1. Austin Energy’s Renewable Energy and Demand Side Management
Reza Alaghehband, P.E.
Power System Consulting Engineer, Austin Energy
EMS Users Conference
September 9, 2008
Atlanta, GA

2. Austin Energy Municipally Owned Electric Utility
9th Largest Public Power
Serves > 388,000 Customers (population of 900,000)
Area > 437 sq. miles
Serving COA (Travis Co. and portion of Williamson Co)
Austin

3. Austin Energy No increase in base rates since 1994 Generation 2,760 MW
Peak Load ~2,500 MW
ERCOT Member
Austin

4. Generation Capacity Ratio
Coal (2 units) – 23%
Gas (12 units) – 52%
Nuclear (2 units) – 15%
Renewable – 10%
Austin

5. Transmission Portfolio
633 Miles Transmission
- 345 KV
- 138 KV
- 69 KV

6. Distribution Portfolio
10,560 Miles Distribution
- 35 KV KV
11 transmission substations
57 distribution substations

7. ERCOT Market Non-Opt-In Entity (NOIE) – NO part in retail Market
Qualified Scheduling Entity (QSE) – Submit bids, dynamic/static gen schedules, settle retail/wholesale gen resources with ERCOT according to EPS meters at tielines and gen. terminals
Power Generation Entity (PGE)
Transmission and Distribution Service Provider (TDSP)

8. Renewable Portfolio (Current)
Wind (5 farms) – 274 MW (96%)
Biomass (2 Landfill site) – 12 MW (4%)
Solar – 2 MW
Total = 288 MW
Wind Provides 8% of
AE Power)

9. ERCOT New Generation Capacity

10. Austin Climate Protection Plan
Will make Austin the national leader among cities in the fight against global warming.
City Council Resolution on February 15, 2007

11. Austin Climate Protection Plan
Municipal Plan - Makes all COA facilities/fleets carbon neutral
Homes and Buildings Plan - Makes Austin building codes most EE in nation
“Go Neutral” Plan - Mechanisms for business to reduce carbon footprint to zero
Community Plan – Develop complete plan for reducing GHG emissions from sources community-wide
Utility (Austin Energy) Plan
Make all COA facilities & fleet carbon neutral by 2020
Facilities 100% renewable by 2012
Fleet carbon neutral by 2020
AE GHG-reduction goal by 2020
Achieve carbon neutrality on new generation
Establish CO2 cap for utility emissions

12. Utility (Austin Energy) Plan
30% renewables by 2020
700 MW of energy savings by 2020
CO2 cap and reduction plan
New generation carbon-neutral
Enhance building codes for zero energy-capable homes by 2015

13. Load Forecast & Conservation

14. Projected New Resources (in MW)
Year
Coal/Nuclear
Gas
Biomass
Wind
Solar
2008
1,029
1,444 12
274 2
2009
100
165
2010 30
2011
(77)*100
2012
2013
200
2014 50 20
2015
2016
2017
(126)*200
2018
2019
2020
110
Total
1,744
212
(203) 1,049
102
Total Additional Resources 1,376 MW
*Expiring wind contracts

15. Strategic Conservation
AE DSM Programs
Strategic Conservation
Peak Clipping
Load Shifting
Generic Load Shape Changes

16. DSM Cumulative Savings

17. Represent 35% of new DSM program mix
AE DSM Programs
Peak Clipping
Power Partner
A/C Cycling
W/H Cycling
Load Co-Op
Aggregator
Represent 35% of new DSM program mix

18. Power Saver Program FREE Energy Saving Products Lower energy costs
70,000 installed in homes, apartments
10,000 installed in commercial buildings

19. Cycling A/C Thermostats
Cycling Session, June 15, 2005

20. Demand Response Program
Customer Type and Strategy
Residential A/C
SuperStat®; 33% & 50% Cycling Strategy
Multi-Family A/C
SuperStat; 33% Cycling Strategy
Multi-Family Water Heating
Vaughn; 100% (digital timer)
Commercial A/C
SuperStat®; 33% Cycling Strategy
Municipal & Government A/C
SuperStat®; 33% Cycling Strategy & Set Point Limits

