Conservation Update2010-2011 Achievements

2012-2013 Target

and10-year Plan

Board of CommissionersNov. 21, 2011

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Today’s Presentation

• Review• 2010 -2011 Summary• 2012-2013 Planning

– Establishing two-year target, 10-year plan– Proposed measures by sector– Proposed budget

• Next steps

Quick Review

• Energy Independence Act (I-937) – Requires utilities to acquire all cost-effective

conservation– Requires public process for target-setting – Finalized at public hearing Dec. 5

• Conservation is now part of Energy Resources Group– Fresh philosophy: conservation as an energy resource

2010-2011 Achievements

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2010-2011Biennial

Conserva-tion Target Conserva-

tion Achieved in

2010

Projected Conservation

for 2011

3.2-3.6 aMW

3.12 aMW

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Expected Results by Sector

• Residential = 1 aMW

• Commercial = 0.12 aMW

• Industrial = 2.2 aMW

• Total savings = 3.2-3.6 aMW

• Enough to power 1,700 homes

Attic ductwork inspection

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2010-11 Programs

• Residential– CFLs– Weatherization

incentives– Low-income grant

• Industrial– CO2 scrubbers– Variable speed fans– Lighting

Window inspection, Kittitas St. New CO2 scrubbers at Stemilt

Chelan PUD HQ Bldg. Load Profile

35% Reduction in Energy Usage from 2010 to 2011

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Target Setting

• Assessed available methods– Power Plan Calculator– Modified Calculator– Utility Specific Analysis

• Recommend the Utility Specific Analysis– Developed according to law– Specific to our customers– Good business practice Measuring and verifying

energy savings

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Conservation Target Options

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20230.0

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6th Plan Target Calculator Utility Specific Analysis

5th Plan Target Calculator

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10-Year Plan (Utility Specific Analysis)

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1.64 1.74

1.86 1.96

2.12 2.17

2.27 2.31 2.39

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2012-2013 Target

• Recommended target is 3.38 aMW

• Two-year cost to implement = $4.7M-$5.3M

• Positive Rate of Return

Commercial lighting retrofit at Union 76 station, Wenatchee

2012 Stack

Agricultural

Distribution Efficiencies

NEEA

Low-Income WX

Residential Incentives

Commercial

Industrial

New program optionsAppliance rebatesHeat pump conversionNorthwest Energy Efficiency AllianceVoltage reductionIrrigation pumps

Reduce Irrigation Pump Energy by ~ 40%

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NEEA

• Market transformation group• Membership counts towards I-937 targets

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In Conclusion

• Conservation is an energy resource• Utility Specific Analysis

– Developed according to law– Specific to our customers– Makes good business sense

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Next Steps

• Dec. 5 - Return to the Board with a resolution– Will also be a public hearing

• Jan. 1 - Submit to Dept. of Commerce

Questions?