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The Future of Energy Costs - Peter Weigand
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The Future of Energy Costs - Peter Weigand

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  • 1. California Laws & SCE Changing Your Energy World Presentation for the California Cities Managers Association Peter Weigand Chairman & CEO Skipping Stone 714-965-0800 Email peterw@skipppingstone.com for a copy of these slides
  • 2. Content  The Traditional Electric Grid  The Evolving Smart Grid  Major Smart Grid Impacts On Cities  Solution Options  Smart Cities – The New Buzz  Where to Turn  About Skipping Stone Proprietary & Confidential 2
  • 3. The Traditional Electric Grid Key Attributes: - Fossil Fuel or Nuclear Generation - Predictable Rate Structures - Infrastructure Intensive Customers Distribution Substations Transmission Generation Key Problems: - CO2 Emissions & Pollution - Very Costly to Maintain - Subsidized Certain Customers - Overbuilt to Serve - Very Expensive & Non Responsive
  • 4. The Evolving Smart Grid Your Energy World Now Looks Completely Different
  • 5. Laws & Smart Grid Impacts on Cities  Renewable Portfolio Standards (CA)  Preferred Resources Generation Mandate (CA)  Time of Use Rates & Critical Peak Pricing (SCE)  EO-16 – 1.5M Zero Emission Vehicles in cities by 2025 (CA)  AB 2514 – Requires utilities to install 1,325 MW electric storage  LIHEAP – Low Income Programs (FED)  HUD reduces from $5B to $3B funding for low income bill assistance and energy efficiency spending on insulation, efficiency, etc. Bottom Line: Costs are going up and its more complex than ever! 5
  • 6. Solution Options  SB 43 – Buy your own Renewable Generation – off site  On Bill Financing   AB 117 – Community Choice Aggregation   0% interest up to 10 years on EE projects and your costs for SCE incentive programs Take control by buying wholesale and reselling to your citizens and businesses CEC Energy Partnership Program    Up to $20k in funding for cities to develop an energy plan Up to $20k for schools (k-12) to develop an energy plan SCE Incentive Programs   Numerous Energy Efficiency, Demand Response and Cities Programs EE & ET Project Finance  Vendors finance efficiency and/or technology out of guaranteed savings 6
  • 7. Smart Cities - Buzz  Certain Large Solutions Companies have created a buzz around Smart Cities  What is a Smart City?   100% Energy Efficient  100% Control of Energy Usage  Water, Roads, Infrastructure All Work Together  Self Generation with Renewables   Fiber to everyone Much More How Much Does Nirvana Cost?  Not to Worry, it’s Cheap!  Solution Company Floats a Bond with the City to pay for it all  Solution Company guarantees cost of bond is paid for in energy savings 7
  • 8. Where to Turn  The Energy Coalition   Local Govt. Sustainable Energy Coalition   www.lgsec.org Statewide Energy Efficiency Collaborative (SEEC)   www.energycoalition.org www.californiaseec.org Local Governments for Sustainability (ICLEI)  www.icleiusa.org Or ask an experienced energy consultant for help 8
  • 9. All of our consultants are energy industry veterans who now choose to consult. Our specialty is collaborating with clients on ideas, strategies and tactics, and then providing the array of services required to turn those ideas into successes. Atlanta Market Focus Boston Houston Los Angeles Over 230 Clients Worldwide 9