CWEB.013/January.24.1997
THE JANUARY DOLDRUMS apparently have not afflicted Northwest energy conservation and renewables. We have much to share with you this month.
In policy matters, the proposed Enron/Portland General Corp. merger is shaping up to include significant public-purpose commitments. Enron also is centrally involved in a recent series of maneuverings that have reshaped the region's renewable energy landscape.
Meanwhile, an American Council for an Energy-Efficient Economy report finds many positive impacts from market transformation initiatives, including several with strong Northwest connections. We also summarize the Northwest Energy Efficiency Alliance's January meeting, and look at Idaho Power's innovative new proposal to fund its NEEA participation.
Innovation also is evident in a proposed billing program under consideration by PGE that would provide customers with comparative information on their energy consumption. Also on the home front, we examine the growing interest in leaky ductwork--and a conflict it has spawned.
As always we welcome comments, questions, answers, complaints, issues and anything else of relevance you'd care to share via e-mail [marko@newsdata.com].
Oregon Public Utility Commission staff believes the proposed merger of Portland General Corp. with Enron will serve Portland General Electric customers "in the public interest" if certain conditions--23 by the staff's count--are attached. In a preliminary recommendation issued Jan. 16, the OPUC staff said commission approval of the merger should be contingent on setting 22 conditions that resolve staff issues and concerns regarding the merger, as well as an additional condition that sets financial penalties of $10,000 per day for failure to comply with any of the other conditions.
The staff's recommendation came just eight days after 13 public-interest groups announced they'd signed a memorandum of understanding with Portland General and Enron that gives their support to the proposed merger in exchange for PGE's commitment to support specific environmental and public-interest activities and funding allocations after the merger. Among those are a system benefits charge for conservation as well as geothermal and wind-energy development. Mike Meyers, OPUC staff case manager for the Enron/Portland General merger, said the MOU "reduce[d] the number of issues" the staff had to examine, but didn't affect its recommendation.
The staff preliminary recommendation includes minimum-service quality standards and institutes safeguards against cost-shifting and unfair competition. Other conditions set reporting requirements and call for PGE and Enron to provide OPUC with access to certain types of information.
But perhaps the most significant conditions are those outlining rate reductions for PGE customers: $47.4 million per year. "We need to see if [staff's] proposal can be supported by reasonably achievable cost reductions," PGC senior vice president Al Alexanderson said.
Initial reaction from intervening parties indicates they view the staff's preliminary recommendation as a step in the right direction. "It's a good start," said Jason Eisdorfer of the Oregon Citizens Utility Board. "It's just about in the middle of what we were expecting." Steve Weiss of the Northwest Conservation Act Coalition called the staff recommendation "a beginning" in terms of establishing the level of PGE customers' benefits from the merger. "I still think we're fairly far apart," he said. Weiss estimated the ratio of shareholder to customer benefits at about 4-to-1 under the staff proposal. "We think the ratepayers should get more." Weiss said NCAC will push for more sharing of financial benefits with PGE customers in the OPUC settlement discussions that began Jan. 22.
Public-Purpose Commitments
NCAC and Oregon CUB are among the 13 environmental, natural resource and community action organizations that signed the Jan. 8 memorandum of understanding with PGC and Enron. The MOU spells out PGE's commitment to file for a system benefits charge for public purposes at the 3-percent funding level recommended by the Regional Review; to separate generation from distribution functions and essentially decouple distribution revenues from kilowatt-hour sales; to fund an independent marginal-cost study; and to contribute $1 million a year for 10 years to a habitat restoration fund. PGE also reiterated its commitment to acquire renewable resources--22.5 average megawatts of geothermal and 25 MW of wind power--and promises to develop new programs and services that will save low-income consumers between $500,000 and $1 million annually. The agreement also outlines specific monetary contributions PGE will make to 15 environmental, fish and wildlife support activities, and promises financial reimbursement for public-interest groups' participation in PGE's hydro-relicensing process.
In other words, the memorandum of understanding has something for everybody. But Alexanderson said the agreement doesn't involve enormous concessions on the part of Portland General and Enron. "Everything in here is a direction we were headed anyway," Alexanderson said--or relates to issues that will have to be resolved over the course of electric industry restructuring.
Ralph Cavanagh of the Natural Resources Defense Council, which also signed the MOU, called the agreement a "regional and national model" and said it marks the first time all major public-interest groups have come together. "PGE made the judgment that these are critical constituencies to getting the merger approved," he said. "It shows you can work this out."
NCAC executive director Sara Patton said the agreement shows Enron and PGE recognize that "public-interest groups have some political clout--that we can make [the merger] hard or easy for them and that what we wanted wouldn't kill the deal."
Patton also said the two companies "were willing to move pretty far on conservation" by agreeing to file for a 3-percent system benefits charge. The hardest-core issue for NCAC, she added, was low- income energy assistance; Enron and PGC's willingness to support a statewide Oregon Universal Service Energy Fund was another important part of the MOU.
Other groups signing the MOU are Northwest Environmental Advocates, Native Fish Society, Oregon Trout, Renewable Northwest Project, the Nature Conservancy of Oregon, Oregon HEAT, Community Action Directors of Oregon and the Oregon Energy Coordinator's Association.
Enron spokesman Gary Foster said that although the public-interest groups who signed the MOU won't vote on the proposed merger, Enron hopes their support will carry some weight with the Oregon PUC. "If local groups with a vested interest step up to the plate and say 'Yes, we're for it,' I think that will be important to the Commission."
OPUC's Meyers stressed that the staff's recommendation is preliminary. Settlement conferences were scheduled to begin Jan. 22, and staff's final recommendation and proposed order is due Jan. 31. The OPUC will then receive additional comments until Feb. 18, with the commission's final order due around mid-March. --Jude Noland
Market transformation activities in many cases have favorably influenced energy efficiency, according to a recent study by the American Council for an Energy-Efficient Economy.
"Although it is difficult to attribute particular market shifts to specific policies or programs, it appears that many of the [11] market transformation approaches examined in this paper are having a positive market impact, as evidenced by increased sales of high-efficiency products and changes in manufacturer, dealer, and consumer behavior," write authors Margaret Suozzo and Steven Nadel.
The August 1996 report describes each of the 11 approaches and their varying levels of success in transforming markets to enhance energy efficiency. There is no unified solution, conclude Suozzo and Nadel: " . . . the best approach or set of approaches will depend on the nature and status of the technology being promoted and the barriers that need to be overcome."
