Regional News Briefs
New SWEEP Report Examines Valuation of Electricity Savings
SWEEP has published a new report titled Time-Sensitive Valuation of Electricity Savings in the Southwest. This report reviews the methodologies that electric utilities in the Southwest use to value the avoided costs (i.e., determine the benefits) of their energy efficiency and other demand-side management programs. The report also presents the actual value of energy savings for different types of programs implemented by the Southwest utilities, and provides recommendations for future valuation of energy savings. The recommendations include:
Value all of the benefits produced by utility energy efficiency programs;
Establish avoided generation capacity costs based on time-varying marginal generation resources;
Include avoided transmission and distribution system costs in the valuation of energy savings;
Monetize and value avoided CO2 emissions and possibly other pollutant emissions.
The report was funded by the U.S. Department of Energy through a contract with Lawrence Berkeley National Laboratory.
Affordable Energy for All: A Plan to Expand Energy Efficiency Benefits for Low-Income Salt Lake City Residents
A new report completed by SWEEP’s partner Utah Clean Energy recommends ways that Salt Lake City can expand energy efficiency improvements in low-income housing. The report reviews current low-income energy services and provides five recommendations for steps the city can take to increase the number of low-income families that benefit from home energy retrofits. The report was requested by Salt Lake City and prepared through U.S. Department of Energy funding that SWEEP provided to Utah Clean Energy.
Southwest Energy Codes Expert Shaunna Mozingo Receives National Energy Codes Honor
A member of the Colorado Energy Codes Collaborative and Regional Codes Leadership Group, Shaunna Mozingo, has received one of the nation’s top awards for advancing energy codes. Shaunna received the 2017 Jeffrey A. Johnson Award for Excellence in Building Energy Codes, presented at the National Energy Codes Conference in Pittsburgh, PA., on July 18, 2017.
Shaunna is a key collaborator on the SWEEP building team’s efforts to increase energy efficiency through building codes. All of us in the Southwest are fortunate to have her dedication, expertise, and enthusiasm for energy codes. Congratulations to Shaunna for this well-deserved honor.
Rocky Mountain Power Boosts Electricity Savings in Wyoming
Rocky Mountain Power, the largest electric utility in Wyoming, reports that its energy efficiency programs helped its customers achieve annual energy savings of over 40 million kilowatt hours (kWh) in 2016. This is a 29 percent increase compared to the savings achieved by the utility’s programs in 2015. Most of the increase in energy savings was due to growing participation by larger oil and natural gas producers. In addition, there was a significant increase in the number of lighting efficiency projects undertaken by businesses. Rocky Mountain Power, a division of PacifiCorp, serves about 140,000 customers in Wyoming.
New Energy Code Compliance Guide Distributed to Utah Building Industry
Close to 200 Utah municipal building code officials, building inspectors, plan reviewers, and residential contractors now have a guide to help them comply with Utah’s latest residential energy efficiency code. The state adopted an amended version of the 2015 International Energy Conservation Code in March 2016, with specific changes becoming effective between July 2016 and January 2021.
State energy code trainer Brent Ursenbach developed the guide with assistance from the Governor's Office of Energy Development, Rocky Mountain Power, and Questar Gas (now Dominion Energy) to help improve residential energy code compliance in Utah.
In mid-July, SWEEP’s partner, Utah Clean Energy, mailed the guides along with a letter from the Governor’s Office of Energy Development to building officials and local home builders associations across the state, in an effort to achieve energy and cost savings resulting from the newer residential energy code. Utah Clean Energy received funding from SWEEP to promote and distribute the guides.
SWEEP encourages all building professionals in the Southwest to develop compliance materials to support the efficiencies incorporated into the 2015 International Energy Conservation Code (IECC).
Denver Mayor Adopts New Mobility Action Plan
On July 10, Denver Mayor Michael Hancock announced the adoption of a new Mobility Action Plan. It calls for a significant increase in investment in bicycle and pedestrian infrastructure, expanded public transit including building bus rapid transit on Colfax Avenue and other major corridors; expanding transit pass programs, investing in expanded electric vehicle infrastructure, and doubling the growth rate of electric vehicle adoption in the city.
