1. August 5, 2008 APPA Webinar Lindsay Joye City of Palo Alto Utilities (CPAU) Efficiency Studies from Comprehensive to Customer-Specific

2. August 5, 2008 APPA Webinar Lindsay Joye CPAU Background Only CA publicly-owned utility providing electric, gas, water, & telecom (fiber) Electric- 26,000 accounts –1,000 GWh/year, 190 MW peak load –Sales: 78% Commercial, 22% residential Long history of comprehensive energy & water efficiency programs (1980) and progressive renewable programs (1999)

3. August 5, 2008 APPA Webinar Lindsay Joye Electric Procurement < 2005 Purchased 90% electricity from WAPA (low cost) ≥ 2005 Increased market purchases to ≥ 50% (higher costs), driving double-digit rate increases each year Developed Long-term Electric Acquisition Plan Hired Rocky Mountain Institute to examine supply and demand-side opportunities.

4. August 5, 2008 APPA Webinar Lindsay Joye Load Growth Status Quo Enhanced efficiency efforts should reduce projected load growth. Dry 30–60 MM$ Normal 20-40 MM$ Hydro Variability New Renewables growing to 20% What can we get from efficiency? Could be sufficient economic potential to offset projected load growth of 3-5% over 10 years, but not enough to eliminate deficit position.

5. August 5, 2008 APPA Webinar Lindsay Joye New Focus on Lower Bills Cost-effective efficiency programs reduce participating customer’s bills, with small increase in average rates. “Least-rate” approach underestimates economic efficiency potential from a total community viewpoint. Design efficiency programs to be inclusive. Minimize non-participants that absorb fixed program costs without benefiting from savings.

6. August 5, 2008 APPA Webinar Lindsay Joye RMI Report Quantitative and Qualitative Top-down estimate of efficiency potential –Gas and electric end uses –Residential and commercial sectors –Grouped measures into programs & sorted on total resource cost ($/kWh lifetime ) Study on efficiency program design –Focus on best practices across the nation –Match programs that would work for Palo Alto

7. Economic Potential 90 GWh = 9% of annual load

8. August 5, 2008 APPA Webinar Lindsay Joye Top Ten under 6¢

9. August 5, 2008 APPA Webinar Lindsay Joye Program Design Ideas Enhance on-going CPAU programs. Offer commissioning and building operator training programs. Coordinate with neighboring utilities to leverage marketing efforts. Treat low-income efficiency programs as alternatives to increased subsidies of energy purchases by these customers. Create an integrated package of services, (i.e. site audit, technical assistance, and financial assistance) to lower perceived barriers and encourage implementation.  Consider innovative financing strategies such as on-bill financing and performance contracting. (billing system issues)

10. August 5, 2008 APPA Webinar Lindsay Joye CARE Program C onsultant A ssistance for R esource E fficiency Comprehensive studies tailored to meet customer needs (Elec, Gas & Water) Co-funded requires management support and increases likelihood of implementation Requires Prof. Engineer evaluation of life-cycle cost of each alternative

11. August 5, 2008 APPA Webinar Lindsay Joye CARE Lessons Learned 146 Studies in 6 years, avg. cost $8,000 Paradigm shift –From facility manager driven (reduce costs) –To CEO champion (sustainability-focus) –Cost-effective measures done first, now getting more $$$ to go green Leverage focus on climate change, green business awards, LEED certification

12. August 5, 2008 APPA Webinar Lindsay Joye Case Study: Premier Properties manage 60 small to medium commercial buildings Add a green rider on lease to incorporate green energy costs Perform walk-thru audits to identify efficiency opportunities Use green to attract new tenants

13. August 5, 2008 APPA Webinar Lindsay Joye Case Study: Multi-year initiative to audit all school properties Collaboration with school facilities staff, administration, utility, teachers and community volunteers (Sustainable Schools Committee) Studies used for Master Development Plan ($378M bond passed 6/08) Building System manual provides detailed operating instructions per building Triple bottom line has economic, environmental and educational benefits

14. August 5, 2008 APPA Webinar Lindsay Joye Summary RMI Efficiency Potential study gets Utility management and City Council support Customer Studies get community to take action There is a gap between economic potential and what customers implement Utility & customer staff and budget constraints Turning to turn-key programs managed by third- party

15. August 5, 2008 APPA Webinar Lindsay Joye Contact Lindsay Joye, P.E. Lindsay.joye@cityofpaloalto.org 650-329-2680 www.cityofpaloalto.org