Summary of UtilityDSM Efforts

John MasielloDirector, DSM & Alternative Energy Strategy

Progress Energy FloridaDennis Brandt—FP&L

John Floyd—Gulf PowerHoward Bryant—TECO

2

Overview

• Programs and Measures

• Program Expansion

• DSM Research and Development

• Innovative Programs

• Awareness and Education

• Lessons Learned

3

Florida DR and Energy Efficiency Background

• Florida has engaged in Demand Response and Energy Efficiency Since 1980

• Demand Response and Energy Efficiency are part of each major Florida utilities' annual planning process

• Florida utilities consistently look first to Demand Response and Energy Efficiency to meet growing electricity demand

• Florida ranks 2nd among states in Demand Response and Energy Efficiency1

1Source: 2005 per DOE EIA F861

Programs and Measures

19 Programs

Over 110 opportunities for rebates

5

Energy Audit:Inform, Motivate, Implement

• Educates and motivates our customers to implement measures using our rebates

• Almost 3.4 million customers have received an energy audit—48% of customers

• Helps to eliminate FreeRiders• Educate customers on true energy savings, not

the “mystery box” that will save 35% energy! • Work done—Inspect minimum of 10% of

improvements for quality control

Energy Audit Services Provided:

On-site On-Line Phone Assisted Mail Paid

6

DSM is………DR and EE

Demand Response• Load Management• Standby Generation• Pricing Signals• Interruptible Service• Etc.

Energy Efficiency• Ceiling Insulation• Duct Repair• Hi-efficiency HVAC

upgrades• HVAC tune-up• Compact Fluorescents• Etc.

7

Programs and Measures:Residential• Energy Audit

― On-Site― On-Line― Phone Assisted― Mail-In― Paid Computer Analysis

• Energy Improvement― Hi-efficiency Heat Pump ― Geothermal Heat Pump ― HVAC Commissioning ― Supply & Return Plenum Duct Seal ― Proper sizing of Hi-efficiency AC ― Central AC =>14 SEER non-electric heat― ECM Fan― Duct Test― Duct Sealing― Spray-in Wall insulation ― Ceiling Insulation― Reflective Roof― Roof Coating ― Window Film or Screen― Replacement Windows

• New Construction/Energy Star ― Duct Seal ― Conditioned Space Air Handler ― HVAC Commissioning― High Efficiency HP ― Geothermal Heat Pump― Manual D (Duct design) ― Energy Recovery Ventilation― Attic insulation ― Cool Roof― Attic Spray-on Foam insulation ― Window Film/Screen― High Performance windows ― Energy Star ― Alternate water heating

• Homebuilders and Buyers Education Seminars

• Low Income Weatherization

― Attic Insulation Upgrade ― Compact Florescent Lamps― HVAC Maintenance― HVAC Filters― Duct Test and Repair ― High Efficiency Alternate Water Heating― Reduced Air Infiltration ― Water Heater Wrap / Replacement― High Efficiency Electric Heat Pumps

– Neighborhood Energy Saver― Compact Fluorescent Bulb replacement― Water Heater Temperature Check and Adjustment― Low Flow Faucet Aerator ― HVAC Winterization Kit― Low Flow Showerhead ― Change Filter Calendar― Refrigerator Coil Brush ― Wall Plate Thermometer― Refrigerator Thermometer ― HVAC Filters― Weatherization Measures (weather stripping / door sweeps /

etc.― Water Heater Wrap and Insulation for Water Pipes

• Renewable– Solar Thermal WH with DLC– Solar PV for Schools with DLC

To Promote Audit, Customers receive CFL lamp

8

Programs and Measures:Commercial• Energy Audit

― On-Site― On-Line― Paid Computer Analysis― Green Lodging― LEED’s assistance

• Retrofit Existing Facility― Chillers ― Thermal Energy Storage― Packaged Heat Pumps― Small Heat Pump― Geothermal Heat Pump― DX Roof top units― ECM Fans― Roof Top Unit recommissioning― Packaged AC Steam Cleaning― Duct Sealing― Demand Control Ventilation― Energy Recovery Ventilation― Efficient Indoor Lighting― Occupancy Sensors― Ceiling Insulation― Cool Roof― Roof Insulation― Green Roof― Window Film or Screen― Efficient Compressed Air System― Efficient Motors― Refrigeration (Anti-condensate)― Heat recover units for Water Heating ― Heat pump water heaters

