Victoria Gagnon Ontario Power Association

BPA, Canada, and Gas
Programs Weigh In
Mike Weedall, vice president for energy efficiency at Bonneville Power Administration (BPA), reviewed efficiency measures taken in the Pacific Northwest during the past twenty-seven years as a demonstration of the tremendous gains that can be accomplished over time. Together, the four states of the Pacific Northwest—Washington, Oregon, Idaho, and Montana—have reduced an amount of energy comparable to that generated by five nuclear power plants.

Weedall explained in a rousing keynote address to the Fourth Annual CEE Industry Partners Meeting in St. Louis, Missouri, that the regional planning legislation passed in 1980 kickstarted energy efficiency programs in the Pacific Northwest earlier than in other parts of North America. At 2.4 cents per kilowatt hour, energy efficiency delivers a profit, while also providing a barrier against market price spikes. It’s not subject to fuel price increases or carbon controls and has made a significant enough impact on demand to continuously delay decisions to build more capacity. In addition, program costs have fallen from just under four million dollars per average megawatt saved in 1991 to 1.3 million dollars today.

BPA started its own efficiency programs in 1978. Since then, with the addition of state energy codes in 1987, federal energy standards in 1990, and the Northwest Energy Efficiency Alliance in 2000, energy efficiency has grown to over 3,000 megawatts per year. This means that BPA is meeting almost forty percent of new demand with greater efficiency and keeping 13.5 million tons of carbon emissions out of the atmosphere.

Looking ahead, BPA plans even more emphasis on efficiency and renewables. Over the next five years, they plan to ramp up lost opportunity efficiency, while continuing to acquire efficiency resources. Along with greater exploration of commercial and industrial sectors, BPA views market transformation as a primary resource.

As Weedall looks to the future, he foresees new technologies such as a smart grid that can communicate directly to control chips in appliances. For example, since 90 percent of energy used by a dryer is in the heating element, the utility could signal a dryer smart chip to turn off when the grid is destabilized. In order to stay on top of these innovations, BPA has hired a new technology officer to look into demand response, smart appliances, heat pumps without strip heat, integrated building design, low energy cooling, and high efficiency lighting.

BPA generates power for 140 customers, including utility districts, municipalities, and rural electric co-ops. In addition to generation, BPA maintains 15,000 circuit miles of high voltage power lines. Nearly half is generated from hydropower, with coal (18%), gas (19%), and nuclear (3%) following behind. Efficiency accounts for 10% of power needs.

In closing, Weedall previewed data collected by CEE for energy efficiency programs. The preliminary data show that efficiency budgets are increasing in both the United States and Canada. Twenty-one states have efficiency budgets, ranging in size from $11 to more than $35 per capita. Sectors addressed included commercial and industrial (38%), residential (24%), low income (11%), load management (19%), and other areas (8%). This data will be available for downloading at the end of the year from the CEE Web site. Weedall’s final slide described rising temperatures due to carbon emissions—a description Weedall found in a 1953 Popular Mechanics magazine!

Turning Point in Ontario
Gagnon, manager of conservation programs for Ontario Power Authority (OPA), reported on both the province of Ontario and on the whole of Canada. The province itself has reached a turning point. Where hydropower once supplied all their needs, they are now a net importer of energy to supply their population of 13 million. There’s been structural stagnation with no planning since the early 1990s and no new transmission lines since the 1980s.

Due to concerns regarding climate change and air pollution, there is now pressure from the government to phase out coal-fired power plants and replace 80 percent of existing electricity sources with renewables and conservation by 2050. The specific goal is 6,300 megawatts: 1,350 megawatts by 2007, another 1,350 megawatts by 2010, and the re-maining 3,600 megawatts by 2025. While OPA is well on its way to meeting its first goal through efficiency, achieving the final target is equivalent to taking one out of every five houses off the grid by 2025, or increasing conservation nearly tenfold.

As far as other sources of electricity, OPA plans to maintain nuclear at its current level of 14,000 mega-watts, but double the amount from renewables, eliminate coal, cut gas generation in half, and begin to include a small amount of coal gasification in the portfolio. In three phases, OPA will initially acquire the resources it needs, followed by a medium term scenario of building capability. In the long term, OPA foresees market transformation through inspiration, assistance, and education. Gagnon mentioned two programs in particular, the Every Kilowatt Counts residential program and the Electricity Retrofit Incentive Program.

