News from Market Development Group                                November 2007

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CUEexchange Offers Regional Event Alternative in Aspen

Over 80 attended the first-ever Colorado Utility Efficiency Exchange in Aspen on Oct. 24-26 titled: Integrating Carbon Footprint and Demand Response into Efficiency and Renewable Energy Programs. The agenda focused on best practices and lessons learned from Colorado and neighboring utilities  developing and implementing customer programs.

Jeff Rice of City of Aspen Utilities led the agenda planning efforts with assistance from an Agenda Advisory Committee comprised of volunteers that met via conference call. 

The utility co-hosts were City of Aspen Utilities with Holy Cross Energy Cooperative.  Supporters included: Apogee Interactive, Applied Proactive Technologies with Energy Federation, Colorado Energy Science Center, ConvectAir, Marathon Water Heaters, Platte River Power Authority, Resource Action Programs, SourceGas, Western Area Power Administration, Wind Street Energy with event management provided by Market Development Group.

The event took place in the Doerr-Hosier Conference Center in the Aspen Meadows Resort.  The building is the first in the Roaring Fork Valley to achieve the Leadership in Energy and Environmental Design (LEED) Green Building Gold Rating. 

This regional conference concept was aimed at mid-level staff who could "drive in" rather than fly to the national events typically attended by their bosses.  An online survey is now underway to determined if the event will be presented again next October at the same location.  

 

CUE Proceedings

 

line loss paper

 

Line Loss Savings Potential Detailed in New White Paper


Electric cooperatives can save millions of dollars annually by managing distribution line losses, according to a white paper just released by the Market Development Group. The paper describes how cooperatives are partnering with ElectSolve Technology Solutions and Services, Inc. to recover revenue lost through distribution line inefficiencies.

Distribution line losses of 10 to 15 percent annually can cost a utility millions of dollars. Bob Saint, Principal Engineer, Technical Services, for the National Rural Electric Cooperative Association (NRECA), sums up the issue, noting, "Improving distribution system energy efficiency and metering accuracy is an important step in keeping energy costs as low as possible."

The goal of line loss management projects is to develop a comprehensive view of the line loss problem by systematically reconciling the cooperative's wholesale power purchase records with its power purchase sales down to the substation and feeder line. The team does this by collecting, tracking and analyzing meter data from all available data sources. This strategy quickly reveals where losses are occurring in an efficient, systematic way. 

The most compelling aspect of the project is that a distribution line loss management program can pay for itself.  ElectSolve is implementing programs for cooperatives using its Loss Analysis and Reporting System (LARS). The systems approach quantifies and confirms where line losses occur, as well as helping to identify specific tasks to recover lost revenue.

Line Loss Savings White Paper

 

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CFL Fund Raiser Launches at Orlando Utilities Commission

This fall, Central Florida charities can raise money for their organizations while helping OUC-The Reliable One promote energy conservation through OUC's Compact Fluorescent Light Bulb (CFL) Fund Raiser.  This month, not-for-profit groups are taking orders for energy-saving CFL bulbs from the community and earning $2 for each bulb they sell.   The CFL fund raiser provides a great, energy-saving product to customers while also helping charitable organizations raise money.

OUC-The Reliable One is the second largest municipal utility in Florida. OUC provides electric and water services to more than 200,000 customers in Orlando, St. Cloud and parts of unincorporated Orange and Osceola counties.

CFL Fund Raiser home page

 

How to Get Homeowners to Embrace Utility DSM Goals

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Ed Thomas and Katherine Johnson presented at these conferences  in the past few month on "Developing Marketing Communications that Motivate Homeowners to Embrace Energy Efficiency and Demand Response:"  

  • Energy Solutions Center Tech. & Market Assessment Forum
  • APOGEE Online Solutions Conference
  • AESP Technology Symposium
  • International Energy Program Evaluation Conference
  • Beyond Home Energy Audits With Home Performance with ENERGY STAR®
  • Colorado Utility Efficiency Exchange

In the presentations, they offered program examples of how innovative marketing communication tactics should link to the utility's energy load strategies as they detailed in a white paper earlier this year.  

Click on the Calendar tab at the link  below to see past presentations and where we'll present next.

Presentation Calendar

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Greetings!   Here's a snapshot of what we've been up to in the last few months.  It's - no doubt - a very, very exciting time to be in the energy efficiency business. 

