Choosing Energy Efficiency Programs and

Recovering Costs

Jim Windsor

Manager of Rates & Fiscal Planning

Columbia Water & Light Department

Columbia – Missouri

jrw@gocolumbiamo.com

Economic forecasting is like trying to drive a car blindfolded while following directions given by a person who is looking out of the back window.From “On The One Hand…The Economist’s Joke Book” by Jeff Thredgold

DISCLAIMER

There are several Regional Transmission Organizations in North America. Each has different “market” structures.

Columbia is a member of MISO and participates in the Day-Ahead Energy Market

Value of Capacity Reduction?

• Traditional method – purchase capacity for $X per kW per month for full year

• Market method – purchase capacity at market rate for specific month– $2 per kW for July and August 2009

Columbia Water & Light Programs

• Home Performance with Energy Star– Comprehensive assessment with rebates for

actions completed

• Commercial Programs– HVAC, Lighting, and Appliances

• Industrial Programs– HVAC, Lighting, and Machine Drives

Developing Rebates

• REM Home Energy Analysis Software http://www.archenergy.com/products/rem/

• Energy and Environmental Ratings Alliance http://www.ratingsalliance.org/index.htm – REM software part of membership in rating

alliance

Considerations

• Does your state have a standard for Measurement, Evaluation and Validation of energy efficiency programs?– Northeast Energy Efficiency Partnerships

http://www.neep.org/policy_and_outreach/EMV.html

• Will your programs qualify for carbon credits?• How will you collect and track information

(software)?

Software Vendors

• Frontier Associates http://www.frontierassoc.com/clients.html

• KEMA http://www.kema.com/Default.aspx

• Other?

APPA Energy Efficiency SummitDec. 9–11, 2009, Scottsdale, Ariz.

• This two-and-a-half-day summit geared toward policymakers, utility general managers and senior utility managers involved with energy efficiency will include seminars on both technical and non-technical issues related to energy efficiency.

International Energy Program Evaluation Conference is held every two years. Next one will be in 2011. See http://www.iepec.org/

See www.aesp.org for more information

Go to http://aceee.org/

What About

• Free Riders

• The “Snackwell Affect” – Shelton Group

• Consumer Electronics - EPRI data….– 1 digital photo frame per home = 1,250 MW– 42” Plasma TV uses 2.5 times old 27”– 2 cable boxes = a refrigerator

• AND……..

Plug in Vehicles are coming

BMW Mini-E: 2009

Toyota: 2009

Chevy Volt: 2010

Nissan: 2010

SMART: 2010

Mercedes: 2010

Major Automakers are bringing out PHEVs and BEVs starting in 2009