Reducing Costs with Energy Efficiency

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Reducing Costs with Energy Efficiency Presented to Pennsylvania Demand Side Response Working Group February 9, 2007 2/9/2007 1

Austin Energy Municipally-owned 700,000 population Area > 400 sq. miles Generation 3,170 MWs 2/9/2007 2

Demand-side Management s Role? Demand-side Management (DSM) are initiatives which modify the level and pattern of electricity use by customers. Provides cost-effective resources to defer the need for new capacity Enhances customer service 2/9/2007 3

Energy Efficiency Peak Demand Savings 800 M W 's Saved 600 400 200 0 1982-99 2000 2001 2002 2003 2004 Year 2/9/2007 4

DSM Reduction in Fuel Costs $0.030 $0.029 $0.028 $0.027 Fuel Cost without DSM $0.026 $0.025 $0.024 $0.023 $0.022 $0.021 Fuel Cost with DSM $0.020 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2/9/2007 5

Austin City Council Resolution September 14, 1999 Cost-effective conservation programs shall be the first priority in meeting new load growth requirements of Austin Energy. Clean Energy Resolution August 28, 2003 Austin Energy Strategic Plan to ensure Austin remains a national and international leader in the development and use of clean energy 2/9/2007 6

Austin Energy s Response Energy Efficiency is first priority 15% Demand-Side Management by 2020 20% Renewable Energy by 2020 100 MWs of Solar by 2020 Commercial, Residential and Solar Energy Efficiency Programs 2/9/2007 7

DSM Opportunity AE System Load Duration Curve -2004 2,500 Top 160 MW is used 40 hours per year 2,000 MWs Generated 1,500 1,000 500 0 0% 10% 20% 30% 50% 60% 70% 80% 90% % of Yearly Hours 2/9/2007 8

Promoting Commercial Energy Efficiency Cash rebates that pay 20 30% of cost Up to 70% buy-down incentives for Small Business Direct install measures Innovative electric rate tariffs Free energy audits Feasibility studies Inter-agency agreements Utility Key Account representatives Newsletter / Mail outs 2/9/2007 9

Energy Use Modification Peak Clipping Strategic Conservation Load Shifting

Energy Use Modification Peak Clipping Strategic Conservation Load Shifting Valley Filling Strategic Load Growth Flexible Load Shape

AE DSM Programs Peak Clipping Power Partner A/C Cycling W/H Cycling Load Co-Op Represent 51% of new DSM program mix

AE DSM Programs Strategic Conservation Total Home Efficiency Small Business Efficiency Green Building Appliance Efficiency Multi-family Rebates Commercial Rebates Refrigerator Recycling Free Weatherization Municipal Conservation Air Duct Sealing Represent 32% of new DSM program mix

AE DSM Programs Load Shifting Time-of-Use Rate Thermal Energy Storage Systems Represent 17% of new DSM program mix

Peak Clipping Power Partner Cycling Session, June 15, 2005 Forecast vs Actual Load 2200 Curtailment Session Start 2193-MW Curtailment Session Finish 2174-MW MW 2150 2100 1500 1600 1700 1800 1900 2000 Forecast Act Load Hour 2/9/2007 15

Strategic Conservation Municipal Energy Conservation Program Traffic Signal Conversion to LED 5,500 traffic signals Existing incandescent lamps 135 watts New LED lamps 15 watts Energy savings per lamp 120 watts 90% energy reduction 2/9/2007 16

Strategic Conservation Municipal Energy Conservation Program Pedestrian Crossing Signal Conversion Existing incandescent lamps 92 watts New LED lamps 7 watts Energy savings per signal 85 watts 90% energy reduction 2/9/2007 17

Load Shifting - Thermal Storage ABIA, kw Demand Profile, August 8, 2000 1800 1600 TES OFF-PEAK PERIOD TES OFF-PEAK PERIOD 1400 TES ON-PEAK PERIOD kw Demand 1200 1000 800 600 400 200 Austin Bergstrom International Airport Thermal Storage KW Demand Profile Meter Data For Tuesday, August 8, 2000 0 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Hour of Day kw Demand 2/9/2007 18

