1 CONSERVATION AND ENERGY-EFFICIENCY AN AFFORDABLE SOLUTION TO OUR ENERGY FUTURE Jason Grenier Otter...
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Transcript of 1 CONSERVATION AND ENERGY-EFFICIENCY AN AFFORDABLE SOLUTION TO OUR ENERGY FUTURE Jason Grenier Otter...
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CONSERVATION AND ENERGY-EFFICIENCY
AN AFFORDABLE SOLUTION TO OUR ENERGY FUTURE
Jason GrenierOtter Tail Power CompanyJune 18, 2015
COMPANY OVERVIEW
70,000 square-mile service area
422 communitiesAverage Population is about 400
Only three exceed 10,000
785 employees
MN 495, ND 200, SD 90
About 5,400 miles of
transmission lines
About 800 MW of owned generating capability
About 245 MW ofemission-free, renewable
wind generation
Wind energy supplies about 19 percent of our retail sites
Since 1992 we’ve helped customers conserve about as
much electricity as 258,500 average homes use in a year.
130,200 customers
OUR MISSION
To produce and deliver electricity as reliably, economically, and environmentallyresponsibly as possible to the balanced benefitof customers, shareholders, and employees and to improve the quality of life in the areas in which we do business.
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OUR COMMUNITY POPULATIONS
SERVICE AREA AND FACILITY LOCATIONS
CANADA
NORTH DAKOTA
SOUTH DAKOTA
Garrison
Rugby
LANGDON WIND ENERGY CENTER
COYOTESTATION
JamestownLEGEND
Headquarters
Customer svc ctr
Coal-fired plant
Wind farm
Combustion turbine
We also own 6 small hydroelectric plants in MN
HOOT LAKE PLANT
Fergus FallsWahpeton
Oakes
Morris
LAKE PRESTONCOMBUSTION TURBINE
BIG STONE PLANT
LUVERNE WIND FARM
ASHTABULA WIND ENERGY CENTER
ASHTABULA III
Milbank
SOLWAY COMBUSTION
TURBINE
Crookston
Devils Lake
Bemidji
JAMESTOWNCOMBUSTION
TURBINE
CONSERVATION AND ENERGY EFFICIENCY, A PARTNERSHIP BETWEEN OTTER TAIL AND OUR CUSTOMERS
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WHAT IS ENERGY EFFICIENCY AND ENERGY CONSERVATION?
• U.S. Dept. of Energy – Lawrence Berkeley National Laboratory:
• Energy Efficiency is “using less energy to provide the same service”.– Replacing an incandescent bulb with a CFL or LED bulb.– Replacing an old appliance with a new Energy Star appliance.
• Energy Conservation is reducing or going without a service to save energy.– Turning off a light– Taking a shorter shower
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WHY IS ENERGY EFFICIENCY IMPORTANT?
• Benefits of Energy Efficiency include:
• Improve awareness and adoption of energy efficient technologies• Reduce energy costs for households and businesses• Defer utility infrastructure investments• Decrease emissions• Conserve resources• Build positive public relations
HOME ENERGY USE
A TYPICAL MINNESOTA HOME USES ABOUT 190 MILLION BRITISH THERMAL UNITS (MMBTU) OF ENERGY EVERY YEAR TO HEAT, COOL, LIGHT, AND OPERATE APPLIANCES AND ELECTRONICS.
STATE ENERGY USEFROM U.S. ENERGY INFORMATION ADMINISTRATION
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HOW DO WE MEASURE ELECTRICITY?
What is a watt (W)?– The rate at which energy is produced or consumed. – Also known as Demand.– 1,000 watts equals 1 kilowatt (1 kW)
Hair Dryer = 1,877 watts Keurig = 1,500 watts Incandescent Bulb = 60 watts
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HOW DO WE MEASURE ELECTRICITY OVER TIME?
What is a watt hour (Wh)?– Unit of energy equivalent to one watt of power over one hour of time.– Also known as Energy.– 1,000 watt hours equals 1 kilowatt hour (1 kWh)– Residential customers in our region are charged approximately 10 cents / kWh
1,875 watt * 1 hour = 1.875 kWh, nearly $0.20 in electricity costs to operate it for one hour.
60 watts * 8 hours = 480 watts or 0.480 kWh, about $0.05 in electricity costs
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MONTHLY COST FOR COMMON HOUSEHOLD APPLIANCES?
https://www.otpco.com/save-energy,-save-money/calculate-your-savings/appliance-energy-use/
ApplianceApprox. average
wattageLow hours
of useHigh hours
of useLow kwh
High kwh
Low cost
High cost
Baseboard heater (4 ft., 250 watts/ft.) 1,000 100 200 100 200 $8.50 $17.00Clothes Dryer 5,000 6 28 30 140 $2.55 $11.90Clothes Washer 500 7 40 4 20 $0.30 $1.70Computer with monitor and printer 200 25 160 5 32 $0.43 $2.72Dishwasher 1,800 8 40 14 72 $1.22 $6.12Cable Box with DVR Standby Mode 45 744 744 33 33 $2.85 $2.85Microwave Oven 1,100 5 30 6 33 $0.47 $2.81Oven 3,500 10 50 35 175 $2.98 $14.88LED 32"-46" 100 60 440 6 44 $0.51 $3.74X-box 360 185 15 75 3 14 $0.24 $1.18Refrigerator 16-18 cu.ft. 400 150 300 60 120 $5.10 $10.20Water heater on off-peak rate, family of 4 4,500 90 138 405 621 $18.23 $27.95
HOW WELL IS YOUR HOME INSULATED AND SEALED?
