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Regional Energy Efficiency News
August
Arizona Corporation Commission Approves Moving Forward with a Gas Utility Energy Efficiency Standard
On August 24, the Arizona Corporation Commission approved a Gas Energy Efficiency Rule and Standard designed to achieve 6 percent energy savings in 2020, at least three-fourths of which must be achieved through energy efficiency programs. This is a key step in moving the process forward to final rule adoption and certification. As a result of the Rule, Arizona natural gas and propane utilities are expected to expand existing energy efficiency programs and launch new programs to assist residential consumers, small businesses, and large commercial and industrial customers. Utilities can also get credit for more efficient building codes and appliance standards, if they demonstrate they have supported the adoption or implementation of them. SWEEP advocated for and helped craft key provisions of the Standard, which will ensure that all of Arizona’s utility customers benefit from better access to energy efficiency measres that reduce energy consumption, lower utility bills, and cut greenhouse gas emissions and other pollution.
• Press Release (PDF – 51 KB)
• Copy of the ACC Order (PDF – 1.4 MB)
The “Utah DSM Story” Presented at a National Energy Efficiency Conference
On August 16, SWEEP Executive Director Howard Geller presented a paper titled The Utah Story: Rapid Growth of Utility Demand-Side Management Programs in the Intermountain West at the 2010 ACEEE Summer Study on Energy Efficiency in Buildings. The paper reports on the drivers of electric and natural gas DSM efforts in Utah, the growth in program funding and the level of energy savings being achieved, and the challenges the utilities are facing. The paper is co-authored by Howard Geller, Jeff Bumgarner from PacifiCorp, and Dan Dent from Questar Gas Company. Both PacifiCorp and Questar have greatly scaled up their DSM programs in recent years.
New Mexico Becomes Leader in Residential Energy Conservation Codes
On July 30th, the New Mexico Construction Industries Commission (CIC) acted to save consumers money and protect the environment by adopting the 2009 New Mexico Energy Conservation Code (2009 NMECC) for new home construction. The new residential code will achieve a 20 percent increase in energy efficiency compared to the performance of homes that meet the current 2006 New Mexico Energy Conservation Code. Homeowners will benefit from reduced monthly utility bills, decreased energy consumption and increased comfort. SWEEP estimates that new homeowners in New Mexico will save over $66 million dollars over a ten year period as a result of the new code.
July
Arizona Commission Adopts Rules for Landmark Energy Efficiency Standards: 20% Energy Savings by 2020
On July 27, 2010, the Arizona Corporation Commission (ACC) unanimously approved the rules that will guide the implementation of Energy Efficiency Standards for investor-owned electric utilities and rural electric cooperatives in Arizona. The standards specify the amount of electricity that utilities are required to save through their cumulative energy efficiency programs during 2011-2020. By 2020, utilities are required to achieve energy savings of at least 20% of retail energy sales, plus up to a 2% credit for peak demand reductions from demand response programs, for a total requirement of 22% by 2020. SWEEP estimates that these requirements will result in annual energy savings exceeding 2% of retail sales beginning in 2014, after a three-year ramp up of the energy efficiency programs. SWEEP estimates the standards will lead to around $9 billion in lowered utility bills for households and businesses in Arizona. These energy efficiency standards are among the most ambitious approved by any state in the country.
Nevada PUC Approves New Three-Year DSM Plan for Nevada Power Company
On July 28, the Public Utilities Commission of Nevada (PUCN) approved Nevada Power Company’s new integrated resource plan which includes the company’s demand-side management (DSM) program plan for 2010-2012. The total approved DSM budget for this three-year period is $210 million, 79% greater than the amount Nevada Power spent on DSM programs during 2007-09. With this approval, Nevada Power will continue to be a leader among western utilities in helping its customers save energy. The Company estimates that its customers will save $495 million over 20 years as a result of DSM programs implemented during 2010-2012. SWEEP assisted Nevada Power as it developed its DSM plan and intervened before the PUCN in support of expanded programs.
Fort Collins, CO Municipal Utility Ramps Up Energy Efficiency Programs
Fort Collins Utilities has indicated it will spend about $5 million on energy efficiency (DSM) programs in 2010 in order to save at least 1.5% of total electricity sales. This goal was established by the city in 2009. This is more than twice the amount Fort Collins Utilities spent in 2009, which resulted in saving 0.7% of electricity sales [see report]. These programs are highly cost effective with an average cost of saved energy of just 2.0 cents per kWh. The utility funds DSM programs through its rates as well as through funding provided by its bulk power supplier, the Platte River Power Authority. Fort Collins Utilities serves about 65,000 customers and has annual revenue of about $85 million.
