Regional Energy Efficiency News
May
Colorado Adopts Legislation to Deregulate the Sale of Electricity for Charging Electric Vehicles
On May 3, 2012, Gov. Hickenlooper signed HB 1258, important legislation which helps pave the way for electric vehicles (EVs) in Colorado by deregulating the sale of electricity for charging them. In its final version, the bill repeals the statutory monopoly for utilities to sell electricity for the purpose of charging EVs. The bill authorizes anyone to resell electricity at retail to charge EVs without having to receive regulatory approval from the PUC. The bill also allows the generators of electricity to sell power to charge EVs at the location where the power is generated without seeking PUC approval. The bill applies the net metering rules to on-site generators, but modifies the rules to allow the on-site generating capacity to be sized based on both historical kWh use and expected demand when EV charging is added to the historical load for the property. SWEEP worked closely with legislators, electric utilities, and environmental organizations to draft, negotiate and win passage of the bill.
April
Arizona Public Service Company to Help More Customers Save Money and Energy
Arizona Public Service Company (APS) customers will see additional opportunities to reduce their utility bills thanks to the Arizona Corporation Commission’s unanimous adoption of the utility’s 2012 energy efficiency plan. On March 27, 2012, the Commission voted to approve APS’s plan, which will deliver annual energy savings that exceed 480 GWh per year and provide about $195 million in net economic benefits for households and businesses. The 2012 programs are targeted to achieve annual energy savings equivalent to 1.75% of retail sales, thereby meeting the requirements of Arizona’s Energy Efficiency Standard. SWEEP advocated for approval of the 2012 Plan in comments before the Arizona Corporation Commission.
Arizona’s Two Largest Regulated Electric Utilities Deliver More than 1.25% Savings in 2011
Arizona’s two investor-owned electric utilities, Arizona Public Service (APS) and Tucson Electric Power (TEP), report that their energy efficiency programs achieved annual energy savings exceeding 1.25% of retail energy sales in 2011. Indeed, recently filed reports describe annual energy savings of 537 GWh per year, lifetime energy savings of 5,224 GWh, and societal net benefits of $137.2 million, all as a result of programs implemented in 2011. These results are significant because they represent the second time Arizona’s investor-owned utilities have achieved greater than 1% energy savings in a single year. SWEEP applauds the 2011 achievements of APS and TEP.
Nevada Utilities Commission Cuts Funding for NV Energy’s DSM Programs
On March 15, the Public Utilities Commission of Nevada (PUCN) approved substantial cuts in funding, relative to previously approved levels, for NV Energy’s demand-side management (DSM) programs in 2012. DSM program budgets in Nevada are first approved as part of a three-year DSM plan but are also subject to annual review. In total, the PUCN approved about $57 million in DSM funding for Nevada Power Company and Sierra Pacific Power Company in 2012, roughly equal to DSM program spending in 2011 but nearly 38% below the previously approved budget for 2012. The cuts were made in large part due to the severe economic recession, reduced electricity demand, and excess generating capacity in the state in the short run. SWEEP objected to reducing funding for cost-effective DSM programs and helped prevent even deeper cuts.
Xcel Energy Achieves Higher Energy Savings in 2011
Xcel Energy, the main electric utility operating in Colorado, reports it achieved about 312 million kWh per year of net electricity savings from energy efficiency programs implemented in 2011, 24% more savings than was achieved from programs implemented in 2010. The energy savings from 2011 programs exceeded the savings goal set by the Colorado PUC by a wide margin. Xcel implements a wide range of energy efficiency programs aimed at helping its residential, commercial and industrial customers improve energy efficiency and reduce their electricity consumption. Programs implemented in 2011 had a benefit-cost ratio of 2.85 on average, leading to about $197 million in net economic benefits for Xcel’s customers over the lifetime of energy efficiency measures installed in 2011.
SWEEP Releases Report on Improving Energy Code Compliance
SWEEP has released a new report aimed at improving energy code compliance in local jurisdictions. The report, “Energy Code Enforcement: Best Practices from the Southwest,” identifies an eight-step approach, which could help municipalities and states comply with the American Recovery and Reinvestment Act requirement to achieve 90 percent compliance with energy codes and standards, compared with current compliance rates of only 10-70% nationwide.
