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Energy Efficiency Progress and Potential in Utah and the Southwest
Howard Geller
Presentation at the Utah Governor’s Energy Development Summit
Salt Lake City, UTJune 3-4, 2014
Electric Utility DSM Program Spending Trends in the Southwest
State
Electric DSM Program Expenditures(million $ per year)
2002 2004 2006 2008 2010 2012 2013
AZ 4 4 19 45 94 127 124
CO 11 21 18 28 66 96 94
NV 3 11 30 55 46 38 39
NM 1 1 1 10 24 28 29
UT 9 16 27 36 51 47 55
WY ~0 ~0 ~0 ~0 3 4 5
Region 29 54 95 174 284 340 345
Seven Major Utilities in the Region: Electricity Savings Are on the Rise
2007 2008 2009 2010 2011 2012 20130
500
1000
1500
2000
2500
Savings from Programs Implemented each Year (GWh/yr)
APS TEP SRP Xcel-CORMP-UT NV Energy PNM
Electricity Savings in the Region – Savings Build Up Over Time
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
2,000
4,000
6,000
8,000
10,000
12,000
14,000
First Year Energy Savings (GWh/yr)Savings from Cumulative Programs (GWh/yr)
What Are the Benefits?Rocky Mountain Power Example In 2013, RMP’s customers saved 1.4 billion kWh
from EE measures implemented during 2007-13, a 6% reduction in electricity use
RMP’s customers will realize ~$800 million in economic benefits due to 2007-13 programs
Improving energy efficiency supports hundreds if not thousands of jobs in the local economy
EE programs cut CO2 emissions by about 1.2 million metric tons in 2013 alone, and also reduced NOx, SO2, and mercury emissions thereby improving public health
So How Does Utah Stack Up? Energy Savings Trends by Utility
2007 2008 2009 2010 2011 2012 20130.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Annual Energy Savings as a % of Retail Sales,by program year
APS TEP SRP Xcel-CO RMP-UT NV Energy PNM
Key Utility Policies Policy AZ CO NM NV UT WY
Energy efficiency goals or standards x x x x (1)
Integrated Resource Planning x x x x x
Favorable DSM program cost effectiveness test
x x x x
Convenient DSM cost recovery mechanism
x x x x x x
Financial incentive for utility shareholders x x xElectric decoupling or lost revenue recovery
x x
Natural gas decoupling or lost revenue recovery
x x x x
Collaboration in DSM program design x x x x x xIndustrial self-direction option x x x x x
(1) Energy savings count towards clean energy standards, up to a limit
SWEEP’s $20 Billion Bonanza Study – Utah Results Implementing Best Practice utility energy
efficiency programs in Utah could: Cut electricity use in 10 years by 20% Save households and businesses $1.7 billion Avoid 3 large (400 MW) power plants Support 3,000 new jobs in the state Cut air pollution and improve public health Reduce CO2 emissions and help meet new Clean
Air Act standards with net economic benefits for consumers and businesses
Reduce water use by 3 billion gallons per year
Utility Energy Efficiency Policy Recommendations for Utah Continue to ramp up RMP’s energy efficiency
programs and move into the top tier of utilities achieving 1.5-2.0% savings per year
Expand behavior change programs, add new programs for underserved customers such as small businesses, and implement Conservation Voltage Reduction (CVR)
Consider allowing utilities to earn a profit when they help their customers save energy; e.g., a bonus equal to 5% of the net economic benefits resulting from the programs
Ramp up EE programs at municipal utilities too
Building Efficiency Policy 2012 IECC model energy code adopted in Utah (for
commercial bldgs), southern Nevada, and numerous local jurisdictions in Arizona
NV, Phoenix, Tucson and other local jurisdictions have adopted the 2012 IECC for new homes
CO and UT adopted bills in 2013 authorizing commercial building PACE—programs now under development
CO adopted financial incentives for high performance new homes and home retrofits
NM adopted income tax credits and NV property tax abatements for LEED Silver or better commercial buildings
Building Energy Efficiency Policy Recommendations for Utah Train builders and local code officials and start
enforcing the new energy code Upgrade to the 2012 (or 2015!) IECC for new
homes Implement the PACE legislation at least in Salt
Lake City and County and other larger cities Consider commercial building energy
benchmarking and labeling initiatives Maintain strong utility incentive programs for
residential and commercial building retrofits
2013 ACEEE State Energy Efficiency Scorecard
Highlights from the 2013 ACEEE Scorecard Utah reached 12th place in the nation in 2010 but
dropped to 24th place in 2013 Utah ranked 9th in the country in terms of natural
gas efficiency budget per customer in 2012 Arizona ranked 3rd in the country in terms of
electricity savings as a fraction of retail electricity sales (1.66%) as of 2012—Best in the West!
Arizona and Colorado received maximum scores for Energy Efficiency Resource Standards
Let’s get Utah back into the top 20!
SWEEP: Dedicated to More Efficient Energy Use in the Southwest
Resources available online at: www.swenergy.org
Howard Geller, Executive Director303-447-0078x1