equitable solutions to rural energy burdens · 2019. 7. 16. · • founded in 1984 by a bipartisan...

Equitable Solutions to Rural Energy Burdens

July 16, 2019

Materials will be available at: www.eesi.org/071619ruralenergy

Tweet about the briefing: #eesitalk @eesionline

• Founded in 1984 by a bipartisanCongressional caucus.

• Now an independent, bipartisan nonprofit with no Congressional funding.

• We provide fact-based information on energy and environmental policy for Congress and other policymakers.

• We focus on win-win solutions to make our energy, buildings, and transportation sectors sustainable and resilient.

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Lines of work:

• Advocacy

• Public Awareness

• Thought Leadership

• Development (Domestic & International)

Established in 1916, NCBA CLUSA is the oldest and

largest U.S. association for cooperatives—

representing all co-op sectors.

Vision

NCBA CLUSA works to build a better world and a

more inclusive economy that empowers people

to contribute to shared prosperity and well-being

for themselves and future generations.

Mission

Our mission is to develop, advance and protect

cooperative enterprise.

• NRECA was formed in 1942 to provide a unified voice for cooperatives.

• We represent more than 900 consumer-owned, not-for-profit electric cooperatives.

• We serve 1 in 8 U.S. residents and 93% of America’s persistent poverty counties.

Curtis Wynn

President, NRECA

President & CEO Roanoke Electric Cooperative


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NRECA Presidential Platform

• Rapid pace of change

• Three key realities:1. The market-driven future of the electric utility industry

2. The future will demand sustainability and efficiency.

3. The future will require grid flexibility.

• Acknowledge, Act, Lead Together

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The Business Case for Reducing Energy Burdens

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4.

2.

3.

1.

Roanoke Connect broadband deployment is the primaryenabler of all of the above; creating cost savings forRoanoke EC and our member-consumers, while reducingcarbon emissions

POWER COST58%

PLANT OPERATIONS & MAINTENANCE

12%

ADMIN & CONSUMER

15%

TAXES2%

INTEREST5%

DEPRECIATION8%

Roanoke Connect

1. Energy Efficiency

2. $mart Energy Devices

3. AMI & System Automation

4. Distributed Generation (Solar & Battery – New)

Beneficial Electrification (EVs – Evaluating)

0

20

40

60

80

100

120

140

160

0-5k 5k-10k 10k+

Nu

mb

er o

f P

roje

cts

Project Amount Range

Below Avg.

Average$7,690

Average$2,588

Average$13,263

14% of Projects

75% ofProjects

11% ofProjects


COST / SAVINGSOne (1)

Participant1,000

ParticipantsElectricity We Don't Sell ($ 2,762) ($ 2,762,000)REC Upgrade Investment (6,182) (6,182,000)Program Operation Cost (770) (770,000)

Electricity We Don't Buy (Demand Savings) $ 10,622 $ 10,622,000 Payments from Member-Owners (Bill Tarrifs) 6,182 6,182,000Program Operation Cost Recovered 200 200,000

20 Year Savings $ 7,290 $ 7,289,858

These numbers do not account for propane and other fuel conversions to electricity – “beneficial electrification”.



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Cooperative’s tariff on-bill financing energy efficiency program • 450 + participants

• 40% of inquiries can’t fully participate due to health and safety concerns

Still leaves many member-owners unable to “fully participate”

• Community Solar• A community solar farm or garden

is a solar power installation that accepts capital from and provides output credit and tax benefits to individual and other investors.

• In some systems you buy individual solar panels which are installed in the farm after your purchase. Wikipedia

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https://en.wikipedia.org/wiki/Community_solar_farm

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Roanoke SolarShare• Installed ‘pilot’ solar garden at

headquarters facility – unsubscribed by member-owners

• Four (4) upcoming solar/battery projects that will include a community solar offer• Purposely developed on minority landowner

properties• Identified via Roanoke’s Sustainable Forestry

and Land Retention Project

• Neighbors helping neighbors• Individual and philanthropic donations will

purchase output from community solar• Credits will be used cover the cost to rectify

health and safety issues for nearly 800 dwellings at ~$2,000 each

• Fundraising goal: $1.7m


https://roanokeelectric.com/content/roanoke-solarsharehttps://www.recforestry.org/https://www.roanokeelectric.com/content/helping-families-need-through-community-solar-program

• Smart Energy Savings Devices• Each thermostat & water heater control installation is saving REC approximately $170

and $77 per year respectively • Over 1,000 thermostats installed• Over 850 water heater controls installed

• Roanoke Connect Broadband• Smart energy savings devices justify monthly credits for participating in demand

response programs• Free installation of devices and broadband equipment• $44.99 monthly subscription is well below market price for broadband

• System Automation• Increasing system resiliency and • Lowering wholesale power costs

• Voltage reduction• Line loss


https://www.roanokeelectric.com/content/smart-energy-savingshttps://www.roanokeconnect.com/

Addressing High Energy Burdens in Rural Communities

Energy Efficiency as a Tool for Rural Prosperity

Mary Shoemaker

Senior Research Analyst

American Council for an Energy Efficient Economy

[email protected] | @marycshoe

July 16, 2019

mailto:[email protected]

aceee.org @ACEEEdc

The American Council for an Energy-Efficient Economy is a

nonprofit 501(c)(3) founded in 1980. We act as a catalyst to

advance energy efficiency policies, programs, technologies,

investments, & behaviors.