REMEMBER 55% OF ENERGY USE IN HOMES IS FOR HEATING AND AIR-CONDITIONING.
OTTER TAIL’S 2012 RESIDENTIAL SURVEY
AGE OF SINGLE FAMILY HOMES:1%
2%5%
3%
3%
9%
16%57%
3%
2 years or newer 3 - 5 years
6 - 10 years 11 - 15 years
16 - 20 years 21 - 30 years
31 - 40 years Over 40 years
do not know
In 2012, 73% of homes in Otter Tail’s service territory were built prior to 1982.
Many building codes and standards have changed in that time.
HOME INSULATIONAND SEALING
SPRAY FOAM SEALS, INSULATES, AND CREATES A VAPORBARRIER.
LACK OF INSULATION AND AIR LEAKS COST MONEY.
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OTTER TAIL’S HOME TRANSFORMER PROGRAM
• Electric Measures• Several CFL light bulbs
• Complete Home Energy Audit• Blower-door test• Thermal imaging
• Over a $500 Value!
• Heating and Cooling Measures• Exterior Door Sweep• Outlet Gaskets (4)• Caulking (50ft.) 1,015 kWh• Weather-Stripping for Windows (2)
• Hot Water Measures• Pipe Wrap Insulation 452 kWh 9 ft.• Faucet Aerator 84 kWh• Low-Flow Shower Head 276 kWh• Setback temp on Water Heater 141 kWh• Engine Block Heater Timer 244 kWh
HOME ENERGY AUDIT CANSAVE YOU MONEY
www.energy.gov
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SIMPLE, LOW COST ITEMS ADD UP TO BIG SAVINGS!
www.energy.gov
www.energy.gov
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SCHOOL KITS
• Otter Tail offers energy efficient items and educational materials to sixth through eight grade students.
• Students took school kit home and installed items with the help of their parents.
• Kits included an energy saving shower head, faucet aerator, car timer, six CFL bulbs, one LED bulb and installation instructions.
• The class with the most completed surveys won a pizza party.
– Annual savings per a school kit are 1,051 kWh.
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HOUSE THERAPY – HELP FOR THOSE WHO NEED IT MOST
• Primary focus is to provide energy efficiency measures to income-qualified residential and farm customers.
• Program is implemented by Community Action Councils.
• Customers can save money through an energy analysis, direct install of certain products, weatherization, off-peak electric water heating, refrigerator and freezer replacement.
– Some recipients receive over 3,000 kWh in energy saving technology.
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AIR-SOURCE HEAT PUMPS
• An Air-Source Heat Pump is an efficient home heating and cooling system contained all in one unit.
• Because it moves heat instead of making it, it will operate at more than 200% efficient.
• Less efficient as the temperature drops below 30 degrees. Requires supplemental heat during coldest part of winter.
– Annual savings of a 2.5 ton system are approximately 9,262 kWh and 4.6 kW when compared to resistance electric heat/cooling. Savings of over $900 annually.
www.yougen.co.uk
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GEOTHERMAL HEAT PUMPS
• Geothermal Heat Pumps capitalize on renewable energy from the earth’s constant temperature of about 48 degrees in our region.
• The U.S. Department of Energy claims it is the most efficient electric option for heating and cooling.
• Typical geothermal heat pumps have 350% or greater energy efficiency.
– Annual savings of a 4.5 ton closed system are approximately 20,700 kWh and 10.3 kW when compared to resistance electric heat/cooling. Savings of over $2,500 annually. www.prostar-mechanical.com
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BEHAVIORAL PROGRAMS
• Provide energy feedback to customer across economic groups and demographics.
• Share the goal of educating and motivating consumers to make behavior choices, home improvements, and informed buying decisions that reduce their personal energy use profile and maximize energy efficiency.
• Examples:• Opower Home Energy Reports• Aclara Home Energy Analyzer web portal• Rothsay Community Energy Challenge• UM-Crookston Campus Energy Challenge
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BEHAVIORAL PROGRAMS
• The Home Energy Report• Accurate and current personal
billing information• Compares energy
consumption to similar-sized homes
• 6 reports annually through the mail– 162 kWh of savings / participant in
2014.
