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The Changing Electric System and Energy Efficiency’s Promise to Keep Bills Low Joseph Sullivan Manager of Strategic Relations Center for Energy and Environment July 28, 2016

The Changing Electric System and Energy Efficiency’s Promise to Keep Bills Low

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CEE

The Changing Electric System and Energy Efficiencys Promise to Keep Bills LowJoseph SullivanManager of Strategic RelationsCenter for Energy and Environment

July 28, 2016

CEEs Nonprofit MissionThe Center for Energy and Environment (CEE) is a nonprofit organization that promotes energy efficiency to strengthen the economy while improving the environment. We do this through:Nation-leading Energy Efficiency ResearchAward-winning Energy Efficiency Programs that have saved customers well over $500 millionNearly $200 million in Clean Energy Project FinancingPolicy Innovations such as Minnesotas Energy Efficiency Resource Standard and associated utility financial incentives

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The Center for Energy and Environment (CEE) is a nonprofit organization that promotes energy efficiency to strengthen the economy while improving the environmentWe conduct research and develop programs so that:Businesses operate more efficiently and profitably;Government agencies and nonprofits spend less on facilities and functions;Utilities achieve their energy-efficiency goals at least-cost; andHouseholds save money and improve comfort.

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35 Years of Clean Energy Accomplishments

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Minnesotas Transformation to Date

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2013 MN Electric Generation Resources including Energy Efficiency

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Electricity Price Comparison

Source: Energy Information Agency

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And whats more because of our excellent policy and regulatory framework and terrific utilities, weve been able to do all of this while keeping electricity costs well below the national average, and among the lowest in the region.

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The Big Trends in MinnesotaApproximately 12% annual reduction in coal use from 5 years ago and a 22% reduction from 1998Coal still approximately 50% of energy generated and consumed in MinnesotaWind energy has increased 2.5x since 2006, as of 2015 it is approximately 17% of our electric energyNuclear remains steady at about 23-24%System is Decarbonizing-Carbon emissions down approximately 20% since 2007

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Macro-Drivers Affecting Power Plant Fleet?Low Natural Gas Prices Putting Extreme Pressure on Coal and Nuclear FleetUneconomic and Old Coal Facilities ClosingPublic is Demanding Cleaner and Newer Power PlantsRegulatory UncertaintyNRC 20 year licenses for Minnesota nuclear reactors will expire in the early 2030s

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Minnesotas Changing Electric System

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The UpshotPotential rate increases for residents, businesses, and governmentsCleaner but more reliable electric systemUncertaintyMore opportunities for controlling costs and being involved in the system

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So what can a business or individual do?

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Invest in Efficiency!Getting pushed around does not have to be an optionElectric bills are not electric rates. Businesses, individuals, ratepayers can have low electricity bills even with higher electricity ratesOptimizing electricity use keeps resources local through savings and utilizing local businesses

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Energy Efficiency isCost effective-EE pays for itself over its lifetime. If a project uses less energy but never pays for itself ITS NOT more efficient!Efficiency = Increased energy productivity. Efficiency is about fixing electric leaky faucets EE saves money, resources, reduces emissions, allows dollars to be spent on business priorities Efficiency increases customer controlEE keeps bills low even if when rates go upUtility rebates buy low cost energy efficiency from customers

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CEE Business Programs

Small Business LightingEnergy Intelligence

Engineering Services

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CEE has three main programs that service businesses. Our One-Stop Efficiency Shop for small business lighting helps over 1,000 businesses a year do lighting retrofits. We provide technical assistance, and access to enhanced rebates from Xcel Energy, who funds the program. Xcel is also funding our energy intelligence for industry program. This is for small industrial customers. We provide advanced metering, to get real-time energy data every 5 minutes, and provide that through a software dashboard, to provide insights into energy usage, along with customized support.Our engineering services serves larger commercial buildings, through recommissioning, continuous commissioning, customized training, and benchmarking services.We are currently recommissioning the IDS tower.14

One-Stop Efficiency ShopSmall Business Lighting programFree lighting auditSubstantial utility rebates up to 60% of project costsStart to finish oversight of the entire retrofit processCompletion of all paperworkExpertise in lighting retrofits for private and public buildingsSchools, hotels, bakeries, malls, fire stations, city halls, police, park buildingsGreat energy savings opportunitiesLighting consists of ~25-30% of energy usage

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A free lighting audit with detailed recommendations, estimated project costs, rebates and savingsSubstantial rebates up to 60% of the project costConvenient and attractive financing optionsA simple, one-stop service that minimizes participant timeA pool of qualified contractors to reduce the hassle of collecting bidsStart-to-finish oversight of the entire lighting retrofitCompletion of all program paperwork

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Why Lighting Efficiency?Source: California Commercial End-Use Survey, California Energy Commission, March 2006

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Engineering ServicesStaff of 9, including 6 registered professional engineersServe several types of facilities including:Examples include-hotels, ice arenas, healthcare, manufacturing, college campuses, correctional, office, and theatres.

