"business and ethical case for energy efficiency" with glenn cannon 9/23/2008

The business & ethical case for energy efficiencyTuesday, September 23, 2008

1:30-3pm CDT

FeaturingGlenn Cannon

• Clean Energy Ambassador, Plains Justice• Fmr chair, APPA

RE-AMP Commonswww.reamp.org

presents this live, interactive webcast briefing

http://www.reamp.org/�

eeeenergy

efficiency & ethics

energy efficiency& ethics

All content copyright © 2008, Plains Justice

eeeenergy

efficiency & ethics

NIMBYBANANANOMP


eeeenergy

efficiency & ethics


eeeenergy

efficiency & ethics

What was the greatest engineering achievement of the 20th century?

– Automobile– Interstate highway system– Computer– Internet– Airplane– Television– Space exploration

eeeenergy

efficiency & ethics


Electrification of the U.S.

– National Academy of Engineering

eeeenergy

efficiency & ethics


One third of world population doesn’t have access to reliable electricity.

eeeenergy

efficiency & ethics


Energy is Vital to Industrialized Nations

• Electricity is a foundation of our economy

• Electricity is a public good

eeeenergy

efficiency & ethics


eeeenergy

efficiency & ethics


• Energy demand is growing

• Aging infrastructure

• Rising utility bills

• Increasing generation costs

Gas and coal prices

Building cleaner generation

• Reliability issues

• Natural gas prices increasing / volatile

• Carbon risk

• Pending large transmission and generation investments in uncertain investment world

eeeenergy

efficiency & ethics


Today’s Energy Challenges

Energy production and use account for nearly 80% of air pollution, more than 88% of greenhouse gas emissions, and more environmental damage than any other human activity.

eeeenergy

efficiency & ethics


eeeenergy

efficiency & ethics


Consumption of ElectricitykWh Per Capita

eeeenergy

efficiency & ethics

The Fish HookThe price of electricity


eeeenergy

efficiency & ethics


Natural Catastrophes

Source: Munich Re

eeeenergy

efficiency & ethics


Economic Losses of Great Natural Catastrophes

Source: Munich Re

• Environment remains the number 3 concern among Utilities today

• Of respondents, 82% believe that global warming is occurring, and 72% believe there will be carbon legislation by 2011

• Due to carbon regulation uncertainty. 13 coal plants representing 11 Gigawatts of base load capacity have been canceled or deferred!

• 50% state that their organizations publicly acknowledge climate change as a man-made problem

• 86% of organizations claim to have adequately positioned themselves as environmentally aware

eeeenergy

efficiency & ethics


According to the 2007 Strategic DirectionIn the Electric Utility Industry Survey:

• Environmental stewardship

• Educating Energy Efficiency

eeeenergy

efficiency & ethics


Moral Obligation (Especially for a Monopoly)

• Utility efficiency efforts • Customer efficiency efforts

eeeenergy

efficiency & ethics

There are two sides to every meter


eeeenergy

efficiency & ethics


Energy Efficiency is a Key Part of the Solution

Quick, cheap, and clean resource

Environmental

• Lower carbon emissions and criteria pollutants

• Lower water use

Economic

• Savings to customers

• Lower cost (about half) compared to new G&T

• Downward pressure on natural gas prices and volatility

• Improved local economy, using local labor

• Benefits low–income, seniors

Utility System Benefits

• Near-term tool with persistent, long-term benefits

• Improved security of systems

• Lower baseload and peak demand

• Reduce need for “hard to site” G&T assets

• Targeted, modular, manageable

Risk Management

• Diversifies utility resource portfolios

• Zero carbon emissions

eeeenergy

efficiency & ethics


Why energy efficiency and what

is the cost?