Hope this newsletter finds you just as "energized" as us.  Please take a moment to let us know what you're doing these days and how we might help you.

Sincerely,

Katherine Johnson,
(301) 461-4865, kjohnson@marketdevelop.com

Ed Thomas
(970) 209-8347, ethomas@marketdevelop.com
 

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PLMA, Marathon, Steffes Co-Host Demand Response Webinar on November 8

PLMA logo

Peak load constraints and dramatic wholesale market price spikes are encouraging electric utilities to reevaluate the value and benefits of promoting residential demand response and "off peak" water and space heating programs.  Three utilities will offer their perspectives in a webinar titled "Residential Demand Response Program Design and Implementation" to be presented on Thursday, November 8, 2007 at 2:00 p.m. Eastern.

This Market Development Group webinar is co-hosted by the Peak Load Management Alliance with Marathon Water Heaters and Steffes Corporation.

These three utility presenters will explain how they develop and implement programs that aggressively promote electric space and water heating in ways that help manage residential energy demand through direct load control or innovative rate design:

  • "How Demand Response Activities Reduce Wholesale Power Costs" by Ed West, Director, Telecommunications and Control, Dairyland Power Cooperative

  • "Marketing Space and Water Heating with Energy Control" by Theresa Drexler, Senior Market Planning Specialist, Otter Tail Power Company

  • "WattWatcher® Time-of-Use Program Guarantees First-Year Savings" by Mark Schwantes, Director of Corporate Services, with Suzy Bynum, Energy Management Advisor, LaPlata Electric Association

This webinar will help other electric utilities better understand how demand response and "off peak" marketing programs are increasing net revenue margins while reducing wholesale power costs and supply constraints.   The webinar is intended for senior and mid-level staff at private, public and cooperative utilities interested in developing and implementing off-peak and demand response programs.  This agenda will have something of interest to introductory as well as advanced audiences.

Demand Response Webinar details

 

Home Performance with ENERGY STAR® Industry Compendium now Online

HPwES

The Home Performance with ENERGY STAR® Industry Compendium is a free online overview of key home performance industry programs, allies and resources for prospective program sponsors.  Learn how program sponsors in 20+ states are beginning to transform the home improvement marketplace beyond free "clipboard" home energy audits and single-measure rebates with a whole-house approach to energy efficiency, demand response, renewable energy and "carbon "footprint" issues.

The Compendium is designed for program designers with energy utilities, state energy offices and regional alliances looking for a comprehensive, integrated market transformation program platform for the improvement of existing homes in their community.  It includes: Program Overview, National Sponsor profiles on U. S. Department of Energy and U. S. Environmental Protection Agency, 20 Program Partner Profiles, 8 Industry Ally Profiles and a Bibliography of published papers, presentations and research studies.

In addition, the Compendium includes proceedings from the "Beyond Home Energy Audits with Home Performance with ENERGY STAR®" Workshop held in Long Island in September 2007 as well as National Symposium presented in Cleveland in April 2007.  The Long Island workshop was co-sponsored by Building Performance Institute, Conservation Services Group, U.S. Department of Energy, Edison Electric Institute, U.S. Environmental Protection Agency, ICF International, Long Island Power Authority and New York State Research and Development Authority with Energy Finance Solutions, Electric & Gas Industries Association, Market Development Group and Performance Systems Development.

HPwES Industry Compendium details

Great Lakes Co-op Sells Marathon Water Heaters Through Certified Plumbers

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A new case study details an innovative residential electric water heating program developed and implemented by  Great Lakes Energy Cooperative (Great Lakes) with Marathon Water Heaters.  Great Lakes offers rebates to members who purchase and have installed a Marathon water heater from the cooperative's list of approved contractors. Under the "point of sale" program, Great Lakes supplies the water heaters to local plumbers, along with an incentive for contractors to provide floor space and process rebates.

The case study available online details the program's design strategy, implementation tactics, results and lessons learned.  Shari Joles, Marketing Manager, Great Lakes Energy, offers the following observations to utilities considering implementing such a program:

  • Setting up a rebate program should be a deliberate process

  • Members can be motivated to replace  water heaters  BEFORE their old one bursts

  • Ads should carry the equipment price

  • Offer rebates on 40-galllon units

Great Lakes Water Heating Case Study
 

Geo Heat Pump Report's 3rd Edition Published

invitation"Geo Heat Pumps: Leading Energy Utility Marketing Programs" is now in its Third Edition, thanks to a partnership between Western Area Power Administration, APPA and GeoPowering the West.  Authored by Katherine Johnson of Market Development Group, the report was first released in 2001. "The industry needed a collection of best practices, vendors and strategies for marketing the benefits to customers," explained Johnson.

