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Northwest Power and Conservation Council Energy Efficiency in the Northwest Progress and Promise Presented at Affordable Comfort Northwest February 21, 2007 Tom Eckman Northwest Power and Conservation Council
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Northwest Power and Conservation Council slide 2 What You’re About To Hear A Short History A Short History –What We’ve Accomplished in the past 25 years Some Recent Events Some Recent Events –What’s Left to Do? The Road Ahead The Road Ahead –How We’re Doing on the 5 th Plan’s Targets –Are We In for Another “Mister Toad’s Wild Ride?”
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Northwest Power and Conservation Council slide 3 To Understand the Present, You Need to Know Our Past
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Northwest Power and Conservation Council slide 4 What Happened After Lewis and Clark Left?
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Northwest Power and Conservation Council slide 5 The First Three “Eras” of Power Planning in the PNW “New Deal” Mysticism (1930-1950) “New Deal” Mysticism (1930-1950) –Politicians plan using “chicken entrails and crystal balls” legislate what’s needed and when Engineering Determinism (1950- 1970) Engineering Determinism (1950- 1970) –Engineers, using graph paper and rulers schedule the next power plants Economic Determinism (1970 to April 27, 1983) Economic Determinism (1970 to April 27, 1983) –Economist, using price elasticity slow the engineer’s construction schedules
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Northwest Power and Conservation Council slide 6 Actions Taken in Response to “Engineering and Economic Determinist’s” Forecasts Utilities planned and/or started construction on 28 coal and nuclear power plants to be completed over a 20-year period. Utilities planned and/or started construction on 28 coal and nuclear power plants to be completed over a 20-year period. Native American tribes sued the state and federal government over loss of salmon Native American tribes sued the state and federal government over loss of salmon Environmental groups sued Bonneville Power Administration over plans to turn the Columbia River into “Wave World” Environmental groups sued Bonneville Power Administration over plans to turn the Columbia River into “Wave World”
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Northwest Power and Conservation Council slide 7 Impact of Actions Taken in Response to “Engineering and Economic Determinist’s Forecasts and Plans 416% Rate Increase over 5 years
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Northwest Power and Conservation Council slide 8 Reaction to Impact of Actions Taken in Response to “Engineering and Economic Determinist’s Forecasts and Plans Terminate or mothball 9 nuclear and 5 coal plants at a cost to the region’s consumers of more than $7 billion. Terminate or mothball 9 nuclear and 5 coal plants at a cost to the region’s consumers of more than $7 billion. Motivated the region’s politicians, utilities, larger industries and public interest groups to accept the “deals” embodied in the Northwest Power and Conservation Planning Act of 1980 Motivated the region’s politicians, utilities, larger industries and public interest groups to accept the “deals” embodied in the Northwest Power and Conservation Planning Act of 1980
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Northwest Power and Conservation Council slide 9 The Fourth Era - Northwest Power and Conservation Planning Act of 1980 (PL96-501)* Authorized States of ID, OR, MT and WA to form an “interstate compact” (aka, the “Council”) Authorized States of ID, OR, MT and WA to form an “interstate compact” (aka, the “Council”) Directed the Council to develop 20-year load forecast and resource plan (“The Plan”) and update it every 5 – years Directed the Council to develop 20-year load forecast and resource plan (“The Plan”) and update it every 5 – years –Plan shall call for the development of the least cost mix of resources –Plan shall consider conservation (energy efficiency) its highest priority resource equivalent to generation with a 10% cost advantage over power generating resources Mandated public involvement in Council’s planning process. Mandated public involvement in Council’s planning process.
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Northwest Power and Conservation Council slide 10 How Has It Worked?
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Northwest Power and Conservation Council slide 11 PNW Energy Efficiency Achievements 1978 – 2005 Since 1978 Utility & BPA Programs, Energy Codes & Federal Efficiency Standards Have Produced Over 3100 aMW of Savings.
