THIS THIRD EDITION of Con.WEB covers a broad spectrum of issues, from the latest regional figures on energy savings to the debut of a much-anticipated market transformation lighting program to the way in which one utility is wrestling with renewable resources.
We invite you to scroll through these and other reports on energy conservation, energy efficiency, demand-side management and renewables in the greater Pacific Northwest. And for those who want details, check out the assorted links within the stories.
Finally, we encourage you to share with us via e-mail (marko@newsdata.com) comments or other thoughts.
Pacific Northwest utilities conserved an estimated 120 average megawatts in 1995, according to preliminary figures from the Northwest Power Planning Council, bringing the region's utility conservation total since 1978 to nearly 1,000 aMW-equivalent to the annual energy produced by four natural gas-fired combustion turbines. But before the back-patting gets too vigorous, it should be noted that regional conservation numbers appear to be starting a prolonged decline: the Council forecasts 70 aMW in 1996 and 1997 and 60 aMW in 1998 and 1999.
These are among the key findings in the Council's new Green Book, which offers a wealth of data on Northwest utility conservation.
The 1995 projections-based on a utility survey near year's end-should about equal 1994 acquisitions of 121.4 aMW, which in turn is down slightly from the 1993 historical peak of 135.7 aMW. It's highly unlikely that pinnacle will be matched or exceeded anytime soon, based on the projected 1996-1999 numbers utilities provided to the Council. "The Council recognizes that economic forces in the electricity marketplace are making conservation more difficult to pursue as a utility resource investment," acknowledged Council chairman John Etchart in a foreword to the Green Book. "As would be expected with lower avoided costs, future savings are expected to be only about half the 1994-95 level." Yet Etchart asserted that previous regional successes partially account for the diminished prospects ahead-and that conservation still remains attractive as a customer service for utilities.
This latest edition of the Green Book also puts Northwest energy-saving numbers into sharp historical perspective. The regional total of first-year savings since 1978 (875.9 aMW officially through 1994, plus the expected 120 aMW or so last year) accrued over the years in the shape of a roller coaster. Peaks were scaled in 1983, 1988 and 1993, based largely on regional resource needs; valleys bottomed out in 1985, 1991 and . . . ?
While many conservation advocates lament the current retreat from ambitious energy-saving endeavors, Council conservation analyst Jim Nybo suggests the future is actually fuzzy. "History says to me we don't know where [conservation is] going to be five years from now. It may be the role of utilities five years from now is very different from where it has been the last decade. It doesn't say to me we know there won't be much conservation in the year 2001."
We do know that, from 1978 through 1994, Bonneville Power Administration programs (direct and for smaller public utilities) led the region with 351.5 aMW of savings. Puget Sound Power & Light showed the way among retail and investor-owned utilities, acquiring 182.3 aMW, while Seattle City Light topped the large public utilities with 49.5 aMW. The residential sector accounted for nearly half the regional total (425.8 aMW), followed by commercial (238.9 aMW), industrial (189.2 aMW) and agricultural (22 aMW). And the region spent about $950 million on conservation from 1991 through 1994.
To get the printed summary edition of the Green Book-which includes important notes on methodologies and cautions in using the data-or a more detailed electronic version, call the NWPPC at 1-800-222-3355.-Mark Ohrenschall
The major point of contention in proposed power sales contracts between Bonneville Power Administration and its public utility customers has been removed: earlier this month, BPA decided to eliminate the so-called conservation backstop provision from proposed amendments to the 1981 contracts.
Under the provision, if a public utility customer failed to acquire its allotted share of cost-effective regional conservation, Bonneville had to pick up the slack-and then bill the delinquent utility for it. Most of Bonneville's public utility customers objected to the provision, saying it was based on outdated conservation reinvention agreements and acquisition goals. Bonneville, however, was concerned the Northwest Power Planning Council might accuse BPA of reneging on its commitment to conservation under the Pacific Northwest Electric Power Planning and Conservation Act if the agency deleted the provision.
A Feb. 27 letter from Council chairman John Etchart to BPA administrator Randy Hardy put the agency at ease. Etchart wrote that although the Council believes conservation is an important resource and the guidelines of the regional act must be followed, it also believes it is not "possible for Bonneville to fulfill its commitment to provide additional support to 'backstop' utility efforts to meet conservation goals."
The letter also suggests BPA could satisfy its obligations by working with the regional energy review to identify and implement means to develop conservation that is regionally cost-effective in a competitive electricity market; maintaining its commitment to spend $15 million annually over the next five years--or until a "workable mechanism is established"for market transformation; and by helping to develop and implement means for assessing and tracking conservation implementation.
