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Low rates High reliability Responsible stewardship Cleaner air

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Presentation on theme: "Low rates High reliability Responsible stewardship Cleaner air"— Presentation transcript:

0 Energy Efficiency: Why Does It Matter?
November 15, 2011 TVPPA Customer Service & Communications Conference

1 So, to wrap up, as we move into the next decade, TVA will be focused on six things:
Low rates High reliability Responsible stewardship Cleaner air More nuclear generation Greater energy efficiency We think this is the right approach for TVA and a winning strategy for the region we serve. Virtually everything we do in the years ahead will be focused on these six areas

2 Balanced Energy Strategy Goal to be Southeast Leader
Why Greater Energy Efficiency? Balanced Energy Strategy Cleaner Air Reduces air emissions CO2 reduction is equivalent to reduction from 350,000 cars. Economic Development Greater reliability More flexibility Reliable Electricity Consistent with Integrated Resource Plan Part of a diverse mix of energy generation sources Low Bills Reduce customer bills Economic engine for the Valley Creates thousands of jobs Goal to be Southeast Leader 2

3 FY11 Program Highlights 559 GWh Achieved 373 MW Reduction
Generation Partners 55.82 GWh EnergyRight Solutions for Business 121 GWh and 18.6 MW saved 908 projects Self Audit New record set in August with 5,827 participants Exceeded goal, with 35,591 audits 60.64 GWh saved Heat Pump Program 10,011 installations EnerNOC 104 participating Power Distributors 725 customer sites with MW nominated load In-Home Energy Evaluations Over 25,000 since program inception, April 2009 145 Participating Power Distributors Major Industrial Program (> 5 MW) 133 GWh and 14.3 MW saved 38 projects

4 Progress Towards Cumulative Energy Savings (GWh)
4,158 1,301 2,857 871 1,986 Achievements equivalent to a 100 MW power plant 667 1,319 550 559 769 210 FY 2010 Achievements FY Achievements FY 2012 FY 2013 FY 2014 FY 2015 Forecast Impacts at the end-user meter; do not include degradations for equipment lifespan 4

5 EnergyRight® Solutions Framework
Programs Education Resources Homes Business Industry Demand Response For Homes For Kids For Business Renewable Energy Power Purchase Agreements Standard Offer Green Power Providers (formerly Generation Partners) TVA Owned Renewable Resources Solar Solutions Initiative 5

6 EnergyRight® Solutions Programs and Features
Business Home Business Industry Demand Response Existing Homes Program Existing (Retrofit) Program End-Use Products New Homes Program New Construction Program Distribution-level Products Market Transformation 6

7 EnergyRight® Solutions for the Home Programs and Features
Indicates existing feature Programs Market Transformation Existing Homes New Homes Weatherization Incentives ENERGY STAR Air Conditioning (develop and launch in FY12) ENERGY STAR Heat Pumps eScore EnergyRight® Homes EnergyRight® Platinum and Platinum Certified Homes Self Audit Weatherization Assistance Program (TN) Manufactured Homes ENERGY STAR Manufactured Homes Retail Lighting (develop and launch in FY12) Features

8 eScore Development and Design
eScore Draft Focus Groups Benchmark Workshops

9 eScore Development and Design
eScore helps residential customers save money on energy bills by making their homes more energy efficient.  It consists of: Audit Starting eScore Suggested upgrades Rebates and incentives Savings estimates A simple, engaging path Direct install Focus Groups Benchmark Workshops

10 Based on energy efficient upgrade suggestions to be completed
eScore – Front Page MPG type cost comparison

11 eScore – Back Page Return on Investment, kWh and $ savings
The first three steps of the path to a 10

12 End-Customer Focus Group Input eScore Online Version Pilot
Status eScore 2011 2012 June July Aug Sept Oct Nov Dec Jan Feb Urban: Knoxville (3) Nashville (2) Memphis (3) Rural: Kentucky (2) Georgia (2) Market and Software Development (Discussion with power distributors) End-Customer Focus Group Input eScore Online Version Pilot

