CWEB.005/May.24.96
CWEB.005/May.24.96
ENERGY CONSERVATION and renewable resources are happening all over the Pacific Northwest, as this fifth issue of Con.WEB illustrates. Far from the big cities, the Conservation and Renewable Energy System (CARES), a consortium of eight predominantly rural Washington PUDs, has achieved considerable success at saving energy--despite a recent conflict with Bonneville Power Administration over a performance bonus. In this issue we also venture through cyberspace to Silver City, Idaho, high in the mountains near Boise, to report on that community's extensive use of solar photovoltaic power. For some rural/urban balance, we also profile Portland General Electric's Earth Smart commercial program. And, we also bid farewell to the Washington State Energy Office--which is closing June 30--with stories on its demise and its accomplishments, and where you will be able to find many of its services and programs elsewhere in state government. And, not least, Washington Water Power has unveiled a new non-regulated subsidiary to provide "customer-focused energy solutions."
As always, we invite you to scroll through our publication, and to explore the many links to other sites for added information. Please feel free to share your thoughts with us via e-mail (marko@newsdata.com) on Con.WEB, or Northwest conservation and renewables.
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In 1992, a group of seven Washington public utility districts set out to show that collaboration could succeed in conservation. They were right.
The Conservation and Renewable Energy System (CARES), a consortium now of eight PUDs, surpassed all expectations in its first two years, nearly tripling its energy-saving goals while coming in under budget and at a cut-rate overall cost of .9 cents per kilowatt-hour saved.
However, the fine work of CARES in fiscal years 1994 and 1995 has been clouded in recent months by a protracted dispute with Bonneville Power Administration over a performance incentive BPA owes to CARES under the terms of their 1993 conservation acquisition deal (see Conservation Monitor, October 1993). The squabbling ended in mid-April with a settlement agreement: CARES will receive a $4.85 million bonus, a two-year extension (through FY 1999) of its BPA-backed bond financing, and the ability to make consumer loans, while BPA will get $1 million-plus in bond interest and relief from paying any future such bonuses.
By all accounts, negotiations leading to the settlement were difficult. "It was very frustrating for CARES, and CARES members were very disappointed to be in the dispute," acknowledged Mike Burnett, the joint operating agency's managing director. For FY 1994 and 1995, CARES reported energy savings of 14.7 average megawatts (the target was 5.1 aMW) on spending or obligations of $18.2 million. Based on their contract readings, CARES officials believed the group was due a bonus of more than $7 million. Bonneville officials agreed the CARES conservation numbers were very impressive, but they questioned, among other things, whether the $4.3 million of obligated-but-not-yet-spent funds should apply for counting energy savings under the performance review. In the end, according to BPA conservation/marketing vice president Terry Esvelt, the settlement bonus reflects about a doubling of CARES' performance target. "It's not as much calculated as it is negotiated," he said.
Despite the contractual strife, there is widespread agreement that CARES has achieved considerable success in its formative years. "My assessment is that it has worked exceedingly well," said Esvelt. "Their knowledge of the local markets, local needs and interests, was the selling point, and the incentive payment was the proof they did better" than anticipated.
Among other circumstances, CARES has taken advantage of its tax-exempt bond financing as well as program flexibilities. For example, Burnett said, CARES shifted about 11 percent of its total budget out of residential weatherization, a high-cost conservation program, into less expensive efforts. The agency's specific programs have included a saturation showerhead program for six of the eight CARES members (total cost: .7 cents/KWh) and numerous large and low-cost industrial efficiency projects (total cost: .6 cents/KWh). "I think the region should be quite pleased we've delivered so much conservation and we've been so effective in doing it," said Burnett. It confirms, he added, that public-power utilities can successfully run energy-saving programs.
