The Changing Electric System and Energy Efficiency’s Promise to Keep Bills Low
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Joseph Sullivan gave this presentation to businesses and stakeholders at a Greater Mankato Growth event
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The Changing Electric System and Energy Efficiency’s Promise to Keep Bills Low
- 1. The Changing Electric System and Energy Efficiency’s Promise to Keep Bills Low Joseph Sullivan Manager of Strategic Relations Center for Energy and Environment July 28, 2016
- 2. Pg. 2 CEE’s Nonprofit Mission The Center for Energy and Environment (CEE) is a nonprofit organization that promotes energy efficiency to strengthen the economy while improving the environment. We do this through: • Nation-leading Energy Efficiency Research • Award-winning Energy Efficiency Programs that have saved customers well over $500 million • Nearly $200 million in Clean Energy Project Financing • Policy Innovations such as Minnesota’s Energy Efficiency Resource Standard and associated utility financial incentives
- 3. Pg. 3 35 Years of Clean Energy Accomplishments Program Design and Delivery 80,000 Residential Customers Supervised and tested 13,300 homes in the Sound Insulation Program Completed over 10,500 lighting retrofits resulting in $98M annual savings Lending Center 25,000 loans totaling over $190M Close over 800 loans annually Average loan amount is $8,000 Engineering Services Independent 3rd party investigators Investigated over 30M square feet of buildings Average building sees a less then 2 year payback Research Nationally recognized Research informs all of our programs Published over 125 technical papers
- 4. Pg. 4 Minnesota’s Transformation to Date 1990 2007 2013 Coal Nuclear Natural Gas Hydroelectric Wind/Solar/Renewables
- 5. Pg. 5 2013 MN Electric Generation Resources including Energy Efficiency Coal % Natural Gas 51%Renewables and Nuclear 35% Utility Efficiency Programs 14%
- 6. Pg. 6 Electricity Price Comparison Source: Energy Information Agency
- 7. Pg. 7 The Big Trends in Minnesota • Approximately 12% annual reduction in coal use from 5 years ago and a 22% reduction from 1998 • Coal still approximately 50% of energy generated and consumed in Minnesota • Wind energy has increased 2.5x since 2006, as of 2015 it is approximately 17% of our electric energy • Nuclear remains steady at about 23-24% • System is Decarbonizing-Carbon emissions down approximately 20% since 2007
- 8. Pg. 8 Macro-Drivers Affecting Power Plant Fleet? 1. Low Natural Gas Prices Putting Extreme Pressure on Coal and Nuclear Fleet 2. Uneconomic and Old Coal Facilities Closing 3. Public is Demanding Cleaner and Newer Power Plants 4. Regulatory Uncertainty 5. NRC 20 year licenses for Minnesota nuclear reactors will expire in the early 2030s
- 9. Pg. 9 Minnesota’s Changing Electric System MWhs, 2011 Coal Nuclear Wind Nat. Gas Biomass Wood Hydro Other Petroleum MWhs, 2040 Coal Nuclear Wind Nat. Gas Biomass Wood Hydro Other Petroleum
- 10. Pg. 10 The Upshot 1. Potential rate increases for residents, businesses, and governments 2. Cleaner but more reliable electric system 3. Uncertainty 4. More opportunities for controlling costs and being involved in the system
- 11. Pg. 11 So what can a business or individual do?
- 12. Pg. 12 Invest in Efficiency! • Getting pushed around does not have to be an option • Electric bills are not electric rates. Businesses, individuals, ratepayers can have low electricity bills even with higher electricity rates • Optimizing electricity use keeps resources local through savings and utilizing local businesses
- 13. Pg. 13 Energy Efficiency is • Cost effective-EE pays for itself over its lifetime. If a project uses less energy but never pays for itself IT’S NOT more efficient! • Efficiency = Increased energy productivity. Efficiency is about fixing electric “leaky faucets” • EE saves money, resources, reduces emissions, allows dollars to be spent on business priorities • Efficiency increases customer control • EE keeps bills low even if when rates go up • Utility rebates buy low cost energy efficiency from customers
- 14. Pg. 14 CEE Business Programs Small Business Lighting Energy Intelligence Engineering Services
- 15. Pg. 15 One-Stop Efficiency Shop® • Small Business Lighting program • Free lighting audit • Substantial utility rebates up to 60% of project costs • Start to finish oversight of the entire retrofit process • Completion of all paperwork • Expertise in lighting retrofits for private and public buildings • Schools, hotels, bakeries, malls, fire stations, city halls, police, park buildings • Great energy savings opportunities • Lighting consists of ~25-30% of energy usage
- 16. Pg. 16 Why Lighting Efficiency? Source: “California Commercial End-Use Survey”, California Energy Commission, March 2006
- 17. Pg. 17 Engineering Services • Staff of 9, including 6 registered professional engineers • Serve several types of facilities including: • Examples include-hotels, ice arenas, healthcare, manufacturing, college campuses, correctional, office, and theatres.