13 EnergyRight® Solutions for the Home
Existing and New Home Program Features Weatherization Incentives Provides rebates and incentives for air sealing and insulation, ventilation, duct repair, HVAC improvements, and replacement windows ENERGY STAR Air Conditioning Promotes the installation of ENERGY STAR Central A/C in homes by offering rebates (customers and contractors must meet EnergyRight®) standards ENERGY STAR Heat Pump Promotes the installation of ENERGY STAR heat pumps by offering rebates (must meet EnergyRight® installation standards) Assesses the energy efficiency of an existing home and provides the homeowner with feedback pre- and post-audit for energy efficiency modifications or improvements; will have online and in-home audit versions eScore EnergyRight® Homes (New) Offers incentives to distributors for building energy efficient homes in the Tennessee Valley to a standard that is better than code using a Home Energy Rating System (HERS) or a prescriptive standard EnergyRight® Platinum and Platinum Certified Homes (New) Offers incentives to distributors for building energy efficient homes in the Tennessee Valley that are rated or use the ENERGY STAR prescriptive standard (there are two options for the certified level) 13

14 Weatherization Assistance Program (TN) ENERGY STAR Manufactured Homes
EnergyRight® Solutions for the Home Market Transformation Program Features Self Audit On-line and paper do-it-yourself tool that provides customers with a personalized annual and monthly energy usage report, energy savings recommendations, and an energy-savings kit Weatherization Assistance Program (TN) A state supported diagnostic in-home energy assessment for the low income sector that provides home energy efficiency and health/safety improvements at no cost to the customer Manufactured Homes Promotes (through wholesaler incentives) the installation of 13 SEER heat pumps in qualified manufactured homes (new homes and homes up to 10 year old) ENERGY STAR Manufactured Homes Utilizes a contractor and the Systems Building Research Alliance (SBRA) to influence manufacturers to build ENERGYSTAR homes at the factory Appliance Recycling Encourages (through customer incentives) the removal and disassembly of existing second refrigerator (typically when consumers purchase a new high efficiency unit) Retail Lighting Targets major retailers with incentives for selling CFLs (primary emphasis) and LED lighting through three channels: buy-down, mark-down, and coupons 14

15 EnergyRight® Solutions for Business Programs and Features
Indicates existing feature Existing (Retrofit) New Construction Better Energy Management (pilot in FY12) Commissioning (develop FY12) General Custom Tailored Solutions General Standard Rebate Outdoor Lighting (develop and pilot in FY12) Consulting Prescriptive New Construction (develop in FY12) Features

16 Success Story: Gaylord Opryland Hotel
“The TVA rebate program helps build a case for making the energy retrofit a priority! “ – Andy Mims (Gaylord Opryland Hotel & Resort) Major Chiller Replacement The Gaylord Opryland Hotel & Resort flooded in May 2010 causing millions of dollars of damage. TVA stepped in to offer Fast Cash Disaster Relief. $147,000 incentive kW demand reduction 1,888,660 kWh first year energy reduction $200,000 estimated savings on customer’s annual utility bill

17 Success Story: Federal Express
Replaced out of date Chiller Federal Express had a chiller that needed to be replaced due to the age of the equipment. Incentives from EnergyRight Solutions for Business enabled them to purchase a higher efficiency unit. $27,550 incentive kW demand reduction 326,203 kWh first year energy reduction $32,463 expected savings on customer’s annual utility bill

18 EnergyRight® Solutions for Industry Programs and Features
Indicates existing feature Existing (Retrofit) New Construction Better Energy Management (pilot in FY12) General Custom Tailored Solutions Standard Rebate Consulting New Construction (develop in FY12) Features

19 Compressed Air System Replacement (2009)
Success Story: CEMEX “Energy efficient production was our goal, and TVA’s Major Industrial Program helped us make it a reality.” – Antonio De Luca (Plant Manager, CEMEX, Knoxville, TN) Compressed Air System Replacement (2009) CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities throughout the Americas, Europe, Africa, the Middle East, and Asia. 159 kW demand reduction 1,900,000 kWh annual energy reduction $15,900 incentive $93,500 annual energy savings

20 EnergyRight® Solutions- Demand Response Programs and Features
End-Use Products Distribution-Level Products

21 Demand Response Customer Segments
End-Use Products Resi-dential Small C&I Medium C&I Large C&I Direct Served Instantaneous Response Reserve Preservation 3rd Party Demand Response Commercial and Industrial Premise Management Low-Impact Demand Response Residential & Commercial Shift and Store Smart Grid Pilot: Direct Load Control Smart Grid Pilot: Critical Peak Pricing Residential Premise Energy Management Green Power Switch Generation Partners Distribution-Level Products Smart Grid Pilot: Dynamic Voltage Regulation Conservation Voltage Regulation Distributor-Aggregated Demand Response Current products Future products

