CWEB.071/Nov.21.2001
| Looking for Links We are updating and expanding our Con.WEB links section, and invite reader suggestions for links to Web sites relating to Northwest energy conservation and renewable energy. We also welcome updated links for Web sites already included in this section. Please contact editor Mark Ohrenschall: e-mail, marko@newsdata.com.; phone, (206) 285-4848, extension 204. |
A regional conservation "power plant" totalling at least 300 average megawatts over three years is proposed by the Northwest Power Planning Council staff.
This energy-savings target would help maintain conservation efforts and avoid the historical roller coaster pattern, according to a new Council issue paper paper titled "An Efficiency Power Plant in Three Years--An Interim Goal for the Northwest."
"Rather than accelerating and decelerating conservation acquisition in response to the swings in market prices, we believe it makes more sense to sustain a level of investment that is justifiable in light of expected average prices and that can prove very valuable during periods of upward volatility," reads the paper.
Council staff believes about 100 aMW in annual regional energy savings can be achieved at levelized costs below 4 cents per kilowatt-hour, and generally below 3 cents/KWh. Total estimated cost of this resource is about $250 million per year--at least half of which is already pledged to various conservation initiatives. That compares to the Council's current levelized cost estimate of about 3.6 cents/KWh for a natural gas-fired combined-cycle combustion turbine.
Accomplishing the conservation goal would be the province of utilities, public-purposes administrators and large consumers. "We're not trying to make this into a 'heat police' kind of exercise," Council power planning director Dick Watson told Con.WEB. "This is really trying to use the Council's bully pulpit to encourage people to do it."
Conservation Power Plant
Council staff seeks to even out the ups and downs that have characterized Northwest energy conservation over the past two decades. "Get off the roller coaster--that's the operative phrase," said Watson.
The issue paper lauded the region's "admirable record of conservation development," peaking at nearly 140 aMW in 1993. "The rate of acquisition, however, fell off dramatically in the latter years of the decade," owing to such factors as uncertainties over electric industry restructuring and expectations of low wholesale power prices. From 1997 through 2000 regional utility conservation totalled less than 200 aMW--about half of what the Council considered cost-effective.
Then came the energy crisis. "In response to the tight supplies and high prices of the past year, utilities have refocused on conservation, in particular on conservation measures that could be implemented quickly," the issue paper said. "For example, record numbers of compact fluorescents have been sold over the past year with incentives from regional utilities. However, the question now is what is going to happen over the next few years."
Moderating wholesale prices and potentially excess capacity could squelch new power generation development until demand once again exceeds supply. Or many planned new power plants may not get built, and reliability could suffer in low water years. "Either scenario suggests that we ought to re-think our approach to conservation," said the issue paper.
In assessing prospects for sustainable conservation funding, the Council issue paper finds "the signs are mixed." Positives include public-purposes funding in Oregon and Montana, aggressive demand-side efforts by some publicly owned and investor-owned utilities, Bonneville Power Administration's conservation/renewables wholesale rate discount, and utility rate increases that are likely to expand customer interest in energy efficiency.
More pessimistically, neither Washington nor Idaho has public-purposes funding and many utilities do not substantially pursue conservation. In addition, "many utilities will be trying to recover high costs of power purchases made over the past year. Many may be inclined to cut conservation staff and expenditures on the grounds that the 'energy crisis' has passed and costs must be cut. Some already have." The issue paper also acknowledged capital risks with conservation investments.
Conservation Numbers
The Council will develop a new power and conservation plan, probably by 2003, according to Watson. This proposed 100 aMW annual energy-saving goal is intended as an interim goal. "Here are some numbers we feel fairly confident of, and let's go do it instead of dropping the conservation acquisition back down," he said.
Based on analysis in the 1998 power/conservation plan, Council staff projects slightly more than 100 aMW is regionally available each year through 2005 at levelized costs up to 4 cents/KWh. "The great majority of the savings have a levelized cost of 3 cents/kilowatt-hour or less," the issue paper said, adding, "The average levelized cost of the conservation up to a maximum of 5 cents/kilowatt-hour is around 2 cents/kilowatt-hour."
That compares to a power cost of 3.6-3.7 cents/KWh (levelized) for a new combined-cycle gas-fired combustion turbine, according to the Council's current estimate. Meanwhile, average annual market power prices are expected to rise from about 3.5 cents/KWh and reach 5 cents/KWh by 2005. "On the basis of this forecast, conservation acquisitions up to a levelized cost of 4 cents/kilowatt-hour would clearly [be] justifiable in the near term," the issue paper said. "Acquisitions in the 4 to 5 cents/kilowatt-hour range can also be justified, particularly where the measures involved yield higher-valued summer period savings or where the conservation would otherwise be a 'lost opportunity.'"
Some 60 percent of potential savings lies in the commercial and industrial sectors. "This implies that the conservation investment should contribute directly to making the economy of the Northwest more efficient and more risk resistant," the issue paper said.
Council staff estimates the total annual cost of this conservation power plant at $250 million. At least half that amount is already earmarked for Bonneville's C/RD, the Northwest Energy Efficiency Alliance and the Energy Trust of Oregon. And that doesn't include IOU spending outside Oregon, large public-power utility conservation and customer funding for energy-saving measures. "We get there, I think, without much of a stretch," Watson said.
Although "substantial," the $250 million "is below past levels of expenditures, it is a relatively small increment to current spending and it is cost-effective on the basis of what many would say is an optimistic (i.e., low) view of future electricity prices," the paper said. Also, 300 aMW of conservation would offer "prudent" resource diversity to the expected 4,000 MW of new natural gas-fired generating capacity.
The notion of a conservation power plant, meanwhile, would communicate energy savings as a resource tangibly equivalent to a generating facility, while expressing the region's intentions for energy diversity, said the issue paper.
Council staff would allocate the conservation goal among utilities, public-purposes administrators and major retail consumers with direct access to power markets. "Shares would be determined by each entity's share of regional load," the issue paper said. " ... the intent is not to have a rigorously enforced target for each entity or to dictate what conservation programs are undertaken or how they are delivered. The intent is rather to put a spotlight on the importance of continued attention to improving the efficiency with which we use electricity and establish an expectation that each will do their part."
Written comments for the issue paper were due Nov. 16, but comments can also made at the Dec. 12 Council meeting in Portland. Watson said he anticipates a Council decision soon on this conservation power plant. --Mark Ohrenschall
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Plummeting wholesale power market prices have caused the premature demise of at least three special conservation incentive programs by Northwest utilities.
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The 5 cents per kilowatt-hour payments for each kilowatt-hour saved above those thresholds seemed a bargain when wholesale power market prices exceeded 20 cents/KWh and even approached 50 cents/KWh and beyond. But the economic underpinning collapsed as those market prices fell below 5 cents/KWh to 2-3 cents/KWh.