For example, when particular energy-efficient technologies are either absent from a market or available only in limited supplies and at great cost, a technology procurement strategy is likely to work best--such as the Super Efficient Refrigerator Program (SERP). In cases where products are available but have only a modest share of a given market, a combination of financial incentives, trade-ally training and consumer education are often required. And once a product gains a substantial market share, codes and standards "can be very effective completing the transformation process."
The ACEEE report also notes the importance of non-energy benefits. "Both manufacturers and consumers are more likely to participate in or support a market transformation effort where the promoted technology provides benefits in addition to energy savings, such as cleaning clothes better."
And, not least, Suozzo and Nadel advise patience, because market transformation takes a long time. "In all of the case studies, at least five years and sometimes as much as ten years are likely to elapse before a market is significantly transformed."
The report begins by describing a shift among utilities and governments away from energy conservation audits and rebates toward "strategic market interventions designed to effect sustainable shifts toward more efficient products and services." Although there is no universal definition, Suozzo and Nadel write that "market transformation generally refers to the process by which collective action, policies and programs effect a positive, lasting change in the market for energy-efficient technologies and services, such that these technologies and services are produced, recommended, and purchased in increasing quantity. Underlying this concept is the assumption that strategic actions have the potential to fundamentally change the course of the evolution of markets such that efficient products and services can ultimately flourish in the absence of incentives."
Specific approaches include information programs, rebates, commercialization incentives and development of market infrastructure, the report noted--all aimed at improving energy efficiency along the entire chain from manufacturers to end-use consumers.
Suozzo and Nadel reviewed 11 market transformation endeavors to develop what "does not pretend to be a rigorous evaluation, but rather a status report . . . Information and insights gleaned from these efforts can improve the effectiveness of future market transformation programs."
Among the 11 activities are at least three with a substantial Northwest connection. The experiences of these three illustrate many of the issues raised throughout the report.
Manufactured Housing Acquisition Program (MAP)
The ACEEE report outlines the rise and fall of the Manufactured Housing Acquisition Program (MAP) and concludes this Northwest regional venture created "a number of lasting impacts on the market for manufactured homes."
Although manufactured homes comprise nearly one-third of all new housing starts, energy efficiency standards are set by the U.S. Department of Housing and Urban Development, not localities or states. This lack of local jurisdiction, along with research showing great inefficiencies in manufactured homes compared with site-built models, led Bonneville Power Administration to develop various initiatives to upgrade manufactured home efficiency, according to Suozzo and Nadel. These efforts paved the way for MAP, which debuted in April 1992.
MAP provided incentive payments from participating utilities to manufacturers for energy efficiency improvements. Initial payments were $2,500 per electrically heated home, then $1,500 after HUD code upgrades in 1994. Typical energy savings from MAP homes ranged from 15 to 25 percent during the program.
MAP took the manufacturer incentive approach for a number of reasons, according to Suozzo and Nadel. It was believed to be the best way to reduce both manufacturer and consumer costs, and because individual efficiency measures were not viewed as cost-effective to consumers. "Third, by working directly with the manufacturers and educating consumers, BPA hoped that the program would have a lasting impact well beyond the program's planned end date of April 1996."
MAP home sales exceeded projections by about 8,000--which cost utilities an additional $12 million in payments, the report said. Decreasing utility support for demand-side management and an evaluation that showed lower-than-expected savings also contributed to the early demise of MAP in mid-1995. (A subsequent evaluation, the authors noted, found MAP energy savings cost 1 cent per kilowatt-hour if market transformation effects were taken into account.)
Despite its premature end MAP made a difference, according to Suozzo and Nadel. It quickly increased the regional market share for energy-efficient manufactured homes to 100 percent--a figure which has since slipped, they acknowledge. MAP also changed the expectations in the marketplace: " . . . many consumers have come to expect the MAP features and many dealers have become used to selling them. For many manufacturers and dealers . . . MAP became a symbol of 'quality' housing that offered distinct marketing benefits." In the absence of incentives, they noted, manufacturer-financed state certification programs have arisen.
Super Efficient Refrigerator Program (SERP)
The Super Efficient Refrigerator Program--supported by a number of Northwest utilities and government agencies--also provided manufacturer incentives, but with an unusual angle. This national program offered $30 million to the refrigerator manufacturer who submitted the best bid for a full-featured model that was at least 25 percent more efficient that 1993 federal standards and free of chlorofluorocarbons (CFCs). Whirlpool won the competition in 1993. Its original SERP models exceeded 1993 energy-saving standards by nearly 30 percent; later versions increased efficiency levels by around 40 percent.
However, according to Suozzo and Nadel: "Sales figures, one indicator of market transformation, suggest that SERP has had little impact." Whirlpool attributes the lagging retail results to the paperwork required of dealers to receive SERP rebates. Other reasons advanced for poor sales include limited promotion and training by Whirlpool for dealers and distributors, and the relatively small market share of side-by-side units such as the SERP model.
Still, the authors assert, "SERP has made a number of significant contributions to moving the U.S. market for refrigerators toward greater levels of efficiency." First, it brought a super-efficient fridge to the market quickly. It also helped motivate other manufacturers to shift away from CFC-containing models before the 1995 deadline, and to test their own high-efficiency models. SERP also is credited by manufacturers with some influence on proposed 1998 federal refrigerator efficiency standards--which are very similar to the levels of Whirlpool's winning model.
Resource-Efficient Clothes Washers
Resource-efficient horizontal-axis clothes washers, which typically use less than half the energy and about half the water of traditional designs, had a miniscule U.S. market share of about 1 percent as of 1994, the authors report. The primary barriers are price (a premium of $200 and up) and previous bad experiences with malfunctioning machines.
In the 1990s, Suozzo and Nadel report, a number of initiatives have emerged to improve the efficiency of American clothes washers. Active parties include the U.S. Department of Energy, Electric Power Research Institute, manufacturers, the Consortium for Energy Efficiency (CEE) and many utilities, including a number from the Northwest involved in The High-Efficiency Laundry Metering and Marketing Analysis (THELMA).
Despite some problems, " . . . these different initiatives appear to be having an impact on the U.S. clothes washer market," according to the ACEEE report. By 1994, three of the four major American manufacturers had announced plans to introduce high-efficiency clothes washers into the market. They are motivated by potentially more stringent federal standards, the perceived benefits of better cleaning performance, the consumer appeal of substantial resource savings, and utility and government interest in promoting this technology.
