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EXECUTIVE SUMMARY

Sacramento Municipal Utility District's Commercial Lamp Installation Program (CLIP) was designed to reduce the utility's summer peak demand and the electric bills for SMUD's small commercial customers. The program was implemented in part because utility audits of small commercial facilities revealed large opportunities to save lighting energy, as well as a fundamental reluctance by these customers to do the recommended retrofits themselves.

A six-month pilot program of CLIP began in July of 1986. Based on the success of the pilot, SMUD went forward with a full scale program in January of 1987. The program continued for two years, moving from one zip code area to the next, at which time SMUD determined that almost all of the potential eligible customers had been contacted at least twice. The participation rate among those eligible was about 45%.

The program saved each customer an average of 937 kWh/yr and the utility captured a peak capacity savings of 0.316 kW per participant. This resulted in a total annual energy savings for the 7,339 program participants of 6.88 GWh and a capacity savings of ~2.32 MW. While SMUD assigned an average life of the measures installed of five years, SMUD also assumed that there would be a 25% "persistence of savings" (continued use of energy-efficient lamps) through the year 2015.

The total cost of the program was $1.24 million for an average cost of ~$169 per participant. The largest cost component was for labor (60.4%) followed by lamp costs (36.2%). The average cost of saved energy for the program was just under 4¢/kWh at a 5% real discount rate for an assumed five-year measure lifetime but was cut almost in half (2.2¢/kWh) if it is assumed that, on average, the customers replace the energy-efficient lamps installed at the time of their burn-out with similar use energy-efficient lamps, at least once.

One of the most interesting aspects of the CLIP are the changes that have evolved as its program managers realized that the program could be implemented more efficiently than they first assumed. Key mid-course corrections are discussed in the Implementation and Lessons Learned sections, as are program design changes for the forthcoming evolution of the program.

All of SMUD's current DSM programs are being implemented in the context of capturing 800 MW of capacity by the year 2000. During this same period they are planning to bring on line an additional 400 MW from renewable energy supply options. By combining the implementation of energy-efficient end use technologies with renewable energy, this utility has become a leader in moving toward the goal of providing its customers with environmentally benign, sustainable energy.

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EXECUTIVE SUMMARY

The purpose of the Energy-Saver Showerhead Coupon Program was to replace existing inefficient showerheads with water-efficient ones. Because California law forbids the sale of inefficient showerheads, replacement will eventually happen but this program was designed to accelerate replacement. PG&E’s effort was highly successful. The first year’s distribution exceeded the program’s initial goal by 420%.

The main delivery mechanism was rebate coupons obtained and redeemed at the point of purchase. These coupons allowed the consumers to receive up to a $4 rebate toward the cost of each showerhead they purchased. The coupons were returned to PG&E by the participating retailers who were then reimbursed for the rebates. This type of program requires a minimum amount of administrative cost and almost no labor cost.

The program also included two much smaller components, direct installation and a special events giveaway. Together the two smaller components were responsible for the distribution of only 26,833 showerheads while the Energy-Saver coupons were responsible for the distribution of over 526,000 showerheads. All three components are described at length in the Implementation section. Although the program title makes reference only to the Energy-Saver coupons, the savings and cost numbers in this profile include the contributions from all three components.

One of the most unique and potentially helpful aspects of this program was its evaluations. Both a telephone survey and on-site data collection were done. The information that was gathered was invaluable in determining the net to gross ratio (how many showerheads actually resulted in a net energy savings) and for estimating the average annual savings per showerhead.

The annual energy savings from the first year of the program are 11.5 GWh of electricity, 4.1 therms of natural gas, and 797 kW of capacity. This was achieved at a total cost of $2.6 million. The penetration rate for the estimated number of targeted showerheads was ~8.1% after the first year. The program is being continued in 1992 and plans have been developed to extend it through 1995.

Because showerhead retrofits are a common utility DSM measure this profile contains an expanded discussion of the different types of delivery mechanisms that utility companies have commonly employed to implement a showerhead program. (See Delivery Mechanisms section). This discussion includes a comparison of cost and estimated penetration rates for the different mechanisms.

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EXECUTIVE SUMMARY

In 1989, United Illuminating (UI) created the Homeworks program in response to an agreement that came out of New England's collaborative process. The program began in 1990 and was modeled after the Energy Fitness program administered by New England Power Service.