"It just didn't make sense to increase customers' costs, ultimately, with a program that was designed to keep their costs under control," said Puget spokesman Grant Ringel.
His investor-owned utility estimates it cost $23 million for the Conservation Incentive Credit program, taking into account nearly $18 million in customer payments plus net losses from foregone power sales. The Washington Utilities and Transportation Commission approved Puget's bid to end the CIC ahead of schedule on Nov. 8, but commissioners declined the IOU's proposal to defer net program costs and recoup them through a surcharge.
The three utilities have recorded total energy savings of of about 52 average megawatts through their conservation credit ventures this year.
Some other Northwest utilities, though, still offer conservation incentives to customers, including Inland Power & Light and Vera Water & Power in eastern Washington. Clark Public Utilities ended its planned four-month conservation incentive program at the end of October after recording what a spokesman termed "outstanding" results.
Puget's Conservation Incentive Credit
Puget began offering conservation credits effective May 1, paying customers 5 cents/KWh for every kilowatt-hour saved beyond 10 percent compared with the same month in 2000. All but large industrial customers on market-based rates were eligible. (See Con.WEB, April 30, 2002, for a story on PSE's time-of-use pricing and conservation credit programs.)
The CIC program recorded substantial energy savings. Puget credited customers with a total of 323.7 million kilowatt-hours (nearly 37 aMW) and gave credits on a total of 1.53 million separate customer bills, Ringel said. Average savings per credited bill was 210 KWh; average credit amount was $10.53. Results from each customer class were unavailable, as were specifics about how customers achieved the savings.
Ringel did note some "residual benefit" from Puget's separate time-of-use initiative in which about 300,000 residential customers (and 20,000 business customers recently added) pay higher rates for electricity used during peak periods and lower rates for off-peak use. Participating customers have cut their energy use 7 percent compared to 100,000 customers simply getting time-of-use information. Studies also show participants shifting an average of 5 percent of their power use away from morning and evening peak periods.
"Our customers stepped up and responded to the region's energy crunch by reducing their electricity consumption and shifting some power use to off-peak hours of the day," Ringel said in a news release.
Puget's CIC had an original deadline of Dec. 31, but the utility in late October asked the WUTC for approval to drop the payment amount to 2 cents/KWh. On Nov. 6 it requested an end to all payments effective Nov. 8. "PSE states that the federal price caps and the reduction in wholesale electricity markets undermine the financial viability of the Conservation Incentive Credit program, and therefore, eliminating the credit is warranted," the WUTC said in its order approving the termination.
Asked about the switch from a proposed 2 cents/KWh payment to none, Ringel said, "In discussions with [WUTC] staff it was determined it was a more feasible route to take to address the economic problems."
A WUTC staff memo reported that staffers told PSE they would support the drop to 2 cents/KWh payments "if PSE committed to offer new cost-effective residential DSM programs ... While Staff recognizes that some customers may use their incentive credits to buy new efficient end-use measures, we believe a program that directly targets energy efficient measures better enables customers to capture longer-term sustainable savings. We believe the Company has missed, and continues to miss, a great opportunity to capture cost-effective, persistent, energy savings that would serve their customers and investors as a resource for the future."
Ringel described Puget's conservation initiatives as "very vibrant," and added, "We're looking for new ways to make that more effective."
In addition to an early end for the CIC, Puget proposed an accounting change in which it would net the program's payments and lost revenues against wholesale power cost revenues and savings, turn it into a regulatory asset, and recoup the balance through a surcharge on its conservation rider tariff.
The commissioners denied this request, after criticisms from WUTC staff and Public Counsel that it would represent retroactive ratemaking and unfairly shift financial risks and burdens to ratepayers. "Had the [wholesale] prices stayed high, the company would have kept all the benefits," said commissioner Richard Hemstad. WUTC staff and Public Counsel also cited Puget's acknowledgment that the CIC would not meet cost-effectiveness requirements under the conservation rider.
"The CIC was intended to be one component of a broader suite of strategies to save energy, such as expanding and improving existing demand-side management efforts," wrote Public Counsel's Matt Steuerwalt. "We continue to believe improvements in PSE's programs are warranted, and suggest that they are even more timely if the company chooses to eliminate the CIC."
Avista, Kootenai, Clark
Avista's conservation incentive program began in spring when forward-market prices ranged from 20 cents KWh to 50 cents/KWh, according to Avista rates and tariff administration manager Tom Dukick.
A 5 cents/KWh payment made considerably less sense for the utility when market prices plunged down to 2-3 cents/KWh. "You are not benefitting your customers with that in the long run," said Avista spokeswoman Catherine Markson.
Avista ended its Idaho program early, in mid-September, with regulatory approval, and its Washington version in mid-October as scheduled. Avista paid nearly $6.7 million in incentives to customers, and recorded energy savings of about 15 average megawatts. "We're pleased with the results," said Markson. "Customers really took action." Conservation remains "a very important component" of the utility's energy plans.
Neighboring Kootenai Electric began its credit program in July to help reduce Bonneville Power Administration loads. "BPA needed the help," said spokeswoman Jane Baker. "We feel very fortunate we were able to respond at the time and implement the program quickly."
Through October, the cooperative had credited members a total of $291,580 for 4.1 million KWh (almost 0.5 aMW) of savings beyond the 5-percent threshold. Some 8,000 co-op members earned credits the first month and 4,000 received credits the second month, Baker reported. Most savings came from the residential sector, Kootenai's primary customer base.
"Then the [wholesale] market changed so quickly," she said. Kootenai officials decided to end the program with final credits tallied on November bills. Utility officials had earlier talked about continuing it for a year, depending on market conditions.
KEC still offers its range of energy efficiency programs and also encourages members to make energy-saving commitments through BPA's Community Conservation Challenge, according to a utility news release.
Meanwhile, Clark Public Utilities concluded its July through October conservation incentive program with participation from 45 percent of residential and commercial customers, spokesman Mick Schutt told Con.WEB. "I think it's extremely impressive to get that many customers to do it," he said.
Clark offered customers retail rates (for residential customers, 5.73 cents/KWh in July and 6.98 cents/KWh starting in August) for every kilowatt-hour saved beyond a 10-percent reduction. Schutt said the utility wanted to reduce loads to avoid high-priced power supplies for August and September, and also wanted to promote conservation among customers, particularly in anticipation of its load-reduction agreement with BPA starting Oct. 1.
