Interstate Power and Light Co. (IPL), an Alliant Energy Company

ACEE - Forum On Energy Efficiency in Agriculture Efficiency Projects, Putting the Pieces Together

February 9, 2010

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Agenda

• Introductions

• Overview of IPL’s Iowa energy efficiency programs

• Features of IPL’s Iowa Agriculture Program

• Barriers to farmer participation in programs

• “Git Er Done”

• Open discussion

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Alliant Energy• Alliant Energy’s utility subsidiaries:

– Interstate Power and Light Company (IPL)

– Wisconsin Power and Light Company (WPL)

• IPL–Iowa:– 483,000 electric customers– 223,000 natural gas customers– 2,500 employees

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IPL– Alliant Energy Program Summary

• Regulated investor-owned utility• Current Iowa energy efficiency (EE) programsProduct / Service Name Description Res Sm Bus Ag C & IHome Energy Audits On-site energy efficiency (EE) audit x Load Mgmt - Appliance Cycling Remote control of AC/water heater x Low Income EE Programs Equipment rebates, education and weatherization x New Home Construction Incentives for EE construction of new homes xAppliance Recycling Safe disposal of secondary appliances x xLow Interest Financing Low-interest financing for EE equipment x xOn-line Energy Audit Online EE audit tool x xPrescriptive Rebates Standardized rebates for EE equipment x x x xE-Communities (pilot) Incentives for community-wide EE plan x x x xCommercial New Construction Design assistance, incentives for new buildings x x xCustom Rebates Rebates for EE projects x x xPerformance Contracting Financing/project mgmt for EE projects x x xFarm Energy Audit On-site EE audit xBusiness Energy Audits On-site EE audit xSolutions Center Customer EE newsletter x xBuilding Operator Certification Training for facilities managers xFeasibility Studies Specialized study on EE potential in facility xLoad Mgmt - Interruptible Program Credits for load curtailment x

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IPL Iowa Agriculture Program Background• 1992 – Alliant Energy’s Iowa predecessor utilities’ energy

efficiency plans began– Electric energy savings accumulated since plan inception

(1992 – 2007) equals 1.169 billion kWh – That savings is sufficient to power

• 116,900 average homes for a year• At an average of 10,000 kWh per year

• 2003 – Alliant Energy’s Iowa Agriculture Program began– 2004 – IPL added Agriculture field reps– In the first 3 full years of the program with field reps (’05-’07),

IPL’s Agriculture Program• Saved over 12.8 million kWh of electricity• Avoided equivalent of 9,960 metric tons of CO2 emissions• Avoided equivalent of annual greenhouse gas emissions from

1,824 passenger vehicles

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IPL Iowa Ag Program Features• Dedicated ag field representatives

• Free farm energy audits

• Ag-specific prescriptive rebates

• Low-interest financing

• Custom rebates

• Outreach, education and collaboration

• Comprehensive ag energy-efficiency analysis services (e.g, helping customers comply with gov’t loan/grant program application requirements)

• Implementation assistance– Referrals to qualified contractors– New equipment comparisons– Recommendations of higher efficiency equipment

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Free Farm Energy Audit• Provided by IPL Ag reps

• Pinpoints energy waste on grain and livestock operations

• Identifies energy-efficient technologies that will reduce energy usage

• Makes energy-efficient equipment recommendations

• Informs customers of available agricultural rebate programs

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Ag Prescriptive Rebates• Customers receive specific dollar amounts

for installing qualifying high-efficiency equipment

• Trade allies earn cash incentive spiffs on energy-efficient program equipment they sell to IPL customers

• Equipment includes:– Automatic milker takeoffs– Clothes washers– Circulating fans– Heat reclaimers– Lighting– Livestock waterers– Low-pressure irrigation– Milk precoolers– NEMA Premium®-efficiency motors– VSDs for dairy pumps– Tractor heater timers– Ventilation Systems– Water heaters

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IPL’s Iowa Ag Energy Savings by Measure

IPL IA Agriculture Prescriptive Rebates kWh Impact by Measure Jan 1 – Dec 31, 2007

Var Spd Vac Pump0.43%

Irrigation0.00%

Tractor Htr Timer0.00%

Livestock Waterer0.51%

Auto Milker Takeoff0.91%

Managed Custom Ag

1.37%

Clths Washer0.03%

Heat Reclaimer2.44%

Milk Precooler1.67%

Circulating Fan1.56%

Motors / VFD4.69% Lighting

26.51%

Hi Eff Vent'n Fan59.90%

n = 5,237,785 kWh

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Low-Interest Financing• Available to IPL customers who own the property on which

the equipment will be installed

• For financing qualifying energy-efficient equipment using energy provided by IPL

• Can be used instead of other IPL programs; for example cannot both finance and receive rebates

• Loan terms (exceptions may apply)– $1,500 to $250,000– Zero to 60 months– APR zero to 6.9%

• Call IPL’s Business Resource Center to confirm equipment qualifies: 1.866.ALLIANT (1.866.255.4268)

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Custom Rebates• For projects that don’t qualify for the

prescriptive rebate program due to– Size– Scope or – Unique characteristics of the energy-

efficient equipment

• Customers receive 150% of annual incremental energy dollar savings for installing qualifying high-efficiency equipment

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Outreach• Exhibitor

– ACEEE (American Council for an Energy Efficient Economy)– Celebration of Agriculture (sponsor)– Farm Progress Show– Iowa Farm Bureau Federation Annual Meeting– Iowa Pork Congress– Iowa State Fair– Hay Expo– MEEA (Midwest Energy Efficiency Alliance) – WMT Ag Expo– World Dairy Expo– World Pork Expo

• Ag reps in the field (customer, dealer, manufacturer visits, etc.)• Direct marketing and advertising