22 A Day In The Life of Demand Response – August 3, 2011
Background A Conservative Operations Alert was in effect due to high temperatures and a forecasted peak load of 31,800 MW Energy Trading executed the Reserve Preservation product (potential increase in real time prices and transmission constraints impacting real time deliveries) Results Reserve Preservation MW EnerNOC MW Cycle ‘n Save MW SureGrid MW TOTAL DR Products MW Actual performance better than protected load expectation (10 MW) TVA System MW 31,740 31,660 31,580 31,500 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM 12:00 AM 31,420 31,340 31,260 31,180 Baseline Average Load 1,100 MW Actual Load MW Demand Reduction MW Energy Reduction ,838 MWh

23 Walking the Talk: Greater Energy Efficiency in TVA Generation Facilities
TVA’s energy efficiency programs are designed to meet the needs of every sector in the Tennessee Valley, including our own facilities Annual audits at the facilities will be done to show their energy savings. Initial results indicate savings potential and opportunities Achieved 45 GWh of savings in 2011

24 EnergyRight® Solutions Framework
Programs Education Resources Homes Business Industry Demand Response For Homes For Kids For Business Renewable Energy Power Purchase Agreements Standard Offer Green Power Providers (formerly Generation Partners) TVA Owned Renewable Resources Solar Solutions Initiative 24

25 Education and Outreach Highlights
National Theater for Children (K-12) - 377,402 students reached was the third year for National Theatre for Children Built on the programs from the previous two years and saw the addition of water conservation to the mix of four key messages stressed in each performance “Energy Literacy Campaign,” also saw the development of a power distributor handbook that helps participating power distributors understand the campaign’s intent Alliance to Save Energy’s Green Schools Program – 81 schools across the Valley participating During the 2010–2011 school year, Memphis City Schools (MCS) approached the Alliance to Save Energy about the possibility of doing something with MCS that was both inclusive of all its schools and less expensive than the traditional program The pilot will touch 105,000 At the end of September 2011, MCS had designated eight district level employees as projects leaders, train 165 teachers and trained all site-based building managers

26 Education and Outreach – Green Campus Initiative
TVA issued an RFP to Valley institutions to participate in the Green Campus pilot to increase awareness of the importance of energy efficiency through a student-driven education program Six schools were selected from the applicants: Calhoun Community College, the University of Alabama at Huntsville, the University of the South, Memphis University, the University of Mississippi, and Western Kentucky University “Better Energy Management Programs” targets major universities, industrial corporations and other major enterprises in the Valley Program helps these partners plan, develop, and implement continuous efficiency improvement based energy management practices for better energy performance of  their facilities Currently TVA is piloting this approach with the University of Tennessee in Knoxville Kim Greene, TVA Group President, addresses University of Tennessee Students during a “Make Orange Green” kick-off event promoting campus sustainability, September 22, 2011 in Knoxville

27 Energy Efficiency Forum – Preliminary Overview
February 21-22, 2012, Gaylord Opryland Hotel Goal Host a two day regional forum to help roll out TVA’s EEDR Five-Year Action Plan Create a strong base of awareness and interest in the Action Plan among TVA power distributors and other stakeholders in the region by focusing on Energy Efficiency and Demand Response as a real, viable resource in the Tennessee Valley Enhance TVA’s position as a leader in EEDR in the Southeast Audience TVA Executive Leadership Power Distributors (board members, general managers, and marketing managers) Direct Serve Customers State and Local Policymakers Technical/Industry Allies Speakers National subject matter experts on EEDR State and local policy leaders with demonstrated EEDR success Utility and program administrators with national best practice EEDR initiatives

