1. 1 Proposed Water-Energy Conservation Activities at PG&E Low Income Oversight Board Watsonville, CA January 17, 2007 Gerry Hamilton PG&E

2. 2 PG&E’s Current Water-Energy Activities PG&E’s current water-energy activities include Water- Embedded Energy research. –April 13, 2006: the CPUC announced it would examine “…the embedded (or “upstream”) energy savings associated with water efficiency…” Over the Summer of 2006, PG&E participated in a CPUC Workshop, Comments and Replies on water-embedded issues, exploring opportunities and issues. –October 16, 2006: the CPUC directed the Investor Owned Utilities to propose a pilot on January 15, 2007. Total funding: $10 million (PG&E: $4.4 million) Duration: 12 months starting July 1, 2007 Partner with one (or more) large water providers Upstream opportunities include: Examine water conservation, ways to use less energy intensive water, and improve water distribution and treatment systems

3. 3 PG&E’s Water-Embedded Energy: Key Objectives Critical issues to explore: –Can Electric IOUs and Water agencies effectively partner? PG&E has partnered with water agencies in the past and looks forward to participating in more durable and effective partnerships Coordinate program design Improve water-energy program delivery Achieve larger energy savings –Can the water-embedded energy savings be measured? Measuring water-embedded energy savings to an acceptable degree of precision is the critical challenge Without developing reliable and accurate measurements and measurement methods, savings can’t be verified; hampering program development for 2009+ Complex water distribution systems and water industry institutions may require realistic trade-offs between reasonably accurate average savings estimates and highly accurate but expensive incremental savings estimates

4. 4 PG&E’s Water-Embedded Energy Pilot: Proposal In the Pilot, PG&E plans to: –Partner with three water diverse water utilities: EBMUD, Sonoma County Water District, Santa Clara Valley Water District –Seek a variety of commercial, institutional, and industrial sites with: Significant water savings potential Supply configuration able to measure changes in water usage (both inflows and outflows) Sites could include: Schools, Food Processing, Food Service, Laundries, Manufacturing, Health Services, and Low Income Institutions or other suitable facilities –Obtain extensive data on water and energy used/saved for distribution and fresh- and waste-water treatment –Work with water agencies and the CPUC to develop satisfactory methods for measuring saved water-embedded energy

5. 5 Examples of Achieving Water-Embedded Energy Possible SitesWater End-Uses Potential Water-saving measures Schools, Colleges HVAC, cleaning, personal, food prep Fixtures, appliances, boilers, cooling towers Food Processing Process level cleaning, cooking, scalding, etc Process line improvements Manufacturing Process level cleaning, quenching, rinsing Process line improvements, rinse water recycle Health Services HVAC, cleaning, food prep, process use X-ray film developer upgrade, steam-sterilizer upgrade LaundriesClothes washing High efficiency washers, rinse water recycle Low Income Facilities HVAC, personal, clothes washing, food prep Fixtures, cooling towers, appliances

6. 6 Low Income Water-Energy Opportunities PG&E currently offers several water conserving high energy efficiency measures in the Low Income Energy Efficiency Program: –Low Flow Showerheads –Faucet Aerators –Leaky Water Heater Repair/Replacement PG&E will work with the CPUC, the LIOB, CA energy and water utilities, and other interested parties to explore new opportunities for increasing water efficiency in low income programs.

7. 7 Low Income Water-Energy Market Possibilities Potential Water-saving measures Est. Water Savings per Unit (Gallons/year) Est. Embedded Energy Savings (kWh/yr)* Comments Low Flow Showerhead2,0005 Current LIEE Measure. Faucet Aerator5003 Current LIEE Measure. Near market saturation. Leaky Water Heater Repair/Replacement varies Current LIEE Measure. High Efficiency Toilet14,00076 Big savings requires high volume, often requires extensive envelope repair & construction High Efficiency Clothes Washer6,00032 Very Expensive Irrigation Controller15,000+81 Expensive, for yard work Cooling Tower Controller100,000+541 For large facilities with centralized HVAC *Based on avg. water-embedded energy intensity of 5,411 kWh/million gallons per CEC study. http://www.energy.ca.gov/pier/final_project_reports/CEC-500-2006-118.html http://www.energy.ca.gov/pier/final_project_reports/CEC-500-2006-118.html