Changes in the third, current edition reflect the continuing evolution of the market and the technology.  The report, available on CD, covers basic information about the equipment and costs and examines successful utility heat pump marketing programs. Profiles of system manufacturers, architects, engineers and non-profit associations dedicated to promoting the technology describe history, products, markets served and competitive strengths and weakness of each organization.

In addition to the Geothermal Heat Pump Report, the CD also includes two MS Excel-based spreadsheet calculators. One helps utilities calculate the effects of residential geothermal heat pump installations in their territory. The other helps residential customers compare geothermal heat pumps to a variety of alternative heating and cooling systems. "The spreadsheets will help utilities explain and quantify the benefits of geothermal heat pumps to customers," explained Johnson. "They will be an indispensable marketing tool for utilities and a great educational tool for consumers. The spreadsheets are a valuable addition to the report."

To obtain one of the limited number of free copies of the CD, utility representatives should contact Randy Manion of Western Area Power Administration at MANION@wapa.gov.  All others may purchase a copy at the Market Development Group web site. (reprinted from Western Area Power Administration's Energy Services Bulletin, August 2007).

Geo Heat Pump Report details

 

Eastern Illini Co-op Aggressively Markets Electric Heating Without Rebates

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Another new case study explores how Eastern Illini Electric Cooperative (EIEC) partners with heating system manufacturer Convectair and others to promote electric heating options as part of a comprehensive residential utility marketing program.  And the co-op does it without rebates.

Bob Dickey, EIEC's Manager of Marketing and Economic Development, explains, "The problem with a rebate is that it is a one-time occurrence and soon forgotten. Our cooperative can involve many more members with the same investment and educate them on the benefits of proper insulation, building envelope sealing, CFL's, geothermal and air source heat pumps, and auxiliary heat options. We also increased the size of the marketing department to meet with our members in the field and provide more timely information through our database tracking. Since we have implemented this approach, heat pump installations have doubled and our off-peak kilowatt sales have increased substantially." 

For example, EIEC offers direct sales of the full line of Convectair products.  Bob Dickey explains, "We sell Convectair because it's 20% - 30% more efficient that other electric space heaters available through retailers in our service territory.  I've been to their factories and seen their extensive testing procedure as well as studies funded by other utilities.  EIEC staff is available to go to members' homes at no cost to help calculate their heating requirements to determine proper equipment selection using an online calculator available at Convectair's web site (www.convectair.net/calcul/calcule).  

EIEC ended all rebates in 2001, yet the number of EIEC members with electric heat has continued to grow on a consistent trajectory.  Bob Dickey offers these observations for other cooperatives that are looking to enhance their electric heating marketing efforts:

  •  Rebates aren't as important as you might think

  •  Track all member contact and inquiries

  •  Recommend only those contractors who recommend you

  • Offer members a range of electric heating options that are properly sized

Electric Heating Case Study
 

Quick Links...

Market Development Group

Home Performance with ENERGY STAR Compendium

Convectair

ElectSolve Technology Solutions and Services

Marathon Water Heaters

Electric & Gas Industries Association
 

Do You Know Where Your Oldest Son Is?invitation
Katherine Johnson's oldest son, Benjamin, joined her for a week in Chicago during the IEPEC conference before heading back to Wabash College to begin his junior year. He shared stories of his summer adventures at Yellowstone National Park during a boat cruise around downtown Chicago with other IEPEC conference attendees. But, as much as he enjoyed his visits to Chicago's art museums, he was eager to return to his classes in Classics  and Political Science...as well as fraternity life.  Study hard! 

Do You Know Where Your Son is Performing?
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Ed Thomas' son, Bryan, spent the last 6 weeks performing in a show on nutrition in Philadelphia area elementary schools for The National Theatre for Children.  Bryan earned a Bachelor of Fine Arts degree in Stage Performance from Chapman University in Orange, California.  Last fall, Bryan performed on water efficiency topics in Southern California for the Theatre organization.  You can learn more about them at www.nationaltheatre.com.