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Rocky Mountain Institute_Turbo Charging Energy Efficiency

Apr 06, 2018

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    TURB CHARGINGEFFICIENCY PROGRAMSGoing for Broader and Deeper Savings

    CONTENTS

    Executive Summary 1

    Introduction 5

    Energy Efficiency 101 6

    Turbocharging Efficiency Programs to Achieve More Savings 11

    Efficiency Programs Challenges and Recommendations 15

    Case Studies 33

    Conclusion 37

    Endnotes 38

    Appendix-Case Studies

    References 52

    Acknowledgements

    Mathias Bell Brendan ODonnell Ryan Matley Noel Crisostomo

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    Greg Searle

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    1Turbocharging Efficiency Programs

    Executive Summary

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    2 Turbocharging Efficiency Programs

    Challenges and Recommendationsfor Turbocharging Efficiency Programs

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    CHALLENGES ANDRECOMMENDATIONSFOR UTILITIES

    CHALLENGES:Taking On Competition Reaching Out To Customers Overcoming Complacency Working Alone Regulatory Complications

    RECOMMENDATIONS:

    Make Marketing Work Improve Sales Execution Drive down transaction cost Embrace Collaboration

    Know the target audience

    Get the message right

    Build relationships and trust over time

    Be dynamic and flexible

    Diversify sales channels

    Make calculated bets

    Recognize patternsGo through the right networks

    Let the customer make some decisions

    Get the timing right

    Incorporate online tools

    Make audits simpler and faster

    Explore behavioral change programs

    Move upstreamSeek real-time feedback

    Get credit for codes and standards

    Leverage third-party partners

    Look externally to non-utility organizations

    Work with regulators and collaborativeworking groups

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    Puget Sound Energy

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    5

    Introduction

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    6 Tu rb oc ha rg in g E ff ic ie nc y P ro gr am s I NT RO DU CT IO N

    Efficiency Programs 101

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    7INTRODUCTION Turbocharging Efficiency Programs

    Lost RevenueAdjustment Mechanism Pending

    Revenue DecouplingMechanism

    DC

    DE

    CT

    MD

    MA

    NH

    NJ

    RI

    VT

    CT

    DE

    MD

    MA

    NH

    NJ

    RI

    VT

    Colored by percent of 2020 sales

    FIGURE 2 Lost Revenue Adjustment & Revenue Decoupling

    Mechanisms for Electric Utilities

    FIGURE 1 U.S. Energy Efficiency Resource Standards

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    8 Tu rb oc ha rg in g E ff ic ie nc y P ro gr am s I NT RO DU CT IO N

    Figure 3 U.S. Electric Ratepayer-funded Program Budgets

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    9INTRODUCTION Turbocharging Efficiency Programs

    Figure 4 Projections for Efficiency Savings from Utility Programs

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    10 Turbocharging Efficiency Programs Alliance to Save Energy

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    11

    Turbocharging

    Efficiency Programsto Achieve More Savings

    BROADER.

    DEEPER.

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    12 Turbocharging Efficiency Programs TURBOCHARGING EFFICIENCY PROGRAMS TO ACHIEVE MORE SAVINGS

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    13TURBOCHARGING EFFICIENCY PROGRAMS TO ACHIEVE MORE SAVINGS Turbocharging Efficiency Programs

    BROADER + DEEPER = GREATER SAVINGS

    GO BROADER AND DEEPER:

    A) GO BROADER

    B) GO DEEPER

    C) GO BROADER AND DEEPER

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    14 Turbocharging Efficiency Programs Greg Vojtko

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    15

    Efficiency Programs

    Challenges andRecommendations

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    16 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    Challenges for Utilities

    Taking on competition

    Reaching out to customers

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    17EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    Overcoming complacency

    Pacific Gas & Electric

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    18 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    Working alone in an area with so

    many moving parts

    Regulation creates more

    complications than it needs to

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    19EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    Recommendations for Utilities

    Know the target audience

    Get the message right

    Build relationships and trust

    over time

    Be dynamic and flexible

    Diversify sales channels

    Make calculated bets

    Recognize patterns

    Go through the right networks

    Let the customer make

    some decisions

    Get the timing right

    Incorporate online tools

    Make audits simpler and faster

    Explore behavioral change

    programs

    Move upstream

    Seek real-time feedback

    Get credit for codes

    and standards

    Leverage third-party partners

    Look externally to non-utility

    organizations

    Work with regulators

    and collaborative working groups

    MakeMarketingWork

    ImproveSalesExecution

    Drive DownTransactionCost

    EmbraceCollaboration

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    20 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    MAKEMARKETINGWORK