• Useful for reducing long-term energy consumption

• Not dispatchable

• Permanent energy (kWh) reduction

- Permanent peak demand (kW) reduction

• Size of impact is predictable

• No reduction or shift in customer value,

comfort or output

eeeenergy

efficiency & ethics


Benefits of Energy Efficiency

Established energy efficiency as reliable, low-cost resource in some areas

• Real programs with real results

• Delivering efficiency typically at $0.02 to $0.03 perlifetime kWh saved and $1.30 to $2.00 per lifetimeMMBtu saved

eeeenergy

efficiency & ethics


U.S. Utility-Delivered Energy Efficiency Has More Than a Decade of Experience

Established large potential to meet new demand, address growth

• Can help control load growth by 50% or more if desired

eeeenergy

efficiency & ethics



Established various measurement and verification procedures

• Savings are real, persistent if programs designedand implemented well

• Can be integrated into resource planning

eeeenergy

efficiency & ethics



Established model energy efficiency delivery programs for key customer classes

• Industrial – Commercial – Residential –Municipal/Government

• Low income; Gas/Electric; New/Mature Portfolios

eeeenergy

efficiency & ethics



Established efficiency programs can help customers

• Make sound energy use decisions

• Increase control over their energy bills

• Save 10, 20, and 30 percent on energy bills

eeeenergy

efficiency & ethics



eeeenergy

efficiency & ethics


New Nuclear

Plant

New Coal Plant

Energy Efficiency Cost Reduction

Energy Efficiency Programs Cost per kW Reduction

REBATE LEVELS

eeeenergy

efficiency & ethics


Appliance Rebate Program

Refrigerators15% above minimumfederal energystandards

$100.00

Clothes Washers1.42 Modified EnergyFactor or higher

$50.00

Dishwashers30% above minimumfederal energystandards

$25.00

Room Air Conditioners15% above federal energystandards

$25.00

90% of all residential customers participated in one or more of the rebate programs

• Design

• Orientation

• Thermal Protection

• Weatherization

• Equipment Efficiency

• Equipment Sizing

eeeenergy

efficiency & ethics


Good Cents Residential

Good Cents Standards

• Size heating & cooling equipment properly using

ACCA Manual J standards

• Air Conditioning efficiency standard of 12 SEER or

higher

• Heating equipment efficiency standard of 92% or

higher

• Caulking inspection must take place prior to

installation

of wall insulation and sheet rock

• Conduct Blower Door testing at the completion of

construction to certify the home meets air infiltration

tightness and ventilation rates are met

Basic building standards required in our region

R-44 Attic Insulation R-19 Sidewall Insulation R-11 Basement Insulation

Low E Windows

Basic thermal standards required in our region

< 1350 sq/ft 22 BTU/Hr1,350 to 2,350 sq/ft 21 BTU/Hr2,350 > sq/ft 19 BTU/Hr

10% Rate Reduction for 10 Years

95% Market Share on All NewConstruction

eeeenergy

efficiency & ethics


Good Cents Residential

Waverly Light and Power has a $200.00 incentive for installation of a new HVAC system. The system must have a SEER rating of 12 or higher. WLP performs an energy audit of a home prior to installation of the new system using ACCA Manual J standards. Waverly Light and Power has a replacement guarantee should the equipment sized by Waverly Light and Power fail to properly cool the home.

eeeenergy

efficiency & ethics


Residential Air Conditioner Rebate

Waverly Light and Power offers a cash rebate of $300.00 per KW saved to commercial and industrial customers. Demand reductions can come from improving lighting, HVAC, or motors. Waverly Light and Power must approve KW savings, and calculations prior to installation.

