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VALUE. SERVICE. RELIABILITY. ENVIRONMENT. Climate Change: California Experience To: APPA National conference. John Roukema Director Silicon Valley Power June 16, 2009. Agenda. California legislation Municipal approach to energy efficiency Partnerships
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VALUE SERVICE RELIABILITY ENVIRONMENT Climate Change: California ExperienceTo: APPA National conference John Roukema Director Silicon Valley Power June 16, 2009
Agenda • California legislation • Municipal approach to energy efficiency • Partnerships • Targets, reporting and progress • Renewable energy portfolios • Silicon Valley Power
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
Public Power Interests are Diverse and Unique “One size does not fit all” 4
Changing Viewpoints About Public Power’s Commitment to Energy Efficiency 5
Reporting Confirms Public Power Commitment Submitted March 16, 2009 Submitted March 17, 2008 Submitted March 15, 2007 Submitted October1, 2007 SB 1037 2007 Report SB 1037 2008 Report SB 1037 2009 Report Supporting Documentation AB 2021 Targets 2007 Report - KEMA Efficiency Measure Quantification Studies 2006, 2008, 2009 - E3 Reporting Tool, v2006-08 - Custom Measure Guidelines - Measurement & Evaluation Reports 6
$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) Public Power Views on Energy Efficiency 8
Moving Toward AB2021Targets Realistic Approach Yields Realistic Results 2006 2007 2009 2008 9
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 10
Realistic Trends Provide Effective Policy Tool Public Power Savings vs Targets AB 2021 Targets Program Savings 11 Source: CMUA SB1037 Report, March 2009
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% 12
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
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)
Hydroelectric Wind 0 pounds of CO2 per kWh produced Geothermal Solar
But, wait, there’s more 950 pounds of CO2 per kWh 2400 pounds of CO2 per kWh Coal Natural Gas
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
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
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
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
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
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)
Awarded the 2007 EPA “Program of the Year”
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 concerns We have more common ground than differences