28 Five-Year Action Plan Design Criteria
ILLUSTRATIVE Aligned with the TVA Integrated Resource Plan Programs/portfolio are cost effective as measured against Total Resource Cost (net benefit to the Valley) Program flexibility - one size/approach will not fit the needs of all 155 power distributors Education and outreach are key to leveraging EEDR messaging and ultimately end-use customer participation Simplicity in program design, execution, and reporting is important Figure out ways to supplement some of the distributors’ costs to implement Distributor and end user participation encouraged through tailored financial incentives Multiple branding strategies must be developed - some programs/distributors want co- branding, others may want self-branding Allow and count distributor-developed and delivered programs Measureable results promote and demonstrate regional and industry leader in EEDR Varying energy efficiency stakeholder goals acknowledged, e.g., productivity for industrials, less consumption for power distributors Additional regional leadership attributes

29 Primary Elements of the Five-Year Action Plan
EEDR Five-Year Action Plan Elements Evaluation, Measurement & Verification (EM&V) Programs & Outreach Delivery Options Financial

30 Five-Year Action Plan Development Overview
Phase I Design and Document (May 2011– Sep. 2011) Phase II Implementation Plng. (Oct – Dec. 2011) Phase III Implementation (Oct and Beyond) Design EEDR programs and define costs and impacts Develop and communicate the business case Define EEDR distributor delivery options Design FY 2012 EEDR portfolio and finalize budget Develop incentive options Define program roll-out and performance measurement approach and timing Align EEDR communications with the Five-Year Action Plan Initiate stakeholder outreach Develop EEDR program implementation plans Unwind current EEDR customer contracts and write new contracts Identify which programs and delivery options each power distributor and direct serve customers will use Continue to build-on EEDR communications Continue stakeholder outreach Enroll power distributors and direct serve customers, i.e., programs and delivery options Implement new customer contracts and incentive options Implement EEDR programs and measure results Continue stakeholder outreach and communications Phase IV EM&V (Long-Term and Beyond) Evaluate program performance Identify and implement measurement and verification protocols Perform continuous improvement

31 Program Delivery Options
Turnkey Approach – TVA Developed, Managed, and Delivered Utilize TVA staff or TVA third party administrator staff May be unit or performance based May target end user or retail/distribution chain Could be TVA branded, co-branded or power distributor branded TVA will consider options for power distributor performance incentives for energy savings achieved

32 Program Delivery Options (Cont’d)
Power distributor delivered and TVA developed and managed Utilize distributor staff or third party administrator staff May be unit or performance based Could be co-branded or power distributor branded TVA will consider options for power distributor performance incentives for energy savings achieved

33 Program Delivery Options (Cont’d)
Individual Power Distributor Developed and Delivered Program Design Assistance available from TVA Distributor pays all costs of program management and implementation May be unit or performance based Unit based will be paid at same $/unit as TVA program Performance based will be paid at $/kWh as TVA program effective delivery cost minus EM&V costs (about 8% based on national best practices) Power Distributor must follow all TVA rules for reporting, evaluation, measurement, and verification Power distributor must make all records, meter data and customer data available for TVA validation of program performance as a condition of TVA payment

34 Program Delivery Options (Cont’d)
Power Distributor Aggregation Developed and Delivered A group of distributors may develop and implement a program or programs either as group or through a third party All of the rules of Program Delivery Option 2 apply Power Distributor Chooses Not to Participate

35 EEDR Stakeholder Outreach Plan
Phase I Design and Document Phase II & III Implementation Planning and Implementation 2011 2012 May Jun. Jul. Aug. Sep. Oct. Nov Dec. Jan. Feb. Business Case TVA 2012 Budget TVA Five-Year Plan Internal Communications TVPPA ESC Direct Serve Customers (TVIC) External Stakeholder Group Internal EEDR Brownbag TVA Board 2013 LRFP Input May 23 FY 2012 31 30 2013 LRFP Complete Design Document Refine with Outreach Implementation Planning and Implementation Stakeholder Analysis AVI Meeting 12 30 All PD MM Meeting Governance Council Three All-PD Meetings Continuous Ongoing Prep with TVPPA ESC 14-16 Prep with TVPPA ESC Prep with TVPPA ESC 20 29 13 8 12 TVPPA Cust. Comm. Conf. 21 18 15 20 1 11 Webinar EE Forum CER Committee Update Leadership Council 13 17 25 17 Completed We are here 35

36 Going Forward… What you can do
Provide us input on your needs and wants regarding energy efficiency Help us understand what is working and what is not working Contact your TVA account representative and participate in the Programs

37 Questions?

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