The goal of Every Kilowatt Counts is to provide every household in Ontario with education on the benefits of conserving electricity and ways of doing so, with incentives advertised through a variety of channels. Featured products include discounts on programmable thermostats, ENERGY STAR® light fixtures, bulbs, and seasonal LED light strings, power bars (power strips to us Yanks), T8 fluorescent lights, and control devices. Over the last year and a half, OPA has received 2.8 million coupons and given out $13.5 million in rebates.

The second program Gagnon described is one that she heads and just launched, the Electricity Retrofit Incentive Program (ERIP). Aimed at all nonresidential customers, it encompasses commercial and industrial outfits, municipalities and institutions, and agriculture. The purpose is to replace inefficient products particularly in the areas of lighting, motors, HVAC, and electrical systems with high-efficiency products. A generic track is provided for needs all players will have, such as upgraded lighting systems, along with a custom track for unique needs. Gagnon expects to achieve a demand reduction of 100 megawatts over a three year period at a cost of $33 million.

Turning her attention to the rest of Canada, Gagnon reported on efficiency efforts that are ongoing across Canada in all but the smallest Maritime provinces. All together, Canadian programs are budgeted at $512.8 million. Per capita costs vary widely, reflecting the fact that some provinces have been developing programs for some time, while others are just getting started. Natural Resources Canada and the Canadian Electric Association have been working with utilities to share information and collaborate.

Gas Efficiency Drivers
Bruce Johnson, director of energy management at National Grid, the third keynote speaker, reported on the issue of natural gas efficiency in North America as a whole. Key drivers in achieving gas efficiencies were uncovered at the Texas demand side summit. Primary among these were environmental concerns, the same environmental concerns driving electric programs, although policy and political issues concerning gas are lagging behind. Regulatory trends will provide more money, but may restrict the market in other ways. Technological possibilities play a role in limiting efficiencies due to significant barriers in cogeneration. Customers are interested in managing their utility bills, and utilities are concerned about meeting their business goals and the inevitability of decoupling demand and revenue.

Multiple challenges and forces have also created opportunities for gas energy efficiencies. With well-defined needs from consumers and utilities, program design becomes more targeted. When regulation is anticipated, there is time to accommodate it. Other opportunities include partnerships, such as the one with CEE, research into new technologies, and adaptation of current technologies.

Estimated U.S. energy efficiency budgets have increased 15 percent in the past year from $2.647 billion in 2006 to $3.055 billion in 2007. Within that figure, gas programs increased an astounding 62 percent from $247 million in 2006 to $401 million in 2007, far outdistancing the electric program increase of 11 percent. CEE gas members saved 161 million therms in 2005 or 0.1 percent of all U.S. natural gas consumption.

Average per capita expenditure among the 22 participating states was $2.36, with Wisconsin, Iowa, New Jersey, California, Rhode Island, and Massachusetts all topping $4 per person.

Canada is also picking up steam in the area of gas energy efficiency. All efficiency expenditures are estimated at $590 million for 2007, with 12 percent of that going to gas programs. The estimated total gas programs budget is $70.3 million, half of which is due to the large programs in Ontario. Average per capital expenditure is $5.74, with New Brunswick, at $18.61, and Manitoba, at $9.67, rising above the average.

CEE has played an invaluable role in getting gas efficiency programs off the ground. Johnson described progress in gas water heaters as an example (see related article, page 1). When the California Energy Commission kicked off the Super Efficiency Gas Water Heating Appliances Initiative, CEE was able to bring utilities and manufacturers together from across the country to a gas summit. By giving players a venue in which to discuss issues, forward momentum could be accelerated, resulting in specifications and product development. ENERGY STAR is now close to rating gas water heaters, and the entire process has taken less than two years.

In closing, Johnson listed regulatory developments just in the northeast United States alone that will continue to pressure utilities to achieve ever greater efficiency gains. Forums such as the recent Industry Partners Meeting in St. Louis will continue to play a role in streamlining these processes.

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