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Regional Energy Efficiency News

August

Questar Gas Exceeding Energy Efficiency Goals
Questar Gas Company, the main gas utility in Utah, recently reported that its natural gas energy efficiency programs are "going gangbusters." The utility expects that it will exceed its original 2008 DSM budget by about 35% and its original gas savings goal for the year by about 50%. Questar is having particular success with rebates for insulation and other home retrofit measures. The utily is also planning a substantial expansion of its energy efficiency programs in 2009. Questar Gas Company began implementing efficiency programs for its residential and commercial customers in 2007, following approval of "decoupling" of gas sales and the utility's authorized cost recovery.

Click here for a copy of Questar's gas energy efficiency status report.

Xcel Energy Files Landmark Energy Efficiency Plan
On August 11, Xcel Energy filed its Bienniel Demand-Side Management (DSM) Plan with the Colorado Public Utilities Commission (PUC). The Plan calls for spending a total of $61 million on electricity and natural gas DSM programs in 2009 and $76 million in 2010. The funding level in 2009 is approximately triple what Xcel is spending on DSM programs in 2008. The two-year effort is projected to reduce peak demand by 124 MW and cut electricity use by 425 million kWh per year, equivalent to the electricity use of 28,000 typical households in Colorado. Xcel estimates that the two-year effort will save consumers and businesses about $450 million net. The Plan will now be reviewed and approved by the PUC. The Plan responds to legislation enacted by the Colorado legislature in 2007 and rules adopted by the PUC in response to this legislation. SWEEP played a major role in developing the legislation and supporting adoption of these rules.

Xcel's Bienniel DSM Plan
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Xcel's Bienniel DSM Plan - Executive Summary
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Denver Post article about the Plan

July

Rate Design Testimony Filed in Utah Rate Case
SWEEP, working through partners Utah Clean Energy and Western Resource Advocates, filed testimony in a rate case in Utah pertaining to Rocky Mountain Power. The testimony, by SWEEP consultant Richard Collins, calls for strengthened inverted block rates and reduced customer fixed charges as a means for reducing peak electric demand and thus the need for new generating capacity. Rocky Mountain Power is the main electric utility responsible for about 85 percent of electricity sales in Utah.

Click here for a copy of the testimony and exhibits.

June

The U.S. Conference of Mayors Adopts Resolution to Improve Energy Efficiency in Residential Energy Code
The U.S. Conference of Mayors endorses the full adoption of The 30% Solution, a set of provisions that incorporates affordable, off the shelf technologies and practices to improve the energy efficiency in residential construction by 30% over the existing model energy code - 2006 International Energy Conservation Code (IECC). In September 2008, the International Code Council (ICC), a body made up primarily of municipal code officials, will deliberate and vote to establish the new 2009 IECC. The mayors are encouraging eligible code officials from their cities to attend the hearing and vote in favor of The 30% Solution. In the Southwest, three mayors are supporting this resolution – Honorable Martin Chavez, Mayor of Albuquerque, NM; Honorable David Coss, Mayor of Santa Fe, NM; and Honorable John Hickenlooper, Mayor of Denver, CO. All three cities are pursuing energy efficient building codes, and the City of Albuquerque has established a new green building code that will become effective July 1, 2008. To view the full resolution, click here.

SWEEP Makes Presentation at National Energy and Utility Affordability Conference
SWEEP Executive Director Howard Geller made a presentation on utility demand-side management (DSM) programs, including exemplary programs for low-income households, at the National Energy and Utility Affordability Conference held June 16-18 in Denver. The presentation also reviews the growth in utility DSM programs nationwide and in the southwest region in recent years. For a copy of the presentation, click here.

Delta-Montrose Electric Association Provides Free CFLs to its Members
Customers of the Delta-Montrose Electric Association (DMEA), a rural electric cooperative serving 31,000 members in western Colorado, will be given coupons that can be redeemed at local Wal-Mart stores for up to six free compact fluorescent light bulbs (CFLs). An estimated 100,000 CFLs will be distributed. The total lifetime savings is projected to be $4 million with a reduction in peak demand by 6 megawatts (MW). DMEA is paying $2 for each bulb, and its wholesale power supplier, Tri-State Generation and Transmission Association, is providing a rebate to DMEA for $1 per bulb. SWEEP is assisting DMEA and other rural electric associations in designing their energy efficiency programs. To read an article on this program in the Denver Post, click here.