Central Plant Demand Profile Austin-Bergstrom International Airport - July 1999 2500 2000 12 AM 2 AM 4 AM 6 AM 8 AM 10 AM 12 PM 2 PM Time of day 31 1500 1000 500 0 Central Plant Demand (kw) 4 PM 25 28 6 PM 8 PM 10 PM 4 7 10 13 16 19 22 Day of Month 1 2/9/2007 19

Load Shifting - Load Coop Curtailment June 15, 2005 - Brown Distributing, Inc. June 15, 2005 Peak Day: June 2, 2005 2/9/2007 20

Building Retrofit-Commissioning High Tech Industry Re-tuning & calibrating an existing building Savings estimate: $260,000 per year Utility incentive: $10,000 for initial assessment Total cost of project was $149,000 Economic payback was 7 months. 2/9/2007 21

High Bay Fluorescent Retrofit Manufacturing Facility Converted (514) 400-watt HID lamps to 4-lamp 240-watt T5 HO Fluorescents Annual Cost Savings: $43,812 Project Cost: $122,800 Utility rebate: $33,153 (27% of job cost) Payback was 2 years 2/9/2007 22

LED Exit Sign Retrofit Energy Savings 5000 units installed Cost Savings = $84,350 per year. Maintenance Cost Savings = $103,768 / year Peak Demand Savings = 137 kw Energy Savings = 1.2 million kwh / year 2/9/2007 23

Vending Machine Energy Use Shuts-off refrigerated vending machines when no traffic in the area Cuts power costs by 1/3 (~$100/yr) Does not affect product temperatures Installed over 4,400 VM over 3 year period. 2/9/2007 24

Reflective Roof Coating Target Commercial facilities with flat, dark colored roofs Rebate up to $0.15/sq. ft. 300,000 sq. ft. roof Expected Savings 192,000 kwh/year; total of 148 kw 2/9/2007 25

Cool Roof Market Penetration Market Transformation - Austin Year Buildings Sq. Ft. kwh Savings 2001 1 31,000 13,000 2002 10 223,000 126,000 2003 27 909,000 460,000 2004 23 347,000 289,000 2005 42 707,000 769,000 Total 103 2,217,000 1,657,000 2/9/2007 26

Demand Controlled Ventilation Regulates supply of outdoor air to match fresh air needs of building s occupants. Saves energy & delivers good indoor air quality New sensors Less expensive More reliable Require less maintenance 2/9/2007 27

Technology Evaluations Polarized Refrigerant Oil Additives Liquids mixed w/ refrigerant oils in a/c units Claimed savings from 5 30% have not yet been substantiated. 2/9/2007 28

Lifetime Motor Operating Costs Sample Purchase Price plus Installation, Maintenance, and Other Costs: 5% 2/9/2007 29

Electronically Commutated Motors (ECM) Emerging Technology for Refrigeration Fans Replaces Shaded Pole and Permanent Split Capacitor Reduced energy consumption to 60% Relatively Simple Retrofit Typical Paybacks Range from 2 to 3 years 2/9/2007 30

Large Grocery Chain Retrofit Retrofit currently underway 22 Locations in Austin area Fans per location store ~ 200 fan/motors Energy Cost Savings ~$10,000 /location/yr 2/9/2007 31

Commercial Rebate Program Summary of Lighting Technologies T-8 & T-5 High Efficiency Lighting Systems Compact Fluorescent Lamps (CFL s) LED (Light Emitting Diode) Exit Signs Incandescent to Fluorescent Conversions New building designs Relamping & Reballasting of Existing Fluorescent Fixtures High-Bay Fluorescent Systems Lighting Controls (occupancy sensors) 2/9/2007 32

Commercial Rebate Program Summary of Technologies Air Conditioning (Direct Expansion) Air Conditioning (Chillers) Solar Film/Screens Ceiling/Roof Insulation Reflective Roof Coatings Premium Efficiency Motor Variable Frequency Drives (VFD s) Re-tro commissioning Thermal Cool Storage Custom technologies 2/9/2007 33