EPA's WaterSense Program Launches "We're for Water" Campaign
On July 14, 2010, EPA's WaterSense program launched the "We're for Water" campaign as a national effort to educate consumers about water-saving behaviors and WaterSense labeled products. The campaign will highlight the daily impact that water use can have on energy, human health, and savings while also demonstrating how small actions can have a big impact.
American public water supply and treatment facilities consume about 56 billion kilowatt-hours (kWh) annually, enough electricity to power more than 5 million homes for an entire year. If one out of every 100 American homes retrofitted with water-efficient fixtures, we could save about 100 million kWh of electricity per year, avoiding 80,000 tons of greenhouse gas emissions. That is equivalent to removing nearly 15,000 automobiles from the road for one year.
Kickoff Event for Colorado Industrial Energy Challenge – July 22 at State Capitol
The Colorado Governor’s Energy Office (GEO) and the Southwest Energy Efficiency Project (SWEEP) announce the launch of a new program to encourage more energy efficiency at industrial facilities in Colorado. Funded through a 3-year grant from GEO and the U.S. Department of Energy, the Colorado Industrial Energy Challenge (CIEC) program encourages large and medium-size industrial facilities to commit to a 5-year energy efficiency goal. In return the program offers recognition from the Governor, free technical assistance, and opportunities for networking and training. The formal kickoff for the program will take place at the Colorado State Capitol Building, at 9:30 am on Thursday, July 22. Thirteen leading Colorado companies will be recognized by Governor Ritter for their commitment to improving energy efficiency at their facilities and for their past energy efficiency achievements. For more information, contact Neil Kolwey, SWEEP Senior Associate, at 303-499-0213, nkolwey@swenergy.org. More information is also available at the CIEC website.
Xcel Energy Submits 2011 Colorado DSM Plan
Xcel Energy, the main utility supplying electricity and natural gas in Colorado, has filed its 2011 demand-side management (DSM) program plan with the Colorado Public Utilities Commission (PUC). The total DSM budget is $83.2 million, with $67.4 million for electric DSM programs and $15.8 million for gas DSM programs. Xcel expects it will save about 240 GWh of electricity per year, 368,000 dekatherms of natural gas per year, and reduce peak power demand by about 67 MW through implementation of this one-year plan. Xcel is proposing a number of new or enhanced programs since its last DSM plan which was approved in 2008. The Colorado PUC will review the plan, and SWEEP will intervene in this docket and suggest additional program enhancements.
Comprehensive Energy Efficiency Program Guide for Existing Homes Now Available
The Consortium for Energy Efficiency (CEE) has published an in-depth guide to energy efficiency programs for retrofitting existing homes. The guide includes program design recommendations and best practices, profiles of numerous programs offered by utilities and other program administrators throughout North America, information on training and certification efforts, and information on emerging technologies that can be included in retrofit programs. For a copy of the Existing Homes Program Guide, contact Rebecca Foster at CEE, rfoster@cee1.org.
June
SWEEP Selected to Deliver Technical Assistance for Federal Energy Efficiency ARRA Grantees
As part of the American Recovery and Reinvestment Act (ARRA), nearly $6.5 billion has been granted to states and communities across the U.S. for energy efficiency programs under the Energy Efficiency and Conservation Block Grants (EECBG), State Energy Program (SEP), and Retrofit Ramp-Up Initiative. The ARRA SEP and EECBG Technical Assistance Program has been developed to provide state and local officials access to a network of financial and technical experts for assistance with their energy efficiency policies and programs. The goal is to help eligible grantees develop and implement successful clean energy projects and programs that meet the conditions and guidelines of the Federal grant programs.
SWEEP: A Regional Resource for Technical Assistance
SWEEP has been selected to be a part of the Department of Energy’s Recovery Act Technical Assistance provider network. As a member of the Technical Assistance network, SWEEP will provide support to recipients of EECBG, SEP and Retrofit Ramp-up grants in Wyoming, New Mexico, Nevada, Utah, Colorado and Arizona. SWEEP’s assistance will help grantees develop programs which support Federal initiatives and are designed to address long-term energy policy changes, environmental concerns, and the need to strengthen the economy and create jobs.