Out in the member PUDs, conservationists appreciate the administrative streamlining afforded by CARES. "It just makes sense to develop a program once instead of eight times," said energy services manager Joanne Hansen of Grays Harbor PUD. She and Mark Hughey of Skamania PUD both like the fact CARES staff handles most interactions with BPA on behalf of member utilities. Hansen also cites the benefits of sharing information as well as money and other resources. And, not least, CARES has assured funding and programs through FY 1999, by which time Burnett expects the agency to have spent $35 million. "That's where CARES has an advantage . . . [It] gives us some vision where we're going with our conservation," said Skamania general manager Bill Yee.
The vision under which CARES was created has changed radically, Esvelt noted: BPA no longer needs any resources. And although this means the CARES model is unlikely to be replicated--at least with BPA--the real thing continues its substantial and effective conservation work.--Mark Ohrenschall
Washington Water Power has entered the electric industry's competitive fray for customers with WWP Energy Solutions, a non-regulated energy services company. The new company offers retail electric customers "a total package of customer-focused energy solutions," in WWP's words.
For starters, WWP Energy Solutions is concentrating on energy information systems, according to vice president Gerry Crook. That includes information on real-time energy demand and usage, as well as links to a customer's different facilities. Commercial and industrial customers with multiple sites are the most likely to benefit from this type of real-time information, Crook said. And although electric utilities traditionally have offered a variation of this service to commercial and industrial customers--primarily in the form of summary billing--Crook said WWP Energy Solutions will provide it to customers that have accounts with different electric (and gas) utilities.
Ultimately, WWP Energy Solutions will offer direct digital control systems as well. Other products and services from WWP Energy Solutions are resource accounting systems, energy-management services, technology assessment services, and natural gas and (with full retail deregulation) electric commodity management.
To develop its list of products, Crook said WWP people spent a lot of time talking with commercial and industrial customers and surveyed energy managers throughout the country. "They placed high value on these types of services," Crook said. And while WWP still offers a range of DSM programs to its commercial/industrial customers, "these are services outside what our utility would provide." In addition, some of the company's offerings aren't currently available "to groups outside our service area that need [them]."
Crook said WWP Energy Solutions customizes services to an individual customer's specific needs, rather than "walking in with some preconceived ideas." Energy Solutions develops a strategic plan for how energy enters into the customer's business and how it can "improve the way they use that product." And WWP Energy Solutions already has a number of customers--so far, all have locations within WWP's service area, but also outside that territory and within the region.
An example is U.S. Bank, which recently signed up with WWP Energy Solutions for energy- management services at 50 of its Northwest facilities. Initially, WWP Energy Solutions will provide U. S. Bank with resource accounting and strategic energy-planning services. These will be conducted at preselected U. S. Bank branches in different parts of the state, to provide analysts with a full range of energy-usage patterns. Resource accounting will identify the bank facilities that use the most energy, and those will then undergo additional analysis to determine potential areas of savings. The initial investigative phase is expected to take about two months. After that, U. S. Bank will have the option of expanding the program to other sites and signing up for other services offered by WWP Energy Solutions.--Jude Noland
The Washington State Energy Office, which has played a significant role in Northwest energy conservation over the past two decades, will cease to exist at the end of June. Although many WSEO functions will continue elsewhere, Washington state will no longer have a cabinet-level department focused exclusively on energy.
WSEO's demise was made official March 28, when Gov. Mike Lowry signed legislation to eliminate WSEO and transfer a number of its duties to other state agencies, principally the Washington State University Energy Extension Service. Long before that, however, a number of circumstances converged to jeopardize WSEO.
Politics ranks high on the list, according to numerous observers. Washington legislators as well as Lowry were intent on reducing state government, and WSEO stood out as an inviting target. It was large: 179 full-time positions at the 1993 peak (70 to 75 will remain in state government after June 30). It was not regulatory, nor did it deal directly with such clearly defined public interests as health, environment and
trade, according to WSEO director Judy Merchant. "There's no energy crisis," she said. "There is kind of this general public belief that the battle's been won." In the end, WSEO found itself politically embattled and unable to muster enough support to survive. "WSEO's constituency didn't agree that WSEO should survive," said longtime energy consultant David Baylon. Many officials of publicly owned utilities, according to Baylon, viewed the agency as a "blood-sucking leech," even though this opinion was "not necessarily based on a lot of facts." WSEO's prominent energy-code work earned it few friends in the building industry, he added. And WSEO questioned the conservation reinvention of
Bonneville Power Administration--one of the agency's main funding sources.
