Kentucky’s Touchstone Energy Cooperatives DSM - Our Story
Cooperatives of the East Kentucky Power System
16 systems serve more than 520,000 Homes and Businesses
Generation and Transmission Assets
EKPC •2,900 MW •2,800 miles of transmission lines •362 substations •$3.3 Billion assets
EKPC - Our DSM World Regulated by Utility Commission • Approval required for: • Construction of new facilities • Rate adjustments • DSM Programs
• Cases are open to the public • Public and Environmental Interest Groups • Intervene and issue data request
EKPC - Our DSM World Regulated by Utility Commission (continued) • Cases turn into Public Hearings • Prove our case • Consultants, attorneys
• Strong encouragement for DSM program • Integrated Resource Plan – every 3 years • DSM is a generation resource • File Tariffs for each DSM program • California Tests - TRC
EKPC - Our DSM World More EKPC unique situation • No EERS in Kentucky • Goal is to avoid EERS • Would require achieving high levels of DSM – more money spent • Regulated utilities
EKPC - Our DSM World More EKPC unique situation (continued) • EKPC Joined PJM 2013 • Not a balancing authority anymore • Participate in PJM capacity markets
EKPC - Our DSM World More EKPC unique situation (continued) • EPA issuing CO2 regulations next month • 85% of our generation in coal
• Possibly idling coal units to meet CO2 • Just spent millions on scrubbers for them • Not paid off
• May have to build new plants at the same time • DSM programs help mitigate costs
So what are we doing? Developed Five-Year Work Plan for DSM • We have existing DSM Programs - EE • Button-up Weatherization (3 rebate levels) • Heat Pump Retrofit • TSE New Home • HVAC Duct Seal • Residential Lighting • C&I Advanced Lighting • Industrial Compressed-Air
So what are we doing? Developed Five-Year Work Plan for DSM (continued) • We have existing DSM Programs – DR • DLC (A/C and water heaters) • Interruptible members
• Major initiatives: • 50 MW in 5 years – Peak reduction (summer) • Improve existing program, offer new ones
• Set goal each year (MW, MWH, money spent) • Issue monthly DSM Scorecard
Driving Participation - EE EKPC develops programs • Member co-ops employ 29 energy advisors • Transfer payment to co-op • Rebate to the consumer-member • Half of the member co-op’s admin cost • 100% lost margin from lower kWh sales • NPV for life of measure
Driving Participation - DLC EKPC administers • Pay for the switches – own switches • Pay for installation – one contractor • Contractor – call center • 11 electricians on staff plus project manager
• PJM controls for reliability – PJM markets • EKPC controls for economics • Co-ops do not control – not necessary • EKPC pays monthly for peak reduction
Driving Participation – Marketing (EE) • Develops marketing campaigns • No cost to co-ops • Bill inserts, direct mail pieces, print, web, billboards, etc.
• Radio and TV commercials • No cost to co-ops • Centralizes purchases
• Share costs for ads • 75% of ad costs – up to $0.50 per meter
Driving Participation – Marketing (DLC) • Develops marketing campaigns • No cost to co-ops • All forms of media
• Pays all incentives to members • $10 sign-on bonus • $20 annually for a/c; $10 annually for water heater
• Pays 100% up to $10,000 per year, per co-op • Pays 100% of out-bound calling • Lowest cost recruitment for program participants • Accounted for more than half of new participants in 2013
Taking it to the next level Offering New DSM Programs – Fall 2014 • ENERGY STAR® Appliance Rebates • ENERGY STAR® Manufactured Home • mimic TVA program
• Appliance Recycling • Low Income Program • Backup Generators
Taking it to the next level On-Bill Financing • Four member co-ops have tariffed program • Two more filing with the commission • Several more will offer • RUS EE Funds • EKPC negotiating to be a strategic partner • Paperwork for approval • Take RUS loans for our member co-ops • Loans for renewable energy too
Managing the Increased Work Software Tools – DSM Tracking • Implemented a DSM Tracking System on May 1 • Direct Technology
• Tracks kw saved, kwh saved, money spent per measure • Easy reporting by co-op for RUS Form 7, EIA, Board of Directors, etc. • Web-based – co-op energy advisor can submit rebates in the member’s home
Managing the Increased Work Software Tools – Tablet Energy Auditing • Purchased Apogee EnergyInsights • Web-based energy auditing
• Integrates into DT tracking tool and CIS • Uses 13 months billing/usage data • Member can build improvement plan online • CSR or energy advisors can build plan • Print plan while in the home • Tracked in the DSM tracking system
Questions/Discussion Contact Scott Drake, PE Manager, Corporate Technical Services 859-745-9793
[email protected]