SWEEP has advocated for Colfax BRT, increased investment in bicycle and pedestrian infrastructure, and a variety of initiatives to increase EV adoption in Denver.
SWEEP applauds Mayor Hancock for taking this action to improve mobility while reducing energy use and emissions.
Utah Public Service Commission Approves Rocky Mountain Power Plan for Electric Vehicles
On June 28, the Utah Public Service Commission approved a docket allowing Rocky Mountain Power to invest $10 million over the next five years in electric vehicle (EV) infrastructure, providing customer education on EVs, and creating pilot time-of-use rates for EVs.
RMP will offer incentives up to $7,000 for Level 2 chargers, and up to $63,000 for DC fast chargers. The final decision incorporated multiple changes suggested by SWEEP and Utah Clean Energy.
SWEEP encourages all utilities in the Southwest to develop EV investment plans and EV-specific tariffs.
Utilities in the Southwest Begin Electric Vehicle Discount Programs
Two major utilities in the southwest have teamed up with Nissan to offer their customers $10,000 discounts on Nissan Leafs.
In Colorado, Xcel Energy offered a program from March-June, and while final numbers are not yet available, as of mid-June they reported more than 500 vehicles sold. Xcel customers also benefit from the $5,000 point of sale incentive that the Colorado legislature approved in 2016.
In Arizona, Salt River Project has a discount program available to customers during the month of July.
SWEEP encourages other utilities in the southwest to offer similar programs.
SWEEP has published an online handbook for organizing this type of program.
El Paso Electric Company Achieves New Mexico Energy Savings Requirement Four Years Ahead of Schedule
El Paso Electric Company reports that its New Mexico customers saved nearly 106 gigawatt hours in 2016 from cumulative energy efficiency programs implemented by the utility during 2008-16. At this level of energy savings, the utility has already met the state statutory requirement of achieving 8 percent savings (based on 2005 retail electric sales) by 2020 or sooner. El Paso Electric Company is the first electric utility in New Mexico to meet the 2020 energy savings requirement.
SWEEP congratulates El Paso Electric for achieving the requirement four years earlier than necessary, and in doing so, cutting utility costs by more than $50 million net. El Paso Electric is continuing to implement a comprehensive set of energy efficiency programs for its New Mexico customers, meaning it will go well beyond the minimum energy savings requirement in law.
El Paso Electric Company serves about 95,000 customers in and around Las Cruces, NM.
Governor Sandoval Approves Utility Energy Efficiency Legislation in Nevada
On June 15, Nevada Governor Brian Sandoval signed into law SB 150, a bill pertaining to electric utility energy efficiency policies and programs in Nevada. The bill was sponsored by State Senator Pat Spearman, and passed the legislature with near unanimous support. The bill includes a number of provisions that will result in expanded utility energy efficiency programs including:
Directing the Public Utilities Commission of Nevada (PUCN) to set energy savings goals for NV Energy;
Allowing the PUCN to approve energy efficiency programs as long as they are part of an overall energy efficiency plan that is cost effective;
Requiring that at least 5 percent of total utility energy efficiency expenditures assist low-income households in saving energy;
Directing utilities and the PUCN to account for non-energy benefits in energy efficiency program and plan benefit-cost analysis;
Allowing the PUCN to adopt a rate adjustment mechanism so that utilities are not harmed financially when they help their customers save energy.
SB 150 will result in hundreds of millions of dollars in additional utility bill savings for households and businesses over the next decade, based on estimates by SWEEP.
SWEEP thanks Governor Sandoval for his approval and Senator Spearman for her leadership on the bill, as well other organizations that supported the bill including NV Energy.