Colorado PUC Adopts New Goals and Incentives for Utility Energy Efficiency Programs
Xcel Energy, the largest electric utility in Colorado, will greatly expand its energy efficiency programs as a result of new policies adopted by the Colorado Public Utilities Commission (PUC) on June 5. The PUC set energy savings goals that call for Xcel to help customers reduce their electricity use in 2020 by about 11.5% and reduce peak demand by 944 MW, from efficiency programs implemented during 2009-2020. The PUC is also allowing Xcel to earn a profit on its energy efficiency programs, with the level of profit tied to the energy savings achieved and net economic benefits of the programs. The profit could be as much as 20% of utility program expenditures, potentially making saving electricity the most profitable investment by the utility. Xcel Energy provides electricity to over 1.3 million customers in Colorado. SWEEP played a major role in the docket that led to the PUC’s decision.

For more details on the new policies adopted by the Colorado PUC, click here.
For SWEEP’s press release on the decision, click here.

May

SWEEP Submits Two Papers for 2008 ACEEE Summer Study on Energy Efficiency in Buildings
SWEEP staff completed two papers for the 2008 ACEEE Summer Study on Energy Efficiency in Buildings. One paper, Update on Utility Energy Efficiency Programs in the Southwest, reviews funding and energy savings trends as well as key policies influencing utility demand-side management programs in each of the SWEEP states. The other paper, High Performance Homes in the Southwest: Savings Potential, Cost Effectiveness, and Policy Options, analyzes the energy, economic and environmental benefits of improving the efficiency of new homes in the region.

Download the copies of the papers: Update on Utility Energy Efficiency Programs in the Southwest and High Performance Homes in the Southwest.

SWEEP Holds Workshops on High Performance Homes
SWEEP held two workshops on constructing and selling high performance homes, including 'zero energy' homes that combine high levels of energy efficiency with renewable energy systems. The first workshop was held on April 30th in Salt Lake City, Utah, and the second was held on May 7th in Phoenix, Arizona. Participants at each workshop included homebuilders, energy efficiency and renewable energy experts, electric and natural gas utilities DSM program staff, real estate professionals, home energy raters, nonprofit organizations, and state and local officials. The workshops provided an opportunity to learn about the features and costs of high performance homes, learn about technical assistance resources and incentives available to homebuilders and homeowners, and discuss strategies for marketing and selling high performance homes. The agenda, speaker presentations and additional information resources from each of the workshops are available on the SWEEP web site.

SWEEP Submits Testimony in Rocky Mountain Power DSM Docket in Wyoming
SWEEP submitted testimony in support of DSM programs proposed by Rocky Mountain Power (RMP) for implementation in Wyoming. RMP is proposing to implement six programs and spend about $34 million on these programs during 2009-2013. The utility expects to spend about 2% of its retail revenues and reduce its sales by about 0.6% per year by the end of this period. SWEEP recommends approval of as well as enhancements to the proposed DSM programs. RMP’s proposal is under review by the Wyoming Public Service Commission. For more details, see SWEEP testimony.

New Mexico Utility Commission Approves DSM Programs for Southwestern Public Service Company
The New Mexico Public Regulation Commission (PRC) has approved implementation of seven DSM programs proposed by Southwestern Public Service Company (SPS). SPS, a subsidiary of Xcel Energy operating in southeastern New Mexico, proposed spending about $1.8 million on these programs during the initial year of implementation. SPS estimates the programs will result in electricity savings of 11.3 GWh per year. The PRC also approved a cost recovery mechanism and an allowed return on DSM investment. Howard Geller, SWEEP’s Executive Director, testified in support of the proposed programs on behalf of the Coalition for Clean Affordable Energy (CCAE). For details, see the Final Order.

April

Colorado Legislature Ends Restrictions on Use of Energy Efficiency Measures
The Colorado legislature has passed House Bill 1270, a law that prevents homeowners’ associations from prohibiting the installation or use of energy efficiency measures including evaporative coolers, awnings and other shading devices, efficient outdoor lighting, and retractable clotheslines. Governor Bill Ritter is expected to sign the law. SWEEP helped to draft it. Read HB 1270.

SWEEP Launches New Online Resource for Building Efficiency
In April 2008, SWEEP released a new section on its website called Building Efficiency that provides information and guidelines for cost-effective energy efficiency programs, policies and measures for residential and commercial buildings in the Southwest. Targeting homebuilders, designers, government and code officials, building operators and owners, and others interested in improving the energy performance in buildings, this new online resource will provide the details on energy codes and best practices, high performance and zero energy homes, and regional green building programs and initiatives. Learn more by visiting the SWEEP website at www.swenergy.org/buildingefficiency.

SWEEP Provides Update at Market Transformation Symposium
A presentation on the status of utility demand-side management (DSM) efforts in the Southwest was delivered on behalf of SWEEP at the annual Market Transformation Symposium in Washington, DC. The presentation notes that utilities in the region are expected to spend over $170 million on DSM programs in 2008, up 32% relative to DSM spending in 2007. The presentation also discusses the role of energy efficiency efforts in state climate change strategies. View SWEEP’s presentation – Report from the Southwest: Energy Efficiency and Climate Change Action as of 2008.

