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Energy Efficiency Post-2011 Phase 2 Update

Energy Efficiency Post-2011 Phase 2 Update. January 12, 2011 Northwest Power and Conservation Council Missoula, MT. Post-2011 Phase 2 Update. Phase 1 was finalized in August. Final Policy Framework and Response to Public Comments are available online:

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Energy Efficiency Post-2011 Phase 2 Update

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  1. Energy Efficiency Post-2011 Phase 2 Update January 12, 2011 Northwest Power and Conservation Council Missoula, MT

  2. 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.

  3. 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.

  4. Post-2011 Phase 2 Recommendations • Workgroups provided recommendations to BPA on the implementation of energy efficiency programs for the post-2011 time period.

  5. 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

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. Contact Information http://www.bpa.gov/Energy/N/post-2011/ Josh Warner jpwarner@bpa.gov 503-230-5857 Matt Tidwell mttidwell@bpa.gov 503-230-4139

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