources available during hours of peak demand.

11. U.S. Renewable Resources
Source: National Renewable Energy Laboratory
Source: National Renewable Energy Laboratory

12. Transmission Congestion Dramatically Increasing

13. Energy Efficiency Can Lower Bills Help Address Climate Change
Average US household owns 24 consumer electronic products
2 DVRs use as much energy in 1 year as a refrigerator
Play Station and X-Box use more electricity than a PC
PCs and TVs now account for 10% of a home’s electricity usage
99% of these products must be plugged in or recharged
42” Plasma TV uses more than twice as much as a standard 27” TV
More efficient use of energy could significantly reduce energy bills
Need to educate all consumers about how to save energy and use it more efficiently

14. Intensified National Commitment To Energy Efficiency Is Needed
Aggressive campaign for technologies
Smart buildings
Smart appliances
Smart electric meters and grid
Smart rates
Commercializing plug-in hybrid electric vehicles

15. Total U. S. utility spending on energy efficiency programs: $2
Total U.S. utility spending on energy efficiency programs: $2.5 billion in 2007
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2000
2001
2002
2003
2004
2005
2006
2007
$1,000,000,000
Total Utility Spending on EE & LM ( ) -
Source: EIA Form 861
Source: The Edison Foundation – Institute of Electric Efficiency

16. Carbon Capture and Storage Challenges
9/18/ :34 AM
Carbon Capture and Storage Challenges
Capture
Develop cost-effective means of capturing CO2 from combustion
Transport
Ability to access current gas and CO2 pipeline structure
Regulatory framework
Liability concerns
Storage
Permitting and siting
Full-scale demonstration projects
Public education and acceptance
Thurs_GS_Energy_Obama

17. Smart Grid … Sensing and Measurement
Advanced Sensors
Remote Monitoring of Expensive Equipment (e.g. Transformers)
Smart Meters

18. Smart Grid … Integrated Communications
Examples:
Powerline Broadband over Powerline (BPL)
Cellular Radio Frequency (RF)
Satellite

19. Smart Grid … Advanced Control

20. What is the Smart Grid?
An advanced, telecommunication / electric grid with sensors and smart devices linking all aspects of the grid, from generator to consumer, and delivering enhanced operational capabilities that :
Provide CONSUMERS with the information and tools necessary  to be responsive to electricity grid conditions (including price and reliability) through the use of electric devices and new services (from smart thermostats to PHEV)
Ensure EFFICENT use of the electric grid (optimizing current assets while integrating emerging technologies such as renewables and storage devices)
Enhance RELIABILITY (protecting the grid from cyber and natural attacks, increasing power quality and promoting early detection and self correcting grid “self-healing”)

21. Opportunities - Green Jobs
Energy Independence and Security Act of 2007
$125 million / year to create a worker training program, special focus on opportunities for low income people
American Reinvestment and Recovery Act (Stimulus Bill)
Significant funding for a broad range of programs – including energy efficiency, renewables, climate change, smart grid
Workforce training
Renewables - Roof-top solar heating, water, energy
Meeting the increasing state, federal and consumer requirements
Energy Efficiency
Energy audits, retrofits, new technologies, green building standards
Efficiency management – data mining

22. Opportunities - Green Jobs
Smart meters / smart grid
Replacing legacy systems with new technologies
Demand response
Provide consumers and utilities with new tools to manage demand
Plug-in Hybrid Electric Vehicles
Need programs to develop and attract new talent