Direct Testimony of Thomas M. Hildebrand - Consumer Advocate ...

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Resenations about DSM that the Virglnia State Corporation Commission (SCC) may have had under the price-capped transition to retail competition no longer apply since that transition has been abandoned in the new "reregulation" bill.4 In particular. the bill: - Provides incentiJ,es for utilities to find renewable forms of energy and establish demand-side in ana gemeiit and conservation pro grams: - ..\llo\vs each utility to seek rate adjustment clauses to recover costs of FERC-approved demand response programs and costs of providing incentives for the utility to design and implement demand-side management programs; and - Directs the SCC to "conduct a proceeding to establish goals for the amount of enera and demand to be reduced by the operation of demand side management. consen-ation. energy efficiency. and load management programs. and deyelop a plan for the development and implementation of recommended programs."' More recently Govenior Kaine issued Executive Order 48 that directs the Commonwealth's executive Branch to reduce the aimual cost of enerE purchases from nomenewable sources by at least 20% by fiscal year 2010. These initiati\-es provide the Commonwealth with an opportunity to integrate costeffective demand- and supply-side options into system planning processes. Ois-cn that L'irginia irtilities ha~t: among the nation's least chdoped DSM programs and fi3di12g rhis direciive cc:il:! engezrder cunsiderabie bush~:ys opprl-imiiies i'm kkpend~ni vendors ulr DSM prrsgranrs md tschnciogies. ili sarieh of DSM programs that incorporate both energy efficiency (Le., permanent energy savings) and demand response (i.e., targeted peak demand reduction) goals could be effectively applied in the Commonwealth given Virginia's current economics and demography, These are characterized by population and economic groivth6. a large concentration of commercial data centers, and significant public sector facilities. The list of available program options can be narrowed by focusing on only those DSM strategies and technologies that are most applicable to the Commonwealth's situation and have been proven successful in other jurisdictions. Doing so shows that five DSM programs have the greatest potential to generate energj savings and peak demand reduction. together with corresponding cost savings. over a relatively short timeframe. The programs are described below. Estimated energy savings and peak demand reduction associated with these programs are presented in Section 3. 1. Residential and Commercial High-Efficiency Lighting Programs provide financial incentives to end-use customers to offset the incremental costs associated with pie-qualfied. hgh-efficiency lighting sj stems as well as financial and educational incentives to lighting retailers and specialty contractors to increase promotions and installations of high-efficiency lighting systems. 2. Residential HVAC Retrofit and Quality Installation Programs provide financial incentives to end-use customers to offset the incremental capital costs associated with hgh-efficiency HVAC equipment as well as utility financial and technical assistance to HVAC retailers and specialty ' Summa ssed House of HB 3068. wai I .st3te.\:a.us:ce;- . Il!l?!.BBE.$ sc:s7:.1 ........o!.I.&%2 i-...biiff~di-.-.htiiO ..... . :I =. (accessed Mar. 19,2007) 'Id ' Peak demand for Dominion Virginia Power, the Commonwealth's largest electric utili?. is expected to increase b.i 1.8O.v per ?ear through 2016, from 18.138 MW in 2006 to 21,680 in 2016; Memll. Hyde. "Proposed Mt Storm-Meadow Brook-Loudoun 500-kV Line: Critical Analysis and Alternatives." confidential internal ivork product prepared for Bracewell t Giuliani. LLP (March 2007) 2
Exhibit 5. Estimated Peak Demand (Mw) Reduction 29 Demand Response 44% 1 % Appliances & Office Results from the current assessment suggest that a well-designed portfolio of DSM program offerings including both energy efficieiicj- and demand response strategies could cost effectiyely reduce the Commonwealths peak demand by approximately 5 .OOO MW and its enera. consumption forecasts bq- 7.800 GWh over a ten-year planning horizon. These estimates represent near15 17% of the Commonwealth’s projected 2007 peak demand and nearly 10% of the Conimonn-ealtli’s projected 20117 enerz use. The estimates are well within the ranges presented in e\-aluations of DSM potential in other jurisdictions. and are 1ikel:- conservative in that only basic DSM strategies viere considered. Additional energy savings and peak demand reductions could lilielq- be achieved through DSM program offerings that overcome barriers to DSM program participation, including customers’ lack of experience ivith high efficiency products. lack of infomiation about available technologies and erpected sayings. and uncertainh about equipment reliability and performance characteristics. 3.2 Demand Response in Wholesale and Retail Markets Based on a surveq- of electric utilities nation~ide.~~ FERC recommended implementing actiTities to enable greater use of demand resources in regional transmission planning and operations procedures. The agency concluded that dentand response has an important role to plal; in both wholesale and retail electricity markets. FERC estimated that the potential immediate reduction in peak electric demand that can be achieved from existing demand response resources is betlveen thee and seyeu percent of peak electric demand in most regions.” FERC Staff recommended that FERC: 1) esplore how to better accommodate demand response in n-liolesale markets: 2) explore how to coordmate nith utilities. state comniissions and other interested parties on demand response in wholesale and retail markets: and 3) consider specific proposals for conipatible regulatorq- approaches; including h o to ~ eliniiiiate regulaton ” Id 30 Federal Energ> Regulaton, Cornrnlssion ,4ssessmen/ of DeiimndRespurm mzd.-Id cinced,\fzerenng. Staft Report. Docket No AD-06-2-000. August 2006 I’ Man land Public Senice Commission. Ten-Yea1 Plan ofElectnc Companies in Mqland (2006-2015) (P 70) 13