SWEEP is partnering with a network of non-profit organizations with a national footprint and a deep collective energy resume: Vermont Energy Investment Corporation (team lead), the American Council for an Energy-Efficient Economy, the Midwest Energy Efficiency Alliance, the Natural Resources Defense Council, the Northeast Energy Efficiency Partnership, the Northwest Energy Efficiency Alliance, and the Southeast Energy Efficiency Alliance.
Have you Received ARRA Funding?
Has your organization received funding through ARRA SEP, EECBG, or the Retrofit Ramp-Up Initiative? If so, you are eligible for assistance in developing your programs. First, check out the Technical Assistance Center (TAC) Solution Center, an online portal where you can find best practices, project resources, and other valuable tools to assist you in the development and implementation of successful projects and programs. There you can also log-in to request technical assistance from SWEEP and other technical assistance providers.
Find out More
For more information and direct assistance from SWEEP, contact Curtis Framel at 303-447-0247, or cframel@swenergy.org. You can also request technical assistance here or by calling 1-877-EERE-TAP (1-877-337-3827) to speak with a customer service representative who can assist you in submitting your request.
Utah Public Service Commission Approves Decoupling for Questar Gas Company
The Utah Public Service Commission (PSC) has issued its order in a rate case filed by Questar Gas Company, the main gas utility in Utah. In that order, the PSC approved decoupling of the utility's authorized revenue recovery and natural gas sales, a policy known as the Conservation Enabling Tariff as it ensures that Questar will collect its approved revenues per customer when it implements successful energy efficiency programs. This policy, implemented on a pilot basis starting in 2007, led Questar to implement a very effective set of energy efficiency programs for its residential and commercial customers. The new rate case decision makes the Conservation Enabling Tariff permanent.
Utah Public Service Commission Fails to Adopt Decoupling or Stronger Inverted Block Rates for Rocky Mountain Power
The Utah Public Service Commission (PSC) has issued its order in a rate case filed by Rocky Mountain Power, the main electric utility in Utah. In that order, the PSC did not approve decoupling of the utility's fixed distribution cost recovery and electricity sales, a policy proposed by the Division of Public Utilities and supported by SWEEP. This policy would have removed a portion of the financial penalty that Rocky Mountain Power incurs when it implements successful efficiency programs for its customers. The PSC also failed to adopt stronger inverted block rates for residential customers, as proposed by SWEEP. This policy would have provided customers with additional incentives for energy efficiency improvements.
May
In Memoriam – New Mexico Clean Energy Advocate Gail Ryba
It is with great sadness that we report on the passing of Santa Fean Gail Ryba after a battle with cancer. Gail was SWEEP’s New Mexico representative during 2004-07, chair of New Mexico Coalition for Clean and Affordable Energy, and founder of the Bicycle Coalition of New Mexico. She was trained as a scientist and conducted research at Sandia National Laboratory before becoming a clean energy advocate. Her dedication, passion, and kind heart will be greatly missed. For more information about Gail, see this article in the Santa Fe New Mexican.
April
Questar Gas Company Realizes Outstanding Energy Savings Results in 2009
Questar Gas Company (QGC) reports that it saved about 1.1 million dekatherms per year as a result of energy efficiency programs implemented in 2009. This is about 2.7 times the level of energy savings that the utility had targeted for the year. The savings represent about 1.1% of annual gas sales to the residential and commercial customers eligible to participate in the programs. In total QGC spent $47.4 million (about 6% of sales revenue) on efficiency programs last year. Over 147,000 customers participated in QGC’s programs in 2009 alone. These energy savings results are among the highest for gas utilities nationwide. QGC supplies natural gas to about 870,000 residential and commercial customers in Utah.
New Energy Efficiency Metric Named in Honor of Dr. Arthur Rosenfeld
Energy efficiency experts have developed a new metric for electricity savings called the Rosenfeld in honor of one of the leading champions for greater energy efficiency over the past 35 years, Dr. Arthur H. Rosenfeld. The Rosenfeld metric is equivalent to saving 3 billion kWh per year, the amount of electricity supplied to consumers by a 500 MW baseload power plant operating with a 70% capacity factor and 7% T&D losses. Dr. Rosenfeld has long characterized electricity savings in terms of avoided power plants. SWEEP estimates that electric utilities in the Southwest saved 1.5 Rosenfelds in 2009 as a result of energy efficiency programs implemented during 2003-09.
