Energy Efficiency Potential in the Land of Lincoln. Citizens Utility Board (CUB) October 2013

Transcription

1 Energy Efficiency Potential in the Land of Lincoln Citizens Utility Board (CUB) October 2013

2 Introduction This Citizens Utility Board (CUB) report quantifies the money-saving potential available to consumers through energy-efficiency programs offered by utility companies in the Land of Lincoln. The consumer watchdog s analysis comes at a key time for Illinois: -Federal predictions are that Midwestern natural gas customers will pay 13 percent more to heat their homes this winter compared with last. 1 -Never before have Illinois consumers been offered a more comprehensive collection of utility efficiency programs, such as discounted home energy audits, low-priced light bulbs and furnace rebates. Recently released federal data show just how acute the need is for such programs. In August, the federal Energy Information Administration (EIA), the statistical arm of the Department of Energy, released state-specific fact sheets on residential energy consumption. The data show that Illinois households are among the heaviest users of energy, on average, in the country. 2 The statistics expose the major energy challenge facing Illinois households: heating and cooling a home without breaking the budget in the face of wide swings in the weather, from cold snaps to heat waves. However, while CUB s analysis shines a spotlight on Illinois energy challenges, it also shows how consumers are presented with a unique opportunity to lower their bills, thanks to available efficiency programs. Using historical energy-usage data, filings with the Illinois Commerce Commission (ICC), and current utility prices, this report will provide a snapshot of energy usage in Illinois 1 Short Term Energy and Winter Fuels Outlook, Energy Information Administration, Oct. 8, Household Energy Use in Illinois, Energy Information Administration, August 19,

3 homes and will estimate the large potential savings awaiting customers who take part in these programs. The Problem In August 2013, the EIA published facts sheets on residential energy usage and characteristics, based on the EIA s Residential Energy Consumption Survey (RECS). The survey, conducted every four years, uses personal interviews with households across the country and energy suppliers to create a detailed energy profile of the country and a sampling of states, including Illinois. 3 Surprisingly, the 2009 data, the latest available, show that Illinois households use an annual average of million British Thermal Units (Btu) of energy. That s 44 percent above the national average, and it even outpaces the EIA s estimated average for cold-weather Midwestern states. Illinois households spend about $9.8 billion a year on energy, the EIA estimated. That s $2,067 per household about 2 percent more than the national average. 4 The big driver behind the state s numbers appears to be Illinois weather extremes its long cold winters and hot summers. The EIA reports that space heating and air conditioning take up 53 percent of residential energy consumption. The rest of the pie is divided among appliances, electronics and lighting (31 percent) and water heating (16 percent). 5 Other key findings include: 3 "EIA publishes state fact sheets on residential energy consumption and characteristics," Today in Energy, Energy Information Administration. 4 Household Energy Use in Illinois, Energy Information Administration, August 19, Household Energy Use in Illinois, Energy Information Administration, August 19,

4 *Illinois homes tend to be older and larger than in other states. One in four is at least six decades old, 6 and the average size, 2,186 square feet, eclipses the national average of 1,971 square feet. 7 *While Michigan actually edges out Illinois for energy burned on space heating, Illinois eclipses its neighbors in other usage categories, such as water heating, air conditioning, electronics and refrigerators. 8 For example, Illinois outpaces the nation in the percentage of homes with two or more refrigerators (31 percent for Illinois vs. the national average of 23 percent). 9 *Fifty percent of Illinois homes have three or more TVs, while the national average is less than 45 percent. 10 *On a positive note, more than 52 percent of Illinois homes have a programmable thermostat and more than 62 percent use energy-efficient light bulbs, which reduce energy costs Residential Energy Consumption Survey (RECS), Housing Characteristics Tables, Structural and Geographic Characteristics, in Midwest Region, Divisions, and States (HC2.9), Energy Information Administration. 7 Residential Energy Consumption Survey (RECS), Housing Characteristics Tables, Square Footage (housing unit size), Average Square Footage of U.S. Homes (HC10.9) and Average Square Footage of Midwest Homes (HC10.11), Energy Information Administration. 8 Residential Energy Consumption Survey (RECS) 2009, Consumption & Expenditures (C&E) Tables, CE3.3 End Use Consumption Totals and Averages, Midwest Homes, Energy Information Administration. use 9 Residential Energy Consumption Survey (RECS), Housing Characteristics Tables, Appliances, in Midwest Region, Divisions, and States (HC3.9), Energy Information Administration Residential Energy Consumption Survey (RECS), Housing Characteristics Tables, Televisions, in Midwest Region, Divisions, and States (HC4.9), Energy Information Administration.

