Energy Efficiency & Climate Change: Planning for Results January 8, 2008

1. Energy Efficiency & Climate Change: Planning for Results January 8, 2008 University of North Carolina Richard W. Steeves, Chairman Connecticut Energy Efficiency Fund c/o Office of Consumer Counsel 10 Franklin Square New Britain, CT 06051 (860) 827-2912 CTSavesEnergy.org

3. What Is the OCC? • Office of Consumer Counsel • Mary J. Healey, Consumer Counsel • 10 Franklin Square • New Britain, CT 06051 • (860)827-2900 • http://www.ct.gov/occ/site/default.asp • OCC: Member of ECMB, CEAB, NEPOOL, CEAC, CERC

4. THE OCC MISSION • OCC is an independent state agency with statutory responsibility to represent customers of Connecticut’s five regulated utilities – electric, gas, water, telephone, and cable television, primarily in matters before the Department of Public Utility Control (DPUC) (and also at FERC).

5. OCC Employees • 1 Consumer Counsel • 5 Lawyers • 5 Finance and Accounting • 4 Administrative Support • 0 Obstructionists

6. TheMissionoftheEnergyConservationManagementBoardistoadviseandassisttheutility distributioncompaniesinthedevelopmentandimplementationofcomprehensiveandcost-effectiveenergyconservationandmarkettransformationplans. (asperSec33(d), PA98-28, AnActConcerningUtilityRestructuring)

7. Climate Change is No Longer An Environmental Threat

8. . Climate change has profound implications for virtually all aspects of human well-being, from jobs and health to food security and peace within and among nations. ...Until we acknowledge the all-encompassing nature of the threat, our response will fall short.November 8, 2006 UN Secretary General Kofi Annan In coming decades, changes in our environment and the resulting upheavals from droughts to inundated coastal areas to loss of arable land are likely to become a major driver of war and conflict… March 1, 2007 UN Secretary General Ban Ki-moon

9. . Discussion on a Pentagon Report on Abrupt Climate Change “...widespread accelerations of the catastrophic effects already associated with “normal” climate change …could lead to military confrontations between states over access to scarce food, water and energy supplies, or what the authors describe as a ‘world of warring states.’” Prof. Greg Foster National Defense University A New Security Paradigm Worldwatch Jan/Feb 2005. p. 40.

11. We Have Many State & Regional Studies, Reports & Plans

14. Energy Efficiency is the Workhorse It Is What Has Been Termed a “No Regrets” or “Tie-in” Strategy for Climate Change A strategy in response to the threat of climate change which argues that energy-saving measures should be undertaken immediately to help reduce global warming and climate change. Even if the threat of climate change is not as pronounced as we now fear, the supporters of this strategy say would not need to be any regrets because we would have benefited from saving the energy. (This differs from the word “co-benefits” in its accent and is a strategy, not a result.) http://www.babylon.com/definition/No_Regrets_Strategy/English

15. The Order IS Important Efficiency Should Come First! 1) It Is Usually the Most Cost-effective Option 2) Reduces the Required Size of HVAC/Renewable Systems Required to Meet the Loads Lowering Total Capital Costs 3) Can Begin With Relatively Modest Amounts of Investment. For the Owner Portion of a 1kW PV System (~$4,500) You Could Relamp, Buy Energy Star Appliances and Fuel Switch an Electric Stove and Dryer. 4) Provides a Quick Income Stream

16. It’s Drives “Electrofinance” Using the Positive Cash Flow Savings Provided by Energy Efficiency Measures That Are Cost Effective Today to Pay for Other Commodities Such As: 1) Additional Energy Efficiency 2) Green Tags 3) A Solar Hot Water or a Photovoltaic (PV) System 4) Even a Retirement Nest Egg (Found Money).

17. Energy Efficiency Takes Many Forms • It Employs Better Technologies to Provide Equal or Better Services with Less Energy • Efficient Lighting Such As Compact Fluorescent Bulbs • Buy New Energy Star Appliances As Old Ones Wear Out. • At Least 12" of Attic Insulation • Sealing Air Leaks and Supply Ducts • Motors, HVAC • Possibly New Heating Unit and a Demand Water Heater • Other Measures on a Case-by-case Basis (Sidewall Insulation, New Low-e Windows, Fuel Switching, Etc.)

18. Efficiency “Co-Benefits” Include • Reduction of Criteria Pollutants (SOx, NOx) • Reduction of Peak Loads • Reduction of Energy Cost • Reduction of Foreign Sources of Energy • Enhanced Grid Resilience • Greater Employment Opportunities • A Competitive Edge Via Productivity Gains

19. ECMB 2006 Annual Legislative Report P connotes projected figures.

20. ECMB 2006 Annual Legislative Report P connotes projected figures.

21. Courtesy of ECMB

22. So, Where Do we Go From Here? Passage this Year of PA 07-242, AAC Electricity and Energy Efficiency, Section 51 Mandates a Procurement Plan that: Develop[s] a Comprehensive Plan for Procurement of Energy Resources for 3, 5 & 10 Years Out by Jan. 08 Including, but Not Limited To, Conventional and Renewable Generating Facilities, Energy Efficiency, Load Management, Demand Response…. Resource Needs Shall First Be Met Through All Available Energy Efficiency and Demand Reduction Resources That Are Cost-effective, Reliable and Feasible...

26. What Have We Learned? Not enough to reduce load growth or even get to zero load growth Must bend the line down (must reduce consumption from current levels) Need multi-year planning and a line in the sand (2020 reductions, and 80% by 2050) Early, aggressive action is essential (ramp up) EE may have to do even more than sector proportional to help achieve overall goals

27. What Will It Take? Annual energy savings of about 2.5 % to 3% Triple (or more) the current level of effort Leading EE states (0.75-1.5% annual savings) will need to triple efforts States ramping up (~0.5% annual savings) will need to increase efforts by 5 to 6 times Laggard states need to get going ASAP

28. Program Designs ThatWe Know Will Work ?

29. EE Programs for the Future MIT 2007 Zero Net Energy Solar Decathlon Home • Deeper and broader, more comprehensive • Save 30-70% in customer facilities, instead of 5-25% (as in many current programs) • Zero (net zero) energy buildings for all new construction • Voluntary programs unlikely to be enough; will need increased codes, standards, & mandates

30. Key Challenges Vision Inertia (stuck in what we have been doing) Political Will Resource Allocation EE Infrastructure It can and must be done (it won’t be easy)

31. Conclusions The line must bend down (there must be a reduction, not just a reduction in growth) The electricity sector is crucial and is one of the “easiest” sectors in which to get GHG reductions (perception of policy makers) EE is the “best” way to get GHG reductions in the electricity sector (easiest and cheaper, and EE provides net economic benefits)

32. “We’re From the Government;We’re Here to Help You.” • Office of Consumer Counsel • Mary J. Healey, Consumer Counsel • 10 Franklin Square • New Britain, CT 06051 • (860)827-2900 • http://www.ct.gov/occ/site/default.asp