Strategic Energy Alliance SEA Change

Central Coast Regional Energy Planning Conference

San Luis Obispo, California August 23, 2007

Ryan StroupePacific Energy Center - PG&E

The American Building Contribution to the Global Energy Situation

• If U.S. is responsible for 25% of global energy use• and U.S. Buildings require 40% of U.S. energy• Then 10% of global energy use is…

U.S. Buildings

Moving to a Greener Tomorrow

“I say the debate is over. We know the science. We see the threat. And we know the time for action is now. Global warming and the pollution and burning of fossil fuels that cause it are threats we see here in California and everywhere around the world.”

Governor Arnold Schwarzenegger, World Environment Day Conference,

June 1, 2005, San Francisco

“The link between greenhouse gas emissions and the Earth’s warming climate is convincing, the potential consequences are serious and the need for action is urgent.”

Peter Darbee, Chairman, CEO and President PG&E Corporation,

PG&E Global Climate Change report

PG&E’s Stance on Climate Change

• The link between greenhouse gas emissions and the Earth’s warming climate is convincing.

• The potential consequences of global climate change are serious.

• The electric and natural gas sectors are the largest contributors to U.S. greenhouse gas emissions.

• We have an obligation to find responsible and effective solutions to the threats posed by global climate change and to take immediate action.

Putting Energy Efficiency First

“Energy efficiency is California’s highest-priority resource for meeting its energy needs in a clean, reliable, and low-cost manner.”

California Public Utilities Commission’s 2006 publication, Energy Efficiency: California’s Highest-Priority Resource

“Energy efficiency is the lowest-cost way to meet customers’ energy needs.”

PG&E’s Global Climate Change report

“California’s utility-run energy efficiency programs save energy at a cost of less than 3 cents per kWh, less than half the per kWh cost of building new generation.”

California Energy Commission

California Electric Load Profile

Data from www.caliso.com 8/22/07

Energy Efficiency is SmartEnergy

• Energy efficiency is the ability to use less energy while producing the same amount of light, heat or other energy service

• Lighting Example:– Energy Conservation: Turn off a lamp as you leave a room.

– Energy Efficiency: Replace the old incandescent bulb in the lamp with a compact fluorescent lamp (CFL). New CFLs produce the same pleasing light as incandescents, but use at least 75% less energy and last up to 10 times longer, saving as much as $75 over the life of the bulb.

The Numbers Talk…

Since 1976 PG&E’s energy efficiency programs have:

• Saved more than 118 million megawatt-hours and 10.7 billion therms from installed measures (cumulative lifecycle savings)

• Saved enough annual electricity to power over 18 million homes and enough annual natural gas to heat 15 million homes

• Helped California avoid building 24 large power plants (500MW/plant)

• Kept over 125 million tons of CO2 out of the atmosphere, based on combined electric and natural gas savings

Energy Consumption Per Capita

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US CA Western EuropeCourtesy Art Rosenfeld, California Energy Commission

Energy efficiency programs have helped keep per capita electricity consumption in California flat over the past 30 years

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Appliance Standards

Building Standards

Utility Efficiency Programs at a cost of

~1% of electric bill

~ 22% of Annual Peak in California in 2003

Annual Peak Savings From Efficiency Programs and Standards

Graph courtesy of Art Rosenfeld, California Energy Commission

1970 1993 2001 2006

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18 cu. ft. frost-free refrigerator

Appliance Standards – A Big Impact

2006 - 2008 Energy Efficiency Portfolio

Moves towards an integrated customer-based focus

Portfolio includes: financial incentives and rebates, training, education, energy audits, emerging technology projects, energy codes and standards support, marketing and outreach, and evaluation activities

Multiple delivery channel opportunities: utility programs, third party programs, and government partnerships

Mass Market: single family, multifamily and small business customers

Targeted Markets:– Agriculture & Food Processing

– Hospitality & Lodging

– Health Care & Biotech

– High Tech

– Large Commercial & Institutional

– Manufacturing & Heavy Industry

– Residential New Construction

– Retail

– Schools, Colleges & Universities

– Water Treatment

Rebates and Incentives

• Agricultural products– heat curtains and infrared film for

greenhouses, wine tank insulation • Appliances and general

improvements– clothes washers, dishwashers,

reflective window film, • Boilers and water heating

– commercial pool heaters, pipe insulation, tank insulation

• Food service– commercial ice machines, gas or

electric fryers, griddles and ovens

• Heating, ventilation, and air conditioning (HVAC)

– evaporative coolers, package terminal air conditioners, variable frequency drives

• Lighting– T5 or T8 fluorescent lamps with

electric ballasts, cold cathode lamps, light-emitting diode (LED) exit signs

• Refrigeration– door gaskets, refrigeration display

cases, strip curtains for walk-in boxes

PG&E offers cash rebates and customized incentives to business customers who purchase and install energy efficient appliances and equipment. *

Rebate categories for businesses include:

* Note: Not all customers will qualify for all rebates. Visit pge.com/rebates for more information and a list of qualifying products.