US DOE Releases Energy Code Compliance Guide
The Department of Energy’s (DOE’s) Building Energy Codes Program (BECP) has developed procedures and tools for measuring and reporting compliance with building energy codes in each of the states. Several drafts of proposed methodologies were shared with stakeholders from whom feedback was requested, received, and incorporated into a final document entitled Measuring State Energy Code Compliance, which has been posted on the BECP website.
BECP anticipates developing and posting a shorter “how-to” version of this document for stakeholders wanting only the high-level recommended steps for measuring compliance. Additional support tools also being developed are listed at the above site.
Boulder, Denver and Phoenix Selected for Recovery Act “Retrofit Ramp-up” Awards
Collaborative partnerships in Arizona and Colorado were among 25 projects selected for Recovery Act “Retrofit Ramp-up” awards, announced on April 21 by Vice President Biden. Under the Department of Energy’s $452 million Retrofit Ramp-Up initiative, communities, governments, private sector companies and non-profit organizations will work together on innovative programs for retrofits of neighborhoods and towns.
The city of Phoenix, in partnership with Arizona State University and Arizona Public Service, has been awarded $25 million to launch "Energize Phoenix," a project that will focus on building retrofits along a 10‐mile stretch adjacent to the new Phoenix light‐rail line that includes a number of diverse residential and commercial areas. The project seeks to retrofit 50% of all commercial and residential space in the Green Rail Corridor over 3 years.
In Colorado, $25 million was awarded to a partnership between the Governor’s Energy Office, Boulder County, Garfield County, the City and County of Denver, and Xcel Energy. The Colorado retrofit program will stimulate economic growth and investment in Colorado through large-scale retrofits in neighborhoods and commercial districts in urban, suburban and rural areas. Delivery of retrofits will be coordinated through a "Two Techs and a Truck" program, providing on-site outreach, audit and implementation services to businesses and residences.
Appliance Rebate Programs Experience High Demand in Southwestern States
All six states in our region are offering rebate programs in April and May to help homeowners replace older, inefficient appliances with new ENERGY STAR® qualified appliances. The state-administered rebate programs are federally funded in all states with $300 million from the US Department of Energy (DOE) through the American Recovery and Reinvestment Act of 2009 (ARRA). The rebate programs have seen very high demand in the southwestern states. In Arizona, over 30,000 rebates worth the total allocation of $6.2 million were reserved in less than four hours. Colorado, which augmented the ARRA funds with other partnerships to offer an $18 million rebate program, has experienced similar demand with nearly 15,000 rebates reserved in the first day. Below is a listing of southwestern states with total ARRA funding, program start dates, and links to official state rebate program websites. For more information on the nationwide DOE appliance rebate program, visit www.energysavers.gov/financial/70020.html.
- Arizona: $6,237,000 – Began April 12
- Colorado: $4,739,000 – Began April 19
- Nevada: $2,495,000 – Began April 17
- New Mexico: $1,904,000 – Begins April 22
- Utah: $2,626,000 – Begins May 12
- Wyoming: $511,000 – Began April 15
2009 Utility DSM Programs Surpass Energy Savings Goals
According to recently released annual reports, the 2009 demand-side management (DSM) programs implemented by the principal electric utilities in Colorado and Utah achieved energy savings that far surpassed their savings goals. In Colorado, Xcel Energy’s 2009 DSM programs are saving about 240 GWh per year, 125% of the company’s energy savings goal. The programs had a benefit-cost ratio of nearly 4.1 on average and will generate $215 million in net economic benefits for customers over the lifetime of the energy efficiency measures installed in 2009. In Utah, Rocky Mountain Power’s 2009 DSM programs are saving about 230 GWh per year, 150% of the company’s energy savings goal. The programs had a benefit-cost ratio of nearly 2.0 on average and will generate $109 million in net economic benefits for customers over the lifetime of the measures installed in 2009. These energy savings values are net of free riders, and the benefit-cost ratios and net economic benefits are based on the Total Resource Cost (TRC) test.