• New Construction– designed to ensure buildings are built to

levels higher than Florida Energy code― Chillers

― Thermal Energy Storage

― Packaged Heat Pumps

― Small Heat Pump

― Geothermal Heat Pump

― DX Roof top units

― Demand Control Ventilation

― Energy Recovery Ventilation

― Efficient Indoor Lighting

― Occupancy Sensors

― Ceiling Insulation

― Cool Roof

― Roof Insulation

― Green Roof

― Window Film or Screen

― Efficient Compressed Air System

― Efficient Motors

• Innovation Incentive– For customized improvements

• Thermal Energy Storage

• Heat Pipes

• Hi-efficiency Energy Recovery Ventilation

9

Programs and Measures:Direct Load Control

Residential• Load Management (LM)

– Cooling– Heating– Water Heating– Pool Heating

• Peak Pricing– Programmable thermostat

• LM with Solar water heating

Commercial• Load Management (LM)

– Cooling– EMS Integration

• Standby Generation• Interruptible Service• Curtailable Service• Real Time Pricing

10

34%10%

11%

17% 8.6%

5%6.6%

7%

Cooling Heating--HP Water heating RefrigerationMisc. Laundry Lighting Cooking

Programs and Measures:Home Energy End Use

• Heating & Cooling measures = 40• Building Envelope = 26 • Water Heating = 4

Audit—Many

Savings Tips

60% of

Usage has

70 rebates

11

Florida vs. USA:DSM Spending Levels

• USA dropped 53% by 2003• In 1998/2003 Florida was 19% of total Nationwide

Source: DOE EIA F861 1990-2005 Reports

$000 $000

2006 Program Expansion & Results

13

Winter Demand Reduction

2006/7 Expansion: 85% increase over 2004 filing of 2005-14 DSM Plan

0

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Expansion04 Plan WMWTotal

Expansion 184 340 439 525 596 666 736 803

04 Plan WMW 105 212 324 440 563 687 813 944

Total 288 552 763 965 1,159 1,353 1,548 1,747

2007 2008 2009 2010 2011 2012 2013 2014

WMW= Winter Megawatts

WMWWMW

+803

944

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Expansion04 Plan SMWTotal

Expansion 164 313 418 518 612 708 793 878

04 Plan SMW 109 218 331 447 567 690 814 945

Total 273 531 749 965 1,180 1,398 1,608 1,823

2007 2008 2009 2010 2011 2012 2013 2014

Summer Demand Reduction

2006/7 Expansion: 93% increase over 2004 filing of 2005-14 DSM Plan

SMW= Summer Megawatts

SMW

SMW

+878

945

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1,800,000Expansion04 Plan MWHTotal

Expansion 65,248 135,432 202,405 272,217 343,880 418,504 495,379 572,211

04 Plan MWH 130,371 267,093 409,388 556,704 708,753 863,999 1,022,358 1,187,105

Total 195,619 402,524 611,793 828,922 1,052,634 1,282,503 1,517,737 1,759,316

2007 2008 2009 2010 2011 2012 2013 2014

Megawatt Hour Reduction

2006/7 Expansion: 48% increase over 2004 filing of 2005-14 DSM Plan

MWH= Megawatt

Hours

MWHMWH

+527,211

1,187,105

16

Program Saturation

• Audits—3,380,000– 48% of Customers

• Load management customers—1,160,000– 16% of Customers

• Building Envelope Rebates—1,140,000

• HVAC rebates—

1,300,000– 18% of Customers

It’s estimated that 25% additional

customers act on our Audit

recommendations but don’t submit the

paperwork for rebates

Statistics do not reflect total history

17

2006 Florida DSM Comparisons

Percent of Customers

Percent of Total from

EE & DLC MWCost

per EE MWH

• Florida is 124% more cost effective per MWH achieved than USA DSM MWH average– Saving Florida ratepayers an estimated

$293 Million in program costs

Avg. KW per Customer

17%6.5%

7.0

5.7

USA Florida

$9.5

$21.3

$-

$5

$10

$15

$20

$25

USA balance Florida

Source: DOE EIA F861 2006 Report

DSM Research and Development

19

DSM Research and Development

• Landfill Gas to Energy Micro Turbine Research– 30 kW Capstone micro turbine installed. First known micro turbine

operating on landfill gas in Florida.