BPA has agreed to the Council's suggestions, said Howard Perry, BPA conservation and energy services manager. Although the agency is not in a resource acquisition mode, Perry said Bonneville will continue to acquire average megawatts--about 100 of them through the year 2003, in fact--under a number of existing conservation agreements. "The Council's letter clearly stated as an assumption that we would maintain those, and we are agreeing that we will to the extent that it's financially possible." Perry also expects building codes to produce another 100 aMW of regional conservation. And "there's a significant flywheel effect" from past BPA programs.
At least one organization, the Northwest Conservation Act Coalition, isn't sure that will be enough. Although executive director Sara Patton said NCAC is pleased to see BPA now agrees market forces won't deliver all cost-effective conservation, "Taking the conservation backstop out is totally inappropriate." Federal, state and utility funding for conservation is going away, Patton said, and is not being replaced. "We're excited about getting [conservation] more cheaply, but this won't meet regional goals."
Patton also said she doubted Bonneville "can make a case that it's meeting the letter or spirit of the [regional] act" with the new approach. But Dick Watson, the Council's power planning director, said the act only requires Bonneville to acquire conservation when it's acquiring other resources to meet load. "The legal requirement in other conditions is questionable."-Jude Noland
Compact fluorescent light bulbs of high quality and low price are spreading into Northwest retail stores, through a new regional collaborative program intended to transform the market for energy-efficient lighting. Despite some initial glitches, program organizers report substantial consumer interest since the bulbs appeared in February-along with early indications the market is being nudged, if not yet revolutionized.
The LightSaver program centers on a $5 per-bulb rebate to participating manufacturers, paid by sponsoring utilities. That, in turn, has helped drop retail prices to the range of $8 to $12, roughly half the typical cost for energy-saving CFs. The average LightSaver retail price of between $8 and $9 is "very competitive with comparable bulbs," said program administrator Jody Moore.
Compact fluorescent bulbs such as these are available to Northwesterners through LightSaver.
Eventually, organizers hope to carve out a permanent and substantial niche for CFs in the region. "If we create enough demand, the normal market forces [will come into play] and prices will come down," said Seattle City Light's Anne Ducey. "Customers want to see a low price right away, and we hope eventually that will create sales."
As of the end of February more than 30,000 LightSaver bulbs had been shipped to large retailers, predominantly in the Interstate 5 corridor of Washington and Oregon. Moore expects the lights to begin appearing this spring in smaller retail outlets throughout the region. LightSaver's 1996 goal is 185,000 distributed bulbs.
Early sales information, though incomplete, appears encouraging. More than 1,800 bulbs were sold at Eagle Hardware & Garden outlets by March 1. In Seattle City Light's service territory, Ducey reported one Fred Meyer store sold 500 LightSaver bulbs in a weekend. "The customers are very, very interested in buying the bulbs," she said. City Light has actively promoted LightSaver through a bill stuffer, an article in the Lighting Design Lab's quarterly newsletter and at the Seattle Home Show. An estimated 500 people have called the utility inquiring about LightSaver.
And in a sign that LightSaver is already influencing the CF market, at least one other lighting manufacturer, Philips, is pushing a competing bulb, according to Moore.
Still, both Ducey and Moore acknowledged some initial difficulties with the program. One of the two participating manufacturers, Osram Sylvania, failed to meet its initial distribution quota. At the retail level, meanwhile, LightSaver bulbs are getting unequal treatment. The Seattle Eagle store, for example, has set up a prominent and plentiful LightSaver display on a main thoroughfare at the entrance to its lighting section. It carries three Lights of America CF models, ranging from 13 to 30 watts, priced at $8.99 apiece. At another Seattle-area retailer, however, the skimpy LightSaver display is crammed on a shelf between fluorescent tube lamps and lighting accessories off a dimly lit aisle in the electrical section far back in the store. This store also mislabeled the price on one model as $19.99.
Ducey considers these "typical bugs" for new programs, especially a novel one like LightSaver. A request-for-proposals for a second LightSaver distribution round is planned to go out in May.-Mark Ohrenschall
The Snohomish County PUD has decided not to purchase power from Kenetech's proposed Columbia Hills wind-energy project in south-central Washington. But the PUD's board is looking at other ways the utility might promote renewable resources, including asking customers if they'd be willing to commit one dollar per month to renewable resource purchases.
