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Strategies for moving away from subsidies for basic CFLs. Presentation to the CPUC Energy Division June 16, 2009 Reuben Deumling Associate, Energy Economics Inc. and TURN Consultant . Review of CA IOU’s CFL Status I.

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strategies for moving away from subsidies for basic cfls
Strategies for moving away from subsidies for basic CFLs

Presentation to the CPUC Energy Division June 16, 2009

Reuben Deumling

Associate, Energy Economics Inc. and TURN Consultant

review of ca iou s cfl status i
Review of CA IOU’s CFL Status I
  • What the IOUs say they will do and then do are two different things – CFL portfolio share 30% vs 59%
  • Est. # CFLs in storage in CA: 42M
  • Est. remaining sockets available for CFLs in CA: ~net 28M that could be cost effectively rebated after subtracting CFLs in storage
review of ca iou s cfl status ii
Review of CA IOU’s CFL Status II

Breakdown of 06-08 CFL buydowns by category and IOU:

reasons why a phaseout is timely
Reasons why a phaseout is timely
  • Market Transformation has already occurred
  • Federal legislation (EISA 2007) bans incandescent bulbs starting 2012
  • Other States shifting away from CFLs before market fully transformed
when is the market transformed
When is the market transformed?
  • When CFL prices in PNW are higher than in CA but more CFLs sold per household
  • Energy Independence and Security Act will soon make CFL the de facto standard lamp
  • Other States recognize that prioritizing CFLs over all else no longer tenable
strategies for moving beyond subsidies
Strategies for moving beyond subsidies
  • IOUs should shift focus to specialty CFLs and next generation lighting products
  • Refocus on HTR (households with few or no CFLs)
  • Pursue “green” CFL manufacturing facility
  • Shift from Socket to systems approach
ious should shift focus to specialty cfls and next generation lighting products
IOUs should shift focus to specialty CFLs and next generation lighting products
  • Specialty: dimmable, 3-ways, candelabras, globes, high-heat reflectors, daylight bulbs, etc.
    • Others (NEEA, Energy Trust of OR, BPA) are already doing this
  • Next Generation: cold cathode CFLs, Solid State Lighting (LEDs, OLEDs, plasma lights)
    • Federal research programs already focusing on building a domestic industry
  • Product quality: light quality, bulb quality, matching bulb to application
refocus on hard to reach households with few or no cfls
Refocus on Hard To Reach (households with few or no CFLs)
  • Conduct market research to learn who doesn’t buy CFLs and why
  • Improve marketing: better labels, improve sales staff training, emphasize Non Energy Benefits (NEB)
  • Pay more attention to product quality
  • Reconsider expansion into 99¢ stores
pursue green cfl manufacturing facility
Pursue “green” CFL manufacturing facility
  • Lower life cycle energy costs from local production
  • Higher quality lighting products
  • Meet or exceed domestic env. production standards
  • Address Workforce Education & Training (WE&T) requirements
shift from socket to systems approach
Shift from socket to systems approach
  • Direct install programs currently focus on sockets: short list of lighting products
  • Instead: customized comprehensive approach to retrofit; calculated rather than deemed savings
  • Advantages are:
    • Achieve higher savings
    • Eliminate lost opportunities & cream skimming
    • Better lighting
iou resistance to phaseout
IOU resistance to phaseout
  • The umbrella organizations in the PNW: NWPPC, NEEA, Energy Trust of OR, BPA have or are beginning to shift away from standard CFLs and to specialty CFLs; CPUC doing same
  • The IOUs, by contrast, have grown fond of the standard CFL buydown model and are pushing back, for 3 reasons:
    • Evaluation criteria: the evaluation criteria in place suggest CFL buydowns are the most cost effective measure on the books
    • Financial rewards: structure and scale of programs make them very lucrative to the IOUs
    • Inertia: easier to defend status quo than to switch to something different/new
conclusion
Conclusion
  • Shifting extent to which & how CFLs are rebated promises more diverse portfolio, higher savings, and
  • Explore hurdles to manufacturing CFLs in CA
  • In commercial realm, shift to comprehensive, customized, calculated savings approach