Altogether Clark recorded $2.2 million in total conservation credits and 34.2 million KWh (3.9 aMW) through October. For residential customers, total credited amount came to slightly less than $1.4 million and total savings were 20.2 million KWh. Some 45 percent of all residential meters billed during the period received credits. Commercial customers received $860,000 in conservation credits, and recorded 13.9 million KWh in savings; about 37 percent of commercial customers qualified.
Utility advertising and direct mailings on ways to conserve energy helped spread the message, Schutt said. "We threw some ideas out and asked people to give it their best shot, and they did." Although Clark didn't set a particular goal for this incentive program, "I personally think the results were just outstanding." --Mark Ohrenschall [Jude Noland and Cindy Simmons also contributed to this report]
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Pacific Northwest electric loads dropped roughly 4,000 megawatts (20 percent) during the energy crisis, primarily from curtailed operations by aluminum smelters and other businesses.
Higher electricity prices and conservation efforts contributed a small portion (roughly 15 percent) to the lower loads seen over the past year, according to a new report, "Coping with the 2000-2001 Energy Crisis," prepared by the Readiness Steering Committee with much help from the Northwest Power Planning Council.
The report also outlines regional supply-side responses to the energy crunch that added 910 MW of new capacity by August.
While a gap remains between power supply and demand, the committee finds that the Northwest energy outlook "is better today than it would have been without the extraordinary short-term actions detailed in this report." The region avoided blackouts in the midst of an "unprecedented energy crisis."
Buy-backs and conservation can "significantly and quickly" reduce power demand, the report said. Mobile generating units and the flexible hydro system can also rapidly contribute in emergencies.
But the committee also cautioned against "inappropriate long-term solutions. Thousands of people were laid off or lost their job when industries cut back or closed in response to high power prices, temporary generators dirtied the air, and spill reductions at dams affected migrating salmon.
"The region needs to confront the fundamental problem of assuring a balance of supply and demand," the report said.
Demand-Side Responses
The Readiness Steering Committee--formed by Northwest utility and government representatives in fall 2000 to coordinate electric reliability issues--found that the region's power loads dropped substantially during the energy crisis.
"The total impact of all electricity demand actions has been a reduction of about 4,000 megawatts from what loads would have been under normal conditions," the report said.
By far the largest single drop came from aluminum smelter shutdowns, which took some 2,500 MW off the regional grid through negotiated arrangements with utilities as well as market responses. "By July 1, 2001, essentially the whole aluminum smelting industry had been shut down in the Pacific Northwest," the report said.
Approximately 500 MW of reduced load came from industrial customers that scaled back or closed operations in the face of skyrocketing power market prices (self-generation accounts for some of that reduction).
Other load reductions as a result of utility payments amounted to about 160 MW. This includes buy-backs from Idaho Power, Bonneville Power Administration, Springfield Utility Board and a host of utilities offering payments to customers that cut their energy consumption below threshold levels.
Regional irrigation loads dropped an average of more than 300 MW during the May-September irrigation season, the report said, primarily from Idaho Power and BPA buy-backs from irrigators.
These various actions total about 3,500 MW, or about 87 percent of the 4,000 MW regional load reductions.
The remaining 500 MW or so is split between price-responsive demand cuts and assorted conservation efforts.
"Thus far, prices have played a limited role in influencing demand for electricity," the report said, other than a few industrial customers exposed to market prices. Using a formula of demand decreasing 1 percent for every 10 percent rise in price, the report estimates 150 MW of load reductions in territories of utilities with retail rate increases by July. It also projects further load reductions from utility rate increases stemming from BPA's 46-percent wholesale rate increase effective in October.
That leaves about 350 MW of lower loads from conservation programs and public information campaigns encouraging conservation.
The report noted "accelerated" energy efficiency programs by numerous utilities, and the particular popularity of compact fluorescent lamps and VendingMi$er installations. Portland General Electric and Eugene Water & Electric Board expect to roughly double their conservation savings in 2001 compared to 2000.
Conservation appeals by utilities and public officials (including state governors) also had some apparent effect. "The willingness of government and utility leaders to coordinate and focus their efforts resulted in credible and focused information to the public, and undoubtedly contributed to public response in taking energy efficiency steps," the report said. California's woes, the regional drought and the slowing economy also likely contributed to reduced power loads.
The report cited some demand-side actions as "good candidates for use in future years," specifically demand exchanges, other market-based buy-backs, quick conservation and public appeals to reduce consumption. But it described strategies such as closing industries as "inappropriate long-term solutions."
On the supply side, the report listed 910 MW of additional capacity available by August as a result of temporary generators, accelerated building of power plants already under construction, permanent capacity quickly installed and more hydropower availability. These actions clearly helped the Northwest power situation, the report indicated, although they created more pollution and reduced water spills over dams for salmon. While those outcomes "may be tolerated" given the dire circumstances, "The region should not rely on relaxation of environmental constraints as a substitute for adequate resources," the report said.--Mark Ohrenschall
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Bonneville Power Administration has agreed to buy all the power generated from nearly 50 megawatts of capacity at a new wind energy project in north-central Oregon.
BPA's agreement with SeaWest WindPower for the Condon Wind Energy Project marks a milestone for what will be Oregon's second operating wind energy project. The power purchase deal represents "a critical point in the completion of the Condon project," said SeaWest chief executive Christian Engsted in a news release. "With the arrangements now in place with the BPA, we're all set to bring the first turbines on line in December. Construction is well under way and we anticipate smooth sailing to commercial operation."
BPA will pay a first-year cost of 5.5 cents per kilowatt-hour for Condon power, which Bonneville officials acknowledge now looks high given current wholesale market prices in the range of 2-3 cents/KWh. But they said the price appeared very reasonable compared to long-term market prices when the deal was coming together. BPA had announced in July 2000 a pre-development agreement with SeaWest for the proposed wind farm, at the time envisioned for 24 MW of capacity.
"It's not the most cost-effective project for us," said BPA's Tom Osborn. "When we made the decision to move forward with this project, the market looked pretty high long term; in our estimation, higher than this."
Located on private farmland near Condon in Gilliam County, this wind farm is scheduled to start spinning out electrons in two phases. The first 24.6 MW of capacity will be finished by year's end, according to SeaWest official Dave Roberts, and another 25.2 MW should be operating by May. Altogether the site will host a total of 83 600-kilowatt-capacity wind turbines manufactured by Mitsubishi Heavy Industries of Japan.
BPA has agreed to buy the entire project output over 20 years, according to a news release. "This project will provide us with a great opportunity to understand how to integrate wind power into the BPA system," said BPA acting administrator Steve Wright.
This is separate from BPA's plans to buy wind energy stemming from its February solicitation for 1,000 MW or more of new wind plants. The agency received 25 proposals totalling more than 2,600 MW of new capacity, nearly 850 aMW of energy (see Con.WEB, April 30, 2001). In June, BPA announced its intentions to sign pre-development agreements for seven prospective wind ventures with 830 MW of total capacity.