One of the great ironies of WSEO's closure and dispersal is that it will save very little state money. In fiscal year 1996, the state general fund provides $492,446 of WSEO's $17 million-plus budget, or roughly 3 percent. Among the biggest funders this year: BPA (26 percent); private and local sources (20 percent); other federal funds (16 percent); and oil-overcharge dollars (15 percent). Tom Eckman, conservation manager for the Northwest Power Planning Council, lamented the "absurdity" of the situation: "actually getting valuable services from a government entity that doesn't cost you anything and in fact brings in revenues from other locations to generate state income and improve the economic efficiency and competitiveness of state industry and reduce state costs by cutting energy budgets, not only of private-sector but public-sector buildings . . . In terms of net benefit, this'll probably cost the state."
In any case, WSEO leaves behind a considerable record of achievement and a national reputation for innovation. Merchant and others cite the agency's leading role in developing Washington's nationally recognized residential energy code. "It actually changed how houses are built," said Baylon. WSEO also gets credit for a number of influential energy software programs, including WATTSUN and MotorMaster. The Energy Ideas Clearinghouse, which will continue through WSU, is another WSEO legacy. So is the Manufactured Housing Acquisition Program (MAP), for which WSEO was a "major player," according to Eckman, as it was with Super Good Cents. And despite their recent policy differences, WSEO has provided BPA "a great deal of assistance in delivering our energy efficiency programs," said BPA conservation/marketing vice president Terry Esvelt.
There are many other WSEO legacies too numerous to mention here--in energy policy, research and development, information, education and more--but perhaps most significant is what Merchant called "an extraordinary group of people, highly trained, highly skilled, most importantly committed to good energy policy and management, and they have had a strong influence on the decision-making in this region. I can say without any question that the energy legacy that they have left will be of assistance to this region and to this state for a long, long time."--Mark Ohrenschall
High in the mountains of southwestern Idaho, eight miles from the nearest electric line, a tiny historic community has discovered the power of the sun.
Silver City could just as well be called Solar City, because roughly half the buildings in town have (or plan to have) electricity supplied by roof-mounted solar photovoltaic panels. PV power runs lights, televisions, stereos, vacuums, food mixers, even a couple of water pumps in the former mining boomtown turned summer-cabin community 70 miles southwest of Boise. Silver City--reportedly the first electrified town in Idaho, back in the 1890s--previously lacked all but fuel-generator electricity ever since power lines were pulled out during World War II. "Basically, we've brought power back into Silver City," said Dave Wilper, a part-time resident and alternative energy system designer who has led the community's PV parade.
Silver City's story illustrates one of the most promising applications for PVs, electrifying remote places far from power lines. In addition, solar power has demonstrably improved the town's quality of life. It is now, by all accounts, a cleaner, quieter and safer community.
Wilper started the whole thing seven years ago when he installed a PV array on his roof, hooked it up to a battery system and turned on the lights. "I used to live up there full-time for about three years," he recalled. "I used to have to literally run my generators eight hours a day, every day, to keep my batteries charged. It seemed like I could never get a full charge." Since the PV system went in, Wilper has fired up his generator exactly twice for battery-charging, although he does use it occasionally for heavy power tools.
Other Silver Cityites saw this real-life example of solar power and were persuaded it could work for them as well. "It was real easy for us to say, 'We want one, too,'" said year-round resident Jim Hyslop. Wilper's company, Aurora Power and Design, was happy to oblige. Now, 23 of the town's 54 buildings have PV electricity, and another half-dozen are pending. That will about do it for Silver City, Wilper acknowledged. Other residents either don't want such modern conveniences as electricity, have poor solar sites or visit too infrequently to justify the expense.
