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City of Palo Alto Utilities (CPAU)

City of Palo Alto Utilities (CPAU). Efficiency Studies from Comprehensive to Customer-Specific. CPAU Background. Only CA publicly-owned utility providing electric, gas, water, & telecom (fiber) Electric- 26,000 accounts 1,000 GWh/year, 190 MW peak load

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City of Palo Alto Utilities (CPAU)

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  1. City of Palo Alto Utilities(CPAU) Efficiency Studies from Comprehensive to Customer-Specific August 5, 2008 APPA Webinar Lindsay Joye

  2. CPAU Background • Only CA publicly-owned utility providing electric, gas, water, & telecom (fiber) • Electric- 26,000 accounts • 1,000 GWh/year, 190 MW peak load • Sales: 78% Commercial, 22% residential • Long history of comprehensive energy & water efficiency programs (1980) and progressive renewable programs (1999) August 5, 2008 APPA Webinar Lindsay Joye

  3. Electric Procurement < 2005 • Purchased 90% electricity from WAPA (low cost) ≥ 2005 • Increased market purchases to ≥ 50% (higher costs), driving double-digit rate increases each year • Developed Long-term Electric Acquisition Plan • Hired Rocky Mountain Institute to examine supply and demand-side opportunities. August 5, 2008 APPA Webinar Lindsay Joye

  4. What can we get from efficiency? Could be sufficient economic potential to offset projected load growth of 3-5% over 10 years, but not enough to eliminate deficit position. Status Quo Load Growth Enhanced efficiency efforts should reduce projected load growth. New Renewables growing to 20% Dry 30–60 MM$ Hydro Variability Normal 20-40 MM$ August 5, 2008 APPA Webinar Lindsay Joye

  5. New Focus on Lower Bills • Cost-effective efficiency programs reduce participating customer’s bills, with small increase in average rates. • “Least-rate” approach underestimates economic efficiency potential from a total community viewpoint. • Design efficiency programs to be inclusive. Minimize non-participants that absorb fixed program costs without benefiting from savings. August 5, 2008 APPA Webinar Lindsay Joye

  6. RMI Report • Quantitative and Qualitative • Top-down estimate of efficiency potential • Gas and electric end uses • Residential and commercial sectors • Grouped measures into programs & sorted on total resource cost ($/kWhlifetime) • Study on efficiency program design • Focus on best practices across the nation • Match programs that would work for Palo Alto August 5, 2008 APPA Webinar Lindsay Joye

  7. Economic Potential90 GWh = 9% of annual load

  8. Top Ten under 6¢ August 5, 2008 APPA Webinar Lindsay Joye

  9. Program Design Ideas • Enhance on-going CPAU programs. • Offer commissioning and building operator training programs. • Coordinate with neighboring utilities to leverage marketing efforts. • Treat low-income efficiency programs as alternatives to increased subsidies of energy purchases by these customers. • Create an integrated package of services, (i.e. site audit, technical assistance, and financial assistance) to lower perceived barriers and encourage implementation. • Consider innovative financing strategies such as on-bill financing and performance contracting. (billing system issues) August 5, 2008 APPA Webinar Lindsay Joye

  10. CARE Program ConsultantAssistancefor ResourceEfficiency • Comprehensive studies tailored to meet customer needs (Elec, Gas & Water) • Co-funded requires management support and increases likelihood of implementation • Requires Prof. Engineer evaluation of life-cycle cost of each alternative August 5, 2008 APPA Webinar Lindsay Joye

  11. CARE Lessons Learned • 146 Studies in 6 years, avg. cost $8,000 • Paradigm shift • From facility manager driven (reduce costs) • To CEO champion (sustainability-focus) • Cost-effective measures done first, now getting more $$$ to go green • Leverage focus on climate change, green business awards, LEED certification August 5, 2008 APPA Webinar Lindsay Joye

  12. Case Study: • Premier Properties manage 60 small to medium commercial buildings • Add a green rider on lease to incorporate green energy costs • Perform walk-thru audits to identify efficiency opportunities • Use green to attract new tenants August 5, 2008 APPA Webinar Lindsay Joye

  13. Case Study: • Multi-year initiative to audit all school properties • Collaboration with school facilities staff, administration, utility, teachers and community volunteers (Sustainable Schools Committee) • Studies used for Master Development Plan ($378M bond passed 6/08) • Building System manual provides detailed operating instructions per building • Triple bottom line has economic, environmental and educational benefits August 5, 2008 APPA Webinar Lindsay Joye

  14. Summary • RMI Efficiency Potential study gets Utility management and City Council support • Customer Studies get community to take action • There is a gap between economic potential and what customers implement • Utility & customer staff and budget constraints • Turning to turn-key programs managed by third-party August 5, 2008 APPA Webinar Lindsay Joye

  15. Contact Lindsay Joye, P.E. Lindsay.joye@cityofpaloalto.org 650-329-2680 www.cityofpaloalto.org August 5, 2008 APPA Webinar Lindsay Joye

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