Utility Programs in Texas & Arkansas: Helping to Meet Future Energy Needs, by Reducing Costs & Building Local Economies

Transcription

1 Sept. 3, 2013 John Ashe Utility Programs in Texas & Arkansas: Helping to Meet Future Energy Needs, by Reducing Costs & Building Local Economies

2 CLEAResult Overview 2003 Austin, TX 32 1, %+ Founded Headquarters Regional offices across North America Employees Growth year-afteryear since our inception Exclusively focused on energy efficiency & other demand-side management solutions Leading provider of energy optimization solutions for utilities, energy end-users & public sector Expertise at designing & implementing energy efficiency, load management & renewable energy programs for gas & electric utilities Pragmatic approach to designing & delivering programs to meet utility customers business & regulatory needs

3 About CLEAResult Grew up with Texas perspective, but now operate nationally Implement School, City and Commercial Business programs for most IOU s: Technical assistance, financial analysis, PR support to 250 TX school districts, 100+ TX cities/counties, 100s of commercial businesses Unbiased program helps customers identify projects, compare, & execute on projects with solid returns on their investment Texas School, Government and Commercial Solutions Programs, Performance through 2012 Market Sector kw Saved Annual kwh Saved Incentives Paid Estimated Customer Investment # of Projects Lifetime Bill Savings (@ $.097) Commercial 21,360 94,137,124 $6,451,516 $25,806, ,318 $109,575,613 Education 92, ,296,632 $19,548,079 $78,192, ,476 $255,261,280 Local Government 11,677 44,213,578 $3,743,187 $14,972, ,053 $51,464,605 Contractor Based Commercial 1,136 4,407,455 $427,021 $1,708, $5,130,278 Contractor Based Residential 1,759 2,664,344 $874,299 $3,497, ,927 $3,101,296 Grand Total 128, ,719,134 $31,044,102 $124,176,410 10,393 $424,533,071

4 Comparative Costs of Electric Generation * Energy Efficiency as the 5 th Fuel [Natural gas, Coal, Nuclear, Renewables, then Energy Efficiency]

5 Anatomy of an Energy Efficiency Program Customer Classes & Types of Programs Low Income [Direct Installation of e-saving products: CFLs, aerators, air sealing ] Residential [AC upgrade, Insulation, Windows, Appliances, Whole house approach] Small Commercial [Lighting, Refrigeration, AC Tune-up, AC Replacement] Large Commercial [Small Comm s + A.Compressors, Motors, Chillers, Fans, etc, etc, etc] Public Sector [See Small & Large Comm. measures, above] Components of Programs Cash & non-cash Incentives Energy Benchmarking and/or Master Planning Technical assistance Financial analysis assistance Trade ally coordination PR support to 250 TX school districts, 100+ TX cities/counties, 100s of commercial businesses

6 Example: Project: Replace Inefficient Lighting Original Plan: Common, commercially available system AEP CitySmart Technical Assistance: More Efficienct System Lifetime Savings: $1.6M instead of $0.6M 87 kw Savings 231 kw Savings Original Plan Recommended Plan

7 Building Local Economies *Angelou Economics 11 report re: TX Economic Impact of E-E Programs Administered by IOUs Economic Impact (Investor Owned Utilities) Utility & Participant Spending Avg. Cumulative $500M/yr $1.5B $6.5B State/Local Tax $20M/yr $60M $260M Jobs (retained or created) 4,000/yr 12,000 52,000 Economic Impact (Municipal Utilities) Budget Econ. Output Jobs CPS $12.6M/yr $60+M/yr 450+ Austin Energy $18.4M/yr $75+M/yr 600 Potential Impacts Utility & Participant Spending State/Local Tax Jobs (retained or created) $1.8B/yr $53M/yr 10,000+/yr

8 Texas AEP Central Who s eligible? ISD s Cities AEP Southwestern Electric Power Company (SWEPCO) Who s eligible? ISD s Cities

9 Northeast Texas

10 Local Texas Efficiency Programs AEP SWEPCO Texas Commercial Commercial Standard Offer Load Management Commercial Solutions SCORE Load Management Small Business Residential Residential Standard Offer Appliances CoolSaver AC Tune Up Solar PV Low Income Oncor Commercial Custom Commercial Standard Offer - Basic Commercial Standard Offer Load Management Educational Facilities Program Government Facilities Program Small Business Solar PV Residential Home Energy Efficiency Solar PV Low Income Weatherization Efficiency-Programs

11 Arkansas Walnut Ridge Harrison Batesville Marion Conway Searcy Russellville West Markham Jacksonville Hot Springs Baseline Stuttgart Helena Malvern Pine Bluff Pine Bluff Monticello Magnolia Lake Village El Dorado

12 Arkansas Efficiency Programs AEP SWEPCO AR Commercial Commercial Solutions Load Management Small Business Small Business Direct Install Residential Residential Standard Offer CFL Appliances Home Performance Entergy Commercial C&I Custom, Prescriptive, DI Small Business CitySmart Agriculture MultiFamily CoolSaver Residential Home Energy Solutions Lighting & Appliance New Homes Summer Advantage (Load Mgmt) Weatherization energy_efficiency/main

13 Arkansas Efficiency Programs Source Gas Commercial Commercial Reduce & Rebate Small Business Reduce & Rebate Commercial Direct Install CenterPoint Gas Commercial New Boiler Boiler System Components Heating System Water Heater Foodservice Equipment Residential Weatherization Educational Efforts (Tighten Up Arkansas) Residential Heating System Water Heater Low flow Device Installation ralgas/residential/ar

14 What Else Is Possible Larger kw & kwh savings through additional programs & expanded programs Engage Retail Electric Providers Treat Energy Efficiency as a form of energy generation in the capacity market

15 Questions or Comments John Ashe

16 Water Withdrawals Withdrawal isn t Consumption Power Plants Consume just 10% Power plants consume 1 quart of water per kwh produced TX IOU energy efficiency programs saved 13 Billion gallons of water at generators Source: USGS Report, 2005 Source: US EIA Form 861/923

17 Water/Energy Efficiency Example Faucet Aerator Installations AR and NM Purpose Energy Efficiency Significant water and water bill savings

18 Water Efficiency Market Barriers Consumer Knowledge: How to find leaks, tune irrigation systems Consumer Time: Who has time to deal with this? Lack of trust: Who do you call? A plumber? Who s technically capable to solve this issue? How do you know you won t get ripped off? Lack of use of technology: technology exists to connect sprinkler systems to weather, so if it rains, you re not watering lawns. Lack of industry cohesiveness: Many water companies, districts, that are smaller, less sophisticated than IOU s Lack of water use data: What if you could get a bill that would show how much water you use compared to others? Energy Efficiency programs serve as a good model, but would require policy and funding to put in place

19 3 Value Perspectives Traditional Net Benefits Energy Efficiency as a Resource Avoided generation costs minus energy efficiency program costs Assumes wholesale cost, not customer rate savings In TX, environmental benefits are not included Other benefits, such as speed to market, are not included TX Net Benefits = $1.5 Billion Customer /Participant Benefits Energy bill or retail energy savings over the life of the equipment TX utility bill savings as a result of programs = $3.3 Billion Customers also experience operational improvements Reductions to market pricing as a result of reduced demand not included Economic Benefits Programs induce capital projects, spur employment, employee retention, equipment manufacturing, etc. Angelos Angelou economic impact for programs is 5X program spend Includes 11,940 FTE jobs