Our research explores economic impacts, financing options,

behavior changes, program design, and utility planning, as

well as US national, state, & local policy. Our work is made

possible by foundation funding, contracts, government grants,

and conference revenue.

ACEEE’s Rural Energy Initiative

• Historic focus on agricultural energy efficiency

• Equity in energy efficiency program delivery

• Goals• Identify successful rural EE programs and policies

• Disseminate best practices

• Provide technical assistance

• Convene and connect

• Partnerships with utilities, policymakers, and efficiency program implementers.

What is an energy burden?

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What is an energy burden?

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Energy burden % =

___Annual energy costs___Annual household income

E.g. ($200/month) * 12 months/$60,000 = 4%

• Drivers: Physical, economic, policy, behavioral

• Impacts: Health, economic, social

Why do energy burdens matter in rural communities?

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Energy efficiency and rural energy burdens

• Long-term solution to high burdens

• Provide bill savings for households• Can lower burdens by 25% and save

households up to $400/year

• Additional benefits such as improved public health and job creation.

Low energy prices do not equate to affordable bills!

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Services provided by energy efficiency programs

1. Identify energy savings opportunities.

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Photo Source: Rachel Norton, MACED



2. Leverage funding or financing to lower up-front costs for efficiency improvements.

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2. Leverage funding or financing to lower up-front costs for efficiency improvements.

3. Access technical experts to implement efficiency technologies.

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A snapshot of federal funds for rural energy efficiency

• U.S. Department of Agriculture• Rural Energy Savings Program (RESP)

• Rural Energy for America Program (REAP)

• Energy Efficiency and Conservation Loan Program (EECLP)

• U.S. Department of Energy • Weatherization Assistance Program (WAP)

• State Energy Program (SEP)

• Industrial Assessment Centers (IACs)

24

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ACEEE’s Rural Energy ConferenceDriving Rural Prosperity Through Clean Energy

Photo Source: USDA

• February 25, 2020

• Chicago, Illinois

• Topics:• EE program design

• Renewable energy

• Electrification

• Rural economic development

• Broadband access

• Resilience and disaster recovery

Thank you!

Mary Shoemaker

[email protected]

[email protected] | @marycshoe

(202) 507-4003

mailto:[email protected]:[email protected]

Challenges to rural efficiency program delivery

• Low population density

• Financial constraints

• High costs

• Unfamiliarity with energy efficiency

• Shortage of local workers and lack of expertise

• Insufficient outcome data

• Lack of broadband access

Rural Energy Savings Program (RESP) Act

Program Overview with the Agriculture Improvement Act of 2018 amendments incorporated

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RESP

RESP

$100 + million available now!

NOFA open through this FY

Reg being drafted

0% interest to borrower

Up to 5% interest to consumer

Frequent statutory refinements Now repayment of the loan to the end user could be through a recurring bill, not just the electric bill

Compelling opportunity On-bill financing, including optional tariffs for energy efficiency improvements

Helps address needs of underserved market segments

Drawing new and returning borrowers

The RESP link is https://www.rd.usda.gov/programs-services/rural-energy-savings-program.29

https://www.rd.usda.gov/programs-services/rural-energy-savings-program

RESP AWARDEES

Borrower Location Loan Amount

Adams-Columbia Electric Wisconsin $ 1,000,000

Appalachian Electric Coop Tennessee $ 5,000,000

Highline Electric Association Colorado $ 500,000

Holy Cross Energy Colorado $ 11,000,000

KW Saving, Co. South Carolina $ 13,000,000

Missoula Electric Coop Montana $ 200,000

NOPEC, Inc. Ohio $ 1,000,000

Orcas Power & Light Coop Washington State $ 5,800,000

Ouachita Electric Arkansas $ 8,000,000

Pee Dee Electric North Carolina $ 200,000

Reliable Energy, LLC Virginia $ 1,773,180

Southwest Arkansas Arkansas $ 1,000,000

Umatilla Electric Cooperative Oregon $ 3,000,000

Woodruff Electric Cooperative Arkansas $ 1,000,000

Total $ 52,473,180 30

Thank You

31

Mark Cayce

General Manager & CEO of Ouachita Electric Cooperative

HELP PAYS®:A tariffed on-bill investment program

based on Pay As You Save® (PAYS®)

1. Renters were left out. Only property owners were eligible.

2. Loans posed more risks, so we could not finance bigger projects (including HVAC), leaving bigger savings untended.

To reach more people and achieve higher savings,

our Board voted to offer an opt-in tariff using Pay As You Save®.

We have completed over 500 Residential Projects with ZERO defaults

We switched our on-bill loan program (HELP)to a tariffed on-bill program (HELP PAYS®). Why?

Ouachita ElectricCooperative

First Year Reduction in Kwh

Ouachita ElectricCooperative

Total investments in first 4 months exceeded $1.5 million

Distribution of Investment Funds by Type of Project Site

Single family investments Multi-family investments Commercial investments

Single FamilyHomeowners

Renters inMulti-family

Housing

Commercial

A college and a municipal building accounted for 1/3 of the investment.


Materials will be available at: www.eesi.org/071619ruralenergy

Tweet about the briefing: #eesitalk @eesionline

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equitable solutions to rural energy burdens · 2019. 7. 16. · • founded in 1984 by a bipartisan...

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