"Still," Suozzo and Nadel write, "the market share of these high-efficiency machines is very low and is likely to remain low until units are mass-marketed by major U.S. manufacturers. Also, even when models are widely available, it is uncertain how consumers will respond to the new models and the different marketing initiatives. It is also unclear whether DOE will proceed with new clothes washer efficiency standards. Thus, while significant progress has been made, it will probably be several years before we will know whether these initiatives were successful in their goal of transforming the U.S. market."
In addition to these three endeavors, the ACEEE report covers two other refrigerator programs, along with initatives for office equipment, residential and commercial air conditioning, geothermal heat pumps, gas-fired heat pumps and high-efficiency furnaces.
The full report--including five-plus pages of references--is available from ACEEE for $11. For more information, check the ACEEE Website or contact the group's Berkeley office: 2140 Shattuck Ave., Suite 202, Berkeley, CA 94704; phone, (510) 549-9914; fax, (510) 549-9984; or e-mail, ace3-pubs@ccmail.pnl.gov. --Mark Ohrenschall
Shoring up its organizational foundation, the Northwest Energy Efficiency Alliance board spent much of Jan. 21 discussing internal matters and hearing status reports on approved projects plus Bonneville Power Administration ventures.
Most notably from an internal perspective, the board has yet to conclude its selection of an executive director. The six-person executive committee had planned to have a recommendation ready for the full board by the Jan. 21 gathering at Sea-Tac International Airport, but came in with nothing official to report. "We've been agonizing," said vice-chair Jake Fey of Tacoma City Light. "I hope we can reduce the sideshow on this to the bare minimum. For the sake of the people involved, it'd be best if we tried to low-key it."
Ken Keating of Bonneville Power Administration, another executive committee member, added: "The top candidates involved are all people you should be proud to have as executive director. It's a choice of preference and structure."
The executive committee fully expects to have an executive director recommendation before the next board meeting, Feb. 11 at Sea-Tac. In the meantime the news will be discussed among and between the three board "pods"--investor-owned utilities, public power and non-utility representatives, each of which have six seats on the 18-member board. Stay tuned.
Market Transformation The BPA Way
Keating presented an overview of Bonneville's market transformation initiatives, to help NEEA board members better understand BPA's rationale and scope of work and develop their own senses of a market transformation portfolio approach. He also wanted to stress the importance of people and infrastructure in creating successful market transformations.
BPA's market transformation projects help the federal agency meet its planning and public-purpose objectives; they also enhance customer service. Strategically, Keating noted, Bonneville takes a long-term view of market transformation cost-effectiveness. BPA also acknowledges the inherent risks of market transformation and the fact it can't assure absolute regional equity in these projects. Flexibility is another key.
Keating outlined specific market transformation ventures in which BPA played a role in 1996: horizontal-axis washers, manufactured housing transition, super-efficient refrigerators, compact fluorescent lighting, commercial building commissioning, non-residential code training, premium efficiency motors, geothermal heat pumps, commercial operations and maintenance certification, and irrigation scheduling.
He also listed a number of BPA-involved market transformation projects under development in 1996: Home Energy Rating System; microelectronic plants; computer software for motors, variable-speed drives and compressed-air systems; hydraulic systems; heat-exchanger improvements; ductwork; super windows and motor repair/field testing. Bonneville's 1996 market transformation staff for planning, management, technical and project support numbered 8.8 FTE (full-time equivalents).
Bonneville also thinks nationally with market transformation, Keating noted. "As a region we need to be looking outward, not inward. Most markets we're trying to influence are national." For example, the Northwest encompasses only 4 percent of the domestic motor market. National efficiency standards for technologies such as motors, clothes washers and windows won't be upgraded solely on the basis of Northwest initiatives, he said. Consequently, Bonneville has collaborated with such national efforts as the Consortium for Energy Efficiency (CEE), American Council for an Energy-Efficient Economy (ACEEE), Electric Power Research Institute (EPRI), NEEA's counterpart in the Northeast (Northeast Energy Efficiency Partnership), the Lighting Research Center in New York, and other endeavors.
Keating also emphasized the value of market transformation infrastructure, including what he called "influential communication" for key audiences. In this broad category he listed the Lighting Design Lab, Electric Ideas Clearinghouse, industrial forums, local and state government representatives, Con.WEB (Editor's note: Con.WEB received interim NEEA funding; see the December issue for details) and American Institute of Architect awards. Keating also cited examples of specific people who help transform specific markets: John Hogan of the city of Seattle, John Perry and Gary Curtis of the Oregon Office of Energy, Gus Baker of Oregon State University Energy Extension, and Mike Lubliner, Gil McCoy and Johnny Douglas of Washington State University's new energy programs (formerly Washington State Energy Office). Without these and other key people too numerous to mention, "Market transformation wouldn't be as successful."
Bonneville's role in market transformation will clearly evolve as NEEA assumes more responsibility for regional initiatives. In any case, though, Bonneville will continue to play a significant part: BPA is expected to provide the lion's share of NEEA funding over the next three years, up to $7.5 million in 1997 and up to $15 million in both 1998 and 1999.
NEEA Status Report
In less than three months since its formal inauguration Oct. 30 in Seattle, the NEEA board has engaged in "a huge amount of business," noted Margie Gardner of the Northwest Power Planning Council, which has provided interim NEEA staff.
The board has approved interim funding for six projects: compact fluorescent lighting, resource-efficient washing machines, operation and maintenance certification, premium motors, Con.WEB and manufactured housing advertising (again see the December issue for details). NEEA also has established a contract with BPA, set up an interim checking account and adopted a travel reimbursement policy along with an interim contract procedure.
At the Jan. 21 meeting the NEEA board--after considerable discussion and a few revisions--approved working guidelines under which the alliance will credit or reimburse organizations represented on the board for use of their loaned staff--and how those personnel costs will be figured.
Board members also spent much time with NWPPC legal counsel Bill Hannaford refining a proposed conflict-of-interest policy for the alliance. This is a "thorny" process, Hannaford wrote in a memo, but critical: "It will affect how the Alliance appears to utility regulators and to the world beyond the utility community. It will help determine how the Alliance fulfills its duties to the public as a public interest entity. Further, it will help demonstrate that the directors are satisfying their fiduciary duties to the Alliance."
Among the other NEEA internal matters in various stages of progress are criteria for project selection, portfolio considerations, a communications strategy, insurance purchase and a request for federal status as a tax-exempt organization.
In addition to its Feb. 11 meeting, the NEEA board also plans to convene Feb. 24 and 25 in Portland. --Mark Ohrenschall
Idaho Power wants to institute a public purposes charge to cover the utility's costs of participating in the Northwest Energy Efficiency Alliance, the recently formed group that will oversee energy-efficient market transformation efforts in the region.
