Transcript Document

The Efficiency of Energy Efficiency
Program
Tom Van Paris
Vice President-Member Services & Communications
October 18, 2012
Headquarters
•
18 member systems
(1,527 MW 2012 peak)
•
1,951 MW owned capacity
•
Member of MISO and PJM
•
1,689 miles of transmission line
•
279 substations (12 kV delivery)
•
8 regional transmission offices
•
Total assets $1.6 billion
•
Total revenue $649 million (2011)
•
472 employees
Coal Plants
Gas Plants
Renew ables
Regional Transmission
Offices
2
Topics
• Importance of collaborative vision
• Programs
• Progress to date
3
DSM-Hoosier Energy Perspective
• Will never replace need for additional capacity
• Delay need for additional capacity
• Hoosier Energy treats DSM measures as an alternative source of
capacity
– Capacity can be acquired in the market, built or gained by
being more efficient
• If the cost to acquire energy through demand response and/or
efficiency programs is less than the cost to build, then Hoosier
Energy will implement DSM program
4
DSM-Distribution Cooperative Perspective
• Rates are going up
• People are having difficulty paying bills
• Engage customer’s responsibility
• Offer programs to help manage bills
5
Collaborative Perspective
“In partnership with members, Hoosier Energy will develop demand
response and efficiency programs and services that empower
consumers to better manage energy consumption in an era of
rising rates”
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Current DSM Programs
• Load Management
• Residential lighting
• Residential heating & cooling
• Appliance recycling
• Weatherization
• High performance new home construction
• Commercial/industrial efficiency
• Opower Pilot
7
Load Management
• Control residential AC and water heaters
• C&I loads participation
• Voluntary participation programs-distribution co-ops respond to
price signals
• Lessons Learned:
– Sometimes less is more
– Expect some level of churn
– It’s not for everyone
8
Residential Lighting
• Free CFLs when replacing incandescents
• Cooperatives distribute during fairs, annual meetings, special
events
• Results:
– Over 1.3 million CFLs distributed since 2009; nearly 200,000
this year
• Lessons Learned:
– Bulb exchange works best
– Understand that there will be some level of “play” in this
– Track your results
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Residential Heating & Cooling
• AC/HP/Geothermal heating system rebates:
– Incentives for heat pumps replacing electric resistance furnace
systems
– Rebate is for efficiency of equipment above standard
– Amount is roughly for 25% of the incremental cost to install
more efficient unit
• Lessons Learned:
– Don’t make too many requirements
– Track what is going on in the marketplace
– Look for additional opportunities (heat pump water heaters)
10
Appliance Recycling
• Pick up and recycle inefficient refrigerators and freezers
• $30 bill credit/check; customer schedules with contractor
• Nearly 3,500 units picked up since 2009
• Lessons Learned:
– Start as a pilot; grow into capability
– Be flexible in how you pay your member
– Assume borderline risks
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Weatherization
• Installed weatherization measures for homes with high kwh usage
pattern
• General contractor maintains subcontractor network and
schedules work through distribution cooperative
• All measures installed free of charge; includes pre- and postdiagnostics to measure effects
• Lessons Learned:
– Pre-screen, pre-screen, pre-screen!
– Expect high deferral rate
– Manage member expectations
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Touchstone Energy Home Program
• New residential construction program promoting energy efficient
homes
• Homes are 25-35% more energy efficient than Energy Star
homes
• Program in place since 2003; nearly 250 homes built to TSE
standards
• Lessons Learned:
– Efficiency benefits beyond the TSE home
– Training and building network important
– Guarantee savings
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C&I Efficiency
• Prescriptive lighting, HVAC and motors program for commercial
and industrial facilities
• Rebates to encourage higher efficiency installations of equipment
• Majority of applications are for lighting; developing “custom”
application program
• Lessons Learned:
– Be patient! Asking for customer investment
– Be creative
– Expect great opportunities
14
Opower Pilot
• Behavioral-based communication program comparing individual
household energy usage versus 100 “neighbors”
• Four co-ops participating with control group testing strategy; run
pilot before determining whether to run network-wide
• Lessons Learned:
– Significant technology interface
– Make sure local IT staff has skill set/time
– A bit of a risk; OK to walk away
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DSM Progress Through 2011
• Estimated lifetime MWh savings: 974,951
• Peak MW reduction:
– Summer:
20.7
– Winter:
35.4
• HE lifetime economic benefit: $65 million
• Overall program cost/kwh:
$0.02
• TRC B/C ratio:
3.21
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Questions