• Solar PV for Storm Shelter Proposal– Install a photovoltaic (PV) system with battery back-up in a school

which also serves as emergency shelter.

• Other Projects– Dais Analytic Membrane Energy Recovery Ventilation– Renewable Energy Program Development– Desiccant Technologies for Moisture Removal– Ventilation Design for Commercial Fresh Air Intake– Chiller and Motor Efficiency Testing– Anti-condensate controls for refrigerator/freezer doors– Thermal Energy Storage– Heat Recovery technology for Ice Makers

20

DSM Research and Development• Geothermal for restaurant

– HVAC and hot water for fast food restaurant– Demonstrate the energy and demand benefits

• Eglin Geothermal– In-field efficiency of residential geothermal system—75% savings!

• Sealed Semi-Conditioned Attic– To evaluate the effectiveness of utilizing (1) moisture barrier, (2)

closed-loop geothermal heat pump, and (3) spray foam insulation in combination

• Warner Solar PV monitoring– Small business solar PV contribution

• Water furnace international study of high-efficiency refrigerant– Evaluate the effectiveness of 410A refrigerant in geothermal

equipment as a replacement to R-22 which is being phased-out.

21

DSM Research and Development• Plug-in Hybrid Electric Vehicle (PHEV) with V2L and V2G

– Develop communication infrastructure– Evaluate Vehicle to Load (V2L) and Vehicle to Grid (V2G) applications– Compare vehicle availability / usage to system load shape– Design prototype customer interface kiosk

• Small Scale Wind– Evaluate average wind speeds for residential / commercial / utility applications– Analyze energy production and coincidence with system peak

• Other Projects:– Solar PV with Vanadium Redox Battery (VRB)

– Solar Hybrid Lighting

– Chemical PTAC coil cleaning

– Smart Grid / Next Gen LM

– 3M Filtrete Filters

– PoWER distributed energy system

– EMS Orange County Schools

– EMS Room Control at Hyatt Regency

– Fume Hood

– Chiller Loop modeling

22

DSM Research and Development• SmartCool HVAC/Refrigeration

– System Optimization of cycling patterns on HVAC compressors and supermarket refrigeration.

• Refrigeration Flow Control– Upgraded refrigerant flow control valves for commercial settings

• Residential Thermostat Load Control Pilot– Expanded on-call program using new generation of communication

and control technologies

• Business Water Heating– Alternative electric water heating measure such as heat pumps

and heat recovery units

• Residential Solar Water Heating and PV• Smart Network

– Potential to provide customer with real-time energy use and conservation opportunities

Innovative Programs

24

Innovative Programs

• Interactive energy management system allows customers HVAC and WH to automatically respond to price signals.

• Customers choose the balance between comfort and savings that best fits their lifestyle, putting them in control of their energy purchases.

• Current program participation: 8,767 customers• DSM Plan projects:

30,000 participants through 2014.

• Geo-exchange, another term, are the most efficient system for heating and cooling. • Since 2005:

- 2,325 residential installs- 4,481 commercial tons

• DSM Plan projects:- 2,500 residential installs- 10,370 commercial tons through 2014.

• Incentive = $400 per ton

Critical Peak Pricing Program

GeothermalHeating & Cooling

25

Innovative Programs

• Multi-tiered rate structure: price signals conveyed during the day

• “Smart” thermostat: Programmed by customer for

preset actions based on pricing • Anticipated Demand Reduction

–29 MW-Winter–23 MW-Summer–10,699 MWH of annual energy through 2014.

Residential Price Responsive Load Management

CommercialDemand Response

• Contracted turn-key program with 25MW of load reduction

• Vendor will market program– audit customer facilities– install automated controls– provide load tracking– pay customers for kW

reduction.• Reduction achieved through:

– emergency backup generation– energy management– raising cooling set-points– turning off or dimming lights.

