1. Conservation and Energy-Efficiency AN affordable solution to our energy future
Jason Grenier
Otter Tail Power Company
June 18, 2015

2. Company Overview 70,000 square-mile service area 130,200 customers
422 communities
Average Population is about 400 Only three exceed 10,000
785 employees
MN 495, ND 200, SD 90
About 5,400 miles of transmission lines
About 800 MW of owned generating capability
About 245 MW of emission-free, renewable wind generation
Wind energy supplies about 19 percent of our retail sites
Since 1992 we’ve helped customers conserve about as much electricity as 258,500 average homes use in a year.

3. Our mission
To produce and deliver electricity as reliably, economically, and environmentally responsibly as possible to the balanced benefit of customers, shareholders, and employees and to improve the quality of life in the areas in which we do business.

4. Our community populations

5. Service area and facility locations
CANADA
LANGDON WIND ENERGY CENTER
Rugby
Devils Lake
Crookston
Service area and facility locations
Garrison
SOLWAY COMBUSTION TURBINE
Bemidji
COYOTE STATION
LUVERNE WIND FARM
ASHTABULA WIND ENERGY CENTER
Jamestown
ASHTABULA III
JAMESTOWN COMBUSTION TURBINE
LEGEND
Headquarters
Customer svc ctr
Coal-fired plant
Wind farm
Combustion turbine
We also own 6 small hydroelectric plants in MN
NORTH DAKOTA
Fergus Falls
Wahpeton
HOOT LAKE PLANT
Oakes
SOUTH DAKOTA
Morris
BIG STONE PLANT
Milbank
LAKE PRESTON COMBUSTION TURBINE

6. Conservation and Energy Efficiency,
A partnership between Otter Tail and our customers

7. What is Energy Efficiency and Energy conservation?
U.S. Dept. of Energy – Lawrence Berkeley National Laboratory:
Energy Efficiency is “using less energy to provide the same service”.
Replacing an incandescent bulb with a CFL or LED bulb.
Replacing an old appliance with a new Energy Star appliance.
Energy Conservation is reducing or going without a service to save energy.
Turning off a light
Taking a shorter shower

8. Why is Energy Efficiency Important?
Benefits of Energy Efficiency include:
Improve awareness and adoption of energy efficient technologies
Reduce energy costs for households and businesses
Defer utility infrastructure investments
Decrease emissions
Conserve resources
Build positive public relations

9. Home Energy Use
A typical Minnesota home uses about 190 million British Thermal units (mmBTU) of energy every year to heat, cool, light, and operate appliances and electronics.

10. From U.S. Energy Information Administration
State Energy Use
From U.S. Energy Information Administration

11. How do we measure electricity?
What is a watt (W)?
The rate at which energy is produced or consumed.
Also known as Demand.
1,000 watts equals 1 kilowatt (1 kW)
Hair Dryer = 1,877 watts
Keurig = 1,500 watts
Incandescent Bulb = 60 watts

12. How do we measure Electricity over Time?
What is a watt hour (Wh)?
Unit of energy equivalent to one watt of power over one hour of time.
Also known as Energy.
1,000 watt hours equals 1 kilowatt hour (1 kWh)
Residential customers in our region are charged approximately 10 cents / kWh
1,875 watt * 1 hour = kWh, nearly $0.20 in electricity costs to operate it for one hour.
60 watts * 8 hours = 480 watts or kWh, about $0.05 in electricity costs

13. Monthly cost for common household appliances?
energy-use/

14. How well is your home Insulated and sealed?
Remember 55% of energy use in homes is for Heating and Air-conditioning.
How well is your
home Insulated and sealed?

15. Otter Tail’s 2012 Residential Survey
aGe of single family homes:
In 2012, 73% of homes in Otter Tail’s service territory were built prior to 1982.
Many building codes and standards have changed in that time.

16. Home insulation And sealing

17. Lack of insulation and Air leaks cost money.
Spray foam seals, Insulates, and creates a vapor
barrier.

18. Otter Tail’s Home Transformer Program
Heating and Cooling Measures
Exterior Door Sweep
Outlet Gaskets (4)
Caulking (50ft.) ,015 kWh
Weather-Stripping for Windows (2)
Hot Water Measures
Pipe Wrap Insulation kWh 9 ft.
Faucet Aerator kWh
Low-Flow Shower Head 276 kWh
Setback temp on Water Heater 141 kWh
Engine Block Heater Timer 244 kWh
Electric Measures
Several CFL light bulbs
Complete Home Energy Audit
Blower-door test
Thermal imaging
Over a $500 Value!

19. Home energy audit can Save you money

20. Simple, low cost Items add up to big savings!

21. School Kits
Otter Tail offers energy efficient items and educational materials to sixth through eight grade students.
Students took school kit home and installed items with the help of their parents.
Kits included an energy saving shower head, faucet aerator, car timer, six CFL bulbs, one LED bulb and installation instructions.
The class with the most completed surveys won a pizza party.
Annual savings per a school kit are 1,051 kWh.

22. House Therapy – Help for those who need it most
Primary focus is to provide energy efficiency measures to income-qualified residential and farm customers.
Program is implemented by Community Action Councils.
Customers can save money through an energy analysis, direct install of certain products, weatherization, off-peak electric water heating, refrigerator and freezer replacement.
Some recipients receive over 3,000 kWh in energy saving technology.

