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Summary of Utility DSM Efforts

This summary provides an overview of demand response and energy efficiency efforts in Florida, including programs, measures, research and development, innovative programs, and lessons learned. It also highlights the success of energy audits, rebates, and other initiatives in promoting energy savings and educating customers.

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Summary of Utility DSM Efforts

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  1. Summary of UtilityDSM Efforts John Masiello Director, DSM & Alternative Energy Strategy Progress Energy Florida Dennis Brandt—FP&L John Floyd—Gulf Power Howard Bryant—TECO

  2. Overview • Programs and Measures • Program Expansion • DSM Research and Development • Innovative Programs • Awareness and Education • Lessons Learned

  3. Florida DR and Energy Efficiency Background • Florida has engaged in Demand Response and Energy Efficiency Since 1980 • Demand Response and Energy Efficiency are part of each major Florida utilities' annual planning process • Florida utilities consistently look first to Demand Response and Energy Efficiency to meet growing electricity demand • Florida ranks 2nd among states in Demand Response and Energy Efficiency1 1Source: 2005 per DOE EIA F861

  4. Programs and Measures 19 Programs Over 110 opportunities for rebates

  5. Energy Audit:Inform, Motivate, Implement • Educates and motivates our customers to implement measures using our rebates • Almost 3.4 million customers have received an energy audit—48% of customers • Helps to eliminate FreeRiders • Educate customers on true energy savings, not the “mystery box” that will save 35% energy! • Work done—Inspect minimum of 10% of improvements for quality control Energy Audit Services Provided: On-site On-Line Phone Assisted Mail Paid

  6. Demand Response Load Management Standby Generation Pricing Signals Interruptible Service Etc. Energy Efficiency Ceiling Insulation Duct Repair Hi-efficiency HVAC upgrades HVAC tune-up Compact Fluorescents Etc. DSM is………DR and EE

  7. Energy Audit On-Site On-Line Phone Assisted Mail-In Paid Computer Analysis Energy Improvement Hi-efficiency Heat Pump Geothermal Heat Pump HVAC Commissioning Supply & Return Plenum Duct Seal Proper sizing of Hi-efficiency AC Central AC =>14 SEER non-electric heat ECM Fan Duct Test Duct Sealing Spray-in Wall insulation Ceiling Insulation Reflective Roof Roof Coating Window Film or Screen Replacement Windows New Construction/Energy Star Duct Seal Conditioned Space Air Handler HVAC Commissioning High Efficiency HP Geothermal Heat Pump Manual D (Duct design) Energy Recovery Ventilation Attic insulation Cool Roof Attic Spray-on Foam insulation Window Film/Screen High Performance windows Energy Star Alternate water heating Homebuilders and Buyers Education Seminars Low Income Weatherization Attic Insulation Upgrade Compact Florescent Lamps HVAC Maintenance HVAC Filters Duct Test and Repair High Efficiency Alternate Water Heating Reduced Air Infiltration Water Heater Wrap / Replacement High Efficiency Electric Heat Pumps Neighborhood Energy Saver Compact Fluorescent Bulb replacement Water Heater Temperature Check and Adjustment Low Flow Faucet Aerator HVAC Winterization Kit Low Flow Showerhead Change Filter Calendar Refrigerator Coil Brush Wall Plate Thermometer Refrigerator Thermometer HVAC Filters Weatherization Measures (weather stripping / door sweeps / etc. Water Heater Wrap and Insulation for Water Pipes Renewable Solar Thermal WH with DLC Solar PV for Schools with DLC Programs and Measures:Residential To Promote Audit, Customers receive CFL lamp

  8. Energy Audit On-Site On-Line Paid Computer Analysis Green Lodging LEED’s assistance Retrofit Existing Facility Chillers Thermal Energy Storage Packaged Heat Pumps Small Heat Pump Geothermal Heat Pump DX Roof top units ECM Fans Roof Top Unit recommissioning Packaged AC Steam Cleaning Duct Sealing Demand Control Ventilation Energy Recovery Ventilation Efficient Indoor Lighting Occupancy Sensors Ceiling Insulation Cool Roof Roof Insulation Green Roof Window Film or Screen Efficient Compressed Air System Efficient Motors Refrigeration (Anti-condensate) Heat recover units for Water Heating Heat pump water heaters New Construction designed to ensure buildings are built to levels higher than Florida Energy code Chillers Thermal Energy Storage Packaged Heat Pumps Small Heat Pump Geothermal Heat Pump DX Roof top units Demand Control Ventilation Energy Recovery Ventilation Efficient Indoor Lighting Occupancy Sensors Ceiling Insulation Cool Roof Roof Insulation Green Roof Window Film or Screen Efficient Compressed Air System Efficient Motors Innovation Incentive For customized improvements Thermal Energy Storage Heat Pipes Hi-efficiency Energy Recovery Ventilation Programs and Measures:Commercial