eeeenergy

efficiency & ethics


Commercial and Industrial Program


Conservation Analysis July, 2008

eeeenergy

efficiency & ethics

Net Savings $1,560,958

eeeenergy

efficiency & ethics


• $1.5 million

• 40% reduction in capacity ownership buy

• 4 months free service for every residential customer

eeeenergy

efficiency & ethics


Greenhouse Gas Reduction Summary

Gross Emissions, TPY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005North Plant 764 2,906 267 382 550 1,200 465 805 1,441 2,111 650 1,154 1,473 1,281 217 700 South Plant 791 875 1,237 957 137 536 Hydro - - - - - - - Wind - - - - - - - Louisa 38,180 44,084 36,243 45,783 30,404 39,388 52,519 59,618 65,285 66,237 68,635 68,298 72,807 64,486 69,088 52,225 Purchased Power 53,623 55,643 69,182 62,248 77,364 75,574 69,592 62,723 63,169 57,123 63,469 64,978 65,995 72,164 67,218 95,162 Total 92,567 102,633 105,692 108,413 108,318 116,162 122,576 123,146 129,895 125,470 133,544 135,305 141,511 138,888 136,661 148,622

Reductions, TPY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Hydro 1,106 2,055 2,073 2,642 2,294 1,920 2,263 2,054 2,084 1,609 1,345 - 477 2,209 2,428 Wind 41 119 125 113 125 93 2,247 4,469 4,305 6,948 6,600 6,207 4,340 Distribution Upgrade 345 345 (68) 780 1,889 1,980 2,512 2,194 1,540 1,398 481 3,223 2,995 2,623 1,996 3,083 Low Loss Transformers 71 71 71 71 18 22 27 31 36 40 45 45 45 45 45 45 Energy End Use Programs 3,644 3,622 7,289 10,933 12,219 12,388 12,497 12,566 12,899 16,329 16,462 16,708 17,578 18,212 19,129 19,530 HPS Lighting 490 493 490 459 424 430 496 496 298 607 617 613 598 580 565 Energy Saving Trees 79 158 237 316 367 413 458 501 537 574 595 628 646 667 404 Electric Vehicle 1 1 1 1 1 1 1 1 1 - - - - - - Trees Forever 20 41 61 81 94 106 118 130 137 146 151 159 164 169 148 Total 5,166 4,628 10,040 14,687 17,744 17,695 18,019 18,252 17,750 23,071 24,393 26,989 28,966 29,365 31,002 30,543

Summary 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Net Emissions, TPY 87,401 98,005 95,652 93,726 90,574 98,467 104,557 104,894 112,145 102,399 109,151 108,315 112,545 109,522 105,659 118,079 Reduction as % of Gross 5.6% 4.5% 9.5% 13.5% 16.4% 15.2% 14.7% 14.8% 13.7% 18.4% 18.3% 19.9% 20.5% 21.1% 22.7% 20.6%Total MWh 86544 90155 91496 96443 95998 100627 106383 107420 124157 122051.37 131285.26 132539.3 139595.11 137918.1 136520.6 146481.65Net Tons of CO2 per MWh 1.010 1.087 1.045 0.972 0.943 0.979 0.983 0.976 0.903 0.839 0.831 0.817 0.806 0.794 0.774 0.806

eeeenergy

efficiency & ethics


CO2 Reductions Tons of CO2 Per MWh Used

eeeEnergy

efficiency & ethics


NO REGRETS POLICY

eeeEnergy

efficiency & ethics


“Man did not weave the web of life - he is merely a strand in it.Whatever he does to the web, he does to himself.“

-Chief Seattle, 1854

eeeenergy

efficiency & ethics

Thank youRE-AMP Members, be sure to mark your calendars for future live webcast briefings:

“Climate of Change,” Nia Robinson, Environmental Justice Climate Change Initiative Director, Redefining Progress; Thursday, Oct. 23, 2008, 1:30-3pm CDT

“New Apollo Program,” Apollo Alliance federal clean energy & jobs investment plan. Speakers TBA. Thursday, Oct. 30, 2008, 1:30-3pm CDT

"business and ethical case for energy efficiency" with glenn cannon 9/23/2008

Business

awareall content copyright

plains justice fmr chair

energyefficiency ethics

sides energyefficiency

eee energyefficiencyenergy

energy efficiencytuesday

e eeenergy efficiency

nations ethics electricity