1. Institute for Sustainable Energy Eastern Connecticut State University
Energy Issues Driving Energy Prices in Connecticut CT Chapter National Association of Housing and Redevelopment Officials August 27, 2007
Presented by
William Leahy
Institute for Sustainable Energy At
Eastern Connecticut State University

2. Agenda Energy Supply and Demand Issues Assessing Savings Opportunities
Competitive Purchasing & Aggregation
Utilizing Efficient Technologies
Finding Funding for your Projects

3. CT’s Energy Profile
Source: DOE EIA

4. How We Use Energy
Source: DOE EIA

5. The Shift to Natural Gas is On!
Source: DOE EIA

6. 1998 Electric Industry Restructuring
Remains Regulated
Competitive Market
Deregulated
Retail Customers
Generation
Transmission
Distribution

7. How your Electric Cost is Divided
Connecticut Department of Public Utility Control

8. Source: 2006 CT Energy Plan

9. Source: ISO-NE - Feb. 2006

10. PTF Map CT Transmission Lines & Generators
Source: CT Siting Council 23

11. Peak Demand
The Summer Peak Demand is over 20% of the total generation Requirement and less than 150 hours long.
The Peak grew by over 7% each of the past two years

12. The Red Zone!!! ”Connecticut may become a separate pricing zone for electricity if it does not control growth in use and demand and build 900 MW of Generation by the end of 2009”
Energy use is growing by
Less than 2% per year
Growth in CT System Peak has grown by 7% two years in a row
CT Peak grew from 6400 MW to 7400 MW in two years
ISO Day-ahead Pricing

13. What is CT doing about it?
1998 Connecticut Energy Efficiency Fund
1998 Connecticut Clean Energy Fund
2005 Climate Change Action Plan
2005 PA 05-1 Act for Energy Independence
2006 Distributed Generation and CHP
2006 ISO NE Demand & Price Response
2007 PA Act for Energy Efficiency
2008 Fuel Diversity & Biofuels

14. On the Road to Recovery Meeting 2010 capacity deficiency
Energy Efficiency (60MW/yr) MW
Renewable Energy MW
RFP for New Supply MW
Demand Response MW
Distributed Generation MW
1400 MW

15. Defining Demand Management
Efficiency: Install equipment and systems that perform and use less energy
Conservation: Not using energy consuming systems in order to reduce costs
Load Management: Controlling your electric demand during on-peak periods
Demand Response: Reduce your electric loads to help preserve system reliability
(and get paid for it)
Distributed Resource: Providing supply or demand management beyond the meter

16. Cost Reduction Strategies
Energy Efficiency
Commodity Purchases
Distributed Generation (DG, CHP)
Demand and Price Response (LM)
Forward Capacity Markets (FCM)
Green Building Design
Renewable Energy Sources

17. Energy Efficiency is 67% Cheaper than ANY other Supply Option
$0.000
$0.020
$0.040
$0.060
$0.080
$0.100
$0.120
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$/kWh
Levelized Electric Supply Cost in New England
(includes generation, T&D capacity and line losses)
Levelized Total Resource Cost of Energy Efficiency
Source: NEEP

18. Lighting and Lighting Controls
Lighting uses 25% of all
electrical energy in the US.
This is despite a 50%+
drop in connected lighting
power per unit area
since 1973.
New Trends in Lighting
CFLs
T-5 Lighting
Dimmable Metal Halide
Light Emitting Diodes (LEDs)

19. Life Cycle Financial Analysis:
Tale of TWO LIGHT BULBS:
Energy Efficient Bulb:
Longer life: 10,000 hours
Uses less electricity: 14 W
Costs $4 for one bulb
Standard Bulb:
Short life: 900 hours
Uses more electricity: 75 W
Costs $1 for one bulb
At 15 cents per Kilowatt-hour…

20. Inefficient vs. Efficient
Life-Cycle Cost of Two Light Bulbs:
Inefficient vs. Efficient
Save over $60 in lower electric bills
over the life of a single lamp!
Total Cost (Bulb + Energy)
Hours of Use

21. New Generation of Technology T-5
90% efficient
Two level dimmable electronic ballast
Excellent color rendition
Low and high-bay applications
3 lamp T8 w/85% efficient ballast = 94 watts
2 lamp T5 w/90% efficient ballast = 47 watts
50% energy and demand reduction
Equal light output and lamp life

22. HVAC Systems Savings Opportunities Efficient Chiller or DX Unit
DDC Controls
Plate and Frame
Economizer
Efficient Fan Motor
VFD on
Pumps and AHU
Heat Recovery