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Northwest Power and Conservation Council slide 12 Energy Efficiency Resources Significantly Reduced Projected PNW Electricity Sales
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Northwest Power and Conservation Council slide 13 Energy Efficiency Met Nearly 40% of PNW Regional Firm Sales Growth Between 1980 - 2003
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Northwest Power and Conservation Council slide 14 Utility Acquired Energy Efficiency Has Been Cost- Competitive with Market Purchases Note: Vertical Axis is in Log Scale!
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Northwest Power and Conservation Council slide 15 Let’s Be Clear: Utility Acquired Energy Efficiency Have Been A %*&?! BARGAIN!
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Northwest Power and Conservation Council slide 16 Regional Utility Conservation Acquisitions Have Also Helped Balance Loads & Resources Response to West Coast Energy Crisis Response to NW Recession Response to “Restructuring Discussions” Creating Mr. Toad’s Wild Ride for the PNW’s Energy Efficiency Industry Short Term Memory Loss?
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Northwest Power and Conservation Council slide 17 So What’s 3100 aMW? It’s enough electricity to serve the entire state of Idaho and all of Western Montana It’s enough electricity to serve the entire state of Idaho and all of Western Montana It saved the region’s consumers nearly than $1.3 billion in 2005 It saved the region’s consumers nearly than $1.3 billion in 2005 It lowered 2005 PNW carbon emissions by an estimated 13.5 million tons. It lowered 2005 PNW carbon emissions by an estimated 13.5 million tons.
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Northwest Power and Conservation Council slide 18 IS THAT AS GOOD AS IT GETS IS THAT AS GOOD AS IT GETS? With All We’ve Accomplish You Might Ask Yourself You Might Ask Yourself
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What’s Left to Do ?
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Northwest Power and Conservation Council Advanced Search Preferences Language Tools Advertise with UsAdvertise with Us - Business Solutions - Services & Tools - Jobs, Press, & HelpBusiness SolutionsServices & ToolsJobs, Press, & Help Make Google Your Homepage! ©2003 Google - Searching 3,307,998,701 web pages WebImagesGroupsDirectoryNews PNW Conservation Potential
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Northwest Power and Conservation Council slide 21 Search Results: Cost-Effective Savings by Sector
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Northwest Power and Conservation Council Advanced Search Preferences Language Tools Advertise with UsAdvertise with Us - Business Solutions - Services & Tools - Jobs, Press, & HelpBusiness SolutionsServices & ToolsJobs, Press, & Help Make Google Your Homepage! ©2003 Google - Searching 3,307,998,701 web pages WebImagesGroupsDirectoryNews Major Sources of Savings
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Northwest Power and Conservation Council slide 23 Search Results: Major Sources of Cost-Effective Efficiency Potential
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Northwest Power and Conservation Council Advanced Search Preferences Language Tools Advertise with UsAdvertise with Us - Business Solutions - Services & Tools - Jobs, Press, & HelpBusiness SolutionsServices & ToolsJobs, Press, & Help Make Google Your Homepage! ©2003 Google - Searching 3,307,998,701 web pages WebImagesGroupsDirectoryNews Residential Sector Savings Potential
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Northwest Power and Conservation Council slide 25 Total Residential Sector Cost- Effective Potential – 1475 aMW
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Northwest Power and Conservation Council slide 26 Search Results: Residential Sector Conservation Resource Potential for Appliances 290 aMW 15 aMW 5 aMW
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Northwest Power and Conservation Council slide 27 Search Results: Residential Sector Conservation Resource Potential for Water Heating 95 aMW 225 aMW 15 aMW
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Northwest Power and Conservation Council slide 28 Search Results: Residential Lighting Potential
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Northwest Power and Conservation Council slide 29 Search Results: Residential Space Conditioning Economic Potential
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Northwest Power and Conservation Council slide 30 The Road Ahead – Is This The Renaissance?