Utility Energy Efficiency Rankings: Room for Improvement in the Southwest
The American Council for an Energy-Efficient Economy (ACEEE) has released its 2017 Utility Energy Efficiency Scorecard, which ranks the 51 largest U.S. electric utilities on utility-sector energy efficiency programs and policies. Here are the rankings for the five utilities in SWEEP’s region:
Xcel Energy Colorado – tied for 10th;
Arizona Public Service Company – tied for 15th;
Salt River Project – tied for 21st;
PacifiCorp Utah (Rocky Mountain Power) – 23rd;
and Nevada Power Company – tied for 35th.
SWEEP congratulates Xcel Energy Colorado for making it into the top ten utilities in the ACEEE rankings.
SWEEP urges all five utilities to strive for higher scores in the future by expanding energy efficiency programs and increasing energy savings for the customers they serve. In addition, the Southwest utilities could improve their scores if states adopted new policies to spur stronger utility energy efficiency efforts in the future.
NV Governor Signs EV Bill; State will tell utilities to show how they will invest in electric car charging stations
Nevada has become the latest state to adopt laws that will encourage consumers to buy and use electric vehicles. On May 31, Gov. Brian Sandoval signed SB145, which establishes a statewide policy to expand the use of electric vehicles and creates an Electric Vehicle Demonstration Program. The legislation also will require utilities to submit plans to the Public Utilities Commission of Nevada showing how they will invest in charging stations and other infrastructure for electric cars. The measure further instructs the PUCN to instruct utilities to otherwise support customer adoption of electric vehicles.
“SB 145is an important step forward for electric vehicles,” said Will Toor, director of SWEEP’s transportation program.
The measure enjoyed bipartisan support, passing the state senate 20-1 and the state Assembly 36-5 with one absence.
SWEEP supported SB 145 and has provided input to the PUCN on priorities for electric vehicles charging investments, as part of the commission’s investigatory dockets on EVS.
Rocky Mountain Power Continued to Ramp Up Energy Savings in 2016
Rocky Mountain Power (RMP) reports that its 2016 energy efficiency and load management (DSM) programs helped its Utah customers save 308 million kWh per year, equivalent to the electricity use of about 35,000 typical households in the state.
The savings continued to increase year-over-year as the utility expanded and refined its DSM program offerings.
In addition, RMP estimates that its 2016 programs had an average benefit-cost ratio of 1.92 and will result in $124 million in net economic benefits for the households and businesses it serves.
RMP, a subsidiary of PacifiCorp, provides electricity to about 860,000 customers in Utah.
Denver Ranks Among Top 10 Most Energy Efficient U.S. Cities
Congratulations to Denver, CO, for ranking among the top 10 most energy-efficient cities, according to the American Council for an Energy Efficient Economy. The ACEEE reviewed efficiency policies and efforts in 51 large U.S. cities and said only Denver, at number 9, made the top 10 among major municipalities in the Southwest.
In SWEEP’s region, Phoenix ranked number 14 and scored among the “most improved” cites. Salt Lake City came in at number 23 and Las Vegas scored at 32, although both communities are instituting new efficiency and clean-energy measures.
PNM Achieved Record Energy Savings in 2016
Public Service Company of New Mexico (PNM) helped its customers save 82 gigawatt hours (GWh) per year from energy efficiency programs implemented in 2016, nearly equal to 1 percent of the electricity consumed by customers of the utility. The savings in 2016 were the most achieved by the utility since its energy efficiency programs began in 2008.
PNM is on track for complying with the state's Energy Efficiency Resource Standard, which requires 8 percent energy savings by 2020 from energy efficiency programs implemented during 2008-2020. According to PNM, energy efficiency programs implemented in 2016 save electricity at an average cost of 2.4 cents per kilowatt hour (kWh) saved. In addition, PNM projects that energy efficiency measures installed in 2016 will cut power plant water consumption by 259 million gallons and reduce CO2 emissions by 494,000 tons.
SWEEP supports PNM in the design of its energy efficiency programs and participates in the regulatory approval process.
VW Selects Denver for Electric Vehicle Investment
The U.S. EPA has approved a plan submitted by Volkswagen to the first tranche (portion) of the $2 billion Zero Emission Vehicle investment fund, which is one element of the civil settlement over VW's emissions cheating.
