rocky mountain institute_turbo charging energy efficiency
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TURB CHARGINGEFFICIENCY PROGRAMSGoing for Broader and Deeper Savings
CONTENTS
Executive Summary 1
Introduction 5
Energy Efficiency 101 6
Turbocharging Efficiency Programs to Achieve More Savings 11
Efficiency Programs Challenges and Recommendations 15
Case Studies 33
Conclusion 37
Endnotes 38
Appendix-Case Studies
References 52
Acknowledgements
Mathias Bell Brendan ODonnell Ryan Matley Noel Crisostomo
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Greg Searle
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1Turbocharging Efficiency Programs
Executive Summary
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2 Turbocharging Efficiency Programs
Challenges and Recommendationsfor Turbocharging Efficiency Programs
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CHALLENGES ANDRECOMMENDATIONSFOR UTILITIES
CHALLENGES:Taking On Competition Reaching Out To Customers Overcoming Complacency Working Alone Regulatory Complications
RECOMMENDATIONS:
Make Marketing Work Improve Sales Execution Drive down transaction cost Embrace Collaboration
Know the target audience
Get the message right
Build relationships and trust over time
Be dynamic and flexible
Diversify sales channels
Make calculated bets
Recognize patternsGo through the right networks
Let the customer make some decisions
Get the timing right
Incorporate online tools
Make audits simpler and faster
Explore behavioral change programs
Move upstreamSeek real-time feedback
Get credit for codes and standards
Leverage third-party partners
Look externally to non-utility organizations
Work with regulators and collaborativeworking groups
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Puget Sound Energy
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5
Introduction
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6 Tu rb oc ha rg in g E ff ic ie nc y P ro gr am s I NT RO DU CT IO N
Efficiency Programs 101
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7INTRODUCTION Turbocharging Efficiency Programs
Lost RevenueAdjustment Mechanism Pending
Revenue DecouplingMechanism
DC
DE
CT
MD
MA
NH
NJ
RI
VT
CT
DE
MD
MA
NH
NJ
RI
VT
Colored by percent of 2020 sales
FIGURE 2 Lost Revenue Adjustment & Revenue Decoupling
Mechanisms for Electric Utilities
FIGURE 1 U.S. Energy Efficiency Resource Standards
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8 Tu rb oc ha rg in g E ff ic ie nc y P ro gr am s I NT RO DU CT IO N
Figure 3 U.S. Electric Ratepayer-funded Program Budgets
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9INTRODUCTION Turbocharging Efficiency Programs
Figure 4 Projections for Efficiency Savings from Utility Programs
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10 Turbocharging Efficiency Programs Alliance to Save Energy
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11
Turbocharging
Efficiency Programsto Achieve More Savings
BROADER.
DEEPER.
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12 Turbocharging Efficiency Programs TURBOCHARGING EFFICIENCY PROGRAMS TO ACHIEVE MORE SAVINGS
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13TURBOCHARGING EFFICIENCY PROGRAMS TO ACHIEVE MORE SAVINGS Turbocharging Efficiency Programs
BROADER + DEEPER = GREATER SAVINGS
GO BROADER AND DEEPER:
A) GO BROADER
B) GO DEEPER
C) GO BROADER AND DEEPER
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14 Turbocharging Efficiency Programs Greg Vojtko
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15
Efficiency Programs
Challenges andRecommendations
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16 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
Challenges for Utilities
Taking on competition
Reaching out to customers
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17EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
Overcoming complacency
Pacific Gas & Electric
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18 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
Working alone in an area with so
many moving parts
Regulation creates more
complications than it needs to
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19EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
Recommendations for Utilities
Know the target audience
Get the message right
Build relationships and trust
over time
Be