Idaho Power on Dec. 31 asked the Idaho Public Utilities Commission to approve the proposal, which would levy a flat rate of 25 cents per month on residential customers, $2 per month on larger business and commercial customers, and $70 per month on special contracts and large industrial customers. Irrigation customers would be charged $6 per month, but only during irrigation season.
Idaho Power's contribution to the alliance is capped at $850,000 for 1997 and $1.7 million for the next two years, for a total of $4.25 million. The utility wants to collect $4.05 million of that from its Idaho retail customers. The proposed public purposes charge would collect about $810,000 in 1997 and $1.6 million in the following two years. All of the revenue collected under the charge would fund the utility's participation in NEEA.
Jim Baggs, Idaho Power's general manager for retail support, said the utility considered implementing a system similar to Washington Water Power's DSM surcharge for energy efficiency expenditures (also see story in Briefs). But since discussions both during the Regional Review and development of NEEA focused on the concept of a public purposes charge applied at the meter--rather than on the basis of usage--the utility decided to use this filing as an opportunity to try a system benefits charge.
The specific customer class charges were developed by using "class energy allocators" approved by the IPUC. Idaho Power computed the monthly charges by dividing the costs by the number of customers in each class. And while the charge for large industrial users is the highest, Baggs said it's less than those customers would have paid if the charge had been set up as a percentage of energy usage, like the DSM surcharge.
Baggs also said Idaho Power's financial support for NEEA is contingent on IPUC approval of the public purposes charge. Idaho Power and the other investor-owned utilities participating in the alliance specified their participation was tied to receiving regulatory approval for such cost recovery .
The utility wants the public purposes charge, also known as Schedule 50, to be effective Feb. 1, 1997, and first reflected on bills as of July 1, 1997. The IPUC, however, has set a March 21 deadline for public input on the proposal and will review the comments received in determining whether to hold a formal public hearing. --Jude Noland
As our home heating sources labor to keep us warm these cold winter months, a significant amount of their work literally vanishes into the Northwest air.
Leaky ductwork is an underappreciated but appreciable source of wasted energy in many Northwest homes, particularly those with electric heat pump or natural gas forced-air systems with ductwork routed through unheated spaces. In fact, duct-related losses between a heating source and its intended destinations can range as high as 30 to 40 percent--or even more.
Accordingly, duct systems are increasingly viewed as a promising target for abundant and cost-effective energy conservation. "We think everyone recognizes this is a huge market," said Ken Keating of Bonneville Power Administration. Consultant David Baylon reported that leaky ducts in Washington can lose the same amount of energy as the savings gained from the 1991 residential code upgrade.
Bonneville and other entities plan to propose a duct-integrity market transformation program to the Northwest Energy Efficiency Alliance in the near future. Meanwhile, the Pacific Northwest Generating Cooperative and four of its Oregon utility members are launching their own venture, emphasizing to consumers the benefits of energy efficiency, safety and comfort from properly functioning ductwork. PNGC consultant John Shearer said about 20 other Northwest utilities are seriously interested in this program.
Shearer, a 30-year veteran in the energy efficiency field, has long suspected leaky ducts as a problem. But the electric industry has not seriously addressed the issue until recent times. "It's hard, it's not glamorous, it's difficult and dirty" work, he said.
In addition, technologies for accurately measuring duct operations have only become available in recent years. "We've had air infiltration, caulking and weather-stripping measures in residential programs for years, but until you use blower doors, you're making huge assumptions about the condition of the house," Dave Brook of Oregon State University Energy Extension said last year (see Conservation Monitor, April 1995). "Blower doors and pressure gauges provide a way to document what's really going on."
Ductwork research in the Northwest began in earnest in the late 1980s. Data developed for BPA's Residential Conservation Demonstration Project (RCDP) showed "forced-air systems were killing us by 30 percent relative to [electric] resistance systems," according to Bonneville's Mark Jackson. Bonneville has continued its investigations over the years, along with a number of Northwest utilities (electric and gas), state energy offices, consultants and the Electric Power Research Institute.
One of the most comprehensive studies was conducted for the RCDP in 1993, by the Seattle-based consulting firm Ecotope. The 24-home research project showed that homes with all-interior ducting had system efficiencies of 98 percent, compared with 71 percent efficiency for homes with ducting in unheated spaces. A subsequent six-home Ecotope study of duct retrofitting for electric forced-air heating systems found duct leakage reduced by more than 70 percent, system efficiencies improved 16 percent and power losses cut by nearly 50 percent (see CM, April 1995).
"If they're [duct systems] really bad, you can make them really a lot better," said Ecotope's Baylon. A gas-heated furnace, he said, can lose 25 to 30 percent of its output through leaky ducts; given the same ducts and an electric heat pump, the losses can be more in the range of 40 percent--assuming the heat pump is correctly installed. If not, the losses can exceed 50 percent.
Current standards for duct systems are "abysmal," Baylon believes. He cited a Washington Natural Gas survey three years ago that found newer homes had the worst ducts. "There's no consequence [for builders] to doing a bad job" with ducts. "The only consequence is first cost," he said. Indeed, Keating knows of new subdivisions where contractor spending on ductwork "hardly pays for the materials."
Energy codes aren't helping much, either, even though they generally have certain insulation and sealing requirements for ductwork. "We'd like to see the current codes enforced," said BPA's Jackson. "They say things like 'substantially tight.' We think a quantified code would probably be good. You have to test the plumbing system now for tightness. You might as well test the heating system, which is equally important for health and safety."
He described duct-sealing as "probably the most cost-effective [conservation] thing you can do to an existing residence." For a couple hundred dollars, Jackson said, a homeowner can reduce duct leakage from 350-400 cubic feet per minute down to 50 cfm. Estimated annual energy savings range from 1,000 to 2,000 kilowatt-hours per duct-tightened residence--which works out to an annual bill reduction of $50 to $100 where residential electric rates are 5 cents/KWh.
And, based on an admittedly limited research sample, Baylon said the life-cycle costs of sealing "really bad ducts" are less than 2 cents/KWh.
The PNGC Approach to Leaky Ducts
While they agree on the problem of leaky ducts, PNGC and BPA are taking different paths toward a solution--although perhaps not as different as PNGC would like (see related story below).
The generating cooperative's new initiative, which officially starts Jan. 31, offers participating utilities a complete testing, sealing and balancing program for residential HVAC ducts. PNGC touts the program as a cost-effective market-based approach, relying substantially on local contractors and emphasizing both energy and non-energy benefits to homeowners. "It has the potential to save consumers energy and money, while making their homes safer and more comfortable," said PNGC managing economist Phill Sher.