At its March 12 meeting, commissioners asked PUD staff to come up with information on what it would take to develop two ballot measures. One would ask customers if the PUD should earmark funds for renewable resources. Commissioner Kathy Vaughn initially suggested the board explore the idea of setting aside $2.75 million of the PUD's annual budget-about one dollar per customer per month-specifically for renewable resources. Commissioner Peter Newland later offered the surcharge as an alternative approach and recommended the board consider putting the concept on an advisory ballot.
The decision to ask for more information on mounting an advisory ballot resulted from the board's Feb. 27 vote against participation in Columbia Hills. Energy costs for the wind-generation project-about twice the cost of power from Bonneville Power Administration-as well as contract length and concern about the financial health of developer Kenetech were behind the board's decision. But to show the PUD was not abandoning renewables, the board asked staff to develop other options.
The staff's March 12 briefing on encouraging renewables and providing customer choice led the board to ask for information on having customers vote on the issue. The staff proposals included developing options for purchasing wind power from other sources, setting a specific renewables budget earmarked for environmental projects or renewable resources, acquiring information on the actual sources of power the PUD purchases in the market, and developing a program to aggressively sell renewables to customers.
But the staff briefing paper concluded by requesting the board clarify its goals for encouraging renewables, transitioning to a cleaner resource portfolio and providing customer choice. Given that request and the range of options presented, it made more sense to assess the customers' position before going much further. "The board wanted to make sure customers want [them] to do this," Snohomish general manager Dick Johnson said. And, again, the commissioners haven't decided to put the renewables issue to a vote; they've simply asked for information on how to do so.
As for Kenetech's Columbia Hills project, Portland General Electric and PacifiCorp are still involved in the 30-megawatt project and it will go ahead as planned, according to Barrett Stambler, Kenetech's vice president of business development. He added that Kenetech is a "resilient company."
Kenetech's difficulties started with a February 1995 Federal Energy Regulatory Commission decision that essentially rescinded 945 MW of California wind projects worth millions of dollars. That prompted significant drops in the company's stock price and downgrading of Kenetech's credit rating from several securities analysts. In addition, there have been reports of technical difficulties with Kenetech's latest generation of variable-speed turbines. -Jude Noland
Residential weatherization benefits a homeowner by lowering energy bills, increasing comfort
and improving a home's appearance and resale value. And, as Clark Public Utilities
is finding, many people are willing to pay good money to reap these benefits.
Clark's revamped residential weatherization program
now offers a five-year interest-free loan to homeowners for insulation, air sealing, ventilation, windows and patio doors. The average cost for
such a job is $3,770. Although contractors report some fall-off in customer interest from Clark's
previous rebate/loan combination program-one contractor estimated a 20-percent
decline-weatherization still thrives in the fast-growing Washington county just north of Portland. "It's one of our most
popular programs and it's politically very popular," said energy management services manager
Warren Cook. And, not least, it costs Clark just .8 cents/kilowatt-hour as a conservation resource.
Clark has a long history in weatherization; the utility has improved the efficiency of some
35,000 homes since 1981. But at one point earlier this decade, home energy audits outnumbered
completed weatherization jobs roughly two to one, so the utility surveyed 1,200 non-participants to find out
why. "They all said they didn't have any money," said Cook. "It didn't matter how much you gave
them, they didn't have the other part." In 1994, CPU introduced three-year interest-free loans to
complement 60-percent rebates from Bonneville Power Administration. Then, after BPA funding ran out
last October, Clark switched to the all-loan program. "The big hurdle [for the customer] must be the
money today, not the money over time," Cook said.
Contractors play a vital role in Clark's weatherization program. Participating contractors
audit homes, prepare bids and, when selected, complete the work. They are paid by the utility based on
average costs. Over the years Clark's weatherization contractor list has shrunk substantially; as of
January, the list was down to nine. "We have had some contractors who didn't want to do the audit," said
Cook of recent attrition. "Equal treatment [of customers] means unequal satisfaction . . . What we really
want to do is treat everybody different." One contractor, Michael Richart, noted Clark sets high
performance standards for weatherization-in contrast to much of the new construction market. "That's why
there's only a few contractors in utility programs," he said.
Richart and other Clark contractors say windows are the most popular item, despite the fact
they're on the higher end of costs for energy savings gained. They do, however, add to a home's value
and appearance and increase comfort, said contractor Bob McCullough. And Clark does require
minimum insulation levels before approving window loans. Sealing air leaks and improving insulation are
other favored measures. "We emphasize the air-sealing portion right off the bat," said Craig Frantz of
Taseca Homes. "It's one of the best-spent dollars."