  9. Residential Load Management (LM) Cooling Heating Water Heating Pool Heating Peak Pricing Programmable thermostat LM with Solar water heating Commercial Load Management (LM) Cooling EMS Integration Standby Generation Interruptible Service Curtailable Service Real Time Pricing Programs and Measures:Direct Load Control

  10. Heating & Cooling measures = 40 Building Envelope = 26 Water Heating = 4 Audit—Many Savings Tips 60% of Usage has 70 rebates Programs and Measures:Home Energy End Use

  11. Florida vs. USA:DSM Spending Levels • USA dropped 53% by 2003 • In 1998/2003 Florida was 19% of total Nationwide Source: DOE EIA F861 1990-2005 Reports $000 $000

  12. 2006 Program Expansion & Results

  13. +803 944 Winter Demand Reduction 2006/7 Expansion: 85% increase over 2004 filing of 2005-14 DSM Plan WMW= Winter Megawatts WMW WMW

  14. +878 945 Summer Demand Reduction 2006/7 Expansion: 93% increase over 2004 filing of 2005-14 DSM Plan SMW= Summer Megawatts SMW SMW

  15. +527,211 1,187,105 Megawatt Hour Reduction 2006/7 Expansion: 48% increase over 2004 filing of 2005-14 DSM Plan MWH= Megawatt Hours MWH MWH

  16. Audits—3,380,000 48% of Customers Load management customers—1,160,000 16% of Customers Building Envelope Rebates—1,140,000 HVAC rebates— 1,300,000 18% of Customers Program Saturation It’s estimated that 25% additional customers act on our Audit recommendations but don’t submit the paperwork for rebates Statistics do not reflect total history

  17. Florida USA 2006 Florida DSM Comparisons Percent of Total from EE & DLC MW Percent of Customers Avg. KW per Customer Cost per EE MWH Source: DOE EIA F861 2006 Report • Florida is 124% more cost effective per MWH achieved than USA DSM MWH average • Saving Florida ratepayers an estimated $293 Million in program costs

  18. DSM Research and Development

  19. DSM Research and Development • Landfill Gas to Energy Micro Turbine Research • 30 kW Capstone micro turbine installed. First known micro turbine operating on landfill gas in Florida. • Solar PV for Storm Shelter Proposal • Install a photovoltaic (PV) system with battery back-up in a school which also serves as emergency shelter. • Other Projects • Dais Analytic Membrane Energy Recovery Ventilation • Renewable Energy Program Development • Desiccant Technologies for Moisture Removal • Ventilation Design for Commercial Fresh Air Intake • Chiller and Motor Efficiency Testing • Anti-condensate controls for refrigerator/freezer doors • Thermal Energy Storage • Heat Recovery technology for Ice Makers

  20. DSM Research and Development • Geothermal for restaurant • HVAC and hot water for fast food restaurant • Demonstrate the energy and demand benefits • Eglin Geothermal • In-field efficiency of residential geothermal system—75% savings! • Sealed Semi-Conditioned Attic • To evaluate the effectiveness of utilizing (1) moisture barrier, (2) closed-loop geothermal heat pump, and (3) spray foam insulation in combination • Warner Solar PV monitoring • Small business solar PV contribution • Water furnace international study of high-efficiency refrigerant • Evaluate the effectiveness of 410A refrigerant in geothermal equipment as a replacement to R-22 which is being phased-out.

  21. DSM Research and Development • Plug-in Hybrid Electric Vehicle (PHEV) with V2L and V2G • Develop communication infrastructure • Evaluate Vehicle to Load (V2L) and Vehicle to Grid (V2G) applications • Compare vehicle availability / usage to system load shape • Design prototype customer interface kiosk • Small Scale Wind • Evaluate average wind speeds for residential / commercial / utility applications • Analyze energy production and coincidence with system peak • Other Projects: • Solar PV with Vanadium Redox Battery (VRB) • Solar Hybrid Lighting • Chemical PTAC coil cleaning • Smart Grid / Next Gen LM • 3M Filtrete Filters • PoWER distributed energy system • EMS Orange County Schools • EMS Room Control at Hyatt Regency • Fume Hood • Chiller Loop modeling

  22. DSM Research and Development • SmartCool HVAC/Refrigeration • System Optimization of cycling patterns on HVAC compressors and supermarket refrigeration. • Refrigeration Flow Control • Upgraded refrigerant flow control valves for commercial settings • Residential Thermostat Load Control Pilot • Expanded on-call program using new generation of communication and control technologies • Business Water Heating • Alternative electric water heating measure such as heat pumps and heat recovery units • Residential Solar Water Heating and PV • Smart Network • Potential to provide customer with real-time energy use and conservation opportunities

  23. Innovative Programs

  24. Interactive energy management system allows customers HVAC and WH to automatically respond to price signals. Customers choose the balance between comfort and savings that best fits their lifestyle, putting them in control of their energy purchases. Current program participation:8,767 customers DSM Plan projects:30,000 participants through 2014. Geo-exchange, another term, are the most efficient system for heating and cooling. Since 2005:- 2,325 residential installs- 4,481 commercial tons DSM Plan projects:- 2,500 residential installs- 10,370 commercial tons through 2014. Incentive = $400 per ton Innovative Programs Critical Peak Pricing Program Geothermal Heating & Cooling

