Public Benefit Mandates and Programs AB 2021 Goal Setting

Board of Public Utilities March 1, 2012

Legislative Background

AB-1890 Public Benefits Charge – 2.85% Mandated an established usage based charge to be used for: Low Income Assistance

Energy-Efficiency and Conservation Programs

Renewable Energy

Research, Development and Demonstration

3925 3999 4142

4779

6025

7202 7749

7406 7167

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12

Historical SHARE Participation

Over 60,000 customers assisted since 2003

5 4 5

14

35

49

96

178 181

33

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Megawatts

Systems Installed kW

Solar Systems Installed

Research and Development

Public Benefits support research, development, and demonstration

Building end-use efficiency

Advanced generation

Renewable generation

Environmental research

$1.7 million invested in local universities

SB-1 (2006) California Solar Initiative (CSI) Mandated solar goals/expenditures

AB-2021 (2006) Mandated RPU identify, target and achieve all cost-effective energy savings and report goals every three years to CEC

SB-1037 (2006) Mandated annual reporting

AB 2227 (2012) Target setting to 4 year cycle

Legislative Background

Multiple demands on resources

Constant re-evaluation of efficiency programs Keep – Change – Toss Changing model

Some disagreement at state level Whole house fans Trees

Local control of popular programs

Legislative Challenges

3,700 11,100

19,465

27,415 33,803

41,600

50,783

60,408

73,152

87,233

102,768

117,364

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Over 10 Years of Tree Power

# of trees

America Public Power Association – Golden Tree Award for planting at least one tree for every electric meter.

Residential and Commercial Energy Savings

Program Available Rebates

KWh Saved/ Customer/ Year

Average Cost per kWh Saved

GHG Reduction

Weatherization $100/ Rebate 1,500/ Rebate $0.066/kWh 3,014.4 Pounds/Year

Tree $25/ Tree 175/ Rebate $0.1428/kWh 351.76 Pounds/Year

Energy Star $75/ Appliance 375/ Rebate $0.20/kWh

753.6 Pounds/Year

A/C $525 @ $150/ton 1,090/ Rebate $0.4587/kWh 2,190

Pounds/Year

PV (Solar) ½ Cost up to $15,000 7,200/ Rebate $1.55kWh 14,469

Pounds/Year

Average Cost per kWh Saved

$0.066/kWh

$0.1428/kWh

$0.20/kWh

$0.4817/kWh

$1.25kWh

kWh Saved and GHG Reductions

Air Conditioning Energy Star Tree Power Refrigerator Rebates Refrigerator Recycling Weatherization Home Energy Audits Irrigation Controllers High Efficiency Cloths Washers

Whole House Program

Residential Programs

Commercial rebates

HVAC change outs

Lighting retrofits

Performance-Based incentives

New Construction

LEED Construction

Premium Motor Incentives

Energy Management

Commercial Programs

32% Residential Programs

20% Commercial Programs

23% Solar

22% SHARE (Low Income Assistance)

3% Other (Admin, Tech

Asst, etc)

Budget Proportions (FY 12-13)

Commercial & Industrial Load

Other

10% of RPU’s customer base is Commercial or Industrial

RPU Baseload

65%

35%

65% of RPU’s electric load comes from the 10% of Commercial or Industrial customers

10%

Commercial & Industrial Load

Res. 19%

Comm. 81%

Proportion of kWh savings

Commercial & Industrial Savings

Commercial Program Participation

0%

20%

40%

60%

80%

RPU Comm 2011 RPU KA 2011 CA Muni 2011 CA IOU 2011

6% 10% 10%

5%

73%

38%

61% 59%

21%

52%

29% 36%

Not Sure No Yes

Energy efficiency participation stands at about one in five RPU commercial customers

Need to increase commercial participation number

More than 4000 customer contacts

Lighting retrofits

Occupancy sensors

HVAC tune-up

Keep Your Cool

Smart Irrigation Program (SIP)

3000 other improvements

Programmable thermostats, etc.

Direct Installation Programs

Historical kWh Savings

3,117,466

5,849,147

7,259,573

16,052,142

19,185,402

22,395,710 21,243,985

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12

Over 300% increase!

AB 2021 Goal Setting RPU Compliance

Achieve all cost-effective energy savings and report goals

Establish a 10 year target every 4-years

Southern California Public Power Authority (SCPPA)

California Municipal Utilities Association (CMUA)

Only SMUD, Riverside, Azusa, Burbank and Glendale achieved their goals last year

RPU was second in the state to SMUD

AB 2021 Goal Setting

Consultant recommendation 0.75%

Market conditions and economy

Technology saturation

Staff Recommendation 1% of retail electric sales 2014 -23

20,000,000 kWh …or 3,000 homes

10% Strategic Long-term Benefit

That the Board of Public Utilities approve the Riverside Public Utilities (RPU) updated Annual Energy Efficiency and Demand Reduction Goal of 1% of annual projected retail energy sales for the period beginning 2013 through 2023

Recommendations