23. Air-source Heat Pumps
An Air-Source Heat Pump is an efficient home heating and cooling system contained all in one unit.
Because it moves heat instead of making it, it will operate at more than 200% efficient.
Less efficient as the temperature drops below 30 degrees. Requires supplemental heat during coldest part of winter.
Annual savings of a 2.5 ton system are approximately 9,262 kWh and 4.6 kW when compared to resistance electric heat/cooling. Savings of over $900 annually.

24. Geothermal Heat Pumps
Geothermal Heat Pumps capitalize on renewable energy from the earth’s constant temperature of about 48 degrees in our region.
The U.S. Department of Energy claims it is the most efficient electric option for heating and cooling.
Typical geothermal heat pumps have 350% or greater energy efficiency.
Annual savings of a 4.5 ton closed system are approximately 20,700 kWh and 10.3 kW when compared to resistance electric heat/cooling. Savings of over $2,500 annually.

25. Behavioral Programs
Provide energy feedback to customer across economic groups and demographics.
Share the goal of educating and motivating consumers to make behavior choices, home improvements, and informed buying decisions that reduce their personal energy use profile and maximize energy efficiency.
Examples:
Opower Home Energy Reports
Aclara Home Energy Analyzer web portal
Rothsay Community Energy Challenge
UM-Crookston Campus Energy Challenge

26. Behavioral Programs The Home Energy Report
Accurate and current personal billing information
Compares energy consumption to similar-sized homes
6 reports annually through the mail
162 kWh of savings / participant in

27. Behavioral Programs The Home Energy Analyzer
Complete picture of your home energy use
25 months of bill history
User can create a home profile
Helps create personalized energy-saving and money- saving plan that fits your lifestyle
692 kWh of savings / participant in

28. Appliance Recycling
Recycle your old energy hog refrigerator and freezer.
Many utilities offer rebates to come and pick up your old fridge or freezer.
915 kWh of savings / refrigerator
1,134 kWh of savings / freezer

29. Be Bright change a light!
Otter Tail promotes CFLs and LEDs to our customers

30. Technology is constantly improving    

31. LEDs & CFLs = Fast Payback
Incandescent
CFL
LED
Approximate cost per bulb $1 $2
$8 or less
Average lifespan
1,200 hours
8,000 hours
25,000 hours
Watts used
60W
14W
10W
No. of bulbs needed for 25,000 hours of use 21 3 1
Total purchase price of bulbs over 23 years
$21 $6 $8
Total cost of electricity used (25,000 hours at $0.12 per kWh)
$180
$42
$30
Total operational cost over 23 years
$201
$48
$38
Here’s how much each type of bulb would cost to purchase and operate over a 25,000-hour lifespan (about 23 years at three hours per day)
If you replaced 20 incandescent bulbs with LED light bulbs throughout your home, you could save up to $3,260 over their 23-year lifespan (and that’s assuming utility rates don’t rise).

32. Otter Tail’s 2012 residential survey
In 2012, Otter Tail found 29% of homes had no CFLs and 63% of homes had five or less CFLs in the home.

33. Schools and Commercial/Industrial customers
Significant energy savings

34. Otter Tail’s Commercial EE Portfolio
Adjustable Speed Drives
Air Conditioning Control
Heat Pumps, Air-source & Geothermal
Custom Grants
Industrial Process Efficiency
Lighting, Replacement & New
Motors
PC Power Supply
Re-Commissioning
Refrigeration
In 2014, commercial programs accounted for 69% of Otter Tail’s 33.8 million kWh annual energy savings in MN.
Large commercial and industrial customers account for just 1.3% of customers, but account for more than half of retail kilowatt-hour sales.
In 2014, 44% of commercial energy savings results were from efficient lighting technologies.

35. Energy Efficient Demand Response Programs

36. Otter Tail sends out a control signal during system peaks
Air-Conditioning Control (CoolSavings)
Customers receive a $7 a month bill credit in June through September for allowing cooling equipment cycled on for 15 minutes then off for 15 minutes until a control signal is sent to restore normal operation.
45 kWh savings kW coincident summer savings
Water-Heating Control
Customers receive a $4 a month bill credit monthly or a discounted energy rate for allowing their electric water heater to be turned off during peak and high energy price periods.
Electric water heaters are highly efficient systems that also operate as thermal energy storage devices.
23 kWh savings kW coincident summer savings

37. Load Control Programs save customers $
Difference in blue and red line reflects investments Otter Tail can defer or go without.

38. Demand-side resources play a significant role in meeting future resource needs

39. Energy efficiency plays a significant role in meeting our customer’s energy needs

40. Lifetime Costs of Conservation / Energy Efficiency
For example: Otter Tail spends $7 on program costs to advertise and rebate a customer to buy a CFL bulb. The bulb will save approximately 39 kWh annually. The bulb will last for approximately 10 years. Lifetime savings is 39 kWh annually over ten years or 390 kWh. The total cost per kWh saved is $7 / 390 kWh = $0.018/kWh. LESS THAN 2 CENTS PER KWH!!!

41. How Energy Efficiency Stacks Up

42. All resources must be considered in our energy future…….
Coyote Station near Beulah, ND

43. Energy links all of us together
……We all have a responsibility to use all natural resources wisely.
Energy efficiency saves money, reduces emissions and saves our precious natural resources for future generations.

44. QUESTIONS ?