Monthly Archives: November 2012

On-Bill Repayment Approved By California Public Utilities Commission

This commentary was originally posted on the EDF California Dream 2.0 Blog.

Last week the California Public Utilities Commission (CPUC) approved energy efficiency programs and budgets that include an innovative On-Bill Repayment (OBR) program. The OBR program will allow commercial property owners to finance energy efficiency or renewable generation upgrades for their buildings and repay the obligation through the utility bill. The program is ‘open-source’ and is designed to allow a wide variety of contractors, solar installers, and energy efficiency project developers to work with a range of financial institutions to design offerings that best meet the needs of their customers.

The CPUC approval was highlighted today in the New York Times.

In the decision, the CPUC reiterated their intention to have the OBR program operational by March 2013. We understand that some of the utilities have expressed concern that this timeline is aggressive, but were pleased that the CPUC decision noted that the utilities have been aware of this timeline since the original CPUC decision last May.

A predictable timeline for OBR implementation is critical as EDF is working closely with multiple market participants to create a pipeline of projects that can be executed as soon as the program is operational. A successful launch will allow us to demonstrate to other states that OBR can create private investment and new jobs at no cost to ratepayers or taxpayers. We believe that this is a message that will resonate across the political spectrum.

Posted in Energy Efficiency, On-bill repayment / Tagged , | Read 2 Responses

Smart Technologies Allow For Improved Resiliency During Catastrophic Texas Weather

As we continue to reflect on Superstorm Sandy and its devastating aftermath, it is encouraging to point out how smart technologies can aid in lessening the impacts. While a smart grid will not prevent massive natural disasters from wreaking havoc on communities causing power outages and destruction, it can help lessen the consequences and quicken recovery.

My colleague Miriam Horn wrote a piece earlier this week and said, “We’re already seeing proof these [smart grid] investments can reduce recovery time, keep crews and customers safer, and save lots of money. Thanks in part to federal stimulus grants, a number of utilities are embedding sensors, communications and controls across their networks. On the power lines that it has helped prevent cascading disasters like the one that knocked out power to 55 million people in 2003, when a single Ohio tree fell on a power line. Automated systems can detect a fault, cordon it off and reroute power flow around it.”

Furthermore she states that “digital smart meters, capable of two-way communications, have also proved their worth: providing utilities real-time, granular visibility into their networks, without resorting to (often failing) phones or trucks dispatched on wild goose chases.  Programmed to send a “last gasp” signal when they lose power, those meters have enabled rapid diagnostics – pinpointing exactly which homes or blocks were out, where the break had occurred – and expedited repairs.”

In the DC area, “when the storm struck Monday, Pepco, the utility serving the nation’s capital and its Maryland suburbs, began getting wireless signals from smart meters on its network registering where individual customers had lost power, said Marcus Beal, senior project manager for Pepco’s smart meter program. One of the first movers to install smart meters, Pepco has 725,000 in place and had activated 425,000 of them before the storm struck. Instead of relying solely on customers to call in outage information on specific neighborhoods, Pepco dispatchers can track damage based on smart meter signals that are automatically linked into the utility’s outage map, guiding priorities for deploying repair crews, Beal said. As repairs proceed, the utility is also able to “ping” meters remotely to verify where and when power has been restored. ‘They certainly improve recovery time,’ Beal said, ‘without a doubt. They help to improve the efficiency of the restoration.’”

Here in Texas, we are prone to two main types of extreme weather conditions: hurricanes on the coast and tornados on the plains. Over the past few years we have witnessed the increased intensity of both in Texas and across the US. In 2008, When Hurricane Ike struck Houston as a Category 4, nearly 99 percent of residents lost power, which is about 2 million people.  After 13 days one-quarter of the residents of the fourth-largest U.S. city still did not have electricity.

In 2010, CenterPoint Energy, the utility in the area, began rolling out smart grid updates and said that future hurricane-related electric power outages should be shorter because of smart meters and other grid improvements. In comments filed by the City of Houston to the Public Utility Commission (PUC), a Task Force Report assembled after Ike identified the installation of intelligent grid technology as the ‘best return-on-investment to improve grid resilience and enable storm recovery system-wide’.  Therefore, the Task Force recommended the acceleration of CenterPoint’s intelligent grid deployment in the Houston area. A more intelligent electric grid, combined with smart meter technology, improves reliability by enabling automated self-healing of the grid, which results in fewer outages and faster restoration times for customers. This is crucial for public safety along the Texas Gulf Coast, and in the Houston area, specifically.

For other non-coastal areas in “Tornado Alley” Texas, cyclones can be truly terrifying and unpredictable, like the tornadoes that swept through the Dallas area in April of this year.  While images of tractor trailers and school buses being lifted and thrown like toys are scary, Texans can at least be encouraged by the example of Alabama Power, “which was slammed in April 2011 by 30 tornadoes across 70 miles with winds up to 190 mph. The twisters left 400,000 without power and thousands of poles, wires and substations damaged or destroyed. But by using its 1.4m smart meters to locate the outages and prioritize repairs, the utility restored all of its customers within a week. It also drives 4 million fewer miles each year.”

Across the country, smart meters and grid technologies are being installed, providing more reliability and efficiency in the event of disasters and during normal operations. The Federal Energy Regulatory Commission estimates the percentage of meters in the United States using the new digital technologies increased from 6.5 percent in 2009 to between 13 and 18 percent last year. The IHS consulting firm projects that, by the end of this year, one-third of all meters in North America will be advanced smart versions with two-way communications capability.

Luckily, Texas has 1 million smart meters already installed and is well on its way to 7 million by 2013.

With novel ways of planning, new technologies and innovative infrastructure – from the potential of microgrids enabling community self-sustainability by disconnecting from damaged main grids, and distributed renewable generation letting consumers power back up, to electric vehicles allowing people to avoid the long gas lines and shortages – the future can allow us to be more resilient in the face of catastrophe.

Posted in Climate, Grid Modernization, Texas / Comments are closed

Loose Use Of Facts Undermines Credibility Of White’s OpEd

This commentary was originally posted on the EDF Texas Clean Air Matters Blog.

An erroneous and misleading opinion piece by Kathleen Hartnett White with the Texas Public Policy Foundation, ran in Sunday’s The Austin American-Statesman. In the article, White misrepresents several important details from a 4-year old EDF report that was prepared by Dr. Al Armendariz, a former Regional Administrator of the Environmental Protection Agency. The report catalogued emissions from oil and gas production in the Barnett Shale area. Her purported facts about the study findings are just plain wrong.

First, she claims that the report concluded that ozone precursor emissions from Barnett Shale production are twice as large as all mobile source emissions in the area. In fact, the report concluded that peak Barnett Shale emissions, while significant, were roughly comparable to emissions from cars and trucks (see press release accompanying the report).

White then claims that Dr. Armendariz’s study considered methane to be an ozone precursor, contrary to what is clearly stated in the report at p. 8. While it is true that methane does form ozone, albeit slowly, the report states “[m]ethane and ethane are specifically excluded from the definition of VOC” (volatile organic compounds). Thus, the report excluded methane from the comparison to mobile emissions of ozone precursors.

It is unclear if the author even read Dr. Armendariz’s work, which was not computer modeling, as she claims. Rather, it was an emissions “inventory,” a catalog of the air pollutant emissions from oil/gas sources in the Barnett Shale area, constructed using established engineering practices and industry-backed data sources. The core pieces of information for the inventory were oil/gas production data that are available for every county in Texas from databases at the Texas Railroad Commission. Dr. Armendariz’s resulting emissions estimates were in reasonable agreement with estimates issued by the Texas Commission on Environmental Quality later in 2009 (10-20% difference).

You can’t make a strong case when you get facts wrong. And, it is irresponsible for White to make her case by manipulating science, while cynically blaming government bodies of committing the same sin.

It’s time we all get the facts right and use science to expose truths, not veil our own agenda. For our part, EDF is working with leading academic researchers and industry leaders to conduct scientifically rigorous measurements of emissions from natural gas production. Leaks that occur during production (as well as distribution and use) stand to significantly undermine the potential of natural gas as a lower carbon energy source.

Posted in Methane, Natural Gas, Texas / Comments are closed

Hurricane Sandy: A Lesson In Risk Planning For The Power Industry

Living in New York City through a week of Sandy and her aftermath was a reminder of just how critical electricity is to our lives.

Electricity is the difference between feeling safe in well-lit buildings and streets, or vulnerable in the dark. Between food kept well-preserved in refrigerators and water pumping through pipes, or dinner spoiling and taps gone dry. Between communications and productivity, or isolation and economic losses — which are now forecasted, from Sandy alone, to reach $50 billion.

For some, electric power is literally life or death: heat on

(Credit: Master Sgt. Mark Olsen/U.S. Air Force)

a cold night, access to vital medical services.

The responsibility for providing these essential services rests on utilities. And the gravity of that responsibility – along with a reliance on long-lived and costly assets – has led to a culture of caution. One that has given the power industry pause in moving away from the tried and true methods it has used to generate and deliver power for the past 100 years.

But what the increasingly intense storms rolling across the country reveal is that – sometimes – what seems the cautious path is in fact the most risky.

With an estimated 9.5 million homes and businesses having lost power thanks to Sandy, the utilities faring best at restoring their customers to warmth and safety are those that have begun modernizing their grids with advanced information technologies, and using those “smart grids” to build resilience and reliance on community-based energy resources. I spoke with Bloomberg Businessweek earlier this week to discuss our outdated grid and the crucial need for modernization.

We’re already seeing proof these investments can reduce recovery time, keep crews and customers safer, and save lots of money. Thanks in part to federal stimulus grants, a number of utilities are embedding sensors, communications and controls across their networks. On the power lines that it has helped prevent cascading disasters like the one that knocked out power to 55 million people in 2003, when a single Ohio tree fell on a power line. Automated systems can detect a fault, cordon it off and reroute power flow around it.

Digital “smart” meters, capable of two-way communications, have also proved their worth: providing utilities real-time, granular visibility into their networks, without resorting to (often failing) phones or trucks dispatched on wild goose chases.  Programmed to send a “last gasp” signal when they lose power, those meters have enabled rapid diagnostics – pinpointing exactly which homes or blocks were out, where the break had occurred – and expedited repairs.

Baltimore Gas and Electric, for instance, has installed about 10 percent of its planned 1.3 million smart meters. Linked to a “smart command center” borrowed from sister utility ComEd of Illinois (with whom EDF has been working on developing a set of performance metrics for its grid investments), the meters are telling them when their power restoration efforts have been successful or when further troubleshooting is needed. Without smart meters, they’d have to phone customers to ask if the power is back on. In storm conditions, according to Jeannette Mills, BG&E’s VP of Customer Operations, two-thirds of those calls go unanswered, which means they have to dispatch crews block by block across the region. This time, they’ve been able to ping the meters, asking “are you on?” Mills reports “a much higher rate of success getting through to smart meters than we do reaching customers by phone” enabling far more efficient dispatch of crews.

Utilities with smart grids have also kept customers better informed. A Pennsylvania Power and Light customer described to Smart Grid News how the real time tracking enabled by smart meters allowed him not only “to check on repair status for my own home (with crew on site info and estimated time to repair) … but also remotely online check the status of our two rental houses without having to physically drive to each to check them out.”

One of the first utilities to demonstrate a smart grid’s resilience was Alabama Power, which was slammed in April 2011 by 30 tornadoes across 70 miles with winds up to 190 mph. The twisters left 400,000 without power and thousands of poles, wires and substations damaged or destroyed. But by using its 1.4m smart meters to locate the outages and prioritize repairs, the utility restored all of its customers within a week. It also drives 4 million fewer miles each year.

The security benefits of a smarter, more resilient grid have caught the attention of the U.S. military. It has begun installing smart grid technologies on bases so they can function as “microgrids”: decoupling from the commercial grid in the case of a natural or manmade disaster and maintaining vital homeland security operations. The bases will also become reliability resources themselves, capable of supplying power to the grid, or reducing demand, at times when the grid is stressed.

Most importantly, these smart grids will enable the military to meet its aggressive goals for shifting to low-carbon, domestic energy resources, particularly renewable energy on or near bases. Secretary of the Navy Ray Mabus has set a goal for the service to get half its power from renewable resources by 2015. A smart grid will be absolutely critical to enabling the integration of millions of smaller, regional resources, and for managing the on-again, off-again character of the wind and sun.

The Secretary’s leadership reflects his recognition of the greatest risks that come from sticking to our tried and true ways of making and delivering power:  the national security threats posed by climate change. These include the threats we’ve seen this last week, again, from rising seas and extreme weather, as well as the casualties incurred by troops having to protect vulnerable fuel supplies, and the acceleration of instability and conflict warned of in a 2010 DOD report. When it comes to power, the greatest risks will come from failing to be bold.

Posted in General / Read 7 Responses

EDF Energy Innovation Series Feature #13: Building Interaction and Reimaging From e7

Throughout 2012, EDF’s Energy Innovation Series will highlight around 20 innovations across a broad range of energy categories, including smart grid and renewable energy technologies, energy efficiency financing, and progressive utilities, to name a few. This series will demonstrate that cost-effective, clean energy solutions are available now and imperative to lowering our dependence on fossil fuels.

Find more information on this featured innovation here.

Over the last few months, our Energy Innovation Series has featured companies and organizations that are working on various energy generation, management and efficiency issues. But there are other innovations that extend far beyond what most of us conceptualize as energy.

Across the country, many universities and colleges are investing in energy efficiency and renewable energy and adopting a conservation mindset that has helped these institutions cut energy usage and expenditures, and direct the money saved towards education and other core initiatives.

The Los Angeles Community College District (LACCD) is the largest community college system in the country, serving more than 250,000 students on more than 10 sites around the region.  The system is in the midst of a $6.2 billion bond project that will add 80 state of the art buildings on nine campuses.  And rather than simply sticking new buildings in empty lots, planners are reimagining how these facilities will operate and work together.

e7 Studios is a new architectural organization that is leading the process.  And while the e7 team has energy on its mind, its approach to both data analysis and visualization reaches far beyond standard energy efficiency measures.

“This isn’t a simple renovation,” said architect and e7 director Michael Rendler.  “It’s a re-imagining of how these campuses function and how their pieces interact.  And we believe that to do that correctly, you have to see what you’re working with.  Being able to visually move through a design allows us to find new opportunities for energy efficiency and understand how our design choices impact usability and environmental performance.”

A cornerstone of e7’s approach is a massive database that allows designers to build 3D walk-though visualizations of their designs.  It allows for a whole systems design approach to building management, which will – in turn – help LACCD achieve their “carbon neutrality” sustainability goals.

“Large facilities and campuses really need to be viewed as interconnected organisms, and each part and aspect of a facility generates data that can be captured and visualized,” Rendler said.  e7 is working to develop a single, standardized data model to which buildings, campuses and urban areas around the country can be applied.  “Eventually, designers in any part of the world will be able to tap into this information and see their designs.”

The wealth of standardized and shared data, Rendler says, will allow better design and performance for a lower cost, as well as more environmental benefits.

In addition to its new approach to design, e7 Studio is focused on bringing new approaches to education.  The studio is not only leading the design process, but it is also involving LACCD students in the process.  Its internship program provides front row seats to one of the world’s largest education design and construction projects.

This approach not only serves as a model for urban and campus redevelopment, it trains a generation of experts who can apply their skills to projects around the world. LACCD hosted Sukreet Singh, an EDF Climate Corps fellow this past summer from the University of Southern California.

Posted in Energy Innovation, General / Comments are closed