1. Start now to get more from energy efficiency and other demand-side resources For the American Public Power Association June 15, 2009 Cliburn and Associates, llc Santa Fe, New Mexico Jkcliburn@gmail.com

2. Energy conservation Load management Demand-side management Integrated resource planning Demand response Demand-side resources: In contrast to supply-side resources, the effective energy (kWh) and capacity (kW) harnessed from changes in customer energy use patterns, in order to provide long-term, system-wide utility benefits as well as direct benefits to program participants. This definition assumes that demand-side resources also must support net emissions reduction goals. Peak clipping Load shifting Fuel switching Market transformation Social marketing Energy efficiency Been there, done that, still learning

3. Oh, wait, that’s a different Springfield…. Simpsonizeme.com

4. The business case for demand-side resources Utility View Reducing marginal costs, improving net benefits Beating the compliance clock Hedging against risks Building a foundation/future Community View Relief through bill savings Path for economic stimulus* Environmental benefits Increased comfort and convenience Sustainable cities *www.energy.gov/recovery

5. “But where do we begin?” Consider the strength of community leadership Invite public involvement Identify two types of programs Greatest savings impact per dollar spent (usually in the C/I sector) Greatest motivational impact per hour spent (usually in the public or residential sector)

6. Many measures… Many programs Source: EPRI, updated by Cliburn 2008.

7. Program Design: Ten Steps 1.Review utility costs, drivers 2.Review program possibilities 3.Estimate potential; define targets 4.Address technical requirements 5.Address program requirements 6.Outline delivery plan 7.Assess benefits and costs 8.Roll it! 9.Monitor, verify, and evaluate 10. Adjust to improve results

8. Be quick and smart SMMPA tapped Energy Star Quick Start program support Review utility service needs, cost drivers, and other goals Choose programs that are suited to both utility needs and customer needs APPA’s EERCnet.org EPA’s EnergyStar.gov, including epa.gov/cleanenergy/documents/quick startguide/pdf Cleanefficientenergy.org Energyexperts.org CEE1.org Programs from regional market transformation centers, JAAs, statewide public power agencies

9. Somebody’s been metering my AC! Source: Frontier Associates for Texas Public Utilities Commission, 2006 Deemed savings databases for dozens of measures are available for Texas, California, Vermont, New York, and possibly other states. Be sure to adapt for climate differences and other assumptions. (See APPA’s New View on Energy Efficiency guide for references.)

10. Assess and address technical requirements 1.Can you make sure products/services are locally available? 2.Are trade allies (sales, installation, service) well trained? 3.Are there problems with disposal of old products? 4.What can you do to help? SMUD’s refrigerated case lighting promotion relied on high-quality, efficient lighting products that could be hard for buyers to find. Fixing that problem was job #1.

11. Assess and address program requirements 1.Understand the target audience’s concerns 2.Choose the right tools at the right times: -Personal marketing (home shows, energy audits) -Targeted mass marketing (print material, online quiz) -Advertising and PR -Trade ally campaigns -Pricing/rates -Incentives 3. Consider practical staffing and administrative needs

12. Calculate program benefits/costs 1)Develop assumptions for the analysis (not so easy) 2)Calculate net benefits from different views 3)Members of JAAs consider net benefits locally and for all members; look for win-win programs Total Resource Cost (TRC) Societal Cost Utility Cost Participant Cost Non-Participant or Ratepayer Impact Measure See Understanding Cost-Effectiveness of Energy Efficiency Programs: Best Practices, Technical Methods and Emerging Issues for Policy-Makers (November 2008) is available online at www.epa.gov/cleanenergy/energy- programs/napee/index.html.

13. What makes energy efficiency a resource? Source: NWPPC 2008. Technical potential and cost of conserved energy refers to the NW region. Nationwide, average cost = 2 to 4 cents/kWh saved.

14. Also consider values not measured Source: APPA, updated by Cliburn. 2009 Hypothetical programs and utility objectives, actual assessments will vary.

15. Lessons learned from top utility ee programs 1.Start with proven measures. (Homework!) 2.Collaborate (with city, state, trade allies), to address broader needs while delivering a consistent message. 3.Don’t miss “lost opportunities”. 4.Offer one-stop shopping, for the customer’s benefit and yours. 5.Organize your programs as campaigns, so you can build them over time, measure your success, and take a breath in between! 6.Get top-level support in the utility, the community, and JAA.

16. No-nonsense hands-on support Cliburn and Associates, llc Santa Fe, New Mexico Jkcliburn@gmail.com By phone or in person Needs assessment and problem-solving Short-list program design Basic cost-effectiveness assessment Trouble-shooting Ask about assistance available from Energy Ambassadors