The report is based upon the successful compliance practices in the Town of Parker, Colorado, and describes how the process can be replicated for large and small municipalities. Additional case studies are included from Salt Lake County, Utah; the City of Westminster, Colorado; Pima County, Arizona; and the City of Las Vegas, Nevada. Each community is implementing a specific practice to improve code compliance in one area of building construction.
Among the recommendations in the report is the simultaneous training of building inspectors, builders, and trades, while phasing in the requirements of a new code or standard. The report is written and presented in sixteen concise pages for the busy building code official, builder, and building tradesman.
February
SWEEP Launches Southwest Home Performance Collaborative
In an effort to strengthen home performance programs in the southwestern states, SWEEP has launched a new initiative to facilitate collaboration among diverse home performance program stakeholders. Participants in the Southwest Home Performance Collaborative include representatives from major utilities, state and local governments, and nonprofits in our six-state region as well as representatives from national organizations including the Department of Energy, Housing and Urban Development, national laboratories and relevant consulting firms.
There are currently five active Home Performance with ENERGY STAR programs in our region:
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In Arizona, program sponsors are the Arizona Public Service Company and Salt River Project with sponsorship in process from the Tucson Electric Power Company.
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In Colorado, the program is sponsored by Xcel Energy and the Four Corners Office for Resource Efficiency, a southwest Colorado nonprofit,.
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In Nevada, the program is sponsored by the nonprofit, HomeFree Nevada.
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In Utah, the program is sponsored by the Utah State Energy Program.
In addition to these whole home programs, numerous utilities, state and local governments, and nonprofits offer single measure rebates and discounted energy audits for home improvements.
The Southwest Home Performance Collaborative provides a platform for home performance program managers and stakeholders to share best practices and lessons learned to overcome challenges to successful program implementation. Information is shared via monthly webinars with discussions on topics such as program design for utility cost effectiveness tests, contractor training and management, and marketing and outreach strategies.
Utah Recognizes Industrial Energy Efficiency Leaders
On February 15, during the Utah Governor’s Energy Development Summit in Salt Lake City, seven top industrial companies were recognized for taking aggressive steps to reduce energy consumption as members of the Utah Industrial Energy Efficiency (IEE) Program. Amanda Smith, Director of the Utah Office of Energy Development, presented certificates of recognition to representatives from ATK, BD Medical, Lifetime Products, O.C. Tanner, Simplot, Skyline Mines, and Varian Medical Systems. Each of these industrial firms has made a voluntary commitment to improve energy intensity at their Utah facilities by at least 10% over five years.
The Office of Energy Development’s Utah IEE Program helps industrial companies gain greater expertise in energy efficiency and reduce their energy usage. Through a partnership with Nexant, Inc., Southwest Energy Efficiency Project, ETC Group, and Utah Clean Energy, the program is designed to help industrial companies make voluntary commitments to reduce their energy intensity and emissions, provide training and technical assistance as they implement energy-saving efforts, and provide recognition for energy efficiency successes that maximize facility performance.
SWEEP Releases Report on ARRA-funded Energy Efficiency Projects in the Southwest
On February 6, SWEEP released “Innovative Energy Efficiency Projects Implemented by Local Governments in the Southwest,” a new report profiling municipal and county projects made possible by funding from the 2009 American Recovery and Reinvestment Act (ARRA). The unprecedented increase in funding for energy efficiency as a result of ARRA was distributed by the US Department of Energy (DOE) to local governments through the State Energy Program (SEP) and Energy Efficiency Community Block Grants (EECBG). ARRA funding, often leveraged with other funding sources and new finance mechanisms, enabled local governments to make significant investments in energy efficiency infrastructure, policy, and program development which will help save energy and money for years to come. This report presents case studies of eight such innovative local projects in the Southwest region.
January
Strong Funding Maintained for Rocky Mountain Power DSM Programs
A Settlement Agreement has been filed with the Utah Public Service Commission to modify the tariff rider used to fund DSM programs implemented by Rocky Mountain Power (RMP) in Utah. Given that the utility has collected revenues in excess of DSM expenditures in the recent past, RMP initially proposed reducing the DSM tariff rider from 3.6% to 2.4% of customers’ bills on average. SWEEP and its partner Utah Clean Energy objected to this proposal, arguing that the proposed tariff rider level was inadequate to support new or enhanced DSM programs and potential increased program participation. Following negotiations, an agreement was reached among all parties to drop the tariff rider to 3.2% instead of 2.4%. The Settlement Agreement is unopposed and is expected to be approved by the Utah Public Service Commission.
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