Homeworks is a direct installation program for low income households in some of Connecticut's most economically-depressed communities. The basic approach is to make an intensive pass through a targeted area and to install as many measures to as many customers as possible. To do this UI utilizes a primary contractor and three non-profit agencies to deliver the energy-efficiency measures. Homeworks also hires and trains youths to work on the program from the low-income neighborhoods that are serviced. This not only provides employment for the community but provides a means for the utility to get into areas that are hard to reach. Customer education is also emphasized by the program in regard to the measures received and also other energy-efficiency opportunities within the community.

The program provides a number of energy-efficient measures at no cost to the customer. While compact fluorescent light bulb installation is the primary focus of the program, the utility also provided homeowners with a coil cleaning brush and cleans the refrigerator coils at the time of the visit. (Coil cleaning brushes are no longer part of the program -- see Implementation section.) Whether the customer has an electric hot water heater or gas hot water heater, the contractor wraps the heater, insulates both hot and cold water lines that supply the unit, sets back the water temperature, and installs water-efficient measures including high performance showerheads and kitchen faucet aerators. A key feature of the program is that it effectively integrates the local gas utility into the door to door approach. Kemper Management Services, the program's contractor, performs the services and then bills both United Illuminating and Southern Connecticut Gas Company for the measures installed.

Homeworks provides average annual energy savings of 606 kWh and just under a half a kilowatt of capacity savings per installation, at a cost of approximately $157 per participant. The gas portion of the program costs $32 per participant and saves each customer 3.19 MCF or 2.2% of the annual gas bill. Through the end of 1991 the program had accomplished 16,846 installations, or 16.8% of the eligible participants, and has saved 8.09 GWh and 972 kW at a cost of $2.39 million to United Illuminating. Through the first half of 1992 the program has resulted in cumulative total energy savings of 4.1 GWh and total capacity savings of 604 KW. The program cost for the gas portion of the program to Southern Connecticut Gas Company was $34,957 in 1991. Oil, gas, and water resources are also saved.

 

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EXECUTIVE SUMMARY

The Espanola Power Savers Community-Based Conservation Project is a full-scale effort to extract as high as possible a reduction in electricity consumption from a geographically-concentrated area and to research the potential for this type of DSM approach in Ontario. In both the residential and commercial sectors Ontario Hydro's project is being carried out through concentrated marketing, comprehensive energy audits and inspections, and incentives up to the lesser of an efficiency measures' installed costs or its full avoided cost.

One of the most important elements of the Espanola Project is what its managers call its legacy. Key to the project design are means of maintaining the efficiency built into the community, to avoid attrition and "take-back" effects. Hydro believes this requires attitudinal changes and thus the project presents a wealth of approaches to not only implement efficiency in a hurry, but that attempt to capture long-term potentials.

By using the "market saturation" approach in Espanola, the project has already achieved record participation levels in audits with an average of 87% residential and commercial customers participating. Also impressive is the "customer uptake" level, a measure of the accepted measures to the measures recommended by the auditors. Seventy percent (70%) of the kW value of the measures recommended for all homes have been accepted. On average the customer contribution, based on job sites completed as of September 11, 1992, has been $2,260.76 for all-electric homes (Hydro's contribution has been $3,794,35), and $12.98 for non-all-electric homes (Hydro's contribution has been $158.25). The average saving for all-electric homes as of September 11, 1992 was 1.87 kW, and .114 kW for non-all-electric homes.[R#21] As of September 11, 1992 the community had spent $1.3 million on work completed, a remarkable sum for a northern Ontario community of this size.[R#3] Ontario Hydro has recently increased its commitment to the project, from $5.8 million to $9.4 million on the project. This is mainly due to an anticipated increase in customer uptake and an increase in economic measures identified by the auditors. Of this total, $5.9 million will be spent on the program costs (storefront, incentives, audits/inspections, evaluations); and $3.5 million will be spent on research and further evaluation.[R#20]

Espanola is an intriguing case, what many DSM analysts consider to be the most advanced demonstration of its kind since Hood River in 1983. The Results Center in conjunction with Ontario Hydro plans to prepare two profiles of the project. A second profile, slated for late 1993, will present the project's final results and further lessons learned from this cooperative effort in a small northern Ontario community.

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