rp_0103_1.html
Fast-Acting Conservation Offers Relief From Drought-Driven Energy Shortage
Northwest utilities are finally demonstrating some sense of urgency in their conservation efforts as hopes of avoiding an extended power supply shortage virtually evaporated this month. Spring in the Northwest begins amid all but certain forecasts of summer drought which could leave reservoirs short of water well into next year. And while three gas-fired power plants and the Stateline Wind Project are under construction, only Stateline is scheduled to come on line before the end of 2001. Fast-acting conservation may provide the only buffer against late summer blackouts or a repeat of this past winter.
Utilities are participating enthusiastically in the Bonneville Power Administration (BPA) compact fluorescent (CFL) rebate program and many are actively promoting and preparing to offer customer rebates to buy down the cost of Energy Star appliances. BPA is also embarking on an aggressive campaign to capture substantial savings available by putting the region's thousands of power guzzling refrigerated vending machines on timers, which would turn the machines off in the middle of the night and during hours when no one has access to them.
Tom Eckman , conservation analyst with the Northwest Power Planning Council reports targeting of commercial and industrial customers is lagging behind the push for residential measures, but he expects to see action on large customers soon. He pointed to commercial lighting retrofits as one example of the potential for relatively rapid acquisition of conservation savings among large power users.
BPA is projecting it will capture 60 average megawatts (aMWs) of conservation this year from all of its conservation activities, which includes its Conservation and Renewables (C&R) Discount and Conservation Augmentation program in addition to the vending machine and CFL rebate campaigns. BPA claims 30 aMWs will come from its C&R Discount alone but skeptics point out the agency would have captured about 25 aMWs without any boost in activity.
In years past when the agency enjoyed a strong conservation infrastructure, BPA captured as much as 90 aMWs of efficiency savings. After years of neglect, investor-owned utilities are ramping up conservation activities in addition to taking part in BPA's region-wide efforts. Look for coverage of publicly-owned utility conservation initiatives in next month's Report.
Portland General Electric is sweetening rebates and other incentives the company offers through its existing programs to encourage more participation and rapid response. For example customers who act this year to install efficient appliances, commercial and industrial motors, heat pumps, lighting fixtures and weatherization measures will receive double or triple the rebate amounts they would have previously.
PGE has no plans to ramp up its program offerings other than the rebates because the company's conservation investments will go to a third party non-profit beginning October 1, as required under the state's 1999 restructuring law. In January, PGE demonstrated early leadership by raising the cost-effectiveness ceiling on conservation by 25% to 95%, depending on the measure, thus allowing the utility to spend more per measure and to include efficiency investments that were previously considered uneconomic.
The Montana Power Company (MPC) can't legally increase its investments in conservation above 2.4% of the company's retail electricity revenues the Universal System Benefits Charge (USBC) level established by the state's 1997 restructuring law. But MPC reports customers are showing more interest in conservation this year. The company is also supporting state Senator Ken Toole's bill which would amend the USBC to allow Montana utilities to exceed the 2.4% standard.
Avista Utilities reports customer interest in conservation is high. As the value of conservation rises along with energy prices, the company is reviving commercial and industrial (C/I) conservation proposals which customers declined in the past. The utility plans to launch a "Resource Wise" program addressing efficiency for C/I customers with an emphasis on smaller companies.
Avista is also ramping up its efforts in the residential sector to coincide with seasonal waves of interest from residential customers. The company will launch a public education campaign on space cooling; address weatherization needs beginning in the summer; and focus on high-efficiency space and water heating in new construction throughout the year. Avista may also develop a new construction program targeting efficient lighting fixtures and appliances.
"We're gearing-up to be in the market when the customer interest is there with off-the-shelf, proven efficiency measures that bring immediate savings to the customer," said Jon Powell of Avista Utilities. "We don't want this window of opportunity to close without getting the maximum impact."
Mark Glyde & Nancy Hirsh