New Mexico Adopts Energy Efficiency Measures
On April 8, the New Mexico Public Regulation Commission (PRC) established new energy efficiency rules that encourage electric utilities to look toward low-cost energy efficiency programs before building costly and potentially unnecessary power plants to meet the state’s energy demand. The Commission’s action further implements the state’s Efficient Use of Energy Act, designed to spur more utility investment in energy efficiency programs. The new rules provide a financial bonus to utilities for energy savings achieved through their PRC-approved efficiency programs. Increased efficiency investment could mean over $400 million in customer savings and almost 2 million metric tons of avoided CO2 emissions over the next 20 years, according to PNM’s most recent long term plan. SWEEP participated in workshops on this topic and helped to develop the specific mechanism approved by the PRC.
Colorado ranks second in nation in energy-efficient schools
The U.S. Environmental Protection Agency (EPA) announced that Colorado ranks second in the nation in schools earning the prestigious Energy Star, the national symbol for protecting the environment through superior energy efficiency. Colorado’s 2009 Energy Star roster includes 116 schools, placing the state second behind Michigan. New York, Virginia, and Indiana also appear in the top five. The Energy Star designation signifies that these school buildings perform in the top 25 percent of similar facilities nationwide for energy efficiency. Schools that earn the Energy Star use an average of 35 percent less energy than typical buildings and also release 35 percent less carbon dioxide into the atmosphere. The Colorado Association of School District Energy Managers has made energy performance a priority by encouraging strategic energy management and making cost-effective improvements to buildings.
March
Colorado Utilities Commission Approves Inverted Block Rates for Xcel Energy
The Colorado Public Utilities Commission (PUC) has approved inverted block rates for residential customers of Xcel Energy. Starting on June 1, consumers will pay base rates of about 4.3 cents per kWh for their first 500 kWh of electricity use in summer months (June through September) and then 9.0 cents per kWh for electricity use in excess of 500 kWh per month. In addition, consumers will pay for fuel costs and other surcharges separately. Until now, Xcel Energy’s residential electricity rates were the same independent of the amount of electricity use. This new rate structure will promote energy efficiency and conservation during the summer when Xcel Energy experiences its peak demand. SWEEP was an intervenor in this docket and advocated for even stronger inverted block rates, including adopting them year round. However, the PUC decided to take a gradual approach to this new rate design. Xcel Energy is the main electric utility in Colorado serving about 1.4 million customers.
Tri-State Generation and Transmission Association Completes Major Energy Efficiency Potential Study
Tri-State Generation and Transmission Association (Tri-State) has completed an energy efficiency potential study for its electric system, which consists of 1.4 million consumers served by the 44 rural electric cooperatives that are Tri-State members in Colorado, Nebraska, New Mexico, and Wyoming. The study found a cost-effective electricity savings potential of 1.5 billion kWh by 2015, 10% of forecasted electricity sales by the Tri-State system that year. The study finds that maximizing implementation of cost-effective energy efficiency measures could eliminate over half the load growth and need for new generating capacity that Tri-State is projecting to occur during 2010-2025 without stepped up energy efficiency efforts. In addition, the study recommends numerous new energy efficiency programs that Tri-State and its member cooperative could implement. Tri-State sponsors very limited energy efficiency programs at the present time.
Utah PSC approves electrical interconnection rule
The Utah Public Service Commission has finalized a standardized and streamlined interconnection rule that will make it easier for combined heat and power (CHP) and other clean, local generation to safely connect to the electric utility grid. The new rule, R746-312 Electrical Interconnection, will become effective on April 30, 2010. The U.S. DOE Intermountain Clean Energy Application Center, jointly run by SWEEP, was very active in helping get the rule in place and ensuring it is based on state-of-the-art model standards. Utah’s new rule is among the best interconnection rules in the country, according to the Interstate Renewable Energy Council.
Clear and uniform interconnection rules are crucial to clean energy markets. By standardizing both the processes and technical requirements for connecting the grid, they reduce uncertainty, prevent delays, and ensure that the requirements are appropriate for the size, scope, and technology of the system.
Congratulations to 2010 ENERGY STAR Award Winners in the Southwest!
On March 18, EPA and DOE honored businesses and organizations for their outstanding contribution to reducing greenhouse gas emissions through energy efficiency at the 2010 ENERGY STAR Awards ceremony. SWEEP congratulates the nine award winners with operations in the Southwest region.