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BEHAVIORAL PROGRAMS
• The Home Energy Analyzer• Complete picture of your home
energy use• 25 months of bill history• User can create a home profile• Helps create personalized
energy-saving and money-saving plan that fits your lifestyle– 692 kWh of savings / participant in
2014.
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APPLIANCE RECYCLING
• Recycle your old energy hog refrigerator and freezer.
• Many utilities offer rebates to come and pick up your old fridge or freezer.
– 915 kWh of savings / refrigerator– 1,134 kWh of savings / freezer
BE BRIGHT CHANGE A LIGHT!OTTER TAIL PROMOTES CFLS AND LEDS TO OUR CUSTOMERS
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TECHNOLOGY IS CONSTANTLY IMPROVING
www.energysipp.com
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LEDS & CFLS = FAST PAYBACKIncandescent CFL LED
Approximate cost per bulb
$1 $2 $8 or less
Average lifespan 1,200 hours 8,000 hours 25,000 hours
Watts used 60W 14W 10W
No. of bulbs needed for 25,000 hours of
use21 3 1
Total purchase price of bulbs over 23 years
$21 $6 $8
Total cost of electricity
used (25,000 hours at $0.12 per kWh)
$180 $42 $30
Total operational cost over 23 years
$201 $48 $38
Here’s how much each type of bulb would cost to purchase and operate over a 25,000-hour lifespan (about 23 years at three hours per day)
If you replaced 20 incandescent bulbs with LED light bulbs throughout your home, you could save up to $3,260 over their 23-year lifespan (and that’s assuming utility rates don’t rise).
www.thesimpledollar.com
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OTTER TAIL’S 2012 RESIDENTIAL SURVEY
29%
34%
14%
5%
9% 9%
How many Compact Fluorescents in home?
01-56-1011-1516+Didn't answer
In 2012, Otter Tail found 29% of homes had no CFLs and 63% of homes had five or less CFLs in the home.
SCHOOLS AND COMMERCIAL/INDUSTRIAL CUSTOMERSSIGNIFICANT ENERGY SAVINGS
OTTER TAIL’S COMMERCIAL EE PORTFOLIO
• Adjustable Speed Drives• Air Conditioning Control• Heat Pumps, Air-source &
Geothermal• Custom Grants• Industrial Process Efficiency• Lighting, Replacement & New• Motors• PC Power Supply• Re-Commissioning• Refrigeration
• In 2014, commercial programs accounted for 69% of Otter Tail’s 33.8 million kWh annual energy savings in MN.
• Large commercial and industrial customers account for just 1.3% of customers, but account for more than half of retail kilowatt-hour sales.
• In 2014, 44% of commercial energy savings results were from efficient lighting technologies.
ENERGY EFFICIENT DEMAND RESPONSE PROGRAMS
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OTTER TAIL SENDS OUT A CONTROL SIGNAL DURING SYSTEM PEAKS
• Air-Conditioning Control (CoolSavings)– Customers receive a $7 a month bill credit in June through September for
allowing cooling equipment cycled on for 15 minutes then off for 15 minutes until a control signal is sent to restore normal operation.
– 45 kWh savings 0.66 kW coincident summer savings
• Water-Heating Control– Customers receive a $4 a month bill credit monthly or a discounted energy rate
for allowing their electric water heater to be turned off during peak and high energy price periods.
– Electric water heaters are highly efficient systems that also operate as thermal energy storage devices.
– 23 kWh savings 0.21 kW coincident summer savings
LOAD CONTROL PROGRAMS SAVE CUSTOMERS $
• Difference in blue and red line reflects investments Otter Tail can defer or go without.
Jun-1
5Ju
l-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-1
6
Feb-16
Mar-16
Apr-16
May-16
500
550
600
650
700
750
800
850
900
With Demand Response
OTP Load without Demand Response
MW
Demand-side resources play a significant role in meeting future resource needs
Energy efficiency plays a significant role in meeting our customer’s energy needs
LIFETIME COSTS OF CONSERVATION / ENERGY EFFICIENCY
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$0.0000
$0.0050
$0.0100
$0.0150
$0.0200
$0.0250
MN Conservation Lifetime Cost per KWH
For example: Otter Tail spends $7 on program costs to advertise and rebate a customer to buy a CFL bulb. The bulb will save approximately 39 kWh annually. The bulb will last for approximately 10 years. Lifetime savings is 39 kWh annually over ten years or 390 kWh. The total cost per kWh saved is $7 / 390 kWh = $0.018/kWh. LESS THAN 2 CENTS PER KWH!!!
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How Energy Efficiency Stacks Up
Coyote Station near Beulah, ND
ALL RESOURCES MUST BE CONSIDERED IN OUR ENERGY FUTURE…….
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ENERGY LINKS ALL OF US TOGETHER
• ……We all have a responsibility to use all natural resources wisely.
• Energy efficiency saves money, reduces emissions and saves our precious natural resources for future generations.
QUESTIONS ?