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1 Conservation: An Alternative Energy Source for Local Communities Ted Coates, Power Manager September 20, 2008.

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Presentation on theme: "1 Conservation: An Alternative Energy Source for Local Communities Ted Coates, Power Manager September 20, 2008."— Presentation transcript:

1 1 Conservation: An Alternative Energy Source for Local Communities Ted Coates, Power Manager September 20, 2008

2 2 Tacoma Power Background Tacoma Power established in 1893 with public purchase of Tacoma Light & Water Company Number of Customers: 162,587 Number of Employees: 800 Service Territory: approximately 180 square miles Governed by five member Public Utility Board Average Cost of Power to Customers: approximately 6.19 cents

3 3 2006 Sources of Energy

4 4 Projected Load Growth: Approximately 1.0% per year for 20 year forecast Customer Load Forecast

5 5 Key Objective from our 2004 IRP Evaluate Conservation Acquisition Opportunities Develop a Conservation Potential Assessment (CPA) to identify available conservation acquisition opportunities The CPA is a road map that estimates the type, amount, and cost of conservation opportunities within the Tacoma Power service area Tacoma Power retained a consulting firm, Quantec to conduct the CPA Completed in January 2007, the CPA estimates about 54 aMW of achievable conservation over the next 10 years

6 6 I-937 – The Energy Independence Act Passed by public vote in 2006 With regard to conservation, this new law requires Washington utilities to acquire all “cost-effective” conservation (starting in 2010) The Law specifies administrative penalties to be assessed for shortfalls - $50 per megawatt hour (2006 dollars subject to inflation) As a result of this law, the 54 aMW of achievable conservation over 10 years identified in the CPA has been transformed into an enforceable annual conservation target of 5.4 aMW Tacoma Power has begun an update to that CPA which may change the conservation target

7 7 Effect of Conservation Acquisitions on Tacoma Power’s Load and Resource Balance Conservation Acquisition

8 8 How Will We Achieve This Energy Conservation? Energy Conservation is the ability to achieve the same amount of work with less energy It is not shivering in the dark, or shuttering businesses Guiding principles: Meet customer needs Meet cost effectiveness tests Be consistent with neighboring utilities PSE, SCL and SnoPUD Maximize use of trade allies Program Challenges: Infrastructure to deliver conservation Competition for trade allies, equipment and qualified staff Economic conditions may impact conservation results Customer and contractor acceptance of new technologies

9 9 How Will We Achieve This Energy Conservation? Residential Example Approximately 141,400 Residential accounts: 86,400 Single Family Homes Roughly 30,000 are electrically heated 2,600 Multi-Family Buildings 30,400 multi-family units Large majority electrically heated Residential date from: County Assessor’s office Customer Accounts building type, age, etc. 2005 residential survey results presence of electric heat Previous Conservation Work 2000 Census demographics

10 10 Residential Customer Research

11 11 Proposed Programs Residential Energy Efficient Showerheads & Aerators High Efficiency Water Heaters Program Residential Lighting Program Residential New Construction

12 12 Proposed Programs Residential Weatherization (Low Income & Non Low Income) High Efficiency Heat Pump Program Appliances  Energy Star Washwise  Refrigerator Decommissioning

13 13 Proposed Programs Commercial & Industrial Expanded Bright Rebates Program (lighting) Efficiency Options Program (custom projects) Energy Smart Grocer Program (contracted delivery) Fort Lewis & McChord Conservation Project

14 14 Proposed Programs Commercial & Industrial Equipment Rebates Program (VFDs, motors, HVAC) Enhanced Compressed Air Program New Construction Program Building Retro-Commissioning Program Resource Conservation Manager Program

15 15 Implications for Local Communities? First, utilities will aggressively promote conservation to their customers. It is important for local governments to support these efforts. Second, Conservation costs money so rates are likely to rise. However, customer bills should be less affected due to the energy savings. Moreover, increased conservation will reduce the need for new and expensive generating resources and expanded “transmission and distribution” facilities.

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