Energy Efficiency Implementation & Finance

Energy Efficiency Implementation & Finance
Gil C. QuinionesActing President & Chief Executive Officer New York Power Authority
October 4, 2011

Overview
Large Public Power Council
New York Power Authority
Energy Efficiency at New York Power Authority
Energy Efficiency Initiatives in New York
Takeaway Questions

Large Public Power Council (LPPC)
NYPA is a member of a consortium of 25 locally-owned and controlled not-for-profit power systems serving more than 45 million people in 11 states and Puerto Rico
LPPC is a member of the Alliance to Save Energy
LPPC’s recently established Energy Efficiency Task Force focuses on supporting Federal policy and legislation that facilitates energy efficiency goals
Clean & Efficient Energy Program (CEEP) launched in 2009 by Alliance to Save Energy, American Public Power Association, and LPPC. Created an online space for information sharing and peer-to-peer networking to assist public power utilities in establishing energy efficiency programs

Niagara Power Project (2,441 MW)
St. Lawrence-FDR Project (800 MW)
Blenheim-Gilboa Pumped Storage (1,040 MW)
500 MW Combined-Cycle (500 MW)
Small Clean Power Plants (450 MW)
Richard M. Flynn
Power Plant
(135 MW)
New York Power Authority (NYPA)

NYPA Energy Services provides turnkey project development including audit, design, construction, and financing to eligible participants
NYPA Energy Services
Since 1990, over $1.4 billion financed in energy efficiency and clean technology
In 2008, NYPA committed to finance an additional $1.4 billion by 2015
Program results in 4,506 public facilities serviced, saving $135 million a year, and avoiding 824,000 tons of greenhouse gases and 2.5 million barrels of oil a year
*Financed to Date

Customers are generally public and governmental entities with low default risk
NYPA Energy Services Program
Actual Financing to Date, 2008 -2011 ($MM)
Breakdown by User Type / Customer

NYPA provides project financing through a revolving credit program funded by issuing commercial paper
To date, NYPA’s has financed over $1.4 billion, recovered over $1.0 billion, with no repayment defaults in the program
Customer repayment is typically within 10 years. Customers have the option to repay in full at any time with no prepayment penalty
Completed Project.
NYPA assists with
systems commissioning and
evaluating expected savings
Initial Engineering Audit &
Scope of Work
Construction. NYPA serves as construction manager
Implementation
Project Origination
Financing
Commercial Paper issued to finance project beginning with audit
Annual Interest based on cost of commercial paper outstanding in previous calendar year
Monthly Interest during construction based on cost of monthly Commercial Paper issued

Energy Efficiency Initiatives in New York
New York Energy Efficiency Portfolio Standard goal set in 2008 to reduce overall
electricity usage by 15% by 2015
Green Jobs / Green NY (2009). Combination of grants and loans available for qualifying residential, small business, and non-profit facilities. Financing through New York State Energy & Research Development Authority (NYSERDA), which uses program funds to leverage commercial lending
Municipal Sustainable Energy Loan Program (2009) allows municipalities to use Federal funding to create PACE-based revolving loan program. Several NY cities and towns developed programs but held up after FHFA comments in 2010
Power NY legislation (2011) requires utilities to offer on-bill financing for NYSERDA loan repayments to utility bills. Program in planning stage, targeted to begin in 2012
Recharge New York (2011) provides low-cost NYPA power as incentive for economic development incentives. Applicants will have energy efficiency requirements and those with energy efficiency history will be evaluated favorably

Energy Efficiency in New York
In 2007, New York City issues PlaNYC, its comprehensive sustainability plan
including 127 initiatives to meet clean development goals.
Energy efficiency goals in PlaNYC include improving efficiency in buildings, expanding knowledge and energy efficiency workforce, and developing energy efficiency financing and information
In October 2010, the City launched the New York City Energy Efficiency Corporation
Public-private partnership funded with $37.5 million in Federal Energy Efficiency & Conservation Block Grants
Offering financial products and credit enhancements to under-utilized energy efficiency markets including commercial, institutional, multi-family housing, and non-profits
Model in development would aggregate small transactions, provide public incentives, and attract commercial lender for project financing

Questions to Consider
Where is the potential “low-hanging fruit” in energy efficiency?
What are the best practice mechanisms for using public funding to leverage commercial lending for energy efficiency?
How can policymakers expand energy efficiency programs to customers with higher risk of default while still maintaining excellent credit?

Energy Efficiency Implementation & Finance

by Alliance To Save Energy

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Energy Efficiency Implementation & Finance Presentation Transcript