Two organizations in our region were honored with the ENERGY STAR Award for Sustained Excellence for their exemplary efforts to promote and expand the market for energy-efficient homes:
- Arizona Public Service (Phoenix, AZ)
- Energy Inspectors (Las Vegas, NV)
Six southwest organizations were honored as ENERGY STAR Partner of the Year:
- Colorado Governor's Energy Office (Denver, CO)
- EnergyLogic (Berthoud, CO)
- Frostbusters & Coolth Co. (Grand Junction, CO)
- New Mexico Gas Company (Albuquerque, NM)
- Public Service Company of New Mexico (Albuquerque, NM)
- Questar Gas Company (Salt Lake City, UT)
In addition, Richmond American Homes (Denver, CO) received the Energy STAR Award for Excellence.
The complete list of award winners, with details of their energy efficiency accomplishments, is available on the ENERGY STAR website.
National Survey Shows Big Jump in Utility Energy Efficiency Efforts in 2009; Southwest States Shine
The Consortium for Energy Efficiency (CEE) has released its 2009 State of the Efficiency Program Industry report. The report shows that funding for electric and gas utility energy efficiency and load management programs in the U.S. increased 44% from $3.7 billion in 2008 to $5.3 billion in 2009. But according to CEE, funding in the six southwestern states (AZ, CO, NM, NV, UT and WY) increased 52% from $192 million in 2008 to $292 million in 2009. Three southwest states—Nevada, Utah, and Colorado—are above the national mean for electric utility spending per capita while Utah is one of the top states in the nation in terms of gas utility spending per capita. In addition, CEE estimates that electric utilities across the U.S. saved 96,300 GWh of electricity in 2008 as a result of their cumulative energy efficiency efforts. This is equivalent to the electricity supply from about 30 large (500 MW) baseload power plants.
SWEEP Adds Two New Staffers
SWEEP is pleased to announce the addition of two new staff based in Boulder, Colorado. Neil Kolwey has joined SWEEP as a Senior Associate and Director of our Industrial Efficiency Program. Neil has over 25 years of experience working on energy and environmental issues. Most recently he served as a Research Manager at E Source where he led the company's greenhouse gas consulting practice. Prior to that was a Professional Engineer with the Colorado Department of Public Health and Environment where he led technical assistance efforts for the department's pollution prevention program. At SWEEP, Neil will be co-leading the Colorado Industrial Energy Challenge program, a new initiative funded by the Governor's Energy Office and the U.S. Department of Energy, as well as working to advance energy efficiency in the industrial sector throughout the Southwest.
J.C. Martel has joined SWEEP as Program Associate in our Building Efficiency Program. Prior to joining SWEEP, J.C. worked for the Center for ReSource Conservation (CRC) in Boulder where she developed and implemented the ClimateSmart Residential Energy Action Program. Prior to the CRC, J.C. worked at the Northwest Colorado Council of Governments retrofitting low-income housing. She has over 10 years of experience working on energy and environmental issues. At SWEEP, J.C. will provide assistance to state and local governments as well as utilities on strategies for improving the energy efficiency of both new and existing homes.
Contact information for Neil and J.C.:
Neil Kolwey
Senior Associate
SWEEP
2260 Baseline Rd., Suite 212
Boulder, CO 80302
303-499-0213
nkolwey@swenergy.org
J.C. Martel
Program Associate
SWEEP
2260 Baseline Rd., Suite 212
Boulder, CO 80302
303-447-0078 x2
jmartel@swenergy.org
Study of Co-Benefits of Energy Efficiency and Renewables in Utah: Air Quality, Health, and Water Benefits
A new study, completed by Synapse Energy Economics, Inc. under contract to several Utah State agencies, establishes and applies a methodology to quantify the co-benefits of energy efficiency and renewable energy in the areas of avoided human health costs and depletion of water resources. Co-benefits are defined as the monetary value of the externalities, or indirect social costs, of energy production which are avoided by implementing new policies designed to either displace or replace existing generation. The results of this study can be used for considering the full costs and benefits of new generators in utility integrated resource plans; determining effective strategies to comply with federal or regional air quality plans and state implementation plans; estimating pathways to meet emissions targets for regional and federal regulations; and other purposes.
