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PG&E’s Water-Embedded Energy Pilot Low Income Oversight Board Watsonville, CA January 17, 2007

PG&E’s Water-Embedded Energy Pilot Low Income Oversight Board Watsonville, CA January 17, 2007 Gerry Hamilton PG&E. Water-Embedded Energy Pilot What is this. April 13, 2006: The CPUC announces it will examine “…the embedded (or “upstream”) energy savings associated with water efficiency…”

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PG&E’s Water-Embedded Energy Pilot Low Income Oversight Board Watsonville, CA January 17, 2007

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  1. PG&E’s Water-Embedded Energy Pilot Low Income Oversight Board Watsonville, CA January 17, 2007 Gerry Hamilton PG&E PG&E Draft 1/12/2007

  2. Water-Embedded Energy PilotWhat is this • April 13, 2006: The CPUC announces it will examine “…the embedded (or “upstream”) energy savings associated with water efficiency…” • A Workshop, Comments and Replies on water-embedded issues occurred over the Summer of 2006 surfacing opportunities and issues. • October 16, 2006 the CPUC directed the Investor Owned Utilities propose a pilot on January 15, 2007 • Total funding $10 million (PG&E $4.4 million) • Duration: 12 months starting July 1, 2007 • Could examine water conservation, ways to use less energy intensive water, or improve water distribution and treatment systems • Partner with one (or more) large water providers PG&E Draft 1/12/2007

  3. The Water-Embedded Energy Pilot:Key Objectives • Critical issues were raised that the Pilot must address: • Can Electric IOUs and Water agencies effectively partner? • Coordinate program design • Improve water-energy program delivery • Achieve larger energy savings • Can the water-embedded energy savings be measured? • PG&E has partnered with water agencies in the past; looks forward to more durable and effective partnerships • Measuring water-embedded energy savings to an acceptable degree of precision is the critical challenge • Without developing reliable and accurate measurements and measurement methods, savings can’t be verified; hampering program development for 2009+ • Complex water distribution systems and water industry institutions may require realistic trade-offs between reasonably accurate average savings estimates and highly accurate but expensive incremental savings estimates PG&E Draft 1/12/2007

  4. PG&E’s Water-Embedded Energy Pilot Proposal • PG&E plans to • Partner with three water diverse water agencies: EBMUD, Sonoma Water District, Santa Clara County Water District • Seek a variety of commercial, agricultural, industrial, or institutional sites with • Significant water savings potential • Supply configuration able to measure changes in water usage (both inflows and outflows) • Obtain extensive data on water and energy used/saved for distribution and fresh- and waste-water treatment • Sites could include Schools, Food Processing, Food Service, Laundries, Manufacturing, Health Services, and Multi-family Low Income Housing or other suitable facilities • Work with water agencies and the CPUC to develop satisfactory methods for measuring saved water-embedded energy 4

  5. Low Income Market Possibilities *Based on ave. water-embedded energy intensity of 5,411 kWh/million gallons per CEC study. http://www.energy.ca.gov/pier/final_project_reports/CEC-500-2006-118.html PG&E Draft 1/12/2007

  6. Examples of Achieving Water-Embedded Energy PG&E Draft 1/12/2007

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