Praise for Condon
Government and political leaders praised the power purchase agreement (in news releases).
U.S. secretary of energy Spencer Abraham described Condon as "a step forward in our effort to diversify energy resources and strengthen America's energy security."
"The Condon project is a model for wind energy development in our state," said Oregon Rep. David Wu. "Much of Oregon's energy still comes from fossil-fuel sources and the Condon project is a common sense way to clean our air while diversifying our fuel sources. It will also create new jobs and bring $15 million in income to the local community over its lifetime." Oregon Sen. Gordon Smith said, "As the demand for electricity increases, we need to find environmentally sound ways to augment energy production. Hopefully this will be just the beginning of an increasing reliance on alternative fuel sources."--Mark Ohrenschall [Cindy Simmons also contributed to this report]
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Bonneville Power Administration's various Conservation Augmentation programs have reaped nearly 32 average megawatts of contracted energy savings at a projected average cost of about 1.8 cents per kilowatt-hour.
That exceeds BPA's pace of seeking 60 aMW through ConAug during fiscal years 2001 and 2002.
Another major BPA demand-side program, the conservation and renewables wholesale rate discount, officially kicked in Oct. 1 and has attracted 130 participating utility customers. A total of 57 utilities got an early start on the discount.
"We feel real good about what we accomplished last year," BPA acting energy efficiency vice president John Pyrch told a utility energy services roundtable meeting near Portland Nov. 9. Still, he added, "Let's not rest on our laurels."
In addition to ConAug and the C/RD, Bonneville has agreed to fund market transformation ($60 million) and low-income weatherization ($15 million) over the new five-year rate period that started Oct. 1. A Demand Exchange program also is ongoing.
BPA aims to achieve some 220 aMW of total conservation from FY 2002 through 2006 on spending of about $565 million, power business line senior vice president Paul Norman told a Northwest Energy Coalition conference Oct. 5.
Also, Pyrch said the federal power marketing agency is deferring to the Northwest Power Planning Council on establishing a regional strategy for sustained energy conservation (see related story). BPA pledges its "strong suppport repositioning conservation from a response to a crisis into a cornerstone of our region's energy future," read an October letter to the Council from BPA acting administrator Steve Wright.
ConAug, C/RD Update
Bonneville's Conservation Augmentation initiative originated as a means to help the agency meet a projected 1,500 aMW shortfall in 2002-2006 power supplies through contracted load reductions. As the energy crisis hit ConAug expanded to encompass programs including commercial lighting, compact fluorescent lamps, VendingMi$ers, water and wastewater treatment plants, and federal facilities.
These ventures under the ConAug umbrella totalled 31.9 aMW in contracted savings during the fiscal year 2001 that ended Sept. 30. That exceeded the pace of 60 aMW BPA wants to achieve over FY 2001 and 2002. Most of the 2001 contracted savings will be delivered this current fiscal year, Pyrch said later.
BPA has committed $40 million to $45 million for these ConAug savings, Pyrch told the roundtable. Average cost per kilowatt-hour is around 1.8 cents.
"Overall I think we can feel real good about this type of response," he said. BPA accomplished this with a staff of about 65 and a few contractors, he said, compared to the days of 250 BPA conservation staffers and 100 contractors.
The biggest chunk of ConAug contracted savings came from the Invitation to Reduce Load Through Conservation (IRLC): 10.1 aMW from 52 signed proposals with 18 customers, sprinkled among commercial, industrial, residential, irrigation and voltage reduction projects.
A limited standard offer for commecial lighting will lead to 5 aMW of savings from 43 participating utility customers. A total of 92 customers signed up for VendingMi$er installations, delivering 4.4 aMW. The compact fluorescent coupon rebate venture attracted 80 utilities and 4.1 aMW of savings. A pilot program involving bacterial processes at 19 water/wastewater treatment plants will save 0.9 aMW.
BPA also has actively collaborated on conservation with other federal agencies. Compact fluorescent lamps at U.S. Army Corps of Engineers and U.S. Bureau of Reclamation facilities will save 2.5 aMW (nearly 29,000 lamps had been delivered as of late September, and 15,000 installed), while non-CFL lighting efficiency measures total 1.5 aMW. A total of 136 projects at other federal facilities will bring in 3.4 aMW.
Bonneville's ConAug goal for fiscal year 2002 is at least another 28 aMW in contracted savings and 25 aMW of total installed measures, Pyrch said. He believes achieving this goal will necessitate projects with large public-power utilities that rely on BPA for only part of their power loads (Seattle City Light has agreed to a modest compact fluorescent venture). "I don't think we'll be successful just working with load-following customers," he said, noting their relatively small collective energy-saving potential.
Pyrch also announced BPA will not offer a fourth round of CFL rebate coupons in early 2002. A utility representative suggested retailers may view this as another conservation roller coaster, but Pyrch responded, "We think we've moved the market" with this program already.
Another primary BPA conservation effort, the conservation/renewables wholesale rate discount, is officially less than two months old. Bonneville did open up the C/RD early, in February, and 57 utilities chose to get started with qualifying activities (although they will not get extra funding). A total of 130 utility customers are now enlisted--all but one BPA customer, Pyrch said. The first C/RD reports from utilities are due in November and should provide some initial results.
Pyrch praised the "yeoman's work" by the Regional Technical Forum in developing more than 1,300 C/RD qualifying measures. He acknowledged the C/RD's quicker-than-expected launch has not been entirely smooth for utilities, with three program updates already this year.
Bonneville has targeted about 15 aMW annually in energy savings from the discount, but Pyrch said he was "not confident in that number," as many utilities will likely opt to spend money on qualifying renewable energy, green power and conservation administration. BPA expects the 0.05 cents/KWh discount to generate nearly $40 million annually for eligible activities.
More BPA Updates
In other BPA conservation updates, Pyrch said the Demand Exchange voluntary curtailment program peaked at 838 MW of participating load and now is at 400 MW. The agency has received more than 10,000 megawatt-hours of curtailment through this effort and $2 million in gross savings, $1.3 million in net savings. Bonneville hopes to get 300 MW of load under new contracts.
The recent "Conservation or Crisis: A Northwest Choice" conference co-hosted by BPA and Northwest Public Power Association proved a "huge success," Pyrch said ( seeCon.WEB's special conference issue.) Another such gathering is tentatively planned for 2003. The Community Conservation Challenge campaign to promote energy awareness and conservation features a drawing in December for a Honda Insight hybrid car. And 62 utilities have joined with BPA as Energy Star partners to market energy-efficient products.