This program veers significantly from traditional utility conservation, according to William Gatchel of Umatilla Electric Cooperative in northeastern Oregon, one of the four initial participants. "I think the difference is that . . . all of the benefits to the customer are being emphasized, including their increased level of comfort, the value that these improvements can add to the home, as well as energy efficiency," he said. "When you consider all the different values that one can benefit from in participation in this program, it's easy to justify the investment on [the consumer's] part to obtain these benefits, rather than using ratepayer dollars to subsidize these."
Shearer noted the substantial energy and financial advantages of tight ducts: "If you have a pretty leaky duct system, chances are you're paying a third more for your heating system, your investments. Beyond that, your heating costs, your bill, based on these numbers, would be two times as high."
But he also stressed two other issues. One is safety. Leaky ducts can create negative air pressure in a house, which could lead to backdrafting of harmful furnace gases. "That's got some energy implications, but to me it's even much more compelling than the energy," Shearer said.
Also, leaky ductwork can lead to temperature imbalances within a home, making one room too warm, another too cold and yet another just right. That's a comfort matter.
"The service that we're proposing or suggesting is to offer all three" to consumers, Shearer said. "Lead with the sealing; people can understand energy savings. Then you look at the safety aspects of negative pressure, then you look at the comfort . . . You really have three big consumer benefits. All of them are linked to energy." Different consumers are likely to have different priorities among the three, he noted.
And "there can't be any doubt" duct improvements are cost-effective, with quick paybacks for consumers, Sher said.
PNGC recommends utilities make the program available to any homeowner with a ducted system, regardless of the heating source. All utility customers use electricity, regardless of how they choose to heat their home, Gatchel observed. "They certainly are entitled to receive service as much as any other customers, and particularly if we have a situation where . . . their combustion appliance . . . creates an unsafe or unsatisfactory situation and there's something we can do to help with this."
Residential duct systems are "the area of which there is the greatest possibilities for improvements," he said. "We can get so much done for such a small investment, from the standpoint primarily of the customers." Better ductwork also helps electric heat pumps work more effectively, he noted.
The PNGC duct-program package is priced at $7,995 and, according to Shearer, provides utilities with materials in four areas: administration, advertising/promotions, consumer services and trade ally support. The materials include computer software, ready-to-go print advertising, labels for approved duct systems, a homeowners' guide and an 11-minute videotape for contractors on proper duct-sealing techniques. "That seems to be the kind of things [utilities] want," said Shearer. "They mainly want tangibles and they mainly want tools."
In addition to Umatilla, the other three initial participants are Coos-Curry Electric Cooperative, Consumers Power and Blachly-Lane County Cooperative Electric Association.
Coos-Curry's interest stems from its work with installation of air-to-air heat pumps, according to consumer services manager George McMullen. "We were doing some blower-door testing two years ago and picked up on the fact some of the ducts weren't sealed as well as we would've liked." For example, the utility found some improperly installed duct attachments on the main trunk system were coming loose.
Under the new program, McMullen said, Coos-Curry people will meet with interested consumers and assess their ductwork. If warranted, a local contractor will be brought in to do blower-door testing and make the necessary repairs. Utility personnel will inspect the finished work and give it a seal of approval. Duct-fixing typically costs from $150 to $450, McMullen said; Coos-Curry customers will have the option of a short-term utility loan, probably for 12 months and possibly at no interest. Coos-Curry also now requires sealed ductwork systems for all retrofit heat-pump installations with utility financing.
As an example of the local variations in the PNGC program, Blachly-Lane plans interest-free loans for duct work under $500 and low-interest loans for jobs between $500 and $1,000. Above that threshold, the utility has arranged for consumer financing with a local bank. Member services manager Joe McFadden estimated one-third of the utility's 3,000 residential customers have forced-air heating systems, and the duct program could reach 30 to 50 annually. If a customer has gas or propane heating, he said, "We'd probably convince them an electric heat pump is more efficient."
BPA's Thoughts on Transforming the Duct Market
Bonneville, along with other entities, is developing a market transformation proposal for the Northwest Energy Efficiency Alliance that would include a general awareness campaign for leaky ductwork as well as a certification element.
"The region ought to be dealing with duct-integrity programs across the board, not just retrofits," said Keating, citing the need for code upgrades and better practice in new construction. The first step is raising awareness.
"We have the technical aspects [of duct integrity] down really well," said BPA's Jackson. "It's the marketing of it, how do you get that to be mainstreamed in current practices. It remains to be seen what the best methodology for that is."
The proposed plan would focus on educating homeowners, home-buyers, real-estate agents, builders, HVAC and weatherization contractors--all the influential people for improved residential ducting, Jackson said.
"Research shows that people will gladly pay for better ductwork if they are informed about the costs and benefits," said a Sept. 11 memo prepared for BPA and EPRI by Pacific Sciences. "Many people have referred to it as a 'no brainer' after only a brief discussion."
A ductwork venture "has a lot of appeal as a market transformation approach," said Keating. "Because it pays back so easily for the homeowner it seems to be something that is self-supporting once they become aware."--Mark Ohrenschall and Jude Noland
Bonneville Power Administration and Pacific Northwest Generating Cooperative agree that leaky ductwork is a prime source of potential residential energy savings. But the two agencies differ in their approach (see related story above) and their opinions on Bonneville's efforts.
In brief, PNGC has criticized Bonneville's duct-integrity plans as potentially and inappropriately competing with the cooperative's duct-testing, sealing and balancing program. PNGC managing economist Phill Sher described the cooperative's venture as a "lower-cost, higher-value way to approach this market" than BPA's plans.
BPA officials, however, maintain the two initiatives are complementary, and that a regional duct-integrity market transformation venture will boost the market for PNGC's services.
At this point the PNGC and proposed market transformation initiatives appear to be proceeding separately, although prospects for collaboration of some kind have not been abandoned.
The spat kicked off with a Nov. 1 letter from PNGC general manager David Piper to Bonneville administrator Randy Hardy. Piper called BPA's duct-sealing work "a new, unnecessary and expensive duplication of our efforts." He cited a Sept. 11 memo--prepared by Pacific Sciences for BPA and the Electric Power Research Institute--on recommendations for a second phase of the Residential Duct Leakage Control Project. The memo recommended pilot programs in five cities in Washington and Oregon, with key elements of mass marketing (public awareness), informational training, technical training, contractor certification, program control and energy savings assessment.
