Energy Efficiency Progress and Potential in Utah and the Southwest Howard Geller Presentation at the Utah Governor’s Energy Development Summit Salt Lake City, UT June 3-4, 2014

Electric Utility DSM Program Spending Trends in the Southwest State Electric DSM Program Expenditures (million $ per year) AZ CO NV NM UT WY~0 345 Region

Seven Major Utilities in the Region: Electricity Savings Are on the Rise

Electricity Savings in the Region – Savings Build Up Over Time

What Are the Benefits? Rocky Mountain Power Example  In 2013, RMP’s customers saved 1.4 billion kWh from EE measures implemented during , a 6% reduction in electricity use  RMP’s customers will realize ~$800 million in economic benefits due to programs  Improving energy efficiency supports hundreds if not thousands of jobs in the local economy  EE programs cut CO 2 emissions by about 1.2 million metric tons in 2013 alone, and also reduced NO x, SO 2, and mercury emissions thereby improving public health

So How Does Utah Stack Up? Energy Savings Trends by Utility

Key Utility Policies PolicyAZCONMNVUTWY Energy efficiency goals or standards xxxx (1) Integrated Resource Planning xxxxx Favorable DSM program cost effectiveness test xxxx Convenient DSM cost recovery mechanism xxxxxx Financial incentive for utility shareholders xxx Electric decoupling or lost revenue recovery xx Natural gas decoupling or lost revenue recovery xxxx Collaboration in DSM program design xxxxxx Industrial self-direction option xxxxx (1) Energy savings count towards clean energy standards, up to a limit

SWEEP’s $20 Billion Bonanza Study – Utah Results  Implementing Best Practice utility energy efficiency programs in Utah could:  Cut electricity use in 10 years by 20%  Save households and businesses $1.7 billion  Avoid 3 large (400 MW) power plants  Support 3,000 new jobs in the state  Cut air pollution and improve public health  Reduce CO 2 emissions and help meet new Clean Air Act standards with net economic benefits for consumers and businesses  Reduce water use by 3 billion gallons per year

Utility Energy Efficiency Policy Recommendations for Utah  Continue to ramp up RMP’s energy efficiency programs and move into the top tier of utilities achieving % savings per year  Expand behavior change programs, add new programs for underserved customers such as small businesses, and implement Conservation Voltage Reduction (CVR)  Consider allowing utilities to earn a profit when they help their customers save energy; e.g., a bonus equal to 5% of the net economic benefits resulting from the programs  Ramp up EE programs at municipal utilities too

Building Efficiency Policy  2012 IECC model energy code adopted in Utah (for commercial bldgs), southern Nevada, and numerous local jurisdictions in Arizona  NV, Phoenix, Tucson and other local jurisdictions have adopted the 2012 IECC for new homes  CO and UT adopted bills in 2013 authorizing commercial building PACE—programs now under development  CO adopted financial incentives for high performance new homes and home retrofits  NM adopted income tax credits and NV property tax abatements for LEED Silver or better commercial buildings

Building Energy Efficiency Policy Recommendations for Utah  Train builders and local code officials and start enforcing the new energy code  Upgrade to the 2012 (or 2015!) IECC for new homes  Implement the PACE legislation at least in Salt Lake City and County and other larger cities  Consider commercial building energy benchmarking and labeling initiatives  Maintain strong utility incentive programs for residential and commercial building retrofits

2013 ACEEE State Energy Efficiency Scorecard

Highlights from the 2013 ACEEE Scorecard  Utah reached 12 th place in the nation in 2010 but dropped to 24 th place in 2013  Utah ranked 9 th in the country in terms of natural gas efficiency budget per customer in 2012  Arizona ranked 3rd in the country in terms of electricity savings as a fraction of retail electricity sales (1.66%) as of 2012—Best in the West!  Arizona and Colorado received maximum scores for Energy Efficiency Resource Standards Let’s get Utah back into the top 20!

SWEEP: Dedicated to More Efficient Energy Use in the Southwest Resources available online at: Howard Geller, Executive Director x1