Regional Round Up Washington D.C. Southwest Region and Questar Gas Dan Dent March 18, 2010

Transcription

1 Regional Round Up Washington D.C. Southwest Region and Questar Gas Dan Dent March 18,

2 Presentation Southwest Topics Region Highlights Utah Policy and Goals Questar Gas Targets and Goals Policy Environment Approaches to Reach Targets Marketing Strategies Program Success Dependencies Support Recommendations / Industry 25

3 Southwest Region 26

4 Electric Utility Efficiency Programs in the Southwest State Electric DSM Program Spending/Budgets (million $ per year) AZ CO NV NM UT WY ~0 ~0 ~0 ~0 1 2 Region Source: SWEEP data 27

5 Gas Utility Efficiency Programs in the Southwest State Gas DSM Budgets/Spending (million $ per year) AZ CO NM NV UT WY ~.5 Region Source: SWEEP data 28

6 Southwest Recent Developments Arizona energy efficiency resource standard - 20% electric savings by Arizona Public Service (APS) rate case settlement included savings goals of 1.0% of sales in 2010, 1.25% in 2011, and 1.5% in 2012 Nevada Power, Rocky Mountain Power (UT), and Questar Gas (UT) all saved more than 1% of sales from DSM programs in 2009 Staff of the Utah PSC proposed decoupling for the electric utility; already adopted for the gas utility Overall electric DSM budget in region likely to grow 20% or more in 2010 Source: SWEEP data 29

7 State of Utah 30

8 Energy Efficiency in Utah Utah Energy Policy: It is the policy of the state that: Utah will pursue energy conservation, energy efficiency, and environmental quality; Energy Efficiency Goal: In April 2006, Governor Jon Huntsman set forth an energy policy for the state with the goal of increasing energy efficiency 20% by

9 Utah Building Energy Efficiency Strategies New Partnership Between: Utah Governor s Energy Advisor Utah Clean Energy Utah State Energy Program Utah Division and Facility and Construction Management Governor s Office Economic Private sector partners, utilities Goals: Create the market and workforce to position Utah at the forefront for the social and economic prosperity through continued investment in energy efficiency and renewable energy. Play a significant role in meeting energy efficiency and renewable energy goals for Utah. These include a 20% improvement in energy efficiency by 2015 and 20% of energy from renewable sources by

10 33

11 About $9.5 billion enterprise value Exploration & Production Transmission Distribution Market Resources Questar Pipeline Questar Gas 72% 16% Net Income Contribution 12% 34

12 Year-End 2008 Questar Gas Communities served Customers Residential Commercial/Industrial Annual deliveries Residential Commercial/Industrial ,151 65, MMdth 327 MMdth 35

13 ThermWise Goals & Strategy Goals Cost-effective customer gas savings Market transformation Lower customer gas prices Strategy Customer incentives (rebates) Marketing emphasis education and awareness Umbrella campaign - branding Integrated marketing approach Culture change within Company / Market Coordination / Collaboration with Industry 36

14 ThermWise Programs: Goal vs. Actual Dth Savings ,200,000 1,000,000 1,086, , , , , , , , , , Actual (deemed) Dth Savings Budgeted (deemed) Dth Savings 37

15 ThermWise Budget $ vs. Actual $ $50,000,000 $47,449,149 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $ 6,9 8,5 0 2 $7,413,141 $18,076,356 $ 1 7,7 8 7,2 5 0 $ 1 0,5 0, As of 12/ 31/ 2009 Budget $ Actual $ Total ThermWise Program spending of $73 million from 2007 thru

16 2010 ThermWise Dth Savings Program Dth Savings Home Energy Audits 13,344 Appliance 159,208 Builder 43,049 Weatherization 640,536 Multifamily 63,760 Business 51,424 Business Custom 7,513 Low-Income Wx n/a Market Transformation n/a Total 978,832 39

17 Policy Environment & Requirements 40

18 Policy and Operating Environment Progressive Regulators Pro-Business Legislature Strong Stakeholder Group Rate Design Considerations Straight-Fixed Variable Revenue Stabilization Revenue Decoupling Conservation Enabling Tariff 41

19 The Questar Gas Solution Conservation-Enabling Tariff (CET) Collect Public Service Commission allowed revenue Align with customers needs Remove economic barrier to aggressively pursue customer energy efficiency programs Favorable price signal mechanism for customer conservation and energy efficiency 42

20 Approaches to Reaching Targets 43

21 Continue with Successful Strategy Umbrella DSM Brand Integrated Marketing Portfolio Approach Customer Focus Market Transformation Goal Program Delivery Model Industry Collaboration Cost Effectiveness Modeling Results Reporting 44

22 Marketing Strategies 45

23 Integrated Marketing Customer Focus (not technology alone) Advertising Campaign Dedicated Web site - ThermWise.com Questar Gas Publications Inserts, Newsletters Alliance Network POP, Promotions, Direct Sales Community Events State & County Fairs, Parade of Homes events Incentives, Education & Training 46

24 Program Success Dependencies 47

25 Dependencies - how to get more? Financial incentives for performance ENERGY STAR Whole House Retrofits Behavior-based Programs Add externalities to cost effectiveness Local, regional, national coordination Quality Assurance & Quality Control 48

26 Duct Insulation Insulation Before Insulation After 49

27 Recommendations for Industry Support Support financial incentives for performance by utilities Support full-revenue decoupling for both gas and electric utilities Support source-based efficiency Support regional and national coordination efforts Assist with trade contractors Support natural gas as a vehicle fuel 50

28 Thank You. 51

29 Contact Information: Dan Dent Questar Gas Company