ee reviewpanel nov2016 v2 - seattleload history & forecast by customer class forecasted 20-year...

ENERGY EFFICIENCYReview Panel Briefing

November 2016

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OUTLINE

•EE Value and Cost Resource portfolio perspective

•Current Programs Description of current offerings

• Innovation Notable projects and initiatives

•Benchmarking Comparison to peer organizations

•Future of EE Focus areas for the Division going forward

EE VALUE AND COST

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CURRENT RESOURCES

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ANNUAL TARGETS

9.8 9.8

12.0 12.0 11.8 11.812.8

16.2

14.4

15.7

13.7

21.3

18.3

0

5

10

15

20

2010 2011 2012 2013 2014 2015 2016

aMW

TARGET

ACTUAL

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LOAD HISTORY & FORECAST BY CUSTOMER CLASS

Forecasted 20-year Average Growth Rates (net new utility energy efficiency)

Total Retail: 0.36% (-0.6%) Commercial: 0.7% (-0.4%)Residential: -0.5% (-1.4%) Industrial: 0.9% (0.6%)

0

2000

4000

6000

8000

10000

1200020

00

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

Gig

awat

t-H

ours

Residential Commercial Industrial Total RetailNet efficiency Net efficiency Net efficiency Net efficiency

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NEW RESOURCES

New BPA Hydro

Renewables

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COST OF ACQUISITION

• Total cost for energy efficiency acquired in 2015 was ~$0.03/kWh levelized

CURRENT PROGRAMS

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RESIDENTIAL PROGRAMS

• HVAC/Weatherization Rebates

• Appliance Rebates

• Retail Lighting

• Direct Install

• Behavioral Program

• Income Qualified

$0.02/kWh 14% of total savings

$0.02/kWh9% of total savings

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COMMERCIAL PROGRAMS

• Commercial Retrofit

• Small Business

• Commercial New Construction

• Multifamily

• Industrial $0.03/kWh12% of total savings

$0.045/kWh 21% of total savings

INNOVATION

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PAY-FOR-PERFORMANCE PROGRAM (P4P)

• Incentives for commercial buildings based on actual verified energy savings

• Contrast with traditional one-time rebates for a equipment

• Can encourage deeper and more sustained projects

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P4P BUILDINGS

One Union Square

37 story high rise tower

Lake Union Building

7 story low rise office building

1111 Third Ave34 story high rise tower

Bullitt CenterNew construction mixed-use building

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LED PUSH IN RESIDENTIAL

• Since 2015, City Light programs have focused on LEDs:

• Operation LED - mailed a free LED to 113,202 residential customers

• Powerful Neighborhoods -installed 116,816 LEDs in MF homes.

• Retail - offered an instant discount on 1,603,746 LEDs

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WASTE HEAT RECOVERY

• Heat from 34-story Westin Building used to warm 4 million square feet of Amazon’s four block campus

• 80 million kilowatt-hours savings over 20 years

• First large high-rise project using this amount of waste heat

BENCHMARKING

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BENCHMARKING STUDY

• In 2015, City Light conducted a benchmarking study of the EE programs (vendor was EMI)

• Recruited 12 other utilities peer utilities

• Conducted in-depth interviews with division leadership at each utility.

• Received quantitative energy efficiency and renewables data.

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KEY FINDINGS

• High PerformeroEnergy Savings – Cost/kWh and EE savings as a percent of sales

o Investment – City Light invests more in energy efficiency relative to most peer utilities, in terms of both FTEs and budget.

oSocial Equity Initiatives – City Light was one of only two utilities with internal social equity initiatives.

• Low PerformeroCommercial Costs – Commercial programs are higher cost than

most other utilities

oSophistication of Data Tools – Nearly all utilities in the study had more sophisticated business analytics and program data management tools than City Light

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OVERALL ENERGY EFFICIENCY KPI’S

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$/KWH BY SECTOR

EE FUTURE

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IMPROVING OUR OPERATIONS

• Division-wide focus on process improvement and lifecycle approach to program designoMore streamlined participation for our

commercial incentive programs

• Organized to align around functional area and matrix managed environmentoNew name and structure (CRDCES)oDedicated program design team

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TECHNOLOGY AND MARKETS

• Source of energy savings is changingoLess discrete appliances and electronicsoMuch more whole building measures, which

require an integrated program approach

• Looking to expand low income programsoPotentially with larger direct install

component

• Better understand savings occurring outside programsoEspecially in fast moving markets like lighting

OUR VISIONTo set the standard—to deliver the best customerservice experience of any utility in the nation.

OUR MISSIONSeattle City Light is dedicated to exceeding our customers’expectations in producing and delivering environmentallyresponsible, safe, low-cost and reliable power.

OUR VALUESExcellence, Accountability, Trust and Stewardship.