In Piper's words, the memo "details a plan for developing new 'trademarks & logos,' newsletters, training and other promotional items to persuade our consumers and trade allies to seal up their heating ducts. As your research staff is aware, we are currently completing the same materials for a PNGC-sponsored program." Although stressing a belief in competition, Piper wrote, " . . . it makes little sense for us to have to compete with an entity, particularly a federal entity, that is funding its efforts with money that is derived--through BPA rates--from the very consumers we are seeking to serve. This appears to be the type of encroachment on private markets that Congress had in mind when it raised concerns" over Bonneville's Energy Services Business. He called on BPA to suspend its duct-sealing work.
In a Nov. 19 reply to Piper, BPA energy services vice president Terry Esvelt said the BPA/EPRI duct-sealing initiative is actually within the realm of Bonneville's market transformation activities--not its revenue-generating market development segment (formerly known as ESB). As such, it is not competitive with PNGC and could even be complementary, Esvelt wrote.
Many entities--including BPA, EPRI, Washington Water Power, Oregon Office of Energy and PNGC--"have all come to the conclusion that there are substantial efficiency improvements available through improved duct systems," Esvelt wrote. The potential energy-saving benefits are vast; Esvelt cited calculations that energy wasted in ducted systems around the region equals all the savings gained through Model Conservation Standards. The ongoing research referenced by Piper, he continued, is part of a larger effort to help determine whether duct-sealing is a suitable market transformation opportunity that could be funded by the Northwest Energy Efficiency Alliance. It encompasses new construction practices as well as retrofit applications.
"We don't believe our efforts in Market Transformation are competing with the PNGC initiative, but actually complements it," Esvelt wrote. "As the Market Transformation effort raises awareness of the problem and the solutions, it helps build the market for the PNGC [duct-sealing] services among consumers and may stimulate other utilities to seek out your approach . . . We hope that PNGC and Bonneville will work together along with the other interested parties to make this a regional success."
In reply, PNGC managing economist Phill Sher sent off a Dec. 20 letter to Esvelt, touting the generating cooperative's initiative and suggesting BPA should share information about the PNGC program.
"Our program . . . is an on-the-ground effort that will be cost-effective and produce quantifiable energy efficiency benefits. In short, our program will produce big results for a small price--saving consumers money, increasing comfort, and adding to consumer safety.
"PNGC is well situated to help achieve the results that BPA's duct-sealing program intends to foster," Sher continued. "If market transformation means expanding available information and opportunities to implement energy efficiency technology, we believe that sharing information about our program represents an attractive, low-cost way for Bonneville to further these goals."
BPA's Ken Keating in early January described the PNGC venture as "legitimate and a complement" to the proposed market-transformation duct-integrity program. But he disputed the generating cooperative's contention of unfair competition. "We are certainly not in the duct-sealing business," he said.
Although PNGC officials believe the BPA rate-based approach is not sufficiently market-driven, "We disagree fairly strongly," Keating said. "We feel a regional effort to build awareness of the problem and awareness of the solution will help anybody that's in the business." Once awareness grows, duct-repair services will need to be available, he noted--and those services will almost surely be provided by retail utilities and private contractors.--Mark Ohrenschall
Attachment:
The Duct Letters Between BPA, PNGC
You open your electric bill. You discover through a graphic that your consumption ranks well above the norm for similar homes in your area. You fret. You chat with your neighbors. You contact your electric utility and learn about ways to make your home more energy-efficient. You follow the suggestions. Your power consumption drops to average or below average. Your bill is lower. You recover your investment in short order. You smile. You decide that, even if you do have a choice of electric suppliers, you like your current utility provider just fine.
This is a scenario--admittedly ideal--for a new billing program under consideration by Portland General Electric.
PGE late last year signed a memorandum of agreement to participate in the Energy Star Billing program, a voluntary Environmental Protection Agency initiative in which utilities add comparative information on electric consumption to customer bills. The goal is to stimulate people to pursue energy efficiencies--and to provide utilities a customer-service tool for the competitive age.
PGE officials have not yet committed to offering Energy Star Billing, pending customer and internal research. The program is "not imminent in the marketplace, but if our customers give us a real positive feedback on it it's likely" to happen, said PGE's John McLain. He is cautiously optimistic many customers will want to know their relative energy use. The next question: For a price? "If the customers are willing to pay something, a buck or two or three a month, we have a much more likely chance of this going forward. It depends on what the customer . . . perceives as the value of the information."
Although the utility's interest here is stimulating energy efficiencies rather than making money, Portland General still wants to minimize rate-based conservation spending. PGE prides itself on low-cost conservation, McLain noted, and Energy Star Billing, with its modest expenses, fits with that emphasis. "We hope to have an answer [on implementation] in a few months," he said.
EPA unveiled Energy Star Billing in late 1995, according to Energy Star Homes program manager Sam Rashkin. This national initiative sprang from the notion that utilities regularly deliver "bad news" to their customers in the form of bills for an intangible product. Energy Star Billing offers a positive spin on the bill--and another way for utilities to connect with their customers.
Many utilities already include self-comparisons on customer bills, Rashkin noted, but Energy Star Billing takes the idea much further. It matches a customer's energy consumption against a group of similar homes--based on block, neighborhood, service territory, all-electric or any other appropriate means of comparison. Now, said Rashkin, "The whole orientation of the bill changes." Customers at the low end are happy to learn they have an energy-efficient home. Customers with high consumption, meanwhile, gain an opportunity to improve their home's efficiency.
"The key thing is, instead of a utility marketing [approach], we're having kind of a pull effect," said Rashkin. "If customers have good information, hopefully they're going to demand [utility] services."
And those services will thus be based on consumer demand, he added. "We like market-based programs that don't undermine the value of efficiency through rebates but actually promote them with smart consumer decisions."
Energy Information Services
To date, only two utilities in the nation have officially signed up for Energy Star Billing: Traer Municipal Utilities in Iowa and the city of Azusa in Southern California. Traer, the pioneer, has found the program to be low-cost [less than $6,000 to implement], relatively simple administratively and popular with customers, according to Public Power magazine's September/October 1996 issue.
"What we found was that customers really like it," said Willett Kempton, a senior policy scientist with the Center for Energy and Environmental Policy at the University of Delaware. He oversaw interviews with some of Traer's 1,000-plus customers. "People said, 'We like getting this type of information. It suggests our utility is really a step ahead of some of the others and is looking out for their customers.' We got very positive reactions."