The Silver City PV systems range in capacity from 51 watts to 500 watts (for the Idaho Hotel) and in cost from $600 to $12,000 (also for the hotel). Lighting--mostly 12-volt fixtures--is the primary PV-powered application in town. "Everyone that's got one has been delighted to have the lights," said Hyslop. For the most substantial power loads such as water-heating, refrigeration, clothes washing and cooking, Silver City people still rely on propane and/or generators.
In many respects, Silver City is not an ideal PV location. Although located in Idaho's sun belt, the town sits at an angle in a box canyon and receives only six to seven hours of direct sunlight in both summer and winter. Silver City's listing on the National Register of Historic Places means the PV systems have to be unobtrusive and can't, for example, be sited for maximum solar exposure. And because the town's PV installations are relatively small they are relatively more expensive; about $11 per watt for component costs, according to Wilper's business partner Mike Leonard, when most systems run under $10 per watt.
Still, PV is the only realistic power source for Silver City. Wind and small hydro are both infeasible; extending electric lines into town would be prohibitively expensive. Generators can and do provide for certain power needs, but they require hauling expensive fuel into town. Plus they are loud, smelly and potentially flammable. "Now we don't have to have all those damn generators running all the time for lights or whatever else they want to do," said Idaho Hotel proprietor Ed Jagels.
And, not least, the PV installations have eliminated the vast majority of kerosene lamps and Coleman lanterns, both of which pose fire hazards. That makes a big difference in an isolated town with 130-year-old wooden buildings, limited water supplies and a single 200-gallon fire truck--a town whose early residents pioneered Idaho mining and whose current residents are pioneering a renewable-energy community.--Mark Ohrenschall
"Imagine a building that's healthy, efficient and environmentally responsible. Now imagine that building is yours..."
That's the tag line on an ad promoting Earth Smart, Portland General Electric's new commercial building program that combines energy efficiency with "green" building standards. And in slightly more than four months, some 12 developers of commercial buildings have imagined the concept enough to contact PGE about the program, according to Earth Smart commercial projects manager Doug Boleyn. One project has already been completed, the Norm Thompson headquarters building in Hillsboro, OR.
PGE launched Earth Smart in 1993 as an option for new residential construction; Boleyn said the commercial program is built around the same principle of combining environmental and energy-efficiency standards in one program and--this time--making it available to builders of new commercial projects and major renovations.
To be certified Earth Smart, projects must meet standards in four categories: energy efficiency, quality indoor environment, environmental responsibility and resource efficiency. Some standards are mandatory--there are specific efficiency requirements for the building envelope and HVAC and lighting systems--while developers can choose among others. Under the quality indoor environment category, for example, two of three options must be included: use of at least three low-toxicity building products, fresh-air ventilation and/or natural daylighting.
The program also provides two levels of certification: Earth Smart/Green and Earth Smart/Gold. For Earth Smart/Green certification, buildings must use at least 20 percent less energy than those built to code or than a baseline building; for Earth Smart/Gold certification, buildings must be 10 percent more efficient yet--or use 30 percent less energy than code--and be built with an integrated design process.
Such a process "gets everyone involved from the beginning," said Boleyn, "to get maximum energy efficiency [from the project]." The major determinant of a building's energy consumption, Boleyn said, is the building--the structural and architectural details. It makes sense to have the architect, mechanical and electrical engineers, and the environmental designer working with the building owner from the start, to make sure the different details mesh.
To further ensure everything ends up the way it's designed, Earth Smart buildings must be commissioned by an experienced commissioning agent. Once construction is completed, the commissioning agent checks to make sure all systems and techniques are built and installed according to design specifications and that all systems are operating as designed and intended. "It's quality control for a building," Boleyn said.