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Northwest Power and Conservation Council slide 31 5 th Plan Relies on Conservation and Renewable Resources to Meet Load Growth * * Actual future conditions (gas prices, CO2 control, conservation accomplishments) will change resource development schedule and amounts
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Northwest Power and Conservation Council slide 32 The Plan Calls for Accelerating Conservation Development Because it Reduces Cost & Risk
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Northwest Power and Conservation Council slide 33 The Plan Calls for Accelerating Conservation Development Because Reduces Carbon Dioxide Emissions
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Northwest Power and Conservation Council slide 34 Meeting 5 th Plan’s Conservation Targets Reduces Forecast PNW Power System CO2 Emissions in 2025 by Nearly 20%
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Northwest Power and Conservation Council slide 35 Are We Achieving the 5 th Plans Near-Term Conservation Targets? (2005-2009) = 700 aMW
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Northwest Power and Conservation Council slide 36 We Think All Returns Have Been Counted 62 Utilities 88% of Regional Load Council’s Regional Technical Forum Has Surveyed Utility Progress on Conservation
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Northwest Power and Conservation Council slide 37 Returns Show We Met the 2005 Target 2005 Target 2006 Target
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Northwest Power and Conservation Council slide 38 Conservation Appears to Be Lower Cost... At Least To Utilities 5 th Plan Estimate of Utility Cost of Conservation for “share” of Target: $180 to $225 million May Hit savings targets with lower than expected cost May Hit savings targets with lower than expected cost No data yet on levelized cost to compare to wholesale power costs No data yet on levelized cost to compare to wholesale power costs Equivalent to 1.75% of Regional Retail Revenues
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Northwest Power and Conservation Council slide 39 Utility Cost of Conservation Continue to Decrease 2005 Cost Range
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Northwest Power and Conservation Council slide 40 Are Individual Utilities “Making Their Targets?”
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Northwest Power and Conservation Council slide 41 2005 Findings by Utility 16 Largest Utilities or 85% of Regional Loads Four utilities far exceed targets Four utilities far exceed targets –15 to 35% above “share” of regional target Eight utilities fell short Eight utilities fell short –Seven achieved less than half of their “share” of regional target Four utilities within 10% of target Four utilities within 10% of target
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Northwest Power and Conservation Council slide 42 2005 Results 16 Largest Utilities – 85% of Regional Loads
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Northwest Power and Conservation Council slide 43 The Road Ahead – A Brighter Future @ Lower Wattage Over 7 million CFLs sold in 2005 Over 7 million CFLs sold in 2005 –PNW has 16% of all US installs BPA has several new regional initiatives underway BPA has several new regional initiatives underway State & Federal standards for 17 appliances State & Federal standards for 17 appliances –Help hit targets beginning 2008 Commercial & Industrial program participation is up Commercial & Industrial program participation is up
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Northwest Power and Conservation Council slide 44 The Road Ahead – Utilities Appear to Be “Ramping Up” PSE is developing a “green utility” strategy PSE is developing a “green utility” strategy Avista has increased its annual efficiency goal by 20% -- and management has asked staff to “squeeze out more efficiency” company wide Avista has increased its annual efficiency goal by 20% -- and management has asked staff to “squeeze out more efficiency” company wide Idaho Power expects to nearly double its efficiency expenditures next year Idaho Power expects to nearly double its efficiency expenditures next year PGE has initiated discussions that could lead to an increase in Energy Trust funding PGE has initiated discussions that could lead to an increase in Energy Trust funding
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Northwest Power and Conservation Council slide 45 I-937 Passed
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Northwest Power and Conservation Council slide 46 Now It Must Be Implemented
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Northwest Power and Conservation Council slide 47 I-937 Failed In Most Counties Served by Public Utilities Who Do Not Appear to Be Achieving the 5 th Plan’s Targets I-937 Failed in the Counties Served by these Utilities
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Northwest Power and Conservation Council slide 48 After A Quarter Century ImmoralIllegalUnprofitable The Region May Finally Achieve the Power Act’s Vision of Making the Inefficient Use of Electricity...
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Northwest Power and Conservation Council slide 49 Thank you very much. Thank you verry, verry much.
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