Bonneville also is looking into pilot programs with utilities on Energy Web technologies, Pyrch reported, as well as potential demand-side alternatives to transmission upgrades.--Mark Ohrenschall
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Michael Weedall returns to the Northwest intent on leveling out the regional energy conservation roller coaster. And he plans to listen intently for ideas to create a smoother ride.
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| Michael Weedall (Photo Courtesy of Michael Weedall) |
Weedall recently was named energy efficiency vice president for Bonneville Power Administration. He comes to the region from California, where he briefly served as a conservation executive with the new California Consumer Power and Conservation Financing Authority and before that with Sacramento Municipal Utility District. Weedall has prior BPA experience, as conservation finance program manager in the early 1980s. He also has worked in energy conservation in the private sector and for an investor-owned utility.
Asked about his goals, Weedall first cited BPA acting administrator Steve Wright's call for sustained regional energy-saving initiatives. "We need to get off this roller coafster of funding for conservation. How do we put together a strategy and approach that is going to allow us to make sure we're pursuing this stuff whether [wholesale power] prices are through the roof or down on the floor?
"I strongly believe [conservation] inherently makes sense; we don't need high prices to justify doing it," Weedall told Con.WEB.
Steadying conservation will require collaboration with regional stakeholders, he believes. "It's going to take everybody coming together to figure out how to do that. I don't pretend to know today what it's going to look like. The biggest thing ... for myself the next couple of months is I just have to do a heckuva lot of listening, be a sponge, take in what people have to offer."
Weedall offered no specific programmatic ideas, although he mentioned an interest in keeping up with emerging technologies. He also said he was impressed with the BPA conservation staff.
Weedall replaces Terry Esvelt (now BPA senior vice president of employee and business resources) in this permanent position. Acting EE vice president John Pyrch remains at Bonneville.
Diverse Conservation Background
Weedall brings to his new job a diverse energy conservation background, spanning work for federal agencies, a private company, an investor-owned utility, a municipal utility and state government.
After his first BPA stint, Weedall founded Pacific Energy Associates and worked as a principal there from 1985 to 1990. He served as energy management services director for Vermont's Green Mountain Power from 1990 to 1993, before coming back West as energy services manager at SMUD, the nation's fifth-largest municipal utility. Weedall most recently was deputy director for conservation and distributed generation at the fledgling CCPCFA.
BPA power business line senior vice president Paul Norman praised Weedall. "We're real fortunate to have him joining us," Norman told a Northwest Energy Coalition conference in Seattle Oct. 5. "His whole career has been dedicated to energy efficiency, and in addition he has an extremely good track record as a manager."
Big Challenges
Weedall said he fondly remembers his first go-round at BPA. He was one of the first people hired for Bonneville's burgeoning conservation staff after passage of the 1980 Pacific Northwest Electric Power Planning and Conservation Act. "In one sense it's very analogous to the situation we see here today, the situation that went on the past year. We need to reinvigorate conservation. It's obviously a big challenge and there's a lot of work to be done."
He plans a "listening tour" of the region to hear ideas on--among other topics--sustaining conservation efforts. "I don't go in with any preconceived notion ... It isn't something we're looking at jamming down people's throats. Everybody who's interested in the Northwest is going to be aligned with this. How do we all get together and make it happen the best way?"
Weedall did outline his thinking on effective conservation programs. "You've got to get good program design coming out of talented, experienced people. And you've got to get people out there to sell this stuff." Marketing moves people toward actions, he said. For energy efficiency in the commercial and industrial sectors, as an example, that entails identifying the people who make decisions, demonstrating the value of efficiency and assisting them with transaction costs.
Although Weedall demurred on specific potential conservation initiatives, he said technology offers interesting promise.
From his California experiences he mentioned residential thermostats that can dispatch pool pumps, radio-controlled air conditioning shutdowns for participating SMUD customers, and dimmable ballasts in commercial settings that allow 40-percent lower lighting levels through remote controls. Some applications "are not quite ready for prime time" because they are too expensive or otherwise unripe. Still, he said, "There are new developments in different technologies coming out all the time. We just want to make sure we stay on the forefront."
Conservation 'Integral' for BPA
Weedall described energy efficiency and conservation as "an integral offering by Bonneville. As stewards to the resource in the Northwest, conservation just makes sense." It's also enshrined in the regional act as the top-priority energy resource, he noted.
BPA's conservation staff, which now numbers about 65 people, gets excellent reviews from the new boss. Weedall praised their professionalism and talent, and called them "an incredible resource. These people really know what they're doing," as evidenced by exceeding the 30 average megawatt Conservation Augmentation savings target this past fiscal year (see related story). "Over the years I've always said the key thing to making energy efficiency and conservation programs work is you've got to have the right staff."
He believes BPA's conservation successes deserve recognition. "At the same time," he added, "Bonneville has critics. Everybody has critics along the way. Those are people I'm going to want to reach out to, too ...
"I'm coming up there with an open mind and an open book. I want to figure out how we can most effectively work. If you look around and you compare the Bonneville programs ... it still is hard to look nationally to find someone who is doing more. I'm not saying we can't do better; that's certainly what I'm striving for." --Mark Ohrenschall
An executive director has been named for the Energy Trust of Oregon, the state's fledgling public-purposes funding organization.
Margie Harris will direct the non-profit entity expected to distribute more than $500 million over the next 10 years for energy conservation and renewable energy initiatives in service territories of PacifiCorp and Portland General Electric. This funding--from a 3-percent public-purposes charge on electricity revenues as part of Oregon's electric industry restructuring--officially begins in March 2002.
Harris comes to the Trust with executive experience at Tri-Met (Portland-area public transit agency) and the city of Portland, according to a Nov. 5 Trust news release. She also has served as a liaison to the Portland Energy Office, outreach services division director for the Western Solar Utilization Network and conservation program administrator with the Oregon Department of Energy.
Trust chair Steve Schell described Harris as "highly competent in organizational matters and at handling complex issues, such as balancing the organization's need for independence with the requirement that it be publicly accountable for its efforts on behalf of all stakeholders. Her skill set is uniquely suited to achieving the expected benefits from the expenditures for conservation and renewable energy," he said in the news release.
The new executive director said in the release she plans on "delivering what is expected with quality, speed and bottom-line results. We will continue actively working with our partners to have a positive impact on saving energy, demonstrating new technologies and preserving our environmental heritage. Our efforts will benefit all classes of private utility ratepayers in Oregon."
The Trust is scheduled for an official launch on March 1, 2002. In the meantime work is under way on strategic planning, selection of initial programs, transitions from utility-run initiatives, staff hiring and some other preliminary activities. --Mark Ohrenschall
More Information:
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A new board chair and two new market transformation projects are in place for the Northwest Energy Efficiency Alliance.
