How Load Strategies
Link to Program Tactics
(reprinted with permission from
AESP Strategies newsletter)
This article provides an overview of how the basic principles of Demand Side Management (DSM) strategies should link to the program tactics implemented. There are four basic DSM strategies that utilities use depending on their overall objectives and needs. (see graphic above)
Energy efficiency programs focus on reducing the overall use of specific technologies. In this example, the focus would be to reduce residential customer bills by encouraging customers to replace existing standard light bulbs with CFLs. But lighting is just one of many end uses that are targeted in DSM programs.
The second "spoke' of this wheel illustrates the same approach to determine an effective strategy for peak load reduction programs. Instead of focusing on reducing overall energy usage, these programs take a more narrow approach to reduce energy used during the utility's critical peak periods, the periods of highest demand.
The third "spoke' addresses load shifting, in which customer usage is moved from one time period to another. These are often accomplished through utility pricing signals in which customers are rewarded for using energy in the off-periods. Some of these rate designs include variations of critical peak pricing, in which customers are rewarded for moving loads to cheaper times and "economically punished" for high use during peak demand.
The final "spoke" addresses load building programs, which is also a necessary component of a balanced DSM strategy. These programs increase energy use during some periods by promoting cost-effective technologies that operate primarily during periods of low electricity demand. These load building programs are particularly appropriate when the utility is looking to increase its overall load factor, or perhaps encourage customers to switch to electricity from an alternative fuel source. Many rural electric utilities, facing population declines, have developed successful load building programs as a cost-effective way to manage overall utility costs and improve operational efficiencies.
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Investigating Portable Heater Savings Claims
Have you seen the unrealistic energy savings claims in several print and broadcast ads touting 50% savings for portable electric heaters? The ads claim you can save by turning your central heating down to 50 degrees and snuggling next to a room heater. Ed Thomas asked "What Do You Tell Members About Electric Heat?" in a presentation to the Cooperative Research Network's End Use Solutions Membership Advisory Group in Austin. The presentation was sponsored by ConvectAir.
Ed shared with the group that while touring ConvectAir factories in France last October he learned about international standards for testing heater efficiency vs. in-home comfort, and the findings of utility-driven research and development projects in Europe, Canada and Japan.
Convectair is looking for utilities who want to participate in a demonstration project to perform load shedding with zoned, programmable convection heating systems.
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Greetings! Welcome to the Market Developments newsletter! Each issue will feature items of interest from around the energy industry. We look forward to speaking with you at an upcoming event. In the meantime, please email or call when we can help.
Sincerely,
Katherine Johnson
Ed Thomas
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Water Heaters are Forgotten Appliance - Webcast on April 19
Water heaters have been the forgotten appliance in utility program implementation in recent years. But new technology innovations - including tankless and solar thermal designs coupled with quantum leaps in smart meter and control communications - are driving a reemergence of utility programs designed and implemented to address this significant residential energy use.
Learn more by dialing in for "Water Heater Programs: Implementation Tactics to Achieve Market Share, Efficiency, Demand Response and Renewable Energy Goals," an Association of Energy Services Professionals' Brown Bag Seminar to be presented on Thursday, April 19, 2007 at 1 p.m. (Eastern Time).
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ENERGY STAR® Offers Whole House Solutions - Webcast on April 26 
Home Performance with ENERGY STAR® (HPwES) is an existing home energy efficiency service program initiative developed through the coordination of three government agencies: the Department of Energy, Department of Housing and Urban Development and Environmental Protection Agency. Rather than labeling a particular product or building, the HPwES program focuses on a comprehensive "home performance" service.
Learn more by dialing in for "Home Performance with ENERGY STAR®: A Comparison of Implementation Strategies," an Association of Energy Services Professionals' Brown Bag Seminar to be presented on Thursday, April 26, 2007 at 1 p.m. (Eastern Time).
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Demand Response Case Studies - Webcast on May 1  Peak load constraints and dramatic wholesale market price spikes are causing some utilities to reevaluate the value of residential water direct load control programs as well as innovative "critical peak" and other time-of-use rate designs.
Learn more by dialing in for "Utility Case Studies in Demand Response," a Western Area Power Administration Energy Services Webinar to be presented on Tuesday, May 1, 2007 at 11:30 a.m. (Mountain Time).
Hear from three utilities that are experienced in developing and implementing programs that help manage residential energy demand through direct load control or innovative rate design. Also, discover the advances in smart meters and other emerging issues that are impacting the state of the technologies in demand response.
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Geo Heat Pump Economics - Workshop on May 4 in Tahoe  "Geothermal Heat Pump Economics from the Customer and Utility Perspectives" will be presented on May 4 as a post-conference workshop after the Utility Forum in Tahoe City, Calif.
Understand how to use a Geothermal Heat Pump (GHP) worksheet to determine the benefits and costs of GHP programs. Hear about utilities that have developed and implemented the programs. Learn the results of "A Tale of Two Buildings", where side-by-side building energy use is compared, one using GHP and the other using a conventional HVAC system.
Katherine Johnson will be co-presenting the workshop as part of her efforts to update and enhance her previously-published "Geo Heat Pumps: Marketing Success Stories" report on behalf of the U.S. Department of Energy's Geopowering the West Initiative and Western Area Power Administration Energy Services.
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Home Energy Efficiency - Workshop on May 15 in Miami
Your cooperative's board and general manager are planning multi-year rate increases and they want your department to do more to help members save energy. But there's no room in the budget for more staff hires. How can you win? Here's how: Plan to attend the "How to Develop and Launch Home Energy Efficiency Programs: Best Practices and Lessons Learned" to be presented on May 15 just before the Touchstone Energy and NRECA Connect 2007 Conference in Miami.
Learn how leading utilities develop, launch and cost-justify programs that promote home energy efficiency as well as renewable energy and demand side management. Discover the strategies and tactics that have made programs successful, and the lessons that utilities have learned in the process.
Workshop co-presenters are Ed Thomas and Katherine Johnson. Also, Market Development Group will have a booth in the Expo and Ed will moderator the conference session "Out with the Old, in with the New" on May 16.
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In-School Programs Make Teaching Green Energy Memorable and Fun  Smokey Bear taught a generation of us about forest fire dangers. It's the longest running public service campaign in U.S. history and a fine example of "social marketing." Many social marketing activities are underway today regarding the value of renewable energy, energy efficiency and electrical/gas safety.
One organization that been supporting these efforts is The National Theatre for Children (NTC). NTC delivered more than 7,000 in-school performances in 2005, and is trusted by educators for its unique formula of live theatrical interaction and sound educational technique. Studies by independent researchers have shown that 99 percent of educators believe that the use of live theater increases students' capacity to learn and retain key messages, and that 92 percent of NTC's workbooks and other take-home activities are used by students at home with their parents.
One such program is "The Unseen Green Machine," an interactive 25-minute long play with a cast of two. The performance combines a proven education and marketing method - live in-school dramatic presentation - with exciting workbooks, online games, and practical take-home activities that bring green energy to life for elementary school students and their families.
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