Energy Exchange

Texas Electric Co-op At Forefront Of Customer Engagement

By Kate Zerrenner / Published: July 23, 2013

This commentary originally appeared on EDF’s Texas Clean Air Matters blog.

(Source: Bluebonnet Electric Co-op)

Everywhere you turn these days, you hear someone mention the emergence of big data and how our lives will be more and more reliant on numbers.  Well the world of electric cooperatives (co-ops) is no exception.  Originally emerging out of the establishment of the Rural Electrification Administration, co-ops enabled rural farmers and ranchers to create customer-owned electric utilities in areas that are not serviced by traditional utilities.

I recently visited the Bluebonnet Electric Cooperative (Bluebonnet), one of the Texas’ largest co-ops providing energy to 14 counties, spanning the outskirts of Austin to Houston and boasting an impressive 11,000 miles of electric lines, 83,000 electric meters and 63,000 members.  Who would have thought so much big data is coming out of rural Texas?

What makes this co-op particularly unique is its smart grid, which is attracting some serious attention.

Unlike other traditional utilities, Bluebonnet does not generate any of its own electricity.  Instead, it buys electricity from the Lower Colorado River Authority and CPS Energy, both pioneers for clean, renewable energy.  Because of this, Bluebonnet is able to concentrate its energy (pun intended) on using new technologies to provide reliable power and enhance customer satisfaction. Read More »

Posted in Demand Response, Grid Modernization, Texas, Utility Business Models / Tagged , , , | Comments are closed

It’s Time Our Policies Reflect The Fact That Energy And Water Are Fundamentally Intertwined

By Kate Zerrenner / Published: July 11, 2013

When I tell people that the best way to conserve energy is to conserve water, I am often faced with a confused response.  I’m not surprised really.  Energy and water policies are rarely discussed in the same forum.  For a long time, we’ve overlooked the inextricable relationship between water and energy use.  Coal, nuclear and natural gas plants use enormous amounts of water for cooling purposes.  In 2005, 41% of all freshwater withdrawals in the nation was used in the thermoelectric power industry for cooling.

Connection between energy and water

The longstanding division between energy and water considerations is particularly evident in the case of energy and water management.  These resources are fundamentally intertwined: Energy is used to secure, deliver, treat and distribute water, while water is used (and often degraded) to develop, process and deliver energy.  Despite the inherent connection between the two sectors, energy and water planners routinely make decisions that impact one another without adequately understanding the scientific or policy complexities of the other sector.  This miscommunication often hides joint opportunities for conservation to the detriment of budgets, efficiency, the environment and public health, and inhibits both sectors from fully accounting for the financial, environmental or social effects they have on each other.

This lack of collaboration between energy and water planners is especially dire considering Texas is in midst of an energy shortage that is exacerbated by the multi-year drought.  Without adequate planning, we could someday have to choose between keeping our lights on and turning on the faucet. Read More »

Posted in Climate, Energy-Water Nexus, Texas / Tagged , , | Read 2 Responses

How Policy Can Drive Progress In The Energy Efficiency Market

By Kate Zerrenner / Published: June 20, 2013

Energy efficiency is one of the fastest and most affordable ways to reduce harmful pollution.  Why, then, aren’t we financing more energy efficiency upgrades?

Well, simply put, there are quite a few barriers that must be addressed and broken down before energy efficiency skyrockets.  Yes, there are already many buildings that have set the bar high for others to follow, but some investor and lender hesitancies still exist that we need to overcome.

Furthermore, the efficiency market cannot create itself.  And it is currently stifled, despite investors’ eagerness to take part.

The problem, as the investment community sees it, is that there is no secondary market for energy efficiency loans.  In other words, the pool of loans is currently not large enough to make these investments worthwhile for institutional investors.   Furthermore, there is a lack of uniform standards for energy efficiency loans, limited data on loan and project performance and an insufficient pipeline of projects.  There are also challenges to bringing efficiency to scale, namely:

  • the split incentive—disconnect between the building owner and the residents, who actually pay the utility bill;
  • utility disincentives—utilities generally make money by selling more energy, not by reducing wasted energy; and
  • limited information available to consumers on their energy use.

Read More »

Posted in Energy Efficiency, Investor Confidence Project, On-bill repayment / Comments are closed

Texas Picks Up The Clean Energy PACE

By Kate Zerrenner / Published: May 23, 2013

Chairman John Carona’s Property Assessed Clean Energy (PACE) bill, Senate Bill 385 (SB 385), which was sponsored by Chairman Jim Keffer in the House, is headed to the Texas Governor’s desk!  Building upon successful legislation passed in 2009 to authorize “PACE districts” in Texas, SB 385 clears some of the hurdles that prevent commercial and industrial properties from taking advantage of new financing for water and energy conservation efforts.