The Alliance board--at its meeting in Portland Oct. 29 and 30--elected Larry Bryant of Kootenai Electric Cooperative as chair for the coming year. He succeeds Brian Hedman of PacifiCorp. There were several other board member changes.
In addition, the Alliance board adopted two new commercial-sector programs. One focuses on operation and maintenance services for packaged HVAC systems in small commercial buildings. The other centers on software enabling continuous building commissioning in large buildings. Both are essentially market-testing ventures; their maximum combined Alliance funding at this point will be $675,000. If successful over time, these projects could collectively save about 45 average megawatts in the region by 2010, according to Alliance projections
These are the third and fourth approved projects submitted through the Alliance's unsolicited proposals Web site. As of Oct. 30 the Alliance had received 73 such proposals; 51 were turned down and another 18 were under review.
On a larger scale, executive director Margie Gardner told the board the Alliance has allocated $121 million of the $164 million pledged to the market transformation group through 2004. Energy savings attributable to Alliance projects total 63 aMW over the past five years, she said.
People Matters
Bryant, marketing manager at Kootenai Electric in northern Idaho, was unanimously elected the new Alliance board chair. Elizabeth Klumpp of the Washington State Office of Trade and Economic Development was elected secretary, and Syd France of Puget Sound Energy will serve as treasurer.
Outgoing chair Hedman described his one-year tenure as "uneventful" and lacking any significant crisis. "By the time I came along ... the organization was running very well," he told his colleagues.
Bryant concurred. "Hopefully I can follow in the footsteps of the prior leaders who have really done a good job of putting the organization together and making it as successful as it is." He expressed an interest in "collaborating solutions," which he believes the Alliance board has already done well.
In addition to new leadership, the board officially welcomed five new members: Todd Currier of Tacoma Power, replacing his former utility colleague Jake Fey, who now heads the Washington State University Cooperative Extension Energy Program; Mat McCudden of Clark Public Utilities; Andrew Lofton of Seattle City Light; Mat Northway of Eugene Water & Electric Board; and Richard Beam of Providence Health Systems, the second consumer representative on the board.
Other changes include new representation for the board seats designated for the Northwest Energy Coalition (Danielle Dixon replacing Nancy Hirsh) and the Idaho Public Utilities Commission (Lynn Anderson replacing Randy Lobb). Roy Nollkamper of Glacier Electric Cooperative has left the board at the end of his term.
Fey, an original Alliance board member, praised the "amazing ... accomplishments" of the collaborative since its 1996 founding, while Lobb described "so much sincere knowledge and desire to see conservation work in the Northwest" at the Alliance.
Gardner also introduced six new Alliance staff members: Dave Hewitt, manager of the Commercial Buildings Initiative; Dominick Schiavone, CBI assistant; Patrice Thramer, director of marketing and communications; Michael Ponder, project coordinator; Cristina Carney, administrative assistant; and Paul Goodrich, information systems. The Alliance staff currently numbers 25 people.
Alliance Status Report
Looking at the Alliance through a wide-angle lens, Gardner said the collaborative has $164 million in committed funding from its establishment in late 1996 through 2004. To date, the Alliance has allocated or spent $121 million: 85 percent for projects, 8 percent for internal operations, 6 percent for education and training, and 1 percent for market research.
Of the approximately $108 million allocated or spent on projects, residential-sector ventures account for 41 percent of the money; commercial sector, 27 percent; industrial sector, 20 percent; education/training, 8 percent; agricultural sector, 3 percent; other, 1 percent.
Gardner also reported that Alliance ventures around the region, in collaboration with local utilities and other partners, have saved 63 aMW at a "cost-effective" price since the organization's founding.
Two New Projects
Two new ventures received funding endorsement at the Portland meeting. Both target commercial buildings, fit within the Commercial Buildings Initiative, came in as unsolicited proposals and are largely demonstration efforts, at least initially.
One project offers operation and maintenance services for packaged HVAC systems in small commercial buildings. Specifically, this venture involves new technologies allowing service contractors to diagnose and fix problems with refrigerants, air flows and controls (including economizers) in these common heating and cooling systems. Primary contractor Portland Energy Conservation Inc. plans to refine these services and assess the market; the venture includes field tests in 50 Northwest buildings.
These packaged HVAC systems typically have cursory annual checkups, according to Alliance project development manager Jeff Harris. These new diagnostic/repair services would be much more comprehensive. Energy savings could be substantial--potentially 32 aMW regionwide by 2010--but the Alliance anticipates greater benefits from fewer emergency replacements, improved occupant comfort and better indoor air quality. "We think those are going to be the selling points for the [service] contractor," said Harris.
Board member Ken Keating noted these services look promising, but they could fail with minimal energy savings, lack of contractor interest or customer unwillingness to pay the extra costs. "The sooner we find out, the better," he said.
By an 11-4 vote, the board approved $425,000 over 12 months for the first phase of this venture. A full-scale program could follow.
The other new initiative promises continuous building commissioning through software that tracks the performance of energy-related systems. Alliance officials believe this could be useful in large commercial buildings with energy management control systems, especially for property managers with many facilities and performance contracting firms.
Harris called this a "brand new, state-of-the-art ... practice, applying an artificial intelligence-type program to the data stream you get out of energy management systems. It hasn't been done except for a couple of places in the country. I think after we demonstrate it, it will take off."
This technology is intended to maintain energy efficiencies in a building after it is built and also identify further conservation opportunities. The Alliance estimates prospective regionwide energy savings of 13.5 aMW by 2010. Potentially persuasive non-energy benefits include the ability to detect building problems early and reduced troubleshooting time for building operators, presumably enabling them to focus more on preventive maintenance.
The Alliance board, by an 11-3 vote, approved $250,000 over two years for this project, to help pay for demonstrations at four Northwest buildings. Additional funding from other participants is anticipated. Primary contractors are PowerNet Software and Abacus Engineered Systems, both Seattle-based. --Mark Ohrenschall
Reporter's Notebook: SolWest Renewable Energy Fair
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Nearly four months ago--long before the leaves and temperatures and rain began falling around the Northwest, and even before the cataclysms of Sept. 11--I visited the SolWest Renewable Energy Fair in eastern Oregon. I left admiring the devotion to small-scale renewables evident at this gathering. These folks are planting seeds for a greener energy future, and some are already harvesting.
My attendance was happenstance; the July 28-29 fair in John Day coincided with our family's long-planned vacation to Lake Tahoe via eastern Washington and Oregon and Lassen Volcanic National Park in northern California. Roger Ebbage and CoCo Sutton of the Northwest Energy Education Institute graciously agreed to share their exhibit booth with our Con.WEB marketing materials.