  25. Multi-tiered rate structure: price signals conveyed during the day “Smart” thermostat: Programmed by customer for preset actions based on pricing Anticipated Demand Reduction 29 MW-Winter 23 MW-Summer 10,699 MWH of annual energy through 2014. Innovative Programs Commercial Demand Response Residential Price Responsive Load Management • Contracted turn-key program with 25MW of load reduction • Vendor will market program • audit customer facilities • install automated controls • provide load tracking • pay customers for kW reduction. • Reduction achieved through: • emergency backup generation • energy management • raising cooling set-points • turning off or dimming lights.

  26. InnovativePrograms Neighborhood Energy Saver Renewable Energy Saver Programs • Designed for low-income families • Measures installed at no charge by canvassing neighborhood • Coordinated with city, community & state agencies • Implementation includes: • Home Energy Audit • Customer behavior change education • Installation of a comprehensive package of low cost conservation measures Solar Water Heater with EnergyWise: • $450 upfront rebate encourages residential customers to invest in a solar thermal water heating SolarWise for Schools: • Promotes environmental stewardship & renewable energy education • Customers can elect to donate their monthly EnergyWise credits toward a special fund • This fund is used to purchase solar (photovoltaic) systems for Florida schools & provide educational opportunities

  27. Residential Thermostat Load Control Pilot FPL is evaluating expansion of load management through use of a new communication and control technologies allow residential customers to lower energy costs, or override FPL control of heating and cooling appliances. Demand and energy savings per participant Energy anticipated to be about 260 kWh per year Coincident peak reduction value of 1.0 kW The pilot will have a maximum of 400 participants. Business Custom Incentive Program Target market is primarily larger commercial, industrial and government customers Designed to address unique energy saving opportunities Measurement and verification of custom energy projects Has achieved approximately 20MW of demand savings Innovative Programs

  28. Awareness and Education

  29. Awareness and Education • Bill Inserts – Provide timely messages with respect to seasonal energy-saving tips and energy efficiency advice through customer bill inserts. • Home and Business Expo events –Promoting energy efficiency in homes and businesses • Presentations to civic clubs, chambers of commerce, homeowners associations, trade organizations, and all levels of lower and higher education institutions • Workshops for low income homeowners and first time homeowners with Habitat for Humanity • Workshops on “Buy Green” and “Build Green”

  30. Education • Student Curriculum • Students will perform mail-in, on-line, or telephone audit which will provide information on low cost energy saving practices that the student’s parents can implement for extra credit • Presentations by an ensemble will use a professionally written play employing humor and interactive theater • Classroom guides to teach the benefits of energy efficiency • SunSmart School PV Curriculum • 28 Schools have PV installed • Energy data on Web at www.energywhiz.com • Teachers trained on Solar curriculum

  31. Awareness—Save the Watts • Customers receive 30,000 messages a day • Campaign • To reach 95% targeted population 35 times in 4 months • TV, Radio, Newspaper, Magazines, Online advertising • Results • Web site visits up 450% • 76% net increase in online audits • EnergyWise installs up 193% It’s your wallet. It’s your world. Save the Watts.

  32. It’s your wallet. It’s your world. Save the Watts. Consumer Education

  33. Awareness and Education

  34. Awareness and Education

  35. Lessons Learned What Didn’t Work Building Code Impacts What Works Well

  36. What Didn’t Work • Increased Incentives no Guarantee of Increased Participation • Goal Setting must be from market potential and not from Top Down approach • Keep it Simple • Rebate process and rules have to be extremely easy to understand and follow to get maximum participation • Advertising: One size doesn’t fit all • Commercial customers require relationships to be established with customer and equipment vendors • Gateway Communication 1998 • Technology not ready and costly • Concept ahead of technology • Residential Paid Audits • Additional time and information not accepted • Load Control programs can grow too large a percent of reserves

  37. Building Code Impacts • 1990 Code change from SEER 10 demonstrates slow transition to hi-efficiency Heat Pumps: 7 years • Record number of implementations in 2006 with less than 50% of that number expected in 2007 50% drop

  38. What Works Well • Duct Seal & Repair • Over 660,000 ducts repaired/sealed • Success due to education of consumer & contractors to address an invisible issue • Duct curriculum and training developed and delivered annually to AC contractors • Direct Load Control has 1.2M customers • Saved 16% of Total USA Peak Demand Reduction1 • Florida placed 2 utilities in Top Ten of Nation1 in MW of EE & DR • Developed multiple delivery channels • Field representatives and account managers • Participating Independent Contractors • Trade Association partnerships • Community organizations partnerships • Government Agencies partnerships • Internet access to programs and rebate information • Florida on track 5,332 Summer MW of Reduction and 5,655 Winter MW in 2007 • This is equivalent to 14―400MW power plants 1Source: 2005 per DOE EIA

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