26

InnovativePrograms

• Designed for low-income families • Measures installed at no charge

by canvassing neighborhood• Coordinated with city, community

& state agencies• Implementation includes:

– Home Energy Audit– Customer behavior change education– Installation of a comprehensive package of low cost conservation measures

Neighborhood Energy Saver

Solar Water Heater with EnergyWise:

• $450 upfront rebate encourages residential customers to invest in a solar thermal water heating

SolarWise for Schools:• Promotes environmental

stewardship & renewable energy education

• Customers can elect to donate their monthly EnergyWise credits toward a special fund

• This fund is used to purchase solar (photovoltaic) systems for Florida schools & provide educational opportunities

Renewable Energy Saver Programs

27

Innovative Programs

Residential Thermostat Load Control Pilot

• FPL is evaluating expansion of load management–through use of a new communication and control technologies

–allow residential customers to lower energy costs, or override FPL control of heating and cooling appliances.

• Demand and energy savings per participant–Energy anticipated to be about 260 kWh per year

–Coincident peak reduction value of 1.0 kW

• The pilot will have a maximum of 400 participants.

Business Custom Incentive Program• Target market is primarily

larger commercial, industrial and government customers

• Designed to address unique energy saving opportunities

• Measurement and verification of custom energy projects

• Has achieved approximately 20MW of demand savings

Awareness and Education

29

Awareness and Education

• Bill Inserts – Provide timely messages with respect to seasonal energy-saving tips and energy efficiency advice through customer bill inserts.

• Home and Business Expo events –Promoting energy efficiency in homes and businesses

• Presentations to civic clubs, chambers of commerce, homeowners associations, trade organizations, and all levels of lower and higher education institutions

• Workshops for low income homeowners and first time homeowners with Habitat for Humanity

• Workshops on “Buy Green” and “Build Green”

30

Education

• Student Curriculum– Students will perform mail-in, on-line, or telephone

audit which will provide information on low cost energy saving practices that the student’s parents can implement for extra credit

– Presentations by an ensemble will use a professionally written play employing humor and interactive theater

– Classroom guides to teach the benefits of energy efficiency

• SunSmart School PV Curriculum– 28 Schools have PV installed– Energy data on Web at www.energywhiz.com

• Teachers trained on Solar curriculum

31

Awareness—Save the Watts

• Customers receive 30,000 messages a day

• Campaign– To reach 95% targeted

population 35 times in 4 months– TV, Radio, Newspaper,

Magazines, Online advertising• Results

– Web site visits up 450% – 76% net increase in online

audits– EnergyWise installs up 193%

It’s your wallet.

It’s your world.

Save the Watts.

32

Consumer Education

It’s your wallet.

It’s your world.

Save the Watts.

33

Awareness and Education

34

Awareness and Education

Lessons Learned

What Didn’t Work

Building Code Impacts

What Works Well

36

What Didn’t Work

• Increased Incentives no Guarantee of Increased Participation

• Goal Setting must be from market potential and not from Top Down approach

• Keep it Simple– Rebate process and rules have to be extremely easy to

understand and follow to get maximum participation• Advertising: One size doesn’t fit all

– Commercial customers require relationships to be established with customer and equipment vendors

• Gateway Communication 1998– Technology not ready and costly– Concept ahead of technology

• Residential Paid Audits– Additional time and information not accepted

• Load Control programs can grow too large a percent of reserves

37

Building Code Impacts

• 1990 Code change from SEER 10 demonstrates slow transition to hi-efficiency Heat Pumps: 7 years

• Record number of implementations in 2006 with less than 50% of that number expected in 2007

Home Energy Improvement: Heat Pumps

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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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Annual Implementations Cumulative Implementations

50% drop

38

What Works Well• Duct Seal & Repair

– Over 660,000 ducts repaired/sealed– Success due to education of consumer & contractors to address

an invisible issue• Duct curriculum and training developed and delivered annually to AC

contractors• Direct Load Control has 1.2M customers

– Saved 16% of Total USA Peak Demand Reduction1

– Florida placed 2 utilities in Top Ten of Nation1 in MW of EE & DR • Developed multiple delivery channels

– Field representatives and account managers– Participating Independent Contractors– Trade Association partnerships– Community organizations partnerships– Government Agencies partnerships– Internet access to programs and rebate information

• Florida on track 5,332 Summer MW of Reduction and 5,655 Winter MW in 2007– This is equivalent to 14―400MW power plants

1Source: 2005 per DOE EIA