February
Decoupling, Stronger Inverted Block Rates Proposed in Utah
Two important proposals to advance greater energy efficiency were submitted recently in a rate design case for Rocky Mountain Power (RMP), the main electric utility in Utah. The Division of Public Utilities (DPU) proposed decoupling of the utility’s fixed cost recovery and electricity sales to residential customers, a policy that would remove a key financial disincentive that RMP faces when it implements effective energy efficiency programs. SWEEP and Utah Clean Energy (UCE) proposed adopting stronger tiered rates to give high usage residential customers greater financial incentive to increase energy efficiency and conserve energy. RMP already has moderately tiered rates in effect in summer months. The two proposals, decoupling and stronger inverted block rates, complement each other. The Utah Public Service Commission is expected to reach a decision in this docket in May.
Utah Clean Energy releases the state's first Clean Energy Economic Development Study
Results from a new report, titled Building the Clean Energy Economy: A Study on Jobs and Economic Development of Clean Energy in Utah, show that investments in energy efficiency and renewable energy have the potential to yield significant economic benefits for Utah. The report analyzes the economic impacts of an electricity portfolio with 20% energy efficiency and 20% of electricity sales from renewable resources by 2020. This scenario yields nearly 7,000 new ongoing jobs in the state, $310 million in additional wages and salaries, and a $300 million net annual increase in gross state product (GSP) by 2020 compared with official state projections. Compared with a reference scenario based on current utility resource plans, the study shows the creation of 4,100 new jobs, $140 million in additional wages and salaries, and a $20 million increase in GSP by 2020. SWEEP was a co-sponsor of the study, which was completed by Utah Clean Energy at the request of the Utah Governor’s Energy Advisor.
Nevada Power Company Submits New Three-Year DSM Plan
Nevada Power Company (NPC) filed a new Integrated Resource Plan (IRP) with the Public Utilities Commission of Nevada on February 1, 2010. This filing includes the company’s proposed plan for 2010-12 demand-side management (DSM) programs. NPC is proposing to spend about $270 million on 20 different DSM programs during 2010-12. A significant portion of the budget pertains to smart meters as they relate to DSM efforts. NPC is proposing to spend about $59 million per year on average for core energy efficiency and load management programs, about 20% more than the budget for these programs in recent years. SWEEP in partnership with Nevadans for Clean, Affordable and Reliable Energy (NCARE) will intervene in the docket and argue for even greater funding for cost-effective DSM programs. For a copy of the NPC DSM plan, see volumes 6 and 7 of the IRP, which is available at http://www.nvenergy.com/company/rates/filings/index.cfm.
SWEEP Report Profiles Energy Efficiency Businesses and Projects in Colorado
On February 1, SWEEP released “Energy Efficiency in Colorado’s New Energy Economy: Business Case Studies,” a new report presenting eleven case studies which illustrate the range and variety of economic benefits of energy efficiency to businesses in Colorado. The report profiles five representative Colorado businesses that are making great strides in manufacturing, selling, and installing energy efficiency in the state. These companies have experienced 100 – 500 percent growth in the last two years, and are creating new jobs for Colorado residents as they grow. The report also presents six case studies of recent commercial, industrial and institutional energy efficiency projects around the state, which have resulted in significant energy cost savings and other benefits.
January
SWEEP and UCE Recommend Policies for Strengthening Electric Utility DSM Programs in Utah
On January 20, Sarah Wright, Executive Director of Utah Clean Energy (UCE), made a presentation on behalf of SWEEP and UCE at a Technical Conference sponsored by the Utah Public Service Commission on electric utility demand-side management (DSM) policies in Utah. The presentation included a number of recommendations that would enhance or reward electric utility investment in DSM programs including adopting energy savings goals or standards, decoupling utility electricity sales and fixed cost recovery, and allowing utilities to earn a profit on their expenditures on cost-effective DSM programs.
Colorado Springs Municipal Utility Issues DSM Potential Study
Colorado Springs Utilities (CSU) has issued a demand-side management (DSM) potential study. The study finds that DSM measures could cost-effectively save 1.75 million kWh per year by 2020, meaning savings equivalent to about 35% of the utility's current energy sales at the end of an 11-year effort. However, the study suggests setting an energy savings goal of only about 5% savings by 2018, far below the economic potential and only about half as large as the energy savings goal set by the Colorado PUC for investor-owned utilities in the state. CSU is the second largest utility in Colorado in terms of number of customers and electricity sales. The utility is implementing a very limited set of DSM programs at the present time.
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