Although it is too early to accurately determine energy savings in Traer, Kempton estimates Energy Star Billing will lead participating customers to reduce their consumption anywhere from .5 to 2 percent. He cited Scandinavian pilot programs in which customers simply received more frequent electric bills and meter readings; the attributed energy savings came to 5 percent in Finland and 10 percent in Norway.
Energy information services are likely to grow in importance for utilities, Kempton wrote in a 1995 strategic memo for E Source. "Providing residential customers with useful information about how they use energy may become crucial to keeping those customers happy--or to keeping them at all--as the utility industry becomes more competitive," he wrote. "Bills can be vehicles for demonstrating value and for proving that utilities have their customers' interests at heart . . . More analysis on energy bills (and additional information services such as annual reports) is a likely trend of the future, given the history of other industries that have competitively restructured--notably telecommunications."
Based on a 1986-87 study of 54 New Jersey electric customers, Kempton estimates about 40 percent of all customers actively attempt to better understand their energy use and expenditures--although they commonly make analytical errors. The study findings "suggests that comparisons are what most customers really care about--comparisons with one's own past usage and with that of one's neighbors." However, he noted, few utilities have effectively provided these comparisons.
Kempton writes there is "some evidence that better-informed customers tend to save energy or reduce peak usage." Although evaluation data is admittedly sparse, " . . . some pilot energy information services have achieved measured energy usage savings of up to 13 percent with cost of conserved energy as low as 1 cent per kWh. On the other hand, in a few cases, little or no measured savings whatsoever have resulted from energy information services."
PGE's Considerations
As PGE conducts focus groups with customers on the Energy Star Billing program, the utility will try to answer two basic questions: Will customers respond to information? And what is the added credibility of the Energy Star logo? McLain believes "the odds of [a favorable] customer response are pretty high." PGE also needs to calculate the costs to the utility of changing its billing system to add comparative information.
The cost of reprogramming computerized billing systems depends on the system, Kempton said. However, he added, that expense can be minimized if Energy Star Billing is incorporated into a utility's billing software revision cycle. He said it typically costs 1 to 2 cents per customer per month to add an additional page to a bill, for paper and printing costs. If, however, a utility chooses to incorporate Energy Star Billing on an existing page, the extra cost is just ink.
Surveys have shown people are willing to pay between 50 cents and $1 per month for added information on their electric bills, which is "many, many times more than the cost to provide that information," Kempton said.
Although stressing no final decision has been made, McLain said PGE most likely would start the program among its 600,000 residential customers. The utility also is considering Energy Star Billing for its 49,000 or so smaller commercial customers--those who lack in-house energy managers.
In addition to the idea of providing comparative data, PGE officials are mulling the concept of giving customers a utility hotline number or some other means of accessing detailed information on potential energy-saving solutions. "It'd be nice to be able to give people as specific help as you can," said PGE's Al Pierce. "They usually get generalities anyway in the bill inserts."
"The idea is, 'Call and let's get a dialogue,'" said McLain. "This has been going on for 20 years, with energy audits . . . [but] we've never used the information feedback to stimulate this discussion."--Mark Ohrenschall
Attachments:
Corporate maneuverings in Texas, California and Florida in recent weeks have changed the landscape for renewable energy in the Pacific Northwest.
A chain of events unfolding around Houston-based energy conglomerate Enron has sustained what would be Oregon's first commercial-scale wind-energy project--and, in the longer perspective, brought into play substantial resources for green power in the Northwest and elsewhere.
"There's been a lot of movement here in the last couple of months," noted Jeff King, senior resource analyst for the Northwest Power Planning Council.
First in this dynamic scenario was the early December announcement that Portland General Electric had signed a 30-year agreement with Zond Development Corp. to purchase power from the proposed 24.9-megawatt-capacity Vansycle Ridge wind-energy project in northeastern Oregon's Umatilla County.
Barely a month later, on Jan. 6, Enron announced its acquisition of Zond, along with the formation of a new business unit, Enron Renewable Energy Corp.
Meanwhile, Enron and PGE are continuing with their merger plans, which now include a formal commitment to renewables development (see related story at the beginning of this issue). However, if Enron were to pursue the Vansycle Ridge project, questions could be raised about improper affiliate transactions, according to Enron spokeswoman Carol Hensley. Consequently Zond assigned its 50-percent ownership interest in the project to the other 50-percent owner--ESI Energy, a subsidiary of FPL Group, holding company for Florida Power & Light.
So . . . Oregon's most advanced commercial wind-energy project is now owned by a Florida firm, and its largest investor-owned utility is planning to join forces with an energy giant that has avowed its commitment to renewables.
What Does It All Mean?
The Enron connection bodes well for renewables, believes Rachel Shimshak of Renewable Northwest Project. "They wouldn't have jointly signed the PGE MOU [memorandum of understanding], they wouldn't have bought Zond and they wouldn't be investing in solar if they didn't think there was a future for renewables in the market," she said. "Enron's a pretty smart company, and I think it's important to watch their moves as a signal."
A cynic might suggest Enron's purchase of Zond is really meant to remove the wind company from competition and enhance Enron's natural-gas interests, King said. But in a more positive view, he noted, "The Zond acquisition establishes a wind company with really deep pockets, which is something that hasn't existed in the United States . . . I think it can make a difference in terms of financing projects" as well as research and development.
Enron's moves also have received praise from the American Wind Energy Association. "Enron is one of the most aggressive and strategic-minded players in the energy market," said AWEA. "Clearly, Enron sees renewable energy as a necessary component of their operations--a component which will give them a competitive edge in tomorrow's electricity market where consumers will be able to choose their power suppliers."
AWEA executive director Randy Swisher echoed King's comment about Enron's financial strength. "Wind companies are typically small and undercapitalized and have lacked the financial resources that will be necessary to aggressively engage the emerging retail electric power market," Swisher said. "Enron . . . realizes the great potential this small industry possesses." With Enron's backing, Zond can now "more aggressively" seek work both domestically and internationally, while Enron "will benefit by adding a new component to its business that will certainly be advantageous in the era of customer choice and growing worldwide concern about the environment."
Who Are These Guys?
So . . . Who are these guys with such a suddenly influential position for Northwest renewables?
Enron, of course, is becoming well-known in Oregon and the region as a prospective partner with PGE, but the company is truly worldwide in scope. With assets of about $15 billion, Enron touts itself as "one of the world's largest integrated natural gas and electricity companies." It has substantial interests in natural gas transmission (the second-largest such system in the world), purchasing and marketing; electricity marketing (the largest non-regulated power marketer in North America); oil and gas exploration and production; and development, ownership and management of electric power plants.