Austin Energy Home Performance with ENERGY STAR 2/9/2007 34

Realtor s Checklist Homes by Decade Sq. Ft & kwh Usage Year Avg. kwh Usage Annual Annual Built Sq. Ft per Sq. Ft. Usage Cost 1950 s 1395 8.9 12,415 $1,303 1960 s 1625 8.5 13,812 $1,450 1970 s 1642 9.1 14,942 $1,568 1980 s 1871 8.8 16,464 $1,728 1990 s 2509 7.5 18,817 $1,975 2000 s 2501 7.4 18,507 $1,943 2/9/2007 35

Realtor s Checklist Energy Usage After Energy Improvements Base Home Retrofit Home Difference kwh/sq. Ft. kwh/sq. Ft. kwh/sq. Ft. 8.98 per Sq. Ft. 7.68 1.3 kwh/sq. Ft. Improvement 2000 Sq. Ft. Base Home = 17,960 kwh Annual Usage Retrofit Home = 15,360 kwh Annual Usage kwh Savings = 2,600 kwh Cost Savings = $273 2/9/2007 36

Realtor s Checklist Air Duct System Average Home Has 27% Duct Leakage Sealing, Repairing or Replacing Can Save Up to $300 Reduces Dust, Humidity, Outdoor Allergens Improves Indoor Air Quality of Home Check Ducts for Leakage Turn Thermostat to On Position Check Duct Connections in Attic Pull Off Room Vent Check Vent for Gaps Gray Flex Duct? Is it Disintegrated? Brittle? 2/9/2007 37

Realtor s Checklist Air Duct Air Flow Average Austin Home Duct Air Flow 69% of A/C Equipments Rated Capacity Example: 1 Ton of A/C = 400 CFM of Air Flow 3 Ton System = 1200 CFM of Air Flow 69% Air Flow = 828 CFM Common Problem/Solutions Some Rooms Don t Get Enough Air Have Contractor Balance the Duct System Add Additional Room Registers, Return Air Grilles 2/9/2007 38

Realtor s Checklist Attic Insulation Lack of Insulation Big Energy Waster 30% of Homes Heat Gain Comes from Attic Most Homes Have 4 inches of Insulation, or R-11 Recommend 10 12 inches of Insulation, or R-30 Types of Insulation R-Value/Inch Fiberglass Blanket 3.0 Fiberglass Loose Fill (pink) 1.8 Cellulose Loose Fill (Gray Dense Packed) 3.5 Insulsafe Loose Fill (White Color) 2.3 2/9/2007 39

Realtor s Checklist Solar Shading Most Solar Heat Gain East, South & West Windows Can Reduce Sizing of A/C by ½ Ton Reduce Indoor Temperature by 20 Degrees Protects Against Glare & Fading Types of Solar Shading Homes Solar Screens Used in New Homes 80 s & 90 s Window Film Used as Retrofit in Existing Homes High Efficiency - Low E Windows Used in New Homes Since 2000 2/9/2007 40

DSM Cost-Effectiveness Tests Participant Test Benefits to the customer Utility Revenue Requirement Test Net costs of DSM program incurred by the utility Total Resource Cost Test Net costs of DSM based on total costs to all participants and the utility Rate Impact Measure Test Impact to customer rates due to DSM program 2/9/2007 41

Strategic Goals Demand Reduction and Savings Austin Energy Austin s Community-Owned Electric Utility 700 600 617 MW 500 400 300 Actual Forecast 200 100-2003 2005 2007 2009 2011 2013 2015 2/9/2007 42 Fiscal Year

FY2007 Budget and Goals Program Area Commercial Residential Load Management Solar Grand Total Budget $ 4,024,170 $ 6,078,991 $ 4,683,672 $ 3,500,000 $ 18,286,833 Goal MW 14.49 11.25 15.04.50 41.28 2/9/2007 43

Questions? 2/9/2007 44