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Education• Ag reps / product manager presentations at meetings

hosted by– Banks– Community colleges– Economic development (e.g., IDED)– Iowa Farm Bureau Federation– ISU extension

• Education topics– General energy-efficiency on the farm, in agri-business– Saving money with IPL’s energy-efficiency programs– Safety– Stray voltage

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Collaboration• Builders

• Fan manufacturers

• Trade Ally network (dealers who sell qualifying energy-efficient equipment)

• IOUs, other utilities

• Iowa Farm Bureau Federation

• Office of Consumer Advocate

• USDA Rural Development

• Iowa State University– Ventilation– Anaerobic Digesters

• University of Illinois– Bess Labs – ventilation

• University of Minnesota– Natural air drying

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Comprehensive Agriculture Energy–Efficiency Analysis Services• USDA 9006/9007 REAP audits performed by IPL ag reps

• To date, 400+ energy audits in support of USDA REAP Grants

YearAudits

CompletedAudits in

IowaGrant/Loan Assistance Audit Types

2006 20 20 $300,000 Grain, Wind

2007 80 54 $3,088,202 Grain

2008 93* 83 TBD in 2009 Grain, Farm Shop, Irrigation, Turkey Bldgs

* 111 anticipated

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IPL’s IA Survey of Participating Farmers:Main Barriers to Future EE Projects

2006 survey – participant sample = 53

No funds available, 44%

Need more information,

13%

No major obstacles, 10%

Energy savings don't justify cost, 14%

Other reasons, 16%

Don't know, 3%

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Site/Operation Specific

• Accurate baseline energy information– Every operation is different

• Accurate prediction of actual energy savings– Can’t predict more savings than used

• Accurate implementation costs

• Accurate operational/replacement costs– Lifecycle costs– Management requirements– What’s plan “B” (i.e. VFD’s on critical operations)

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Site/Operation Specific cont.

• Provide information in the appropriate format– REAP Energy Audit has specific format and information

requirements– Bankers may have specific information requirements

• Incentives– Cash incentives– Financing– Grants

• Talk to your utility early in the process– May need infrastructure upgrades– Revenue justification– Proper rate application (i.e. interruptible, demand etc)

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REAP Energy Audit1. Situation report

Provide a narrative description of the facility or process, its energy system(s) and usage, and activity profile

2. Potential improvementsList specific information on all potential energy-saving opportunities and their costs

3. Technical analysis Estimate the annual energy and energy costs savings expected from each improvement identified in the potential project

4. Potential improvement description A narrative summary of the potential improvement and its ability to provide needed benefits, including a discussion of non-energy benefits such as project reliability and durability

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REAP Energy Audit cont.

5. Summary of proposed energy efficiency improvements

a. Estimated Cost of the Proposed Energy Efficiency Improvements:

$ The source of this exact figure is .

b. Average Local Cost of Uni t of Energy ($/Unit of Energy):

$ per kWh Therms BTUs

The source of this exact figure is .

c. Current Average Annual Energy Use Before Energy Efficiency Measures:

kWh Therms BTUs

The source of this exact figure is .

d. Expected Average Annual Energy Use After Energy Efficiency Measures:

kWh Therms BTUs

The source of this exact figure is .

e. Expected Average Annual Energy Savings:

kWh Therms BTUs

= c - d

f. Expected Average Annual Energy Savings (a s a percentage of current use):

% = e ÷ c

g. Estimated Average Annual Energy Savings ($): $ = a x e

h. Simple payback period in years (without regard to incentives)

years = a ÷ g

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What spins the meter?

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Energy & Cost Saving Prediction

Existing Audited Existing Adjusted New Drying SystemTotal Electirc & Gas Cost $133,708.84 $136,050.54 $81,018.90Total Cost Old System $136,050.54Total Cost / Bu. Dried $0.125 $0.121 $0.072Total Cost New System $81,018.90Total Cost / pt moist. rem. $0.018 $0.024 $0.014 Total Cost Savings $55,031.64

$$ Savings / Bu. Dried $0.049Total Electric & Gas BTU's 15,027,883,657 13,234,118,697 7,704,462,623 % Total Cost Savings 40.45%

Total BTU's / Bu. Dried 14,025 11,766 6,850Total BTU's / pt. moist. rem. 2075 2353 1370 Total BTU's Old System 13,234,118,697

Total BTU's New System 7,704,462,623 Total BTU's Saved 5,529,656,074 % BTU Savings 41.78%Project Cost $550,000.00Payback (yrs) 10.0

New System Energy(BTU's) Savings

Combined Savings Summary New System Cost($$$) Savings

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Energy & Cost Saving Prediction cont.

Existing Audited Existing Adjusted New Drying SystemTotal Electirc & Gas Cost $234,907.54 $229,973.71 $134,986.03 Total Cost Old System $229,973.71Total Cost / Bu. Dried $0.219 $0.204 $0.120 Total Cost New System $134,986.03Total Cost / pt moist. rem. $0.032 $0.041 $0.024 Total Cost Savings $94,987.68

$$ Savings / Bu. Dried $0.084Total Electric & Gas BTU's 15,026,907,657 13,233,261,893 7,704,462,623 % Total Cost Savings 41.30%

Total BTU's / Bu. Dried 14,025 11,765 6,850Total BTU's / pt. moist. rem. 2075 2353 1370 Total BTU's Old System 13,233,261,893

Total BTU's New System 7,704,462,623 Total BTU's Saved 5,528,799,270 % BTU Savings 41.78%Project Cost $550,000.00Payback (yrs) 5.8

New System Cost($$$) Savings

New System Energy(BTU's) Savings

Combined Savings Summary

Different fuel source, same energy savings, different payback

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Thank You