There's no fee for participation in the Earth Smart program if the project is within PGE's service area; Boleyn said the utility may make it available outside its territory as well. He said PGE is doing a "conceptual investigation" to see if there are customers elsewhere in the country who value such a program.--Jude Noland
LightSaver, the regional collaborative program bringing low-cost and high-quality compact fluorescent bulbs to Northwest retail stores, has expanded its offerings. LightSaver bulbs now are available in several locations in Idaho and Montana, as well as additional outlets in Washington and Oregon. Also, according to the LightSaver program bulletin from May, Osram Sylvania bulbs were expected to be on the shelves by early May at numerous Ernst stores in the four states. Check out more information on the LightSaver program, and/or a facts-and-figures page, which includes a list of participating stores.
Seattle City Light and Eugene Water & Electric Board have received grants from the American Public Power Association to develop energy efficiency information resources for utilities. City Light will receive $25,000 to develop a "how-to" manual to help utilities assist their industrial customers in becoming more energy efficient, according to APPA. EWEB's $19,000 grant will be used to create a guide for utilities to evaluate solar domestic hot-water heating systems. Both grants were made through APPA's Demonstration of Energy-Efficient Developments (DEED) program. For more information, call Deb Das at Seattle City Light, (206) 684-3827, and/or Eric Hiassen at EWEB, (541) 484-2411.
Frank Vignola, director of the University of Oregon's Solar Monitoring Lab, received a Special Recognition Award in April from the American Solar Energy Society. The award recognizes volunteers who have "significantly advanced ASES' ability to accomplish its mission." Vignola, who described the award as "quite an honor," has served on the ASES board as well as on numerous committees. He has also played a key role in the ASES resource assessment division over the years and edits the division's newsletter, Solar Spectrum. From Eugene, Vignola oversees the work of the lab, whose main function is to operate a solar monitoring network, primarily in Oregon and Idaho.
The Portland Art Museum and the Metro Washington Park Zoo have been honored for their energy efficiencies by the Businesses for an Environmentally Sustainable Tomorrow (BEST) program. At the museum, efficient equipment, high-performance windows and a precise climate-control system have combined to cut energy bills by $27,000 annually and protect displays from heat, moisture and ultraviolet light. The zoo, meanwhile, received recognition for improving the efficiency of its lighting and controls and heating/cooling systems--as well as for water conservation, waste reduction and transportation alternatives. Other BEST award winners announced at the Breakfast of (Business) Champions April 19: Bank of America, for transportation alternatives; Chown Hardware and Legacy Hospitals, for waste reduction/recycling; Mickey Finn's Brew Pub, for transportation alternatives; and Red Lion Hotels, for water conservation. The fourth annual BEST awards were issued jointly by the city of Portland, the Association for Portland Progress and The Business Journal.
Industrial representatives are invited to a June 11 conference in Portland entitled "Industry Competitiveness Through Quality and Efficiency." The event is sponsored by Climate Wise, a voluntary program run by the U.S. Department of Energy and the Environmental Protection Agency that offers services and recognition to industries that pledge to reduce their greenhouse gas emissions. The June 11 workshop will include summaries and case studies of the International Standards Organization program; ISO is designed to help businesses improve their process and environmental efficiency. The workshop also will provide information on decision-making computer models for waste and energy efficiency planning, as well as providers of financial incentives and technical assistance for industries. For more information, call (503) 378-8444.
Con.WEB is sponsored by Eugene Water & Electric Board, Clark Public Utilities, Seattle City Light, Tacoma City Light, Idaho Power, Montana Power, PacifiCorp, Portland General Electric, Puget Power and the Bonneville Power Administration. OFFICES: Mail-P.O. Box 900928, Seattle, WA 98109-9228. EXPRESS: 117 West Mercer, Seattle, WA 98119. TELEPHONE-(206) 285-4848. FAX-(206) 281-8035. E-MAIL-iod@newsdata.com. Con.WEB was created by the Energy NewsData Web team, including: Publisher-Cyrus Noë; Editor-Mark Ohrenschall; Associate Editor-Jude Noland; Contributing Editors-Pamela Russell and Ben Tansey; 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
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