CREA Energy Innovations
Summit
The New Energy Economy:
Is Public Power Doing Its
Part?
Paul A. Erickson, Chief Executive Officer
Sangre De Cristo Electric
Electric Utilities –
Vive La Difference
• Differences in models (x3)
• Differences in density
• Differences in revenue
• Differences in consumers
• Differences in purpose
– Wall Street versus Main Street versus City Hall
Other than moving electrons, our businesses are as
different as day and night
– Then why the “one size fits all?”
Sangre De Cristo
• 2,500 square mile territory
• 1,700 miles today, half overhead and half URD
• 12,000 consumers
• < 700 kWh per consumer per month
• < seven consumers per mile of line
• No industrial load
• Most rugged terrain on the planet (earth)
• High cost to construct, operate, maintain, and little
revenue with which to do it.
Sangre De Cristo
Sometimes, the old
ways are the best
ways. Sangre De
Cristo occasionally
uses horses to string
wire.
Note: No horses were
injured in the
production of this
presentation.
Sangre De Cristo
In some cases
Sangre De
Cristo has used
helicopters to
drop or help set
poles.
Sangre De Blasto
Sangre De Cristo does not own a digger (auger) truck. Instead we use
explosives, backhoes and plows for construction. From OSHA to ATF.
Note: No linemen were injured in the production of this presentation.
Misperception of our “silence”
• For years we enjoyed a private conversation
with our consumers regarding energy efficiency
and alternative energy – we know what our
consumers want
• Then came the politicization of our industry
• Politicians, officials, and special interest groups
have interrupted that conversation
• Now we’re regularly accused of “not doing
enough” – even though they don’t know what
we’re doing!
Misperception of our “silence”
• Our business model doesn’t lend itself to
trumpeting our efforts outside of the family
• Politics abhors a vacuum
• Suddenly everyone thinks they know
better than our consumers and us, even
though we’ve been working closely with
our consumers and on their behalf for over
70 years.
NRECA, APPA and Others
•
•
•
•
•
Touchstone Energy
Hometown Connections
G&Ts
State Associations
For years they have offered suites of programs
and options on both supply and demand-side
with verification strategies
• Most have long offered recognition for energy
innovation – before it was cool
Holistic Efficiency – Co-ops
• Co-ops led nation in AMR
– No longer deploying trucks and personnel to read
meters. This was the precursor to the ubiquitous
“Smart Grid”
• Co-ops lead in line loss and load balancing
initiatives
– Co-ops have a vested interest in reducing line loss
– Investments in system efficiency have longer-lasting
savings
– Investments in system efficiency are the lowest
hanging fruit and the greatest savers
– System efficiency is not politically sexy, but what if…
Organic Efficiency – Public
Power
• APPA has led the effort to promote tree planting
for many years
• TREE POWER (1991)
• Web-based Tree Benefits Estimator
• The rest of the world is discovering what public
power has known for years: Trees are the
number one mitigation strategy to counter heat
islands – thus a dandy passive demand
reduction strategy
• The best time to plant a tree was 20 years ago.
The next best time is now.
Planning:
Primum non nocere
“First, do no harm”
Excerpts from the Sangre De Cristo Electric Strategic
Plan
Goal: Establish and maintain proactive and deliberate
short and long-term capital project plans that take into
account current and future needs.
Strategy: The Association shall not undertake capital
projects without a complete examination of industry
standards and precedent, current and pending
technologies, compatibility with present and future
systems and infrastructure, and a forecast of each
project’s expected useful life.
Sangre Plan Excerpts
Goal: Meet Renewable Portfolio Standards at the
lowest possible cost, encourage energy efficiency,
and facilitate renewable, alternative and distributive
generation projects without long-term or direct
subsidization by the co-op.
Strategy: Utilize Tri-State policies.
Utilize all-requirements exception if it is a benefit to
the co-op.
Participate in projects that maintain meter
relationship with the members.
Sangre Plan Excerpts
Goal: Promote energy efficiency
activities that benefit the
cooperative.
Strategy: The Association will not
make direct subsidy for energy
efficiency purposes unless there is
a return on the investment or it is a
demonstration project.
Renewable Demonstration
• An on-site renewable
lab offering real time
and historical data of
residential units
Sangre EE/Alt Energy Loans
•
•
•
•
•
$5,000 maximum
Five year terms
May be used to upgrade services
Replaced line extension loans
Load-building in the name of energy
efficiency? TOU, ETS, Solar H20 future
• Rebates help the “haves”
• Loans help the “have nots”
TOU, ETS and load building in the
name of Energy Efficiency
•
•
•
•
•
No cooling load
Poor soil conductivity
ETS is the solution
TOU is the efficiency answer
Comfort Cove radiant heat
–
–
–
–
–
–
No gas tap
No propane tank
No plumbing
No sheet metal
We’ll give ‘em a water heater
BFFs
Subscribed Projects
• Sangre is currently working with a political
subdivision, an HOA and a sustainability
group to finance and build pre-subscribed
renewable energy projects
• Numerous finance and ownership options
• Siting: Theirs or ours (HOA requirements)?
• How to exploit tax benefits
Other stuff
• PHEV rate and program
• 53¢ on peak
• 15¢ shoulder hours
• 4.3¢ off peak
• Renewable Vendor Only Website (we are picky)
• Partnerships with GEO
• Participation in NRECA CRN renewable task
force
• Participation in state hydro policy project
• Participation in PUC Xcel Smart Grid review
Rebates
• Energy efficiency is a “no-brainer”
• EE and conservation have always been in
the hands of the consumer
• Politicians and government want us to
raise your rates, take your money and give
some of it back to you to spend on energy
efficiency and renewables
Rebates from a Business
Perspective
• What other business model is required to
give its consumers money to use less of
their product, and even subsidize direct
competition with ourselves?
• A story of two neighbors – one is shut off
for nonpayment while the other receives a
rebate for a solar panel
• Free rider-ship and low income issues
Lessons Learned?
• Have we learned anything from the last 20 years of
energy efficiency and alternative energy efforts?
• Make mistakes slowly
• One size does not fit all
• System efficiency improvements are the first and best
use of our money
• Evaluate, monitor and validate savings
• Keep politics out of it – if politics are driving it, it won’t be
practical
• Free rider-ship does nothing but give money to the
“haves” so consider loans or other incentives
Silence is not Golden
Co-ops and Public Power have been
laboratories of innovation for many years.
Looking back, it is regrettable that we
weren’t telling our story to the outside
world all along