efficiency

Question 2

examples of energy efficiency

Answer 2

CFLs, LED traffic signals, LCD computer screens

Question 3

rates are to bills as conservation is to_

Answer 3

efficiency!

Question 4

3 main benefits of EE

Answer 4

economic, electric/NG utility system, environ/public health

Question 5

economic benefits of EE (4)

Answer 5

1) lower utility bills, 2)better energy services, 3)more productive/competitive economy, 4)long-lasting assistance to low-income customers

Question 6

efficiency programs provide __ dollars in benefits for ___ dollars invested

Answer 6

2 dollars in benefits for every dollar invested

Question 7

job related econ benefits of EE

Answer 7

more indirect jobs from savings households/businesses use more productively. Also, for every new job forgone in FF for EE, >50 new jobs created in economy (what!!)

Question 8

utility system benefits (4)

Answer 8

1) avoided generation/transmission/distribution, 2) reliable 3)modular–can be added to system incrementally 4)can help calm crises

Question 9

avoided air pollution/health problems

Answer 9

so2, hg, nox, co2, etc

Question 10

EE and water use

Answer 10

EE avoids water used by power plants, and saving water saves energy (think how CA pumps/treats tons of water everywhere)

Question 11

potential for efficiency

Answer 11

could cut energy consumption by 23% by 2020; save consumers $700 billion; create up to 900,000 direct jobs (+indirect)

Question 12

extending leading EE programs to nation would..

Answer 12

cut demand growth in half, save $20 billion/year on bills, have $250 bil in societal benefits, avoid 30,000MW and 400mil tons CO2/year

Question 13

barriers to full potential

Answer 13

consumer barriers (market failures), utility barriers (regulatory barriers)

Question 14

market failures

Answer 14

1. prices don_t reflect societal cost. 2. provides a public good 3. imperfect information 4. bounded rationality 5. split incentives

Question 15

market barriers

Answer 15

6. payback gap 7. access to capital 8. limited product availability 9. organizational practices 10. perceived risk of performance

Question 16

key tools to overcome barriers

Answer 16

RD&D, EE programs, standards

Question 17

research, development & demonstration

Answer 17

examples: LED lights, cool roofs, solar rooftop shingles, natural cooling ventilation

Question 18

energy efficiency programs

Answer 18

residential retrofit; residential new construction; non residential retrofit/new construct; emerging tech, codes, standards; marketing, outreach, training

Question 19

building codes/appliance standards

Answer 19

min standards for new buildings/appliances–much cheaper than retrofitting later; building codes set at state or local level; appliance efficiency set by federal

Question 20

barriers utilities face

Answer 20

lack of legal/regulatory/political support; inadequate cost recovery to fund programs; profit opportunities only for supply side resources, not efficiency; lack of info on programs or best practices

Question 21

key policies for efficiency programs

Answer 21

1) make cost effective energy top priority resource 2)align utility business models w/ customer interests in affordable energy services 3) conduct independent evaluation and measurement of energy savings 4) ensure EE portfolio addresses major uses of energy by residential/business customers

Question 22

cost-effectiveness tests

Answer 22

participant cost test, program administrator cost test, ratepayer impact measure, total resource cost test, societal cost test

Question 23

integrated resource plannign steps

Answer 23

1) forecast demand 2)assess existing resources 3) analyze cost, risk, environ impacts of demand/supply resources 4)choose portfolio scenarios 5)test portfolio scenarios under various futures 6)select best portfolio

Question 24

3 ways EE is integrated into resource plans

Answer 24

1. EE is treated equivalent to supply-side resources; 2. EE saving targets are developed from assessment of potential for efficiency based on assumptions about avoided costs–subtracted from demand forecast 3. policy makers set targets based on best practices

Question 25

reforming utility regulation

Answer 25

allow utilities to recover incurred costs of EE; remove disincentives–break link between recovery of fixed costs & sales; for IOUs, provide performance based shareholder incentives

Question 26

EE program cost recovery

Answer 26

require utilities to invest in EE whenever cheaper

Question 27

remove disincentives of EE

Answer 27

make it so recovery of fixed costs isn’t held hostage to sales volume–if sales are higher than expected, return to customers.