5 The Solution CUB s review of Illinois efficiency programs offers a solution for Illinois households. State laws passed since 2007 mandate that utilities reduce energy delivered and meet an Energy Efficiency Portfolio Standard through customer programs. These utility programs monitored by the ICC and consumer advocates such as the Citizens Utility Board (CUB) are funded through a small energy efficiency charge on utility bills. However, the programs are mandated by law to be cost-effective, meaning their money- and energy-saving benefits must outweigh those bill charges. The programs include: Light bulb discounts: Commonwealth Edison and Ameren Illinois offer instant, in-store discounts on efficient Compact Fluorescent Light (CFL) bulbs. Rebates: Major gas and electric utilities offer rebates of up to $1,000 off products that help make a home more efficient, including a new boiler or furnace. Appliance Recycling: ComEd and Ameren will pay $35 to $50 to participants who allow the companies to pick up an old, working second refrigerator and responsibly dispose of it. Audits: Ameren, ComEd and Nicor Gas offer home energy audits discounted by $400 or more in which a trained professional makes and recommends basic efficiency improvements. CUB focused on programs offered by major Illinois utilities that are accessible to a large number of consumers. The watchdog group estimated money savings based on the projected residential energy savings for the program year (June 2013 through May 2014) in Illinois 11 Residential Energy Consumption Survey (RECS), Housing Characteristics Tables, Space Heating, in Midwest Region, Divisions, and States (HC6.9), Energy Information Administration.

6 Commerce Commission (ICC) filings and on current electric (per kilowatt-hour) and gas (per therm) supply and delivery rates for Illinois utilities. Current program year residential savings estimates: ComEd Projected residential energy savings: 292,249,000 kwh 12 Potential residential cost savings: 292,249,000 kwh x 7.46 cents per kwh =$21,801, Ameren Electric Projected residential energy savings: 121,031,000 kwh 13 Potential residential cost savings: 121,031,000 kwh x 6.71 cents per kwh =$8,121, Ameren Gas Projected residential energy savings: 1,910,468 therms 14 Potential residential cost savings: 1,910,468 therms x cents per therm =$1,281, Nicor Gas Projected residential energy savings: 6,021,235 therms 15 Potential residential cost savings: 6,021,235 therms x cents per therm =$2,640, North Shore Gas Projected residential energy savings: 813,379 therms 16 Potential residential cost savings: 813,379 therms x cents per therm =$482, Peoples Gas Projected residential energy savings: 3,657,093 therms 17 Potential residential cost savings: 3,657,093 therms x cents per therm = $2,419, "Commonwealth Edison Company s Energy Efficiency and Demand Response Plan," Oct. 1, 2010, Exhibit 1.0, Illinois Commerce Commission Docket , 13 "Electric and Gas Energy Efficiency and Demand Response Plan, Program Years: June 1, 2011 May 31, 2014, The Ameren Illinois Company," Sept. 30, 2010 (Revised October 21, 2010), Exhibit 1.1, Illinois Commerce Commission Docket , 14 "Electric and Gas Energy Efficiency and Demand Response Plan, Program Years: June 1, 2011 May 31, 2014, The Ameren Illinois Company," Sept. 30, 2010 (Revised October 21, 2010), Exhibit 1.1, Illinois Commerce Commission Docket , 15 "Nicor Gas Energy Efficiency Plan " Sept. 29, 2010, Exhibit 1.1, Illinois Commerce Commission Docket , 16 "Energy Efficiency Program Plan," Peoples Gas and North Shore Gas, Oct. 1, 2010, Exhibit 1.2, Illinois Commerce Commission Docket , 17 "Energy Efficiency Program Plan," Peoples Gas and North Shore Gas, Oct. 1, 2010, Illinois Commerce Commission Docket ,

7 The ICC filings include programs to meet the Energy Efficiency Portfolio Standard, but also additional programs as part of the electricity procurement plan for the Illinois Power Agency, the state office that procures power for ComEd and Ameren. 18 The filings show that by the end of this program year such offers could save enough energy up to 12 million therms and 413 million kilowatt-hours to power 1 million refrigerators for a year. Using current utility rates, CUB estimated that could cut utility bills by $36.7 million a year. (See Appendix A, Methodology) Connecting To Programs CUB has created a new one-stop-shop to learn about these programs. Illinoisans can download the free Guide to Illinois Energy Efficiency Incentives, at the consumer watchdog s website, Consumers also can call CUB toll-free, CUB also recommends Illinois consumers follow these top tips from its free, online energy-efficiency service, at - For every degree you lower your thermostat, you can save up to 3 percent in energy costs. Set the temperature no higher than 68 degrees when home, 62 when away or sleeping. - Reduce air leakage through drafty windows and doors, and insulate the attic. - Close doors to empty rooms. Use sunlight to heat rooms during the day, close blinds at night. - Clear radiators and baseboards of dust, carpets or furniture that block the circulation of heat. 18 "Electricity Procurement Plan, 2013, Illinois Power Agency, April 5, 2013, Illinois Commerce Commission Docket ,

