Energy Efficiency Progress and Potential in Utah and the Southwest

Howard Geller

Presentation at the Utah Governor’s Energy Development Summit

Salt Lake City, UTJune 3-4, 2014

Electric Utility DSM Program Spending Trends in the Southwest

State

Electric DSM Program Expenditures(million $ per year)

2002 2004 2006 2008 2010 2012 2013

AZ 4 4 19 45 94 127 124

CO 11 21 18 28 66 96 94

NV 3 11 30 55 46 38 39

NM 1 1 1 10 24 28 29

UT 9 16 27 36 51 47 55

WY ~0 ~0 ~0 ~0 3 4 5

Region 29 54 95 174 284 340 345

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

2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

Savings from Programs Implemented each Year (GWh/yr)

APS TEP SRP Xcel-CORMP-UT NV Energy PNM

Electricity Savings in the Region – Savings Build Up Over Time

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

2,000

4,000

6,000

8,000

10,000

12,000

14,000

First Year Energy Savings (GWh/yr)Savings from Cumulative Programs (GWh/yr)

What Are the Benefits?Rocky Mountain Power Example In 2013, RMP’s customers saved 1.4 billion kWh

from EE measures implemented during 2007-13, a 6% reduction in electricity use

RMP’s customers will realize ~$800 million in economic benefits due to 2007-13 programs

Improving energy efficiency supports hundreds if not thousands of jobs in the local economy

EE programs cut CO2 emissions by about 1.2 million metric tons in 2013 alone, and also reduced NOx, SO2, and mercury emissions thereby improving public health

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

2007 2008 2009 2010 2011 2012 20130.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Annual Energy Savings as a % of Retail Sales,by program year

APS TEP SRP Xcel-CO RMP-UT NV Energy PNM

Key Utility Policies Policy AZ CO NM NV UT WY

Energy efficiency goals or standards x x x x (1)

Integrated Resource Planning x x x x x

Favorable DSM program cost effectiveness test

x x x x

Convenient DSM cost recovery mechanism

x x x x x x

Financial incentive for utility shareholders x x xElectric decoupling or lost revenue recovery

x x

Natural gas decoupling or lost revenue recovery

x x x x

Collaboration in DSM program design x x x x x xIndustrial self-direction option x x x x x

(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 CO2 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 1.5-2.0% 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 12th place in the nation in 2010 but

dropped to 24th place in 2013 Utah ranked 9th 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: www.swenergy.org

Howard Geller, Executive Director303-447-0078x1

hgeller@swenergy.org