This tranche allocates $275 million to building electric vehicle charging stations and $25 million to brand neutral public education. VW will invest in approximately 240 fast chargers along interstate highways, and will invest in charging in workplaces, public locations and multifamily housing in 11 metropolitan areas, including the Denver area. This is in addition to the $2.7 billion environmental mitigation fund, which allows states to allocate money directly to EV charging and electrification of heavy duty fleets.
The EPA estimates that the VW funds will meet approximately 10-15 percent of the unmet demand for charging in the designated metro areas.
Congratulations to 2017 ENERGY STAR Award Winners in the Southwest
In 2017, the Environmental Protection Agency (EPA) and Department of Energy (DOE) recognized 152 ENERGY STAR partner organizations for outstanding achievements in energy efficiency. SWEEP congratulates the nine award winners with operations based in the Southwest region.
Six organizations in our region were honored in the category of "Partner of the Year – Sustained Excellence" in three award categories for their exceptional leadership year after year in the ENERGY STAR program while remaining dedicated to environmental protection through energy efficiency:
Arizona Public Service (Phoenix, AZ – Energy Efficiency Program Delivery)
Energy Inspectors Corporation (Las Vegas, NV – Home Energy Rater)
EnergyLogic, Inc. (Berthoud, CO – Home Energy Rater)
Fulton Homes (Tempe, AZ – New Home Builder and Affordable Housing)
Meritage Homes Corporation (Scottsdale, AZ – New Home Builder and Affordable Housing)
Salt River Agricultural Improvement and Power District (Tempe, AZ – Energy Efficiency Program Delivery)
Three organizations were honored as "Partner of the Year":
Best Energy Rating and Consulting LLC (Chandler, AZ – Home Energy Rater)
E3 Energy LLC (Flagstaff, AZ – Home Energy Rater)
Mandalay Homes (Prescott, AZ – New Home Builder and Affordable Housing)
In addition, AZ Energy Efficient Home (Phoenix, AZ) was awarded Contractor of the Year, an honor given to Home Performance with ENERGY STAR participating contractors who exhibit outstanding professionalism, build strong customer relationships, and apply building science solutions to improve homes.
Visit the ENERGY STAR website for a complete list of award winners and details about their energy efficiency accomplishments.
Xcel Energy Once Again Surpasses Energy Savings Goals
Xcel Energy reports it achieved 410 gigwatt hours (GWh) per year of electricity savings and 89 megwatts (MW) of peak load reduction at the generator level from demand-side management (DSM) programs implemented in 2016 in Colorado. The electricity savings were equal to 1.3 percent of the utility’s retail electricity sales on a net savings basis, and surpassed the savings goal established by the Colorado Public Utilities Commission.
Xcel Energy estimates that its 2016 electric DSM programs will provide its customers with $116 million in net economic benefits over the lifetime of measures installed last year. In addition, Xcel Energy reports that its natural gas efficiency programs helped customers save 615,000 dekatherms of gas per year, matching the company’s gas savings goal.
Xcel Energy is the largest electric and gas utility in Colorado with approximately 1.4 million customers.
APS and TEP Increase Energy Efficiency Program Savings in 2015
Arizona Public Service Company (APS) helped its customers save 480 gigawatt hours (GWh) per year from energy efficiency programs implemented in 2016 (savings at point of use), while Tucson Electric Power Company (TEP) helped its customers save 148 GWh per year. Both utilities increased savings compared to program performance in 2015 and are on track in complying with the state’s Energy Efficiency Resource Standard, which requires 20 percent savings from energy efficiency programs by 2020.
The programs are also yielding substantial economic and environmental benefits. APS indicates its 2016 programs will provide $69 million in net benefits for customers, while TEP’s programs will provide $61 million in net benefits.
The two utilities also project that over their lifetime, the energy efficiency measures installed in 2016 will cut power plant water consumption by 2.7 billion gallons and CO2 emissions by 4.0 million tons.
SWEEP supported the utilities by providing recommendations on energy efficiency program design as well as with obtaining regulatory approvals.
