Start now to get more from energy efficiency and other demand-side resources For the American Public Power Association June 15, 2009 Cliburn and Associates,

Start now to get more fromenergy efficiencyand other demand-side resources

For theAmerican Public Power AssociationJune 15, 2009

Cliburn and Associates, llcSanta Fe, New Mexico

[email protected]

• Energy conservation

• Load management

• Demand-side management

• Integrated resource planning

• Demand response

Demand-side resources: In contrast to supply-side resources, the effective energy (kWh) and capacity (kW) harnessed from changes in customer energy use patterns, in order to provide long-term, system-wide utility benefits as well as direct benefits to program participants. This definition assumes that demand-side resources also must support net emissions reduction goals.

• Peak clipping

• Load shifting

• Fuel switching

• Market transformation

• Social marketing

• Energy efficiency

Been there, done that, still learning

Oh, wait, that’s a different Springfield….

Simpsonizeme.com

The business case for demand-side resources

Utility View• Reducing marginal costs,

improving net benefits• Beating the compliance clock

• Hedging against risks• Building a foundation/future

Community View• Relief through bill savings• Path for economic stimulus*• Environmental benefits• Increased comfort and

convenience• Sustainable cities

*www.energy.gov/recovery

“But where do we begin?”

Consider the strength of community leadership• Invite public involvement• Identify two types of programs• Greatest savings impact per dollar spent (usually in the C/I sector)• Greatest motivational impact per hour spent (usually in the public or residential sector)

Many measures… Many programs

Source: EPRI, updated by Cliburn 2008.

Program Design: Ten Steps

1. Review utility costs, drivers

2. Review program possibilities

3. Estimate potential; define targets

4. Address technical requirements

5. Address program requirements

6. Outline delivery plan

7. Assess benefits and costs

8. Roll it!

9. Monitor, verify, and evaluate

10. Adjust to improve results

Be quick and smart

SMMPA tapped Energy Star Quick Start program support

• Review utility service needs, cost drivers, and other goals

• Choose programs that are suited to both utility needs and customer needs

• APPA’s EERCnet.org• EPA’s EnergyStar.gov, including epa.gov/cleanenergy/documents/quickstartguide/pdf• Cleanefficientenergy.org• Energyexperts.org• CEE1.org

• Programs from regional market transformation centers, JAAs, statewide public power agencies

Somebody’s been metering my AC!

Source: Frontier Associates for Texas Public Utilities Commission, 2006

Deemed savings databases for dozens of measures are available for Texas, California, Vermont, New York, and possibly other states. Be sure to adapt for climate differences and other assumptions. (See APPA’s New View on Energy Efficiency guide for references.)

Assess and address technical requirements

1. Can you make sure products/services are locally available?

2. Are trade allies (sales, installation, service) well trained?

3. Are there problems with disposal of old products?

4. What can you do to help?

SMUD’s refrigerated case lighting promotion relied on high-quality, efficient lighting products that could be hard for buyers to find. Fixing that problem was job #1.

Assess and address program requirements

1. Understand the target audience’s concerns

2. Choose the right tools at the right times:

- Personal marketing (home shows, energy audits)- Targeted mass marketing (print material, online quiz)- Advertising and PR- Trade ally campaigns- Pricing/rates- Incentives

3. Consider practical staffing and administrative needs

Calculate program benefits/costs

1) Develop assumptions for the analysis (not so easy)2) Calculate net benefits from different views3) Members of JAAs consider net benefits locally and for

all members; look for win-win programs

• Total Resource Cost (TRC)• Societal Cost• Utility Cost• Participant Cost• Non-Participant or Ratepayer Impact Measure

See Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods and Emerging Issues for Policy-Makers (November 2008) is available online at www.epa.gov/cleanenergy/energy-programs/napee/index.html.

What makes energy efficiency a resource?

Source: NWPPC 2008. Technical potential and cost of conserved energyrefers to the NW region. Nationwide, average cost = 2 to 4 cents/kWh saved.

Also consider values not measured

Source: APPA, updated by Cliburn. 2009Hypothetical programs and utility objectives, actual assessments will vary.

Lessons learned from top utility ee programs

1. Start with proven measures. (Homework!)

2. Collaborate (with city, state, trade allies), to address broader needs while delivering a consistent message.

3. Don’t miss “lost opportunities”.

4. Offer one-stop shopping, for the customer’s benefit and yours.

5. Organize your programs as campaigns, so you can build them over time, measure your success, and take a breath in between!

6. Get top-level support in the utility, the community, and JAA.

No-nonsense hands-on support

Cliburn and Associates, llcSanta Fe, New Mexico

[email protected]

By phone or in personNeeds assessment and problem-solvingShort-list program designBasic cost-effectiveness assessmentTrouble-shooting

Ask about assistance available from Energy Ambassadors