Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia...
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Transcript of Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia...
![Page 1: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/1.jpg)
Energy Efficiency Mandates
What Are They About?
Do They Work?
2009 NASUCA Mid-Year Meetings
Cynthia Mitchell, Principal
Energy Economics Inc.
![Page 2: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/2.jpg)
DOE’s 2006 National Action Plan for Energy Efficiency “NAPPE”
“Modify policies to align utility incentives with the delivery of cost-effective energy efficiency, and modify ratemaking practices to promote efficiency investments.”
![Page 3: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/3.jpg)
Energy Independence and Security Act of 2007 “EISA”
Modified PURPA 1978 to promote EE investments• Align utility incentives with the delivery of cost-
effective EE• Remove the throughput incentive (aka “lost
revenues”)• Provide additional utility incentives
![Page 4: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/4.jpg)
American Recovery and Reinvestment Act of 2009
• “Ensure utility financial incentives are aligned with helping customers use energy more efficiently.”
• “Provide timely cost recovery and timely earnings opportunity for utilities with cost-effective measurable and verifiable energy savings.”
![Page 5: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/5.jpg)
Back to the Future• CA decoupling; 2007 net benefits /shared
savings IOUs 9 – 12% sharing rate• Jim Rogers, Duke Energy net benefits / shared
savings IOU 80% sharing rate• Arkansas: decoupling; lost revenues; addtl.
utility incentives• New Mexico: decoupling; 1 cent kWh & $10 kW
lifecycle EE savings paid in Year 1.
![Page 6: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/6.jpg)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002
GW
h/Y
r
--15% of Annual Electricity Use in California in 2003
Utility Efficiency Programs
Appliance Standards
Building Standards
CA Cumulative Energy GWh Savings: Utility EE Programs and Bldg. & Appliance Standards
![Page 7: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/7.jpg)
Per Capita Electricity Use in the U.S. and CA: 1960-2004
![Page 8: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/8.jpg)
March 2009 PUF Article
CA electricity per capita consumption: correlation or “cause and effect”
• < 20% energy efficiency savings • > 20% CA electricity prices • 20% CA moderate cooling season
Trend: decrease industrial energy intensity; larger households; more MF dwellings; “conservation ethic”
![Page 9: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/9.jpg)
CA Cumulative Energy GWh Savings: Utility EE Programs and Bldg. & Appliance Standards
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
GW
h/Y
r
--15% of Annual Electricity Use in California in 2003
Utility Efficiency Programs
Appliance Standards
Building Standards
![Page 10: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/10.jpg)
Re-ordered CA Cumulative Energy GWh Savings: Utility EE Programs and Standards
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
Sa
vin
gs
(G
Wh
/Yr)
Utility Efficiency Programs
Building Standards
Appliance Standards
![Page 11: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/11.jpg)
Let’s Talk CFLs….
• Wal-Mart effect • Market transformation • CFL quality: utilities vs. “Wal-Mart” • Legislative phase-out incandescents • Ratepayers as consumers pay 2 times+• Residential lighting largely winter off peak• Negative interactive effects
![Page 12: Energy Efficiency Mandates What Are They About? Do They Work? 2009 NASUCA Mid-Year Meetings Cynthia Mitchell, Principal Energy Economics Inc.](https://reader036.fdocuments.us/reader036/viewer/2022082817/56649e4c5503460f94b416a2/html5/thumbnails/12.jpg)
What is (?) Working
• Efficiency Vermont 1990; Efficiency Maine 2002; Delaware Sustainable Energy Utility 2007
• Northwest Energy Efficiency Alliance (NEEA); Northeast Energy Efficiency Partnership (NEEP); Midwest Energy Efficiency Alliance (MEEA)
• State public – private partnerships: Connecticut, Illinois, Maryland, Minnesota, New Jersey, New York; Ohio
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Closing Thought: FINANCING!
We currently have on-bill financing for power plants, and T&D.
We must be able to pay for energy efficiency and other sustainable resources in a similar manner.