As dusk fell on July 28 we pulled into the Grant County Fairgrounds, pitched our tent on the grass next to the electric-vehicle racing crews, tucked the kids into their sleeping bags and settled in for this first leg of our family adventure.
"We are in the land of true believers," my notes read. Among the clues: "Power to the People" T-shirts, a sign for Backwoods Home Magazine, outdoor exhibits with all kinds of solar energy equipment and even a small wind turbine, and granola and yogurt served for breakfast the next morning (as my dear vegetarian wife pointed out with a smile).
Exhibitors represented many different renewable energy businesses, from international manufacturing firms such as Xantrex Technology to smaller enterprises based in rural Oregon. One of my favorites was Portland's Mr. Sun Solar and his "world's best" solar cookers for $399. Nearly 50 vendors participated altogether, according to the fall newsletter of Eastern Oregon Renewable Energies, the fair's non-profit sponsoring organization.
SolWest attracted 2,000 people from at least 17 states and even Japan, the newsletter reported. Some already live renewably off-grid while others have a clear interest in power from the sun and wind (including many farmers and ranchers). Fairgoers could learn from 33 workshops presented on a wide range of energy-related topics, from hands-on applications to basic principles to policy issues. EORenew executive director Jennifer Barker told me these workshops were very popular, as they brought together competent instructors and attentive students.
The fair also offered a panel discussion with five longtime solar aficionados titled "Twenty Years of Solar Dreams." This unfortunately came before our arrival, but I did manage to listen briefly to Mike Nelson's keynote talk the next day. Mike lives off-grid on solar and wind (in Seattle) and he promotes solar as passionately and knowledgeably as anyone I personally have ever heard.
Mike was typically inspirational, but so was SolWest itself. It reaffirmed for me that many people support renewable energy and some people actually make it happen. SolWest helps to make it happen.
I also found inspiration in artwork our 8-year-old daughter Rachel created at the fair. She wrote: "This is What The world would look like if We didn't use enegry Wiseley," above a drawing of a dirty Earth. "This is what the world Would Look Like if we used enegery wisley," she wrote, above a drawing of a bright green-blue planet.
Those sentiments reflect some parental influence, of course. But as a harbinger of generations to come, I'd like to think they also reflect rays of hope. --Mark Ohrenschall
Utility Conservation
The Vancouver, WA-based utility expects these energy savings to cost an average of 2.75 cents per kilowatt-hour, considerably less than its 4.5 cents/KWh average from other resources.
Clark commissioners chose the most ambitious conservation effort of three potential options. "While it was the most expensive of the three, the plan provides the largest amount of energy savings at the lowest unit cost," said commissioner Nancy Barnes in the news release.
CPU spokesman Mick Schutt told Con.WEB the Clark plan resulted from several circumstances, including planning for BPA's conservation/renewables wholesale rate discount, an overall review of energy-saving efforts and the utility's agreement to reduce its BPA load by 29.5 average megawatts for the first year of its new power-sales contract. "We knew with that, plus the other things going on, we needed to have some fairly aggressive conservation programs in order to achieve that goal."
Features include new loan options for commercial and industrial lighting, compressed-air and motors projects; commercial/industrial energy audits; more funding for residential weatherization and heat-pump loans; rebates for purchases of Energy Star washing machines and dishwashers; and a doubling of low-income weatherization grant funding, to $400,000 annually.
"We just tried to put together a good, comprehensive program to meet the needs of our customers," said Schutt. He believes Clark customers will be receptive; they have historically supported utility conservation, and this year through July they had collectively cut their energy consumption about 8 percent compared to utility projections. Milder weather, rate increases, conservation communications and payments for energy savings all played some role, he said.
The Oregon Public Utility Commission in August adopted a tiered rate structure for Portland General Electric residential customers, in which the first 225 kilowatt-hours of monthly consumption will be priced lower than usage above that amount. This initial block reflects the benefits of lower-priced BPA power, according to the OPUC.
In September, the OPUC adopted a three-tiered rate structure for PacifiCorp residential customers; the first and lowest-priced block covers monthly consumption up to 500 KWh; the second block applies between 500 KWh and 1,000 KWh; and the third and most expensive block comes into play for monthly power use above 1,000 KWh.
Eugene Water & Electric Board also has new residential tiered rates, effective with November bills. EWEB will charge 3.27 cents/KWh for the first 800 KWh each month, 4.7 cents/KWh for the second block (the consumption range differs in summer and winter) and 6.33 cents/KWh for the third block. This new structure--part of an overall 33-percent average rate increase--is designed to encourage customers to save energy. Payback period for a new solar hot-water heater for a family of four drops from 10 years to seven years, based on the 6.33 cents/KWh block, said EWEB officials. "Tiered rates help reward customers who conserve by letting them avoid the most expensive part of their power bill with their conservation," said EWEB's Mat Northway in a news release. The Register-Guard newspaper reported the new rate structure has generated many EWEB customer inquiries about conservation.
Business
Nike is already saving energy with a new service developed by Portland General Electric using Silicon Energy's EEM Suite software. MyE-Manager.com allows facility managers to analyze energy consumption data provided over the Web every 15 minutes. Nike has used this service to save 1.75 million kilowatt-hours and $30,000 in the Michael Jordan building at its Beaverton headquarters, according to a PGE/Silicon Energy news release.
State Government
Fey heads a staff of 50 engineers, researchers, technical specialists and customer service personnel who conduct research and disseminate energy information. "I'm delighted to be part of the organization," Fey said in a news release. "My intent is to make sure that the citizens of the state and the other audiences that we serve know about and utilize our services and receive greater value from them."
Usibelli has served with the state energy policy office since 1985, most recently as acting assistant director. "I am very excited about the opportunity to lead the state's energy policy office during these challenging times," he said in a news release. "The information, analysis and support that the office develops are not only the foundation for energy decisions in Washington state--they will help deliver an economically and environmentally sound energy future to its citizens."
Washington state agencies report a similar energy reduction, a monthly average of 10.13 percent for electricity and 14.7 percent for natural gas from January through September 2001 compared to 2000.
Renewable Energy/Green Power
BEF also recently announced two new board members: Bill Drummond, manager of the Western Montana Electric Generation and Transmission Cooperative, and Jaime Pinkham, manager of the Department of Fisheries Resources Management for the Nez Perce Tribes. Montanan Drummond and Idahoan Pinkham are the first BEF board members from their respective states.
Green Building
Awards
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The Northwest Energy Coalition recently turned 20 years old and, as befitting a teenager entering adulthood, the milestone occasioned celebration as well as a reflective look at challenges and opportunities facing regional energy conservation.