21. DR Program Implementation
Power Partner - Automatic AC cycling by radio controlled thermostats.  Participant AC’s are cycled for a 10 minute block per half hour.  Total continuous MW reduction with full deployment ranges from MW depending on temperature.
Availability:
June through September, Non-Holiday, weekdays from 1600 – 2000 with a target of 15 events per season  

22. DR Program Implementation
Load Coop - ~2.5 – 3 MW of load response.  Load Coop customers are paid a capacity availability charge of $1.25/kW month and a curtailed energy charge of $0.15/kW based on deployment
Availability:
June through September, between 1200 – 2000 limit for a fixed block of 3 hours per day, up to 15 days or 45 total hours per season with no more than 3 consecutive activations

23. Demand Response Program

24. Demand Response
June 15, 2005
Peak Day: June 2, 2005
June 15, 2005

25. Demand Response Program Impact on AE System Load

26. Demand Response Program Impact on AE System Load

27. Demand Response Program Impact on AE System Load

28. Aggregator Program Types of Participants Energy management companies
Large chain stores – central energy management systems
Minimum 3 sites bundled
10 kW per site minimum
Self-aggregator 30 kW minimum

29. Aggregator Program Curtailment Events
4 events per summer minimum (once/month)
15 events per summer - anticipated
Time Period
June 01 – September 31
Monday - Friday only
No holidays or weekends
Between 3 pm to 8 pm
Event maximum duration – 3 hours

30. Aggregator Program Set-Up Incentive
If no automation equipment/software exists,
$40/ton up to $10,000 for existing HVAC or refrigeration equipment
Ex: $40/ton x 150 tons = $6,000
If automation equipment/software does exist,
$20/ton up to $5,000 for existing HVAC or refrigeration equipment
Up to 50% and 500 tons

31. Aggregator Program Performance (Energy) Incentive
$0.24 per delivered kWh
Ex: 20 kW x 3 hours x $0.24/kWh = $14.40
AE’s energy incentive not to fall below the $0.24 per kWh
Minimum 4 energy payments per summer

32. Demand Side Management (DSM)

33. Strategic Conservation
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
Represents 65% of new DSM program mix

34. Promoting Energy Efficiency
Cash rebates that pay 20 – 30% of cost
Up to 70% buy-down incentives for Small Business
Direct install measures
Free home and business energy audits
Low-income Free Weatherization
Engineering Feasibility studies
Inter-agency agreements
Utility Key Account representatives
Newsletter / Mail outs

35. Commercial Rebates Summary of Technologies
EE Lighting retrofits
Air Conditioning Unit
Solar Film/Screens
Ceiling/Roof Insulation
Reflective Roof Coatings
Premium Efficiency Motor
Variable Frequency Drives (VFD’s)
Retro commissioning
Thermal Cool Storage
Custom technologies

36. Commercial Rebates 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
Re-lamping & Re-ballasting of Existing Fluorescent Fixtures
High-Bay Fluorescent Systems
Lighting Controls (occupancy sensors)

37. 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
In any motor, either the rotor or the stator must have a rotating magnetic field in order to cause the motor to turn.
In Electronic commutation Power is pulsed on and off electronically with semi-conductor devices sometimes called electronic switches, transistors,

38. Large Grocery Chain Retrofit
Retrofit currently under way
22 Locations in Austin area
Fans per location store ~ 200 fan/motors
Energy Cost Savings ~$10,000 /location/yr
Rebate varies by size of motor. $6 - $16 on this project.

