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Climate Change: California ExperienceTo: APPA National conference

John Roukema

Director

Silicon Valley Power

June 16, 2009

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Agenda

• California legislation

• Municipal approach to energy efficiency– Partnerships– Targets, reporting and progress

• Renewable energy portfolios

• Silicon Valley Power

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California Legislation• Legislation over last few years

– State loading order for new resources– No new investment in Coal– Renewable Portfolio Standard

• Defined by local agency (Legislation pending to fix)• 33% by 2020• REC eligibility, Out of state vs. in state, oversight

– Set energy efficiency targets for ten years• Report annually

– Solar initiative sets goals for state• SVP’s share 30MW

• AB32 Climate Change

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Public Power Interests are Diverse and Unique

“One size does not fit all”

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Changing Viewpoints About Public Power’s Commitment to Energy Efficiency

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SB 1037

2009 Report

- KEMA Efficiency Measure Quantification

Studies 2006, 2008, 2009

- E3 Reporting Tool, v2006-08

- Custom Measure Guidelines

- Measurement & Evaluation Reports

AB 2021 Targets

2007 Report

Submitted

March 16,

2009Submitte

d

March 16,

2009

Submitted

October1,

2007Submitte

d

October1,

2007

Reporting Confirms Public Power Commitment

SB 1037

2007 Report

SB 1037

2008 Report

Submitted

March 17,

2008Submitte

d

March 17,

2008Submitted

March 15,

2007Submitte

d

March 15,

2007

Supporting Documentation

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Strategic Partnerships

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• $220 M spent on energy efficiency since 2006

• More than $3 of benefits for every $1 spent (TRC analysis)

• Work to sustain effectiveness– Program saturation occurs quickly– Requires creativity, constant change– Uncertainty in behavior-based

programs (not just lighting)

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Public Power Views on Energy Efficiency

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2006 2007 2008 2009

Moving Toward AB2021Targets

Realistic Approach Yields Realistic Results

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• Focus on specific numbers guarantees analytical failure

• Trends much more important to gauge progress

• Key Implications for 2009– Economy may skew next year’s analysis– Customer behavior unpredictable

• Can’t force customer to invest in energy efficiency

Analytical Considerations

The Importance of Trends

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Realistic Trends Provide Effective Policy Tool

AB 2021 Targets

Program Savings

Public Power Savings vs Targets

Source: CMUA SB1037 Report, March 2009

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NCPA MemberCA Eligible

RenewablesAll

Renewables RPS GoalAlameda 55% 77% Maintain at least 40% renewables through

2020.Biggs 17% 65% 20% renewables as resources added.

Gridley 14% 67% 20% renewables as resources added.

Healdsburg 42% 65% 20% renewables.

Lodi 27% 52% 20% by 2010, maintaining at least that level going forward.

Lompoc 30% 55% 20% with no specified date.

Palo Alto 19% 66% 33% by 2020. Interim goals of 30% by 2012.

Port of Oakland 8% 45% 20% by 2017.

Plumas Sierra 11% 54% 20% by 2017.

Redding 15% 41% 20% by 2017.

Santa Clara 30% 49% 33% by 2020.

Roseville 9% 27% 20% by 2017.

Truckee Donner 16% 22% 21% by 2010.

TID 4% 17% 20% by 2017. Note: new 100 MW wind project in 2009 will raise RPS above 24%

Ukiah 53% 74% Maintain at least 20%.

CA Eligible Renewables

All Renewables

NCPA Member Cumulative RPS

20% 42%

NCPA Owned Generation

72% 94%

2008 Annual RPS Status – NCPA

1. Renewable energy, expressed in percent of retail sales

2. California eligible is defined in Section 399.12 of the Public Utilities Code

NCPA Members

Eligible Renewables

4% - 55%

All Renewables

17% - 77%

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Silicon Valley Power

• Municipal Utility– Owned and Operated by the City of Santa Clara

• 117,000 residents• 51,000 Customers

– Clean, reliable, competitively priced electricity– 490 MW Peak Load– 3,000 Gwh/year– 73% load factor– 90% of Sales are Commercial and Industrial

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Silicon Valley Power• SVP Owns and Operates 7 Power Plants

– Four small hydro plants– Natural gas combined cycle and peaking plants– Cogeneration plant– 24 hour trading and scheduling

• SVP Partners in 9 Power Plants– Northern California Power Agency (NCPA)

• Geothermal, Large Hydro, Natural gas

– MSR Public Power Agency (MSR)• Coal and Wind

– Transmission Agency of Northern California (TANC)

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Wind Hydroelectric

Geothermal

0 pounds of CO2 per kWh produced

Solar

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But, wait, there’s more

950 pounds of CO2

per kWh

Coal Natural Gas

2400 pounds of CO2 per kWh

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Where does this leave SVP?

• Carbon intensity: 650-750 pounds/kWh• Depending hydro condition

• With load growth need to be 450 pounds/kWh• Options

• Replace coal • Continue renewable development• Reduce load

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Energy Efficiency Programs

For $5 to 6 M per year: – Commercial & Industrial Programs

• 25,860,913 kWh in first year savings

– Residential Programs• 914,530 kWh in first year savings

– Total FY 07-08 Savings • 26,775,443 kWh

– Goal for FY 07-08 was 25,765,000– Goal for FY 08-09 is 27,339,560

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Residential Programs• Free In Home & Online Energy Audits• CFL Give a ways• Refrigerator Replacement & Recycling Rebates• Attic Insulation Rebates• Solar Electric Rebates• LCD Monitor Rebates• Whole House Fan Rebate• SVP Plug Ins Catalog• Solar Attic Fan Rebate • AC Replacement & Recycling Rebates • Pool Pump Rebate • Ceiling Fan Rebates

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Commercial & Industrial Programs• Free Energy Audits• Free Design Assistance• Lighting Rebates• Motor & VFD Rebates• HVAC & Chiller Rebates• Commercial Washing Machine Rebates• Food Service Equipment Rebates• New Construction Incentives• LEED Incentives• Solar Electric Rebates• Customer Directed Rebate• Energy Innovator Grant

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Third Party C&IEnergy Efficiency Programs

• Compressed Air Management Program (CAMP)• Keep Your Cool Program• Retrocommissioning Program• Express Efficiency Program • Data Center Optimization Program (DCOP) • Preschool Energy Efficiency Program

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SVP Energy Innovator Awards

• Environmental Innovator– Santa Clara University (over 100 employees)– Echelon Corporation (100 employees or less)

• Energy Efficiency Partner– Sierra Meat Company (over 100 employees)– PDM Steel Services Center (100 employees or less)

• Green power Champion– Applied Materials (over 100 employees)

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Awarded the 2007 EPA“Program of the Year”

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Lessons Being Learned• We are facing major challenges

– Won’t go away

• Be proactive in energy efficiency and renewables– Protect the customers interests

– Provides validity to concerns

– Reduces costs in long run

• Get your message out early and often– Take an active role in developing regulations

Public Power must focus on common concernsWe have more common ground than differences

Thank you!