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Florida’s Energy Efficiency Leader

Second Quarter Report

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Good News:On track to make FY 07 goals!

GOAL SECOND QUARTER

2.7 MW 1 MW13,652 MWh 8,109 MWh

100%

80%

60%

40%

20%

0%

3

315

688

10031049

0

200

400

600

800

1,000

1,200

Peak

kW

Red

uctio

n

Oct - Mar Target

Second Quarter Demand ReductionResidential Business Overall

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$1,359

$519

$783

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$ / P

eak

kW R

educ

tion

Oct - Mar

$ Spent Per Peak kW ReducedResidential Programs Business Programs Overall

$1,800 – 2,600 kW for Base Load Capacity

$400 – 800 kW for Peak Capacity

80,000 Residential Customers

5,500 Business Customers

5

4737

3372

8109

6029

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

MW

h R

educ

ed

Oct - Mar Target

Second Quarter Energy Reduction

Residential Business Overall

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ICF Report: “Many of the potential DSM programs are less costly than the supply-side alternatives, with levelized average costs of only $23/MWh.”

$90

$106$97

$0

$20

$40

$60

$80

$100

$120

$ / M

Wh

Red

uctio

n

Oct - Mar

$ Spent Per MWh ReducedResidential Programs Business Programs Overall

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Program Updates

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Foundation to Achieve Maximum Energy Efficiency

• Education• Incentives• Regulation• Rates• Research

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Current Programs

•GRUGreen Program•Green Building•Natural Gas Range •Natural Gas Dryer •LP Gas Conversion•Smart Vend •LED Exit Sign •Customized Business Program •Free on-line, mail-in, self service, or on-site energy efficiency service •CFL giveaway programs •Energy Efficiency School Curriculum •Public presentations •Low income whole house program •Low interest loan program

•High Efficiency Central Air Conditioner•High Efficiency Room Air Conditioner•Central Air Conditioner Maintenance•Duct Leak Repair•Heat Recovery Unit•Heat Pipe Enhanced Air Conditioner •Reflective Roof Coating •ENERGY STAR® Certification of Affordable Housing •Added Insulation •Refrigerator Buyback and Recycling •Solar Electric (PV) •Solar Water Heater •Natural Gas Water Heaters•Natural Gas Central Heat

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Low Interest Loan

• Revised RFP and sent to financial institutions

• Contract negotiations with First Credit Union

• Could launch as early as May 15

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Low Income Energy Efficiency Program (LEEP)

• Rebate up to $2750 per house plus applicable rebates– NW 8 homes selected from 10 – SW 4 homes selected from 4– NE 15 homes selected from 28– SE 13 homes selected from 39

• All homes have been assigned to the contractors

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Pilot Lessons Learned (thus far)

• Not everyone classified as low income is in need of this assistance

• Looking at four geographic sectors helped us better clarify needs criteria:– Regardless of income, energy efficiency improvement

needs were greatest in areas of older, dilapidated housing stock (Northeast and Southeast)

– Future program, considerations should include: • Income• Age and condition of building envelope • Age and condition of appliances

– Better processes are needed to qualify applicants• Some organizations did this for us at no charge to GRU others

wanted to charge $150 per applicant

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Pilot Lessons Learned (thus far)

• Staff did not include time and cost for permits in budget, for example;– $150 AC – $60 insulation

• We are way ahead of where many others are in nation in developing this type program

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Regulation

• Continuing discussion with Community Development Committee on ways to get energy efficiency improvements in single family homes, especially rentals

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Good News!

• On target to reach FY07 goals

Working Assumptions:Demand Side Management and Energy Supply Planning

May 10, 2007

• Conservation assumptions– Review of policy– Working assumptions– Impacts

Presentation Outline

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On April 12, 2006 The Gainesville City Commission directed staff to:

“1. Include the Total Resource Cost test as a consideration to pursue all cost effective and feasible demand side measures including demand response, energy efficiency, load management and innovative rate design options. Ensure that the needs of lowincome customers are addressed in demand side management programs.

2. Have GRU staff conduct a thorough examination of all DSM options and present a plan to the commission to develop and implement all cost effective DSM and demand response measures...”

City Commission Direction

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• Utilize the Total Resource Cost (TRC) test as economic criterion

• Remain open to new technologies• Do not rely on unproven technology• Energy efficiency contributes to meeting

carbon goals

Working Assumptions

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• ICF report represents the best available estimate of cost-effective energy efficiency potential at this time

• Staff is strenuously pursuing better data– Appliance saturation studies– FMEC joint studies– Load research

Working Assumptions

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Capacity 88 MW By 2025

Energy 254,000 MWH By 2025

Financial Incentives2007 - 2025 $64,100,000 NPV 2003$

Program Administration*2007 - 2025 $16,025,000 NPV 2003$

Total $80,125,000 NPV 2003$*Taken as 25% of Financial Incentives

ICF Study Results

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Electric Efficiency Target

• Use ICF results as targets for the maximum cost effective energy conservation and demand reduction pending further study– Reduce demand for electrical energy by 10%

by 2015– Reduce the growth in demand by 70%

through 2015

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Historical Summer Peak & 2007 Forecast of Summer Peak

0

100

200

300

400

500

600

700

80019

63

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

2014

2017

2020

2023

2026

MEG

A-W

ATT

S

Sum Peak w/o Max DSM + 15% reserve margin

Sum Peak w/ Max DSm + 15% reserve margin

History

Changing the Trend

02,000

4,0006,0008,000

10,00012,00014,000

16,00018,000

1996 1999 2002 2005 2008 2011 2014

Ann

ual k

Wh

Florida GRU History and Forecast

Source: FRCC 2006 Regional Load & Resource Plan9

Leader in Florida

Utility% Reduction of Retail

Electric SalesGRU 10.1%

Tallahassee 7.8%Gulf Power 5.2%Progress 3.9%Tampa 2.6%

FPL 1.0%Seminole 0.0%

JEA 0.0%FMPA 0.0%OUC 0.0%

Lakeland 0.0%

Comparison of 2015 Electricity Conservation Goals for Florida Utilities

Data Source: Schedules 3.1.1 2007 Florida Ten Year Site Plans

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