Now Enron is looking beyond fossil fuels. "Renewable energy will capture a significant share of the world energy market over the next 20 years, and Enron intends to be a world leader in this very important market," said company chairman and chief executive officer Kenneth Lay in announcing the Zond acquisition. "We believe wind energy is one of the most competitive renewable energy resources, and we believe this acquisition clearly positions Enron as a leader in this business."
Hensley said her firm's purchase of Zond "is really based on the growth of the renewable energy industry in the future . . . We're excited about their capabilities, their technologies, their proven . . . experience in the U.S. and overseas." She also noted Enron is a 50-50 partner with Amoco in Amoco/Enron Solar, which the company described as "the largest U.S.-owned producer of solar photovoltaic cells and the second largest worldwide."
Asked about Enron's specific renewable plans for the Northwest, Hensley said, "I'm not aware of any . . . not any to speak of at this time." But in the MOU signed by PGE, Enron and public-interest groups (see story above), Portland General committed to acquisition of at least 25 MW of wind and 22.5 average megawatts of geothermal energy.
Enron's new renewables subsidiary, Zond, is one of the leading integrated wind-energy companies in the nation. The Tehachapi, CA-based firm manufactures wind turbines and also develops and operates wind farms. It has, according to Enron, installed and operated more than 2,400 wind turbines totalling 260 MW capacity.
"We view our purchase by Enron as being very beneficial to our company," said Zond's Hap Boyd. "They're a wonderful, well-managed company." Zond plans to "ride on their [Enron's] coattails" in seeking wind projects around the world, he added.
Vansycle Ridge
In the Northwest, Boyd said Zond anticipates active involvement in the Vansycle Ridge project even though it no longer has an ownership interest: "We would hope we would supply the turbines and be the operator." ESI Energy spokesman Dale Thomas confirmed that "Zond's going to still play some role," although the specifics are undetermined.
The proposed wind-farm site lies along a northwest-southeast ridge very near the point in northeastern Oregon where the Columbia River swings westward toward the Pacific Ocean. Dryland wheat now grows on the land, according to Umatilla County planner Ann Beier. King's calculations show the site has "pretty good wind" resources, although he didn't have specific numbers.
Zond had been shooting for a late 1998 operations start for Vansycle Ridge, a date ESI's Thomas believes is still accurate. Permitting work is in the early stages.
If Zond does eventually develop Vansycle Ridge, Boyd said the company would most likely use its Z-46 technology, a variable-speed turbine with a 46-meter diameter sweep capable of spinning out 750 kilowatts. Kenetech also relied on variable-speed technology, which encountered technical problems that reportedly contributed to the company's downfall. But Boyd said Zond's design philosophy will result in a "a bigger, beefier machine . . . We feel strength is important, because downtime in the wind-energy business costs you a lot. You can't control when the wind blows [and consequently] you have to be available to operate when the wind's blowing." Zond plants in California average 97-percent availability, he noted.
On the critical issue of cost--perhaps wind-power's greatest liability in the competitive energy marketplace--Zond figures it can now produce power for less than 5 cents per kilowatt-hour. This figure includes a 1.5 cents/KWh federal production tax credit. Boyd didn't have a specific projection for Vansycle Ridge.
As for any further plans here, "We have no specific projects now in the Northwest, but we're always interested in that region," said Boyd. "We think it has wonderful wind resources and also has a populace that values renewable resources." He added: "We're eager to do business any place we can. We think wind energy is on the verge of becoming a very cost-effective technology. We'd like to spread the wind gospel."
The new owner of the Vansycle Ridge project, ESI Energy, also is bullish on the wind. "ESI's purpose is to invest in renewable energy projects and to make money off of them, obviously. Anything that looks like a good investment . . . this was one of them," said spokesman Thomas. Asked about the specific attractions of Vansycle Ridge, he cited "the opportunity to earn a profit" and the power-purchase agreement with PGE.
ESI's portfolio includes partial ownership of nine California wind-energy projects with total capacity of slightly more than 375 MW. The Florida-based enterprise also has investments in natural gas, waste fuel, geothermal, solar and oil plants--a total of 27 alternative-energy projects altogether, representing 1,900 MW of capacity, according to ESI. It bills itself as one of the largest utility-affiliated independent energy producers in the nation.
It, too, has substantial financial resources to tap. Its owner, FPL Group, is the holding company for Florida Power & Light, an investor-owned utility that serves half of Florida's 14 million residents. In 1995 FPL Group rang up total revenues of $5.5 billion, and reported total assets of $12.4 billion.
Asked about further ESI interest in the Northwest beyond Vansycle Ridge, Thomas said, "We prefer not to speculate on the future and/or our business plans."--Mark Ohrenschall
The Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission have approved Washington Water Power's request to extend its DSM surcharge for another three years.
First implemented two years ago, the charge is expected to generate about $5 million annually for the next three years, the company said. It is applied on a percentage basis to all retail electric sales except for pre-existing special contracts. It costs the average Washington residential electric customer about 81 cents per month and the average Idaho residential electric customer about 80 cents per month.
The extended surcharge covers the cost of three residential and seven commercial and industrial energy efficiency programs, as well as Water Power's involvement in the Northwest Energy Efficiency Alliance. Twenty percent of the collected revenue will be earmarked for Water Power's NEEA participation.
In addition, Water Power has announced a new program, Energy 2000, an alternative funding mechanism to promote and encourage residential and commercial customers to use new product technologies.--Jude Noland
Customers of Washington Water Power Energy Solutions now have the option of receiving some services via the Internet. The energy services company recently introduced Solutions On-Line, through which customers can access real-time metering, resource analysis and consolidated billing information via the Net.
"It's a way to take advantage of technology and communicate easily with our customers throughout the U.S.," said product manager Janna Genzberger. "It also alleviates the paper shuffle."
Any customer who signs up with WWP Energy Solutions has the option of using Solutions On-Line to receive information on any or all of its domestic sites. Marketing manager Teri Orr said WWP Energy Solutions can customize Solutions On-Line to meet an individual customer's needs. In addition, the information can be updated according to customer needs; for example, new real-time metering information can be available as often as every five minutes. Customers can also receive resource accounting information from a centralized database that includes all of the customer's facilities and sites.
No one other than the individual customer can access the Solutions On-Line information. "To get on, you need a company name and password," Genzberger said. She added that customers have the option of changing their name and password at will, as an additional security measure.
So far, one WWP Energy Solutions customer is making full use of Solutions On-Line, according to Genzberger. Four others are getting set up for the on-line service--providing historical billing information and other data that must be entered on the computer--and several more are in contract negotiations.--Jude Noland
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