March

Nevada PUC Approves Expanded DSM Programs
On March 26, the Public Utilities Commission of Nevada approved a request made by Nevada Power Company to expand its demand-side management (DSM) programs in 2008 and 2009. Total DSM funding will increase to $44 million in 2008 and $47 million in 2009, up from about $32 million in 2007. New programs include incentives for new homes that exceed the ENERGY STAR performance level, an 80 Plus computer and plug load program, a home energy display program, and an air conditioner tune-up program. SWEEP helped Nevada Power develop the new homes program. We also submitted testimony supporting all of the new and expanded programs proposed by Nevada Power. For more details regarding the programs, click here.

Omnibus Energy Bill Passes the Arizona House
House Bill 2766, which includes energy efficiency standards for schools, state buildings and appliances, was approved by the House on March 27. The legislation requires public buildings to reduce energy use by 20% per square foot of floor area in 2015 and 30% in 2020, and school districts to achieve energy use reductions of 10% by 2011, 15% by 2015 and 20% by 2020. State agency buildings built after July 1, 2009 must adhere to LEED or equivalent green building standards. Energy efficiency appliance standards are also established and become effective in January 2011 for pool pumps, portable electric spas, and consumer audio and video equipment. The legislation sets a policy goal for new residential and commercial buildings to be 15% more energy efficient in 2012, 30% in 2016, and 50% in 2020, relative to IECC 2006. In addition, the bill addresses renewable energy goals for public utilities, engine idling, and requires a study of motor vehicle greenhouse gas emissions.

Read House Bill 2766

Utah Legislature Adopts Energy Efficiency Policies
The Utah legislature passed two bills pertaining to energy efficiency in its 2008 session. House Bill 106 provides a tax credit of $750 for households or businesses that purchase a highly efficient and relatively clean vehicle. House Bill 198 creates a revolving loan fund to lend monies to state agencies for energy efficiency projects and allows agencies to retain the value of energy savings in the agency’s annual appropriation. The loan fund was given $3.65 million in initial capital.

SWEEP Releases Report on Energy Savings Potential in Rural Areas of the Southwest
On March 27, 2008, SWEEP released a new report, Rural Electric Efficiency Prospects, which evaluates the opportunities to improve the efficiency of electricity use in the rural areas of Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming. Mainly focused on residential and commercial buildings that account for 80% of the electrical load in the Southwest, the report determines that energy use and associated costs can be reduced by 20-40% by employing a wide range of no-cost, low-cost and investment-grade energy efficiency measures and practices. Rural electric cooperatives and municipal utilities are in the best position to lead the campaign as they can reap the economic benefits and enhance the services offered to their customers and members.

Energy Efficiency Bill Blocked in Colorado Senate
The Senate State, Veterans and Military Affairs Committee failed to pass House Bill 1107 in action in the Colorado legislature on March 26th. The bill had previously passed the Colorado House of Representatives. HB 1107 requires municipal utilities and rural electric cooperatives serving more than 5,000 customers to implement energy efficiency programs for their customers. SWEEP estimates the bill would have saved 420 MW of peak power demand by 2020 and provided $600 million in net economic benefits for consumers and businesses. The bill received support from the Delta-Montrose Electric Association but was actively opposed by the Colorado Rural Electric Association and Colorado Association of Municipal Utilities.

SWEEP Files Testimony in Xcel Energy DSM Docket
Howard Geller, SWEEP’s Executive Director, filed testimony on March 10 regarding demand-side management (DSM) policy for Xcel Energy. Xcel is Colorado’s largest electric utility. The testimony concerns energy savings and peak demand reduction goals, financial incentives for utility shareholders, DSM program cost recovery, and other issues addressed in legislation (House Bill 07-1037) that passed last year. The Colorado Public Utilities Commission will reach a decision on these issues later this spring.

Read SWEEP’s testimony

Colorado PUC Adopts Natural Gas DSM Rules
The Colorado Public Utilities Commission (PUC) has issued final rules concerning natural gas utility demand-side management (DSM) programs in Colorado. The rules include minimum DSM spending requirements; policies regarding DSM program planning, approval, cost recovery, and reporting; and potential incentives for gas utility shareholders based on program performance. In response to these rules, natural gas utilities will develop and implement DSM programs starting next winter. SWEEP participated in the rulemaking and a number of our recommendations were accepted by the PUC.

Read the DSM Rules

February

Colorado Governor’s Energy Office Announces 18 Insulate Partners
The Governor's Energy Office (GEO) announced that 18 matching grant award recipients, representing 43 statewide community partners, were selected for the 2008 Insulate Colorado program. The recipients will receive funding to be distributed as financial incentives directly to homeowners for the proper installation of either attic or exterior wall insulation in conjunction with the completion of basic air sealing practices. Rebate amounts may vary based on local program implementation, but incentives will typically be offered to homeowners at 20% of the total job cost or $300, whichever amount is less. For additional information, visit: www.colorado.gov/energy.