PacifiCorp Issues Its 2017 Integrated Resource Plan
PacifiCorp, the main investor-owned utility in Utah and Wyoming through its Rocky Mountain Power subsidiary, has issued its 2017 Integrated Resource Plan (IRP).
The 2017 IRP calls for a energy efficiency programs to meet 88 percent of forecasted load growth during 2017-26 for PacifiCorp as a whole. But because forecasted load growth in the 2017 IRP is lower than that in the utility’s 2015 IRP, the energy savings goals for programs in Utah decline compared to energy savings goals there in recent years. The energy savings goals in Wyoming continue to increase in the next decade.
Utah Commission Approves New Cost Recovery Mechanism for Rocky Mountain Power’s Energy Efficiency Programs
The Utah Public Service Commission (PSC) has approved a new approach for recovering the cost of energy efficiency and other demand-side management (DSM) programs in Utah. Starting in 2017, DSM expenditures by Rocky Mountain Power will be capitalized and amortized over 10 years. Until amortized, these investments will earn a return equal to the utility’s pretax weighted average cost of capital. Previously, DSM expenditures were expensed and recovered through a utility bill surcharge and balancing account. The new cost recovery mechanism was authorized in legislation approved in Utah in 2016. Rocky Mountain Power, a subsidiary of PacifiCorp, is the one investor-owned electric utility that serves about 860,000 customers in Utah.
Click here for a copy of the PSC order.
Click here for a copy of the legislation authorizing this new cost recovery mechanism.
Boulder Code Continues Path to Net Zero
The City of Boulder, Colorado, has put its residential energy code on a path to net zero. Under the new code, approved unanimously by the city council March 7, all new homes larger than 5,000 square feet must be built to meet net-zero energy consumption (i.e. very energy efficient and producing as much energy as they use over the course of a year). Smaller homes will gradually face similar requirements, with all new residential construction meeting net-zero targets by 2031. Major renovations to existing homes will also trigger the stricter requirements.
The city’s new code is based on its previously-adopted 2012 International Energy Conservation Code (IECC) but cranks up the required efficiency measures and requires new homes to meet updated Energy Rating Index (ERI) numbers based on square footage. (The ERI, common in many jurisdictions’ codes, is essentially a “score” of a home’s energy efficiency and onsite renewable energy.)
Boulder’s code also requires that new buildings be solar-ready and electric vehicle-ready, and have sustainable landscaping.
For more information, see:
PacifiCorp Issues new DSM Potential Assessment
PacifiCorp has completed a Demand-Side Resource Potential Assessment for the period 2017-36 to help inform its upcoming 2017 Integrated Resource Plan (IRP).
The study found achievable savings potential of 5.8 million megawatt hours (MWh) in Utah by 2036, which is equal to about 22 percent of the electricity used in PacifiCorp’s Utah service area during 2016.
The study also shows achievable savings potential of 1.7 million MWh in Wyoming by 2036, which is equal to about 17 percent of electricity used in PacifiCorp’s Wyoming service area during 2016.
The new Demand-Side Management (DSM) potential assessment found much greater peak reduction potential through a combination of dispatchable load control and dynamic pricing programs, compared to PacifiCorp’s previous DSM potential assessment.
PacifiCorp is the largest electric utility operating in Utah and Wyoming through its Rocky Mountain Power subsidiary.
Boulder County, CO, starts region’s first local government EV advising program
Boulder County, Colorado, has become the first local government in the Southwest to offer personal electric vehicle advising, as part of its Energy Smart advising service. The program will help residents learn about financial incentives, and what types of electric vehicles (EVs) best match their personal driving habits, as well as help in identifying their charging opportunities.
SWEEP had recommended the program in a 2015 analysis of steps that the city of Boulder and Boulder County could take to increase EV adoption.
Coalition Asks Lawmakers for Funding to Fix Colorado's Transportation
A diverse coalition has asked the Colorado legislature to refer a sales tax increase proposal to voters to help the state’s overburdened transportation system. MPACT 64, a statewide coalition of local government groups, business associations and civic groups, sent the March 2 letter because under the state’s constitution voters must approve all tax increases.