Clark plans to offer weatherization services well into the future. "We're in [weatherization] for
the long term," concluded Cook. "Customers like
it."-Mark Ohrenschall
The Washington State Energy Office has released a study on the regional costs of conservation
measures for new residential construction. The study-funded by Bonneville Power Administration
and developed with the help of an advisory group-provides information that utilities, builders,
government agencies and others can use to determine the costs of meeting different energy-efficiency
standards. Co-author and WSEO staffer Mike Lubliner said the data can also be incorporated into
the WATTSUN computer program to determine first-cost impacts, life-cycle cost optimization and
cash-flow analyses of different measures.
Among the study's more surprising findings, Lubliner said, are the minimal costs associated
with
moving home heating system ducts from the crawl space to the heated space, the cost-effectiveness
of stress-skin foam panels compared to double-wall construction, and the fact that many LongTerm
Super Good Cents conservation measures have become current construction practice. For copies of the
study, call Mike Lubliner at (360) 956-2052 or Andy Gordon at (360)
956-2046.-Jude Noland
Oregon Siting Council Issues Site Certificate The Oregon Energy Facility Siting Council has issued a site certificate for the proposed
Newberry Crater geothermal project. With the recent resolution of two legal challenges to the project, the March
7 issuance of the site certificate gives developer CE Exploration clearance to start construction of
the $100 million, 30-megawatt facility, which will be built near the Newberry National Volcanic
Monument northeast of La Pine.
Bonneville Power Administration signed a power purchase agreement for Newberry's output
in 1994; 10 MW will be credited to Eugene Water and Electric Board as a billing credits project. CE
Exploration will finance, build and own the facility, which is projected to go on line in
November 1997.-Jude Noland
The city of Portland's Businesses for an Environmentally Sustainable Tomorrow (BEST)
program has been named one of 25 winners nationally in the Renew America National Awards for
Environmental Sustainability. BEST, which provides assistance and recognition for Portland-area businesses
seeking to improve their resource efficiency, was selected from among more than 1,600 applicants
nationwide. The program will be listed with other winners in Renew America's Environmental Success Index.
BEST also announces its fourth annual BEST Business Awards, given to businesses that use
innovative and successful approaches to save energy, conserve water, reduce waste and foster
alternative transportation. The awards will be presented at a breakfast Friday, April 19, at the Benson Hotel
in Portland. For more information, call the Portland Energy Office, (503) 823-7222, or send an e-mail: pdxnrg@teleport.com.
For its significant work in promoting the development and deployment of
resource-efficient clothes washers,
Seattle City Light was honored March 1 with an End Use Leadership Award from
the Electric Power Research Institute.
The EPRI award recognizes City Light's leading role in local, regional and national utility
research and program planning collaboratives; its activities in federal standard-setting processes for
clothes washers; and its promotion of efficient washers through trade publications (see Conservation Monitor, April 1995),
public displays, national conferences and lobbying efforts. Resource-efficient
washers, commonly known as horizontal-axis machines, offer 50 to 60 percent savings in electricity
consumption and 30 to 40 percent savings in water use, along with reduced wastewater and detergent use
and better cleaning performance.
A comprehensive database of green building products is now available from Eugene-based
Iris Communications. REDI 96 identifies companies that offer products with recycled content, energy
and water savings, low toxicity and indoor air quality benefits. The database is available from Iris in
print and disk forms ($49); call (541) 484-9353, or e-mail iris@irisinc.com. REDI 96 is also offered free on the World Wide Web.
B.C. Hydro presented 24
Power Smart awards Feb. 21 for outstanding energy-efficiency efforts
in British Columbia. Awards were presented in a Vancouver ceremony to businesses and individuals in
the categories of new building design, building improvements, Power Smart new homes, home
improvements and industrial.
Con.WEB is a World Wide Web publication focusing on energy conservation and
renewable energy in the greater Pacific Northwest.
Con.WEB is sponsored by Eugene Water &
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E-MAIL-iod@newsdata.com. Con.WEB was created by the Energy NewsData Web
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Editorial Operations and Webmaster-Karen Hatch; General Manager-Brooke Dickinson;
Office Manager-Denise Lee; Production Assistant-Michael Katayama;
Administrative Assistant-Christina Smith; Graphic Design-Katherine Whitehall
Last modified: March 25, 1996
Weatherization Loans Pay off
Clark Customers Willing to Pay Good Money
for Benefits of Weatherization
WSEO Study Details Conservation Costs
in New Residential Construction
for Newberry Crater Geothermal Project
Portland's BEST Program Wins Nationally, Awards Locally
Seattle City Light Puts Good Spin
on Resource-Efficient Washing Machines
Database of Green Building Products
Available in Print, Disk and Web Versions
B.C. Hydro Presents
24 Power Smart Awards
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