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Energy Intelligence ProgramMonitor your industrial facility and save energy!Tool that provides real-time feedback to help manage energyDetermine how much and when you use energyIdentify wasted energy during non-production periodsIdentify demand peaks that cause high energy billsCEE assessment of building and equipmentWe develop energy strategies to optimize your energy useWe make suggestions to lower your baseline energy useSave money by implementing strategies

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Look at better operations, as well as equipment

4% annual energy savings

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Example of a small industrial customer. We worked with them to log their energy usage over time, to look for energy savings opportunities.Circled area represents when they were leaving equipment on overnight after the end of a shift laser cutter and compressed air systemThe dashed line represents the average energy usage during the previous 5 weeks, and the solid line represents a day when we experimented with turning off two pieces of equipment after the shift was over.Savings represents 4% of annual energy usage just by shutting off equipment, and it didnt cost them anything.19

Examples of CEE projects

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Madison East Center (2014)Madison East worked with CEE and Schwickerts Tecta America to recommend and install new lighting throughout the Mall. Project Highlights $40,000/yr in electricity cost savings2 year paybackApproximately $55,000 in utility rebatesSaving 500,000 kilowatt-hours annually These savings are attributed only to changing lighting

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City of Slayton (2009)The Slayton City Council instructed the City Administrator to pursue programs to make the City more efficientWorking through Xcel Energy and with CEE, the City retrofit inefficient lighting throughout the Fire & Police Departments, City Hall, Library and Senior CenterThe City further partnered with Xcel Energy and CEE to help promote lighting upgrades and retrofits to Slayton businessesCity electricity savings ~ $2800 per year. Payback 1.7 years These savings are attributed only to changing lighting

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107 cities have been served by CEEs One-Stop Efficiency ShopFocused on lighting upgrades in Xcel Energys service territory Lighting projects in Airports, City Halls, WWTP, Police and Fire, Cemeterys, Liquor Stores, Golf Courses, Senior Centers To date, One-Stop is saving these communities $1.7 million per year through lighting retrofits alone One-stop has served more than 12,000 customers. Total savings to these customers of more than $480 million

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Horizon Middle School Moorhead, 2008 New construction but building used excessive energy and there were comfort and pressure issuesCEE conducted a comprehensive recommissioning study in 2008Recommissioning determined:Intake fans were overpowering return fansPumps not synchronized to outdoor temperaturesHot water system not optimizedAir Handling Units operated when nobody presentImplementation of improvements saved $141,227 per year. 3 year payback. $422,600 total cost.

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Home Energy Squad EnhancedComprehensive whole-home programEngage cities in community-based marketingDirect install of gas and electric measuresCustomized energy savings recommendations~12,000 HES visits since 20102,600 HES visits in 20151.77 million kw/h savings 2015

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The Lending Center at CEECEE offers financing to residential property owners for rehabilitation and energy efficiency projects, as well as to commercial property owners for energy related improvements. As a non-traditional lender and non-profit organization, we provide administrative services for several metro area cities, utilities, are a Minnesota Housing lender and offer programs tailored to meet a wide variety of financing needs. Partners include: MN Department of CommerceMN Housing Finance Agency (MHFA)MHFA lender for over 20 yearsTwin Cities area Platinum Lender Xcel Energy and Great River EnergySt. Paul Port Authority8 Cities: Anoka, Blaine, Brooklyn Park, Coon Rapids, Fridley, New Hope, St. Louis Park and Minneapolis Over 100 different loan programs are administered by the Lending Center at CEECEE also funds our own loan programs (Solar, Energy and Home Improvement)

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Commercial Loan ProgramsFor-profit entitiesMaximum loan amount of $100,000Rate is currently 3.9%Terms up to 5 yearsNon-profit entities (501c3) for Xcel OSES Lighting ProjectsMaximum Loan is $25,000Term up to 5 years Project must have a payback less than 10 years0%Eligible projects include upgrades to:Lighting technology HVAC controlsEnvelope air sealing and insulationSolar Other efficiency projects

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Residential ProgramsEnergy LoanFunded by CEE, MN Department of Commerce, MHFA and the City of MinneapolisFinancing can be used for Energy Efficiency Projects such as:Furnace and Air Conditioning ReplacementWindowsExterior Doors and Light Fixtures Insulation and Air SealingWater Heater ReplacementSolar projectsGround/Air Source Heat pumpsSecured and Unsecured optionsRates range from 0%-6.99%Home Improvement LoanFunded by CEE, MN Housing or partner City programsFinancing can be used for any permanent home improvement projectAvailable for all income levelsSecured and Unsecured optionsRates range from 0%-6.99% (CEE and MN Housing programs)

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Resources for Businesses to Optimize Energy UseCEEAdminister Xcel Energy/CEE One-Stop Lighting ProgramBusiness Energy Intelligence ProgramHome Energy Squad- Xcel Energy, CenterPoint Energy, Building Recommissioning StudiesLow Interest LoansUtility conservation programsXcel Turn Key Audits, Lighting upgrades, Equipment Rebates, Recommissioning, Refrigeration, New Construction, Whole Buildinghttps://www.xcelenergy.com/programs_and_rebates/business_programs_and_rebatesCenterPointRebates for boilers, chillers, HVAC, refrigeration, Food Service Equipment, LEED Certification, etc. Business Rebates-http://www.centerpointenergy.com/en-us/business/save-energy-money/efficiency-programs-rebates?wt.ac=top_trans&sa=mnResidential Rebates-http://www.centerpointenergy.com/en-us/residential?sa=mnBENCOContact BENCO directlyOn site energy efficiency manager can help walk you through available rebatesGreater Minnesota GasContact GMG DirectlyMinnesota Chamber of CommerceEnergy Smart CIP Program-helps Minnesota businesses find their way through EE programs. http://www.mnenergysmart.com/

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ConclusionEfficiency is about the people, not just the equipmentEfficiency is a continuous process of improvementLighting and Recommissioning are good places to start

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Partnerships

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