23. High Performance Building Standards
Reduce operating costs 30%
Solar Orientation and Daylighting requires fewer lights
DDC Controls keep lights and HVAC off when not needed using schedule, motion and CO2
Energy Star appliances reduce energy costs
Advanced building design techniques and superior
insulation cuts heating & cooling expenses
Heat recovery reduces overall heating costs
Controlled Ventilation improves air quality
Gray Water Reduces Water and Sewer Costs
Life Cycle Analysis Reduces Maintenance Costs

25. CT Leads in Demand Response Load Management contributes to Capacity Incentive can be $1,000 per KW
Over 400MW in 2007

26. Distributed Resources
Energy Independence Act (Public Act 05-01)
Emergency Generation
$250/kW Southwest Connecticut*
$200/kWRemainder of Connecticut
Must enroll in ISO-NE
Demand Response Program
Additional $50/kW only available for units
operational before April 30, 2008

27. Demand Response includes Embedded Energy Efficiency

28. Demand Response Options
Run local generation in demand response and to control peak (within environmental regulations)
Re-schedule large loads to off-peak hours and
change hours of operation or occupancy
Reduce loads via meters, DDC, temperature settings, duty-cycling, motor speed controls, etc.
Store energy during low-demand hours for use on peak (ice storage)

29. Distributed Generation
Combustion Turbines .5 – 10MW
Microturbines 30 – 250 kW
IC Engines 30 kW – 5 MW
Fuel Cells kW – 1 MW
25% - 40% Electricity
50% - 60% WASTE HEAT

30. Combined Heat and Power (CHP)
CHP: Onsite coincident production and use of electrical or mechanical power and thermal energy.

31. How CHP Saves Energy

32. Utility Rate Discounts
Natural gas rates will be reduced for Customer-side generation projects that use natural gas by waiving as distribution charges.
Electricity rates for power used when base load customer-side generators are out of service will be reduced by eliminating backup rates and demand ratchets for these customers.
Incentives for installing CHP $450/500 per KW.
Loan available at 1% under Prime

33. CHP Benefits “Considered the #1 option for reducing operating costs and reducing Green House Gases” NEG/ECP
Improved fuel efficiency (70% to 80% efficient)
Improved power quality/reliability
Improved energy cost predictability
Lower emissions per unit of useful output
Reduces land-use impacts and NIMBY issues
Optimizes scarce natural gas resources
Creates demonstration of new high-tech
Reduces vulnerability of the grid
Reliability provides security and life safety benefits

34. CHP Project Financing
(Capital Cost + Cost of $) + (Annual Maintenance Cost + Fuel) X project life = Life Cycle Cost
Deduct DPUC incentives form Capital Cost
Deduct interest saving from DPUC Loan
Deduct deferred electricity from annual electric bill
Deduct fuel savings from thermal recovery
Deduct rate concessions from natural gas
Consider 3rd Party Financing
Utilize Performance Contracting and Guarantees
Utilize tax credits and depreciation allowance

35. Electric and Gas Commodities
Purchasing
Electric and Gas Commodities
Compile Energy History by Account
Develop Load Profile
Develop Terms and Conditions
Send RFQ to registered suppliers
Consider Marketers vs Brokers
Send RFP to selected Suppliers
Conduct Reverse Auction
Award Contract

36. Actual Meter Readings

37. Load Duration Curve Load Factor or Interruptible Load.
55%
65%
10% Eff
75%
25% LM

38. “New Game in Town” Forward Capacity Market
$5 billion program of ISO-New England:
Created ratepayer fee structure to pay electricity generators to address capacity concerns
Opportunity for Efficiency and Demand Management to capture a significant share of the market
Increased Energy Efficiency, Demand Management and CHP/DG could meet increased demand, reduce emissions, provide economic benefit (lower cost, jobs)

39. Renewable Energy Costs are Declining
40 30 20 10
100 80 60 40 20
Wind PV
COE cents/kWh 70 60 50 40 30 20
10 0 10 8 6 4
2 0
15 12 9 6
3 0
Geothermal
Solar thermal
Biomass
COE cents/kWh
Source: NREL Energy Analysis Office (
1These graphs are reflections of historical cost trends NOT precise annual historical data. Updated: October 2002

40. Off Site Supply - Wind Power

41. On Site Supply - Solar Power
For more information and a copy of this presentation, please visit:

42. Connecticut Clean Energy Fund
Program Funding = $21 Million
Maximum Project Funding Limit: $2 Million

44. Opportunities to Lower Cost
Maximize Efficiency with CEEF
Participate in Demand Response
Purchase from a Competitive Supplier as a single load or join an Aggregation
Consider Distributed Resources, including Combined Heat and Power
Consider Renewable Energy through CCEF

46. Thank You For Your Interest
Questions?
Thank You For Your Interest