8 - Check the heating and cooling system s air filter regularly. Replace it about every three months. - Make sure a trained professional checks heating and cooling equipment once a year (when it s time, try to replace it with Energy Star-labeled equipment, the federal government s designation for efficient products.). - Reduce the water heater temperature to 120 degrees. Conclusion This report is particularly relevant, given EIA historical data that show Illinois households are top national energy users as well as more recent EIA predictions that winter natural gas bills in the Midwest will jump 13 percent compared with the last heating season. There are a wide range of energy efficiency programs consumers can use to face the winter challenge. This report is meant to help connect consumers to those programs and to urge Illinois major utilities to avoid efficiency rollback. The utilities are now filing their efficiency proposals for the next program year, and CUB will call on them to improve and expand the programs they offer not decrease their efforts.

9 Appendix A: Methodology CUB applied the utilities current per-therm and per-kilowatt-hour supply and distribution charges to the companies current program year (June 2013 May 2014) residential energy savings projections, filed with the Illinois Commerce Commission and the Illinois Power Agency, arriving at an estimated potential annual residential savings of $36.7 million due to utility energy efficiency programs. Current utility rates ComEd Purchased Electricity Charge: cents per kwh Transmission Services Charge: cents per kwh Distribution Facilities Charge (Single family, non-space heat): cents per kwh Total: 7.46 cents per kwh Ameren Electric Purchased Electricity Charge: cents per kwh (Zone 1, 2, 3) Supply Cost Adjustment: cents per kwh (Zone 1), cents per kwh (Zone 2), cents per kwh (Zone 3) Transmission Services Charge: cents per kwh (Zone 1), cents per kwh (Zone 2), cents per kwh (Zone 3) Distribution Delivery Charge: cents per kwh (Zone 1), cents per kwh (Zone 2), cents per kwh (Zone 3) Total: cents per kwh (Zone 1), cents per kwh (Zone 2), 7.05 cents per kwh (Zone 3) Total (average): 6.71 cents per kwh Ameren Gas Gas Supply Charge: cents per therm (Zone 1), cents per therm (Zone 2), cents per therm (Zone 3) Distribution Delivery Charge: 8.64 cents per therm (Zone 1), cents per therm (Zone 2), cents per therm (Zone 3) Total: cents per therm (Zone 1), cents per therm (Zone 2), cents per therm (Zone 3) Total (average): cents per therm Nicor Gas Gas Supply Charge: 39 cents per therm Distribution Charge: 4.85 cents per therm Total: cents per therm

10 North Shore Gas Gas Supply Charge: 48.9 cents per therm Distribution Charge: cents per therm Total: cents per therm Peoples Gas Gas Supply Charge: cents per therm Distribution Charge: cents per therm Total: cents per therm Current program year residential savings estimates ComEd Projected residential energy savings: 292,249,000 kwh Potential residential cost savings: 292,249,000 kwh x 7.46 cents per kwh =$21,801, Ameren Electric Projected residential energy savings: 121,031,000 kwh Potential residential cost savings: 121,031,000 kwh x 6.71 cents per kwh =$8,121, Ameren Gas Projected residential energy savings: 1,910,468 therms Potential residential cost savings: 1,910,468 therms x cents per therm = $1,281, Nicor Gas Projected residential energy savings: 6,021,235 therms Potential residential cost savings: 6,021,235 therms x cents per therm = $2,640, North Shore Gas Projected residential energy savings: 813,379 therms Potential residential cost savings: 813,379 therms x cents per therm = $482, Peoples Gas Projected residential energy savings: 3,657,093 therms Potential residential cost savings: 3,657,093 therms x cents per therm =$2,419, TOTAL PROJECTED RESIDENTIAL ELECTRICITY SAVINGS: 413,280,000 kwh TOTAL PROJECTED RESIDENTIAL NATURAL GAS SAVINGS: 12,402,175 therms TOTAL PROJECTED RESIDENTIAL COST SAVINGS: $36,746, Note: Assuming an average refrigerator uses 350 kwh per year, 413,280,000 kwh is enough to power 1,180,800 refrigerators for one year.