39. 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
TYPE OF FACILITY: Sporting Goods Manufacturing and Distribution & Warehouse
Facility (78,000 SF)
OPERATING HOURS: 12 hours per day / 5 days per week
Major complaint: high bills, poor light levels and poor light quality; excess heat gain.
Retrofit eliminated noise, glare & heat gain associated with HID; almost doubled light levels; better CRI; and a 47% reduction in KW load.
Utility rebate: $33,153 (27% of job cost)

40. Solar Rebate Program Up to 30% Savings
100 Mega-watts of solar by 2020
Rebates among the largest
Encourage installations on homes & businesses.
Demonstrations in Schools
Demonstrations in City buildings

41. Free Home Weatherization
Energy Improvements:
Attic Insulation
Duct Sealing
Install CFLs
Installing Solar Screens
Caulking and Weather-stripping
Free Smoke & Carbon Monoxide Detector
Minor Energy Related Repairs
Eligibility Requirements:
Austin Energy Customer
Elderly
Low-to-Moderate Income
Disability
Renters Eligible:
Rental Release Form Required
Must Be in Household Minimum 3 Months
Income Guidelines
Number in Household
60 years or older $39,850 $45,500 $51,200 $56,900 $61,450
Under 60 years old $24,900 $28,450 $32,000 $35,550

42. Energy Conservation in Public Facilities

43. Strategic Conservation
Municipal Energy Conservation Program
Traffic Signal Conversion to LED
5,500 traffic signals
Existing incandescent lamps watts
New LED lamps watts Energy savings per lamp watts
90% energy reduction

44. AE DSM Programs Load Shifting Time-of-Use Rate
Thermal Cool Storage Systems

45. Load Shifting - Thermal Storage Austin-Bergstrom International Airport - July 1999

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

47. 2007 DSM Expenditures Program Area Expenditures Cost / kW Saved
Commercial
$ 6,406,040
$ 327
Residential
$ 6,205,155
$ 483
Demand Response
$ 4,852,074
$ 295
Free Weatherization
$ ,084
$ 953
Solar
$ 2,637,453
$ 4,221
Grand Total
$ 20,532,076 $

48. Natural Gas – Combined Cycle $750 Pulverized Coal $1,549
Capital Cost – New Generation
Power Plant Cost/kW
Natural Gas – Combined Cycle $750
Pulverized Coal $1,549
Nuclear $3,000
Source – National Energy Technology Lab (NETL)

49. Residential Power Saver
15% Energy Savings
Typical Home Size: 2,000 Sq. Ft.
Pre-Retrofit = ,960 kWh
Post- Retrofit = ,360 kWh
kWh Savings = ,600 kWh
Cost Savings = $273
Customer Benefits: Energy efficiency offers enormous potential for benefiting our customers, the environment and our industry
Base Home Retrofit Home Difference
kWh/Sq. Ft. kWh/Sq. Ft. kWh/Sq. Ft.
8.98 per Sq. Ft kWh/Sq. Ft. Improvement
Air Duct System
Average Home Has 27% Duct Leakage
Attic Insulation
30% of Homes Heat Gain Comes from Attic
Solar Shading
Can Reduce Sizing of A/C by ½ Ton

50. Cash Flow Projection of DSM
FY05 Forecast
DSM Analysis
Base Revenue Reduction $12,000, $16,000,000
Fuel Revenue Reduction $13,000, $15,000,000
Customer Savings (Bill Reduction) $25,000, $31,000,000

51. Cash Flow Projection of DSM

52. Cost-Effectiveness Tests (Benefits $ / Costs $ > 1)
The Participant Test = NPV of
Savings on electric bill + financial rebate
Customer’s additional cost incurred to participate
The Utility Test = NPV of
Avoided (fuel + power plant operating & maintenance + capacity cost)
DSM program administrative cost + financial rebates
Ratepayer Test = NPV of
DSM program administrative cost + financial rebates + revenue losses
The Total Resource Test = NPV of
Avoided ( fuel + power plant operating & maintenance + capacity cost)
DSM administrative cost + Customer’s additional cost incurred

53.                                      
Thank You!!!