The letter to Colorado legislators asked them to refer a sales tax increase that would generate $750 million per year. The group also asked that 30 percent of the new funds be allocated to mobility services and infrastructure such as expanded public transit, bicycle lanes and paths, and pedestrian infrastructure.
On the same day, 64 local elected officials from across the state released another letter asking that any new state transportation funding include public transit and bicycle infrastructure.
SWEEP is a member of MPACT 64 and a signatory to the letter.
New SWEEP Report on Industrial Recommissioning
SWEEP has issued a new report, Industrial Recommissioning: Not Just a Building Tune-up. Industrial re-commissioning programs can help all sizes of industrial customers save energy and money. Through low-cost improvements to common industrial energy systems such as compressed air, pumping, process cooling, and refrigeration, customers can often save 10-20 percent of the energy consumption of the systems targeted. This report reviews features of six existing programs and provides a set of recommendations for successfully implementing a new industrial re-commissioning program.
Colorado PUC Approves Xcel Energy’s 2017-18 Energy Efficiency and DSM Programs Plan
The Public Utilities Commission (PUC) of Colorado has approved a new two-year demand-side management (DSM) plan for Xcel Energy, the large investor-owned utility serving 1.4 million electric customers in Colorado. The PUC signed off on an unopposed Settlement Agreement in the docket reviewing Xcel Energy’s new DSM plan.
Based on the approved budget, Xcel Energy will spend $100 million on electric DSM programs in 2017 and $98 million in 2018. In addition, the new DSM plan includes $13 million per year in funding for natural gas energy efficiency programs.
The new DSM plan is designed to save approximately 425 million kilowatt-hours and reduce peak demand by 81 megawatts from energy efficiency and other DSM programs implemented annually during 2017-18. The annual energy savings targets are equivalent to nearly 1.4 percent of Xcel Energy’s retail electricity sales.
The new DSM plan and Settlement Agreement include a number of program enhancements recommended by SWEEP including a Strategic Energy Management pilot program for large customers; addition of advanced rooftop air conditioner controls to the business cooling program; addition of smart thermostats to ongoing programs where cost effective; consideration of increased support for Net Zero Energy buildings, and consideration of an upstream incentive program for heat pump water heaters. SWEEP also helped convince other stakeholders to support or at least not oppose the Settlement Agreement.
Denver Regional Council of Governments adopts strong sustainability goals
On Jan. 18, 2017, the board of directors of the Denver Regional Council of Governments adopted Metro Vision 2040, a long-range plan for land use and transportation in the Denver metropolitan area. The final plan includes targets of a 10 percent reduction in per capita driving and a 60 percent reduction in per capita greenhouse gas emissions from transportation.
The plan also calls for a 25 percent increase in average density, and for most new growth to take place in urban centers.
SWEEP served on the advisory committee for developing Metro Vision 2040 and advocated for strong sustainability goals.
New Mexico Public Resources Commission Approves PNM’s 2017 DSM Plan
Public Service Company of New Mexico (PNM) customers will see additional opportunities to save money on their utility bills, thanks to the New Mexico Public Resources Commission’s (NMPRC) approval of PNM’s 2017 Demand-Side Management (DSM) plan.
As part of the plan approval, PNM will continue its existing programs for residential, commercial and industrial customers and add a new program providing rebates to home builders for the construction of energy-efficient houses. Additionally, PNM will receive incentives for exceeding the minimum savings required to meet its Efficient Use of Energy Act goals.
SWEEP worked with PNM, the NMPRC Staff, Coalition for Clean Affordable Energy, and Western Resource Advocates to develop the uncontested stipulation that was approved by the NMPRC on January 11, 2017.
Tucson Electric Power installs smart thermostats in low-income apartment complexes
Tucson Electric Power is giving away smart thermostats to limited-income apartment residents who want to conserve energy.
Nearly 1,800 Nest Learning Thermostats are being installed in apartments throughout the greater Tucson area as part of a new pilot energy efficiency program.