NWEC's anniversary bash Oct. 5-7 included conferencing, workshops and a gala dinner. Among those celebrating with the coalition were U.S. Sen. Maria Cantwell of Washington (via letter), U.S. Rep. Jay Inslee, environmental leader Denis Hayes and former Washington Gov. Mike Lowry.
Meanwhile, the first conference day offered conservation perspectives from representatives of state energy agencies, energy efficiency businesses, an Oregon citizens' advocacy group and the Northwest Power Planning Council.
Their assessments touched on some difficulties for energy efficiency: continuing struggles with the ups and downs of funding and public attention; approaches that haven't quite worked; lack of regionwide institutional support; marketplace confusion; curtailments masquerading as conservation during the energy crisis; and a shortage of young people in the conservation field.
But speakers also provided some basis for optimism, including established public-purposes funding in Montana and soon Oregon, market transformation through the Northwest Energy Efficiency Alliance and regional conservation targets from the Council.
And they gave suggestions on ways to advance efficiency, ranging from regulatory processes to energy codes to electing sympathetic public officials.
Conservation Struggles
"Conservation is the cleanest of resources and we've done fairly well with it in the Northwest," said energy analyst Charlie Grist of the Oregon Office of Energy and the Power Council. Still, he added, "It's been a struggle over the past 15 years." Using the analogy of doors fronting rooms in a video game, he listed several demand-side approaches that haven't quite fulfilled their promise.
The "eat your vegetables" door includes a resource portfolio standard requiring utilities to buy certain amounts of conservation and renewables. "That never really got off the ground very effectively," and may never thrive in a capitalist country, Grist said. This door also fronts Bonneville Power Administration's conservation and renewables rate discount. "It might work for a while, but only to the extent Bonneville can keep its costs competitive below other power supplier prices." BPA's Conservation Augmentation program may find some success, he said, but probably not much with utility customers who buy only some of their power from BPA.
Utility least-cost planning has worked in the past, peaking in the mid-1990s with regionwide conservation approaching 140 average megawatts a year before plunging later in the decade. Grist sees "some real fundamental problems" with utilities as the sole conservation-seeking entities. Least-cost planning requires a strong regulatory hand, and at the moment, "We don't have the regulators on the same page throughout the region on how they can push conservation through the utilities."
The "avoided cost game" has likewise shown some benefits for conservation, but, said Grist, "I'm not convinced that's the total answer anymore." It raises lost revenue and rate impact problems.
"We tried the customer service angle and that worked to some extent," he said. However, "There are a lot of ways to generate customer service, and efficiency is only one of them." And it's not a huge concern for utilities with captive customers.
Will Crisis Lead to Commitment?
A subsequent panel discussion took on the question: "Will crisis conservation give way to real commitments to energy efficiency?"
Two of the panelists--Stan Price of the Northwest Energy Efficiency Council and Jason Eisdorfer of Citizens' Utility Board of Oregon--flatly answered no. "This is the burden people in this room have to bear for the rest of our miserable lives," deadpanned Eisdorfer.
He noted the continuing battle to capture people's attention on energy efficiency. "Energy crises will come and go, people will discover conservation and energy efficiency, and just as soon will forget it."
Price spoke of "a fairly confusing set of market signals," with energy crisis messages urging curtailment "wrapped in the guise of conservation" and now rising electricity power rates and declining wholesale power prices.
"We do need to come up with some kind of persistent, consistent method to fund energy efficiency over the long term," he said. Linking conservation efforts with wholesale market price swings "will always short-sell efficiency and will have profound implications for the infrastructure development we need."
Conservation manager Tom Eckman of the Northwest Power Planning Council said the region lacks policies to sustain energy conservation. The Council plans, he noted, but it has no regulatory authority. Eckman also bemoaned the lack of young adults professionally interested in conservation.
"This is [a field] where constant vigilance is necessary," he said. "It's a wet noodle we're always pushing uphill."
Reasons for Optimism
Speakers also shone some rays of sunshine to brighten their otherwise cloudy assessments of conservation.
"The current most favored door of hope is the system benefits charge administered by an entity that actually has incentives to bring conservation to bear and doesn't suffer from the lost revenue problem utilities see," said Grist. "We've got one in place in Oregon and I hope it will be successful in putting conservation together." That describes the emerging Energy Trust of Oregon, which will adminster much of the 3-percent public-purposes funding earmarked for conservation and renewables under the state's electric industry restructuring.
Price and Eisdorfer also lauded Oregon's public-purposes approach. Eisdorfer called it "an enormously innovative way of dealing with energy efficiency and renewables." He and Grist also gave reasons why it passed the legislative gauntlet: industrial customers wanted open retail access and were willing to bargain, industrials also were allowed to self-direct some of their money, Gov. John Kitzhaber threatened to veto restructuring legislation without public purposes; the amount involved was about right; and publicly owned utilities were exempted.
The Northwest Energy Efficiency Alliance's market-transforming work was cited as another reason for conservation optimism. So was the Council's proposal to set regional targets as an encouragement to pursue energy savings (see related story). But both Price and Grist said such a target depends upon real actions to make a difference.
In response to a question about remaining energy-saving potential given the region's nearly quarter-century history in systematic conservation, Eckman declared faith in "the innovative capacity of the human brain" to devise ways of doing things more efficiently. "We're not anywhere close to exhausting energy efficiency, cost-effective and otherwise."
Suggestions
Speakers also offered a variety of suggestions to advance conservation around the region.
Grist mentioned more attention to energy prices, specifically citing Eugene Water & Electric Board's new tiered-rate structure; better delivery of conservation to the people who make decisions for buildings and businesses; and rejuvenating the capacity to gather baseline energy data.
Price said building codes represent "an important tool," but one that must be used "judiciously."
Elizabeth Klumpp of the Washington State Office of Trade and Economic Development suggested stakeholders, during rate cases, could get after investor-owned utilities that underachieve in conservation. Also under the same heading of "difficult-to-achieve things that ... would translate into real achievements in long-term energy efficiency," Klumpp listed performance standards for Washington's public-power utilities.
She and Eckman also raised the idea of using democracy, specifically by electing pro-conservation leaders at publicly owned utilities. "With a majority of one, you go in one direction or another," said Eckman. "Only then will the supertanker change direction. Otherwise, we're headed where we're going right now. We'll be on the roller coaster and it will be a wild ride."
Awards
The coalition also honored seven people with awards to commemorate its 20th anniversary. Ralph Cavanagh and Jim Lazar received 20 Years of Leadership Awards, Doug Still received a lifetime achievement award, and Liz Frenkel, Chris Attneave, Mavis McCormic and Dorothy Anderson received Wise Women of the Coalition Awards. --Mark Ohrenschall
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