- 18. Pg. 18 Energy Intelligence Program Monitor your industrial facility and save energy! • Tool that provides real-time feedback to help manage energy • Determine how much and when you use energy • Identify wasted energy during non-production periods • Identify demand peaks that cause high energy bills • CEE assessment of building and equipment • We develop energy strategies to optimize your energy use • We make suggestions to lower your baseline energy use • Save money by implementing strategies
- 19. Pg. 19 Look at better operations, as well as equipment 4% annual energy savings
- 20. Pg. 20 Examples of CEE projects
- 21. Pg. 21 Madison East Center (2014) • Madison East worked with CEE and Schwickerts Tecta America to recommend and install new lighting throughout the Mall. • Project Highlights • $40,000/yr in electricity cost savings • 2 year payback • Approximately $55,000 in utility rebates • Saving 500,000 kilowatt-hours annually • These savings are attributed only to changing lighting
- 22. Pg. 22 City of Slayton (2009) • The Slayton City Council instructed the City Administrator to pursue programs to make the City more efficient • Working through Xcel Energy and with CEE, the City retrofit inefficient lighting throughout the Fire & Police Departments, City Hall, Library and Senior Center • The City further partnered with Xcel Energy and CEE to help promote lighting upgrades and retrofits to Slayton businesses • City electricity savings ~ $2800 per year. Payback 1.7 years • These savings are attributed only to changing lighting
- 23. Pg. 23 107 cities have been served by CEE’s One-Stop Efficiency Shop® • Focused on lighting upgrades in Xcel Energy’s service territory • Lighting projects in Airports, City Halls, WWTP, Police and Fire, Cemetery’s, Liquor Stores, Golf Courses, Senior Centers • To date, One-Stop is saving these communities $1.7 million per year through lighting retrofits alone • One-stop has served more than 12,000 customers. Total savings to these customers of more than $480 million
- 24. Pg. 24 Horizon Middle School Moorhead, 2008 • New construction but building used excessive energy and there were comfort and pressure issues • CEE conducted a comprehensive recommissioning study in 2008 • Recommissioning determined: • Intake fans were overpowering return fans • Pumps not synchronized to outdoor temperatures • Hot water system not optimized • Air Handling Units operated when nobody present • Implementation of improvements saved $141,227 per year. 3 year payback. $422,600 total cost.
- 25. Pg. 25 Home Energy Squad Enhanced • Comprehensive whole-home program • Engage cities in community-based marketing • Direct install of gas and electric measures • Customized energy savings recommendations • ~12,000 HES visits since 2010 • 2,600 HES visits in 2015 • 1.77 million kw/h savings 2015
- 26. Pg. 26 The Lending Center at CEE • CEE offers financing to residential property owners for rehabilitation and energy efficiency projects, as well as to commercial property owners for energy related improvements. • As a non-traditional lender and non-profit organization, we provide administrative services for several metro area cities, utilities, are a Minnesota Housing lender and offer programs tailored to meet a wide variety of financing needs. • Partners include: • MN Department of Commerce • MN Housing Finance Agency (MHFA) • MHFA lender for over 20 years • Twin Cities area Platinum Lender • Xcel Energy and Great River Energy • St. Paul Port Authority • 8 Cities: Anoka, Blaine, Brooklyn Park, Coon Rapids, Fridley, New Hope, St. Louis Park and Minneapolis • Over 100 different loan programs are administered by the Lending Center at CEE • CEE also funds our own loan programs (Solar, Energy and Home Improvement)
- 27. Pg. 27 Commercial Loan Programs • For-profit entities • Maximum loan amount of $100,000 • Rate is currently 3.9% • Terms up to 5 years • Non-profit entities (501c3) for Xcel OSES Lighting Projects • Maximum Loan is $25,000 • Term up to 5 years • Project must have a payback less than 10 years • 0% • Eligible projects include upgrades to: • Lighting technology • HVAC controls • Envelope air sealing and insulation • Solar • Other efficiency projects
