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MIKE WEEDALL
Bonneville Power
MARK GAINES
Sempra Energy
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The Regional Roundup at the Market Transformation Symposium, organized and moderated by CEE Executive Director Marc Hoffman, provided ample evidence that efficiency program administrators are indeed delving “broader and deeper” to maximize savings impacts in their regions.
Representatives from the Midwest, Northwest, Northeast, California, Southwest, Texas, Southeast and Canada made brief presentations about their program portfolios.
Midwest
Three states – Minnesota, Iowa and Wisconsin – continue to increase their investments in efficiency while five others – Michigan, Indiana, Illinois, Missouri and Ohio – are making inroads.
“The Midwest Energy Efficiency Alliance has been doing yeoman’s work in what has been a fragmented region,” said George Edgar of Wisconsin Focus on Energy. “MEEA has been offering regional programs that have been very important.”
Edgar also noted that there has been a regional movement toward savings targets, as opposed to program expenditure goals. “We’ve seen more consistent and adequately funded efforts over time,” Edgar said, “as well as increasing budgets for electric and gas programs.”
Northwest
“In this region, we’re very active,” said Mike Weedall, Vice President, Energy Efficiency for Bonneville Power Administration and Chair of the Northwest Energy Efficiency Alliance Board. “It’s ‘all hands on deck’ to meet the challenge.”
In Washington, Initiative 937 mandates all utilities with more than 25,000 customers to achieve energy-efficiency targets set by the Northwest Power Council.
“This has come as quite a shock to some utilities,” said Weedall. “There are significant financial penalties for not meeting the targets. And Oregon is discussing and finalizing its energy-efficiency mandates.”
Northeast
Susan Coakley, Executive Director of the Northeast Energy Efficiency Partnerships, noted that “current overall savings meet 20-25 percent of load growth. It’s significant but just a portion of what’s possible.”
In the eight Northeast states (New England plus New York and New Jersey), funding continues to rise. Electric-efficiency budgets in 2007 are estimated to increase 23 percent from 2005 levels. Funding for gas programs is up slightly.
Policy-wise, energy-efficient procurement has been mandated in Rhode Island and Connecticut, and is being proposed in Massachusetts, Maine and New Jersey.
California
California, in the middle of a three-year statewide program cycle, has set extremely aggressive goals as part of the Global Warming Solutions Act:
- Reduce to 2000 emission levels by 2010
- Reduce to 1990 emission levels by 2020
- Reduce to 80 percent below 1990 levels by 2050
“It’s a big benefit to be working with a three-year cycle,” said Mark Gaines, Director of Customer Programs for Sempra Energy and a member of the CEE Board. “We’re able to focus on our programs and fine-tune them.”
A new earnings mechanism has been proposed for utilities, allowing them to recoup a percentage of “net societal benefit” gained through efficiency programs. California is also exploring the embedded energy savings in water conservation (decrease in water extraction, transport and treatment).
Southwest
A presentation prepared by Howard Geller, Executive Director of the Southwest Energy Efficiency Project, showed that funding has increased an estimated 350 percent over the past five years. In Arizona and Colorado, proposed legislation would create financial incentives for utilities hitting certain efficiency savings targets.
Texas
Mike Stockard, Manager of Energy-Efficiency Programs for TXU Electric Delivery, reported that the state exceeded its 2006 goals by 16 percent and that 25-30 percent of all new homes qualified for the ENERGY STAR®. Stockard also noted that the Texas legislature filed 47 energy-efficiency bills.
“It’s become much more important,” he said.
Southeast
Kateri Callahan, President of the Alliance to Save Energy and a Board member of the newly formed Southeast Energy Efficiency Alliance (SEEA), reported that electricity demand in the Southeast is expected to grow 50 percent in the next 10 years.
Although only a few of the 11 SEEA members are currently running programs, interest is increasing and states that have been historically resistant to energy efficiency are beginning to commit public funds to programming.
Canada
The goal for Ontario, said Julie McNally, Manager of Planning and Reporting for the Ontario Power Authority, is a complete elimination of coal-fired generation plants by 2025. Coal accounted for nearly 20 percent of Ontario’s electricity supply in 2005.
“We’re replacing coal with conservation,” said McNally. The province also plans to step up renewable generation.
Incentive programs funded for approximately $2 billion are scheduled for implementation from 2006-2010. The targets are a 1,350 MW reduction by 2010 and a 6,300 MW reduction by 2025.
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