Agricultural & Food Processing Refrigerated Warehouse New Construction

In 2006 alone, PG&E worked with 30 new and existing industrial refrigerated warehouses on optimizing design and existing operations Examples of recommended energy efficiency measures include floating head pressure, evaporative and air condensers, computercontrols and high-efficiency lighting and controlsThe combined measures can reduce energy use by 25 – 35% annually

Case Study: Stamoules ProduceStamoules Produce planned a 60,000 square foot expansion of their cold storage facilityProjected annual energy savings: 937,535 kWhAnnual utility cost savings: $93,000

Agricultural & Food Processing: Dairies

• PG&E has worked with more than 45 new and expanding dairies to help them build high-performance facilities and improve operational competitiveness

• PG&E provides technical design assistance to owners and design teams, and offers up to $150,000 in incentives per project for efficient new construction.

• Recommended measures include efficient refrigeration design, variable frequency drives on milk pumping systems, premium- efficiency motors, high volume/low-speed ventilation fans, and efficient compressed air and lighting systems

• PG&E is hosting 5 workshops in 2007 for dairies to introduce integrated energy management, including exploring energy generation options for dairy biogas

PG&E’s Government Partnerships

By partnering with local and state governments, PG&E leverages existing infrastructures while engaging governments to provide energy efficiency services to customers who do not traditionally participate in PG&E’s energy efficiency programs.

Local Government Energy Watch Partnerships

• PG&E Energy Watch Partnerships

– Association of Bay Area Governments– Association of Monterey Bay Governments– East Bay– Fresno– Bakersfield/Kern– Madera– Marin– Merced– Motherlode– Redwood Coast– San Francisco– San Joaquin– Santa Barbara– Silicon Valley– Silicon Valley Leadership Group– Sonoma– Stockton

• Statewide Partnerships– University of California/California State

University– California Community Colleges– California Department of Corrections and

Rehabilitation

Partnership Goals and Activities

• Extend the reach and effectiveness of energy efficiency programs and provide information about demand response programs, renewable energy, and self-generation opportunities

• Offer a range of energy efficiency options for commercial, small business, and residential customers, as well as municipal facilities

• Serve customers that traditionally may not take advantage of energy efficiency services, including the local governments themselves– Reach out to hard to reach customers, including diverse ethnic

communities

San Francisco Partnership Activities

PG&E Participation• Offers PG&E energy saving

resources to assist partnership

• Delivers specialized marketing and outreach programs

• Provides tailored education and training program resources

The San Francisco Energy Watch partnership, implemented by the San Francisco Department of the Environment, provides incentive programs, training, education, and technical assistance for small businesses and

residential customers.

Budget: $11.5M Goals: 8123 KW; 4,329,5795 KWH; 335,352 Therms

San Francisco Participation• Identifies constituencies in

need of energy savings measures and assists in implementation

• Targets specific audiences to promote energy saving services

• Works to create valuable training materials to necessary audience

Redwood Coast Energy Watch Partnership

PG&E Participation• Energy efficiency resources

and knowledge to assist the partnership

• Working knowledge of the local governments through collaboration with Government Relations

• Effective outreach and marketing by coordinating with various different departments.

City and County Participation• Knowledge of the local

infrastructure and the needs of the constituents

• An understanding of key players in the community and energy efficiency implementers

• Identification of customers who need and want energy efficiency program elements

Redwood Coast Energy Watch provides energy savings through smaller delivery channels to build on its close working ties with local public agencies by providing

single family direct install and small business direct install.

Budget: $1,767,292 Goals: 783 KW; 5,185,275 KWH; 81,755 therms

Motherlode Energy Watch Partnership

• Replaced more than 6,000 7-watt lights with new LED lights that use approximately a tenth of a watt. – will save more than $15,000 in

energy costs per year• Project serves as a model for other

small, historical towns within the Partnership cities and beyond.

• Project was praised for their efforts in a front-page story on November 16, 2006 in the local newspaper the Mountain Democrat and was honored with a statewide Flex Your Power Award

What Is Building Commissioning (Cx)?

Commissioning is a systematic

process of ensuring that all building systems

are operating properly.

Cx Payback: New Construction

Payback times not always attractive (if NEBs excluded)

Median Payback Time = 4.8 years

Cx Payback: Existing Buildings

Attractive payback times across a range of Cx costs

Median Payback Time = 0.7 years

Excluding NEI’s

PEC: Pre and Post Commissioning Data

Average Daily Electrical ConsumptionPG&E Pacific Energy Center

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Air Handler Run-time Data

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Energy Intensity by Building Type

Grocery stores and food service have higher end

use intensities (kWh/sf) than

any other common

commercial building type.

Source: 1999 Commercial Building Energy Consumption Survey (CBECS),

U.S. DOE, www.eia.doe.gov.

Refrigeration End Use in Grocery Stores

• Refrigeration is largest end use by far in grocery stores

• Typical use is over 50% of store’s total

• Can reach 70% for poorly maintained systems

Typical Grocery StorePercent of Electicity Consumption by End Use

Refrigeration58%

Inside Lighting17%

Exterior Lighting

3%

Other5%

Cooling7%

Ventilation2%

Cooking8%

Source: 1999 Commercial Building Survey Report, Pacific Gas &Electric.

Thanks for your attention…

…questions?