New Report Highlights Energy Efficiency and Alternative Energy Potential in Nevada
A new report advocates building a flexible infrastructure composed of greater energy efficiency, distributed generation, renewable energy, increased power transmission, and new natural gas generation to meet growing electricity resource needs in Nevada. The report presents an alternative resource strategy compared to the Ely Energy Center, a 1,500 MW conventional coal facility proposed by Sierra Pacific Resources. Dr. Carl Linvill, a former commissioner with the Nevada Public Utilities Commission, is the lead author of the report. SWEEP assisted with the energy efficiency analysis and section. For a copy of Laying a Foundation for Nevada’s Electricity Future: Generation Facility Uncertainties and the Need for a Flexible Infrastructure, click here. To view the press release, click here.

Energy Efficiency Legislation Signed into Law by Governor Richardson
On February 27th, Governor Richardson signed House Bill 305 into law, which amends the Efficient Use of Energy Act. The amendments require investor-owned electric utilities to reduce electricity use in 2014 by 5% and in 2020 by 10% as a result of energy efficiency programs and load management programs implemented starting in 2007. The amendments also direct the state’s public utility commission to allow utilities to earn a profit on cost-effective energy efficiency and load management investments. SWEEP contributed to the drafting of House Bill 305.

WRA Releases Study on Meeting Arizona’s Need for New Power
On February 7, 2008, the Western Resource Advocates (WRA) released the study, “A Clean Electric Energy Strategy for Arizona,” that demonstrates investments in energy efficiency and renewable energy can meet the majority of the state’s rising demand for electricity. SWEEP contributed to the energy efficiency analysis, which shows savings from energy-efficiency measures aimed at new and existing customers, buildings and appliances could meet about one third of the growth in demand for electricity. Renewable energy would meet another third. Meanwhile, the remainder of the state’s load growth could be met with natural gas-fired generation and a small amount of new technologies such as advanced coal generation with carbon capture. The report aims to inform utility managers and regulators planning for new resources about the clean energy options available to Arizona

January

Rocky Mountain Power Proposes DSM Programs in Wyoming
Rocky Mountain Power (RMP) has proposed implementing six demand-side management (DSM) programs for its customers in Wyoming. The programs include rebates for common efficiency measures implemented by households and businesses, second refrigerator recycling, support for weatherization of low-income households, and a self-direction program for larger business customers. The programs are modeled on RMP’s successful DSM programs in Utah. The projected budget for the programs is $34 million during 2009-2013 with anticipated energy savings of 188 GWh per year at the end of this five-year period. RMP’s proposal is now under review by the Wyoming Public Service Commission. RMP provides about 55% of the electricity consumed in Wyoming. For more details regarding the proposed DSM programs, see testimony.

Testimony of Jeffery W. Bumgarner

WGA Releases New Report on Energy-Efficient Buildings
The Western Governors’ Association has released a new report, “Building an Energy-Efficient Future: Policy Recommendations for Energy Efficient Buildings”, that makes a series of recommendations for increasing investment in energy efficiency and promoting improved conservation practices in the West. The report is the result of a workshop held in July 2007, in which WGA convened a diverse group of stakeholders to recommend strategies for increasing energy efficiency by 30% or more above current codes. SWEEP staff participated in the July 2007 workshop, and contributed to the final report. The report includes the following recommendations to increase energy efficiency in the West:

Improve energy efficiency education
Strengthen the performance of building energy codes
Use government and utility incentives to reward energy-efficient practices
Remove disincentives for utilities to invest in energy efficiency and expand utility demand-side management programs
Develop innovative financing strategies for public buildings

Read WGA’s report www.westgov.org/wga/publicat/EnergyEfficiency07.pdf
Read WGA’s press release www.westgov.org/wga/press/efficiency1-14-08.htm

Testimony Filed in Demand-Side Management Docket in New Mexico
Howard Geller has filed testimony on behalf of the Coalition for Clean Affordable Energy (CCAE) in the matter of Southwestern Public Service Company’s (SPS) application for approval of electric demand-side management (DSM) programs in New Mexico. SPS has proposed implementing seven DSM programs. Geller recommends three additional programs as well as expansion of some of SPS’s proposed programs. Geller also recommends modifications to the shareholder incentive mechanism proposed by SPS. Southwestern Public Service Company, a subsidiary of Xcel Energy, operates in southern New Mexico. For further details see testimony.

Past News

© 2002-2008 Southwest Energy Efficiency Project
2260 Baseline Rd. Suite 212, Boulder, CO 80302
(303) 447-0078 fax: (303) 786-8054 info@swenergy.org

Last Updated: 08/15/2008