B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Efficiency Post-2011 Phase 2 Update...

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Efficiency Post- 2011 Phase 2 Update January 12, 2011 Northwest Power and Conservation Council Missoula, MT

Transcript of B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Efficiency Post-2011 Phase 2 Update...

Page 1: B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Energy Efficiency Post-2011 Phase 2 Update January 12, 2011 Northwest Power and Conservation.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Energy Efficiency Post-2011 Phase 2 Update

January 12, 2011

Northwest Power and Conservation CouncilMissoula, MT

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Post-2011 Phase 2 Update

Phase 1 was finalized in August. Final Policy Framework and Response to Public

Comments are available online:

http://www.bpa.gov/Energy/N/post-2011/Phase-1.cfm.

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Post- 2011 Phase 2 Overview

Phase 2 provided an opportunity for BPA, its customers and other stakeholders to continue a collaborative engagement.

Collectively, we can create the most efficient and effective energy efficiency programs possible.

Workgroups were very productive.•Council staff was active in the workgroups.

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Post-2011 Phase 2 Recommendations

Workgroups provided recommendations to BPA on the implementation of energy efficiency programs for the post-2011 time period.

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Post-2011 Phase 2 Workgroups

1) Energy Efficiency Incentive (EEI)

2) Small/Rural/Residential (SRR) Focus

3) Conservation Potential Assessment (CPA)

4) Implementation Mechanism

5) Regional Programs & Infrastructure

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BPA Proposal

BPA has taken the workgroup recommendations into consideration while creating a proposal that will be available for public comment in mid- to late-January.

Following slides are a high-level review of critical pieces of the BPA Proposal.

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1) Energy Efficiency Incentive (EEI)

Incentive dollars will be assigned on a Tier One Cost Allocator (TOCA) basis.

Mechanism provides equity, but less flexibility to move funds where savings exist.• Utility pooling can allow customers to create flexibility.• “Unassigned Account” funds will be distributed on a first

come, first serve basis. Transition funding to fund existing projects

should be minimal.• In tracking system by 10/1/10 and exceed 20% of

utility’s EEI.

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Large Project Fund

Should capital budget funds be set aside to pay incentives for large (industrial) projects? BPA is putting forward two options for parties to comment on:• Option 1: No funding Set Aside (Workgroup recommendation).

−Utilities use their own EEI funds for projects. If projects exceed EEI, utilities self-fund or use other mechanism (pooling or bilateral transfer) to cover incentive costs.

−Risk is that utility will not provide funding and savings will not happen.

• Option 2: Allow access to a large project fund (LPF). −Utilities have access to a fund that is set aside from EE’s capital

budget (and not distributed through the EEI).−Access requirements to LPF: 1) project incentives must use >50% of

utility’s EEI; 2) utility must self-fund at least 50% of incentives.−Risk that set aside funds will not be used.−Each utility’s EEI will be smaller because of the set aside.

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2) Small/Rural/Residential

Attempting to ensure all customers have an opportunity to implement EE programs and utilize EEI funds. EEI funds must deliver reportable savings.

Who qualifies: sliding scale based on a utilities TOCA – Small, Medium, Large.

What is the benefit: increased % of performance payment (S=25%, M=20%, L=15%).

Additional measure and program support: increase usable measures as well as provide turnkey programs.

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3) Conservation Potential

Should BPA develop methodologies and standards for Conservation Potential Assessments (CPAs)? BPA is putting forward two options for parties to comment on:• Option 1: BPA should not develop prescriptive standards nor

require utility CPAs (Workgroup recommendation).−BPA will assist its customers with the continued development and

dissemination of the utility potential calculator (UPC).−BPA will help identify data collection protocols and prioritize collection of

those data elements that significantly influence overall potential assessment.

• Option 2: BPA will develop prescriptive standards and methodologies for CPAs and require customers to perform CPAs. −Define standards for CPAs to ensure that customer-conducted CPAs are

consistent across customers and consistent with the Council’s methodology

−This allows CPAs conducted by individual customers to be ‘rolled-up’ to get to a bottoms-up public power potential for the region.

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4) Implementation Mechanism

Two implementation options: 1) Standard (projects pre-approved) or 2) Non-Standard (projects reviewed after the fact) for custom projects.

M&V protocols will be the same regardless of which custom project path a customer has chosen.

Willingness to Pay will be the same for both options.

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5) Regional Programs

Involve customers early to ensure that new regional programs meet needs and minimize disruption of existing programs.

Federal implementation work will change with the way funds are now allocated.•Differential between direct serve and utility served locations.

•Enhance coordination and communications.

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Contact Information

http://www.bpa.gov/Energy/N/post-2011/

Josh [email protected]

503-230-5857

Matt [email protected]

503-230-4139