    Know the target audience

    Get the message right

    Build relationships and trust

    over time

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    21EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    KNOW THE TARGETAUDIENCE

    GET THE MESSAGERIGHT

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    22 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    BUILD RELATIONSHIPSAND TRUST OVER TIME

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    23EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    IMPROVESALESEXECUTION

    Be dynamic and flexible

    Diversify sales channels

    Make calculated bets

    Recognize patterns

    Go through the right networks

    Let the customer make some decisions

    Get the timing right

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    24 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    BE DYNAMIC ANDFLEXIBLE

    DIVERSIFY SALESCHANNELS

    MAKE CALCULATEDBETS

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    26 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    GET THE TIMING RIGHT

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    27EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    DRIVE DOWNTRANSACTIONCOSTS

    Incorporate online tools

    Make audits simpler and faster

    Explore behavioral change programs

    Move upstream

    Seek real-time feedback

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    28 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    INCORPORATEONLINE TOOLS

    MAKE AUDITS SIMPLERAND FASTER

    EXPLORE BEHAVIORALCHANGE PROGRAMS

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    29EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    MOVE UPSTREAM SEEK REAL-TIMEFEEDBACK

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

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    30 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    EMBRACECOLLABORATION

    Get credit for codes and standards

    Leverage third-party partners

    Look externally to non-utility

    organizations

    Work with regulators andcollaborative working groups

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    31EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

    GET CREDIT FOR

    CODES ANDSTANDARDS

    LEVERAGE THIRD-PARTY

    PARTNERS

    LOOK EXTERNALLY

    TO NON-UTILITYORGANIZATIONS

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    32 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS

    MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION

    WORK WITHREGULATORS AND

    COLLABORATIVEWORKING GROUPS

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    33CASE STUDIES Turbocharging Efficiency Programs

    Case Studies

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    34 Turbocharging Efficiency Programs CASE STUDIES

    NYSERDAs

    New Construction Program

    Energy Trust of Oregons Strategic

    Energy Management Initiative

    Northeast Efficiency PartnershipsRetail Products Initiative

    Palm Desert Energy DemonstrationPartnership: Set to Save Program

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    35CASE STUDIES Turbocharging Efficiency Programs

    Pacific Gas and Electric s Monitoring-Based

    Persistence Commissioning

    (MBPCx) Program

    Xcel Energys Energy Star New Homes

    Program

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    36 Turbocharging Efficiency Programs CCSE

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    37

    Conclusion

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    38 Turbocharging Efficiency Programs

    Endnotes

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    39Turbocharging Efficiency Programs

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    40 Turbocharging Efficiency Programs APPENDIX

    AppendixCase Studies

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    41 APPENDIX Turbocharg

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    42 Turbocharging Efficiency Programs APPENDIX

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    43 APPENDIX Turbocharg

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    44 Turbocharging Efficiency Programs APPENDIX

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    45 APPENDIX Turbocharg

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    46 Turbocharging Efficiency Programs REFERENCES

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    47REFERENCES Turbocharging Efficiency Programs

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    48 Turbocharging Efficiency Programs REFERENCES

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    49REFERENCES Turbocharging Efficiency Programs

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    50 Turbocharging Efficiency Programs REFERENCES

    References

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    51REFERENCES Turbocharging Efficiency Programs

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    52 Turbocharging Efficiency Programs APPENDIX

    Acknowledgements

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    53Turbocharging Efficiency Programs

    American Council for an Energy-Efficient Economy

    Austin Energy

    Commonwealth Edison

    Consortium for Energy Efficiency

    Efficiency 2.0

    Energy Solutions

    E-Source

    Energy Trust of Oregon

    Enovity Inc.

    Northeast Energy Efficiency Partnerships

    Northwest Energy Efficiency Alliance

    Northwest Power and Conservation Council

    New York State Energy Research

    and Development Authority

    Lawrence Berkeley National Laboratory

    Pacific Gas and Electric

    Residential Science

    Sempra Utilities

    San Diego Gas and Electric

    Southeast Energy Efficiency Alliance

    Southern California Edison

    Rational Energy Network

    Simple Energy

    Southwest Energy Efficiency Project

    Xcel Energy

    Vermont Energy Investment Corporation

    We are grateful to these organizationsfor sharing their perspectives for this report

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