- 28. Pg. 28 Residential Programs • Energy Loan • Funded by CEE, MN Department of Commerce, MHFA and the City of Minneapolis • Financing can be used for Energy Efficiency Projects such as: • Furnace and Air Conditioning Replacement • Windows • Exterior Doors and Light Fixtures • Insulation and Air Sealing • Water Heater Replacement • Solar projects • Ground/Air Source Heat pumps • Secured and Unsecured options • Rates range from 0%-6.99% • Home Improvement Loan • Funded by CEE, MN Housing or partner City programs • Financing can be used for any permanent home improvement project • Available for all income levels • Secured and Unsecured options • Rates range from 0%-6.99% (CEE and MN Housing programs)
- 29. Pg. 29 Resources for Businesses to Optimize Energy Use • CEE • Administer Xcel Energy/CEE One-Stop Lighting Program® • Business Energy Intelligence Program • Home Energy Squad- Xcel Energy, CenterPoint Energy, • Building Recommissioning Studies • Low Interest Loans • Utility conservation programs • Xcel • Turn Key Audits, Lighting upgrades, Equipment Rebates, Recommissioning, Refrigeration, New Construction, Whole Building • https://www.xcelenergy.com/programs_and_rebates/business_programs_and_rebates • CenterPoint • Rebates for boilers, chillers, HVAC, refrigeration, Food Service Equipment, LEED Certification, etc. • Business Rebates-http://www.centerpointenergy.com/en-us/business/save-energy-money/efficiency- programs-rebates?wt.ac=top_trans&sa=mn • Residential Rebates-http://www.centerpointenergy.com/en-us/residential?sa=mn • BENCO • Contact BENCO directly • On site energy efficiency manager can help walk you through available rebates • Greater Minnesota Gas • Contact GMG Directly • Minnesota Chamber of Commerce • Energy Smart CIP Program-helps Minnesota businesses find their way through EE programs. http://www.mnenergysmart.com/
- 30. Pg. 30 Conclusion • Efficiency is about the people, not just the equipment • Efficiency is a continuous process of improvement • Lighting and Recommissioning are good places to start
Editor's Notes
- The Center for Energy and Environment (CEE) is a nonprofit organization that promotes energy efficiency to strengthen the economy while improving the environment We conduct research and develop programs so that: Businesses operate more efficiently and profitably; Government agencies and nonprofits spend less on facilities and functions; Utilities achieve their energy-efficiency goals at least-cost; and Households save money and improve comfort.
- And what’s more – because of our excellent policy and regulatory framework and terrific utilities, we’ve been able to do all of this while keeping electricity costs well below the national average, and among the lowest in the region.
- CEE has three main programs that service businesses. Our One-Stop Efficiency Shop for small business lighting helps over 1,000 businesses a year do lighting retrofits. We provide technical assistance, and access to enhanced rebates from Xcel Energy, who funds the program. Xcel is also funding our energy intelligence for industry program. This is for small industrial customers. We provide advanced metering, to get real-time energy data every 5 minutes, and provide that through a software dashboard, to provide insights into energy usage, along with customized support. Our engineering services serves larger commercial buildings, through recommissioning, continuous commissioning, customized training, and benchmarking services. We are currently recommissioning the IDS tower.
- A free lighting audit with detailed recommendations, estimated project costs, rebates and savings Substantial rebates up to 60% of the project cost Convenient and attractive financing options A simple, one-stop service that minimizes participant time A pool of qualified contractors to reduce the hassle of collecting bids Start-to-finish oversight of the entire lighting retrofit Completion of all program paperwork
- Example of a small industrial customer. We worked with them to log their energy usage over time, to look for energy savings opportunities. Circled area represents when they were leaving equipment on overnight after the end of a shift – laser cutter and compressed air system The dashed line represents the average energy usage during the previous 5 weeks, and the solid line represents a day when we experimented with turning off two pieces of equipment after the shift was over. Savings represents 4% of annual energy usage – just by shutting off equipment, and it didn’t cost them anything.