Page 1 and 2: THOMAS M. HILDEBRAND 7336 Sheraton
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Page 15 and 16: 1 2 3 4 5 6 7) The TrAILCo applicat
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Page 19 and 20: 1 Q. WHAT ABOUT NEW GENERATION THAT
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Page 27 and 28: THOMAS RI. HILDEBRAND Lieutenant Co
Page 29 and 30: ? c 1600 LAIDLEYTOWER * EO. BOX 553
Page 31 and 32: BEFORE THE PEWSYLVANIA PUBLIC UTILI
Page 33 and 34: 111. Conclusion WHEREFORE, the Offc
Page 35 and 36: Trans-Allegheny Interstate Line Com
Page 37 and 38: _,--I_- -I Trans-Allegheny Intersta
Page 39: 1 INTRODUCTION The Commonwealth of
Page 43 and 44: O h Load Red1 tion in the Top 100 H
Page 45 and 46: 6 How Dominion and Allegheny Power
Page 47 and 48: 2 Section 1: Int7.oduction and Conc
Page 49 and 50: possible overloads of the Pruntytow
Page 51 and 52: 6 Section 2: 7Vhj do Don ii io Alle
Page 53 and 54: demand growth will not be moderated
Page 55 and 56: north of Washington DC. Most of the
Page 57 and 58: ~~ ~~~ h 12 centers nd 0th r demand
Page 59 and 60: 14 Section 5: Did they find the Bes
Page 61 and 62: 16 This flagrant non sequitur shine
Page 63 and 64: 18 as a whole (but mainly those in
Page 65 and 66: Appendix A: Alternatives to the Loz
Page 67 and 68: 22 Appendix B: Dominion 5 Analysis
Page 69 and 70: Ronnie BaileylCOMMOPSNANCPOW ER 051
Page 71 and 72: i Friday, January 26, 2007 Part II
Page 73 and 74: 3920 Federal Register/ Vol. 72, No.
Page 75 and 76: 3922 Federal Register / Vol. 72, No
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Page 80 and 81: Figure 1. Organization of entities
Page 82 and 83: VI. Energy and Water Management __.
Page 84: (7) Energy Purchasing. Agencies sho
Page 87 and 88: PjM, New York, and New England) aio
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Department of Defense Fiscal Year 2
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I. INTRODUCTION The Department of D
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_ .I._. Back to the previous pa ...
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THE STATE ENERGY EFFICIENCY SCORECA
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The State Energ) Efficiency Scoreca
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The State Energy Efficiencx Scoreca
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and achievable cosi effective poten
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I . --- ...........................
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North Anna Power Station Page 2 of
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Fredericksburg.com - Dominion to mo
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Dominion Seeks Approval for Power S
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opinion, a focus group's phrase, an
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wy_Jc- f W. Va. 19791 PUBLlC SERViC
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Virginia Business Magazine: Virgini
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Virginia Business Magazine: Virgini
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.. '2 c3 3 iJa e 16 Komr US. Busine
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--.% & WEST UIROINIA --.. . Print %
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i Keduce CjioDai vvarming raye L VI
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FOR IMMEDIATE RELEASE TUESDAY, OCTO
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The following eight states joined a
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Electric And Magnetic Field (tMk) K
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“43 HEAT STORM THANKS-2-2-2 The F
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FLEX ALERT Save Energy Now! ‘M bK
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R&D Critical Needs Dynamic modeling
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R&D Top I00 in the World SuperVAR
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From Silicon to Diamonds Chemical V
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U.S. appetite for electricity is =
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' AOOx power density of copper 1 lo
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Buckeye Power, Inc. Non-profit gene
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Demand Response
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Transmission Expansion Drivers Expa
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Economic Expansion Metric 1. Econom
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System Congestion Cost Savings soci
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Potential Beneficiaries Relative be
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- Change in Zonal Load Payment due
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0 bse rvations Difficult to justify
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A few thoughts on demand response r
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Barriers to 0 Traditional retail ra
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...--... I. VY, ,““Y I uvvcIllu
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Economic Benefits for Energy Effici
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Established energy efficiency as re
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- i'ciency Can Help Control rowth U
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Energy Efficiency Z2r * Utility fin
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Y STAR 0 ENERGY STAR is a cost-effe
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Direct Testimony of Thomas M. Hildebrand - Consumer Advocate ...

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