PACE is an innovative, market-based approach that helps alleviate the steep, upfront costs property that owners generally incur for water and energy improvements by using loans that are seamlessly repaid through an additional charge on their property tax bills.  The loan is then attached to the property, rather than the owner, and can be transferred if the property is sold.  PACE loans can be issued by city or county financing districts or financial institutions, such as banks.  Property owners who participate will start saving money on their utility bills each month as a result of water conservation, energy efficiency and/or renewable energy improvements, while repaying the loan annually when they file their taxes.  In other words, they will see net gains despite increased property taxes.  The program is entirely voluntary.

In 2009, Governor Perry signed House Bill 1937 (HB 1937) by Mike Villarreal, which established PACE districts in Texas for the first time.  Although cities and counties across the state began the process of setting up PACE districts, the entire process was derailed when the Federal Housing Finance Agency (FHFA) created an obstacle for residential PACE programs.  FHFA expressed concerns about the senior lien—that is, if a homeowner with a PACE loan defaults, the repayment of the PACE obligation would take priority over settling the mortgage.  There were also some structural concerns which would have “required the Texas legislature to amend or replace the existing statute.”  This new bill, SB 385, addresses the structural problems and applies to commercial and industrial (rather than residential) property owners, thus removing the senior lien concern from the equation. Read More »

Posted in Energy Efficiency, On-bill repayment, Texas / Tagged , | Comments are closed

This Green Building Sets A High Bar For The Rest Of America

By Kate Zerrenner / Published: May 2, 2013

Source: Miller Hull Partnership

On Earth Day this year, The Bullitt Center opened its doors in Seattle, Washington.  The six-story building is being hailed as the greenest commercial building in the world.  Its specs are very impressive indeed, including:

  • 56,000-gallon cistern for rainwater collection;
  • Solar photovoltaic (PV) panels on the roof that are estimated to generate 230,000 kilowatt-hours per year;
  • Glass panels to showcase the engineering, including quick response codes to allow visitors to use their smartphones to find out more;
  • Real-time measurements of the building’s indoor air quality, energy conservation, PV production and water levels;
  • A mini-weather station that sends data to the building so that it can make adjustments to maximize tenant comfort and energy conservation; and
  • Measurement of energy use down to the individual socket.

The Bullitt Center aims to be certified through the Living Building Challenge, a rigorous set of standards that requires the building to meet complete water and energy self-sufficiency.  The Living Building Challenge has registered nearly 150 projects in 10 countries, but only three buildings have been certified in the US (in Missouri, New York and Hawaii).  It has been endorsed by the US Green Building Council (USGBC), originator of the Leadership in Energy and Environmental Design (LEED) standard, and is not meant to be a competition, rather a challenge to architects and engineers to aim even higher in their sustainable design efforts.

The Bullitt Center is a project of the Bullitt Foundation, and its leaders state that if the building is still the highest-performing office building in ten years, then they have failed.  They want to demonstrate that a building can be both self-sustaining and commercially viable and to serve as an example for others to learn and innovate beyond what they’ve done. Read More »

Posted in Energy Efficiency / Tagged , | Comments are closed

Looking For User-Friendly Data On The Real Benefits Of Energy Efficiency? Try REED

By Kate Zerrenner / Published: April 18, 2013

Earlier this month, the U.S. Department of Energy (DOE) announced the Regional Energy Efficiency Database (REED), a user-friendly tool to engage policymakers, customers and industry on the real benefits of energy efficiency. With the support of the DOE, the Northeast Energy Efficiency Partnership (NEEP) created the regional database to create consistent protocols for energy efficiency in Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont, with Delaware and the District of Columbia to be added later this year. NEEP’s Regional Evaluation Measurement and Verification Forum (EM&V Forum) will then use these protocols to evaluate and measure the results of each participating states’ energy efficiency programs.  

Back in 2010, the EM&V Forum adopted standard guidelines for reporting, and as a result, has been able to develop this database that not only allows users to visually see the benefits of energy efficiency within a state, but also compare them in a meaningful way against other states in the region.  Think of it as a little energy efficiency competition amongst neighbors.

The Northeast region has a robust energy efficiency partnership and network, the Regional Greenhouse Gas Initiative (RGGI), which caps power plants emissions and higher electricity costs than most other regions in the country, all of which incentivizes energy efficiency. By accurate monitoring and verifying energy usage using the EM&V Forum, policymakers can determine which programs are the most impactful, from both and economic and environmental perspective, which ensures consumers that their tax dollars are providing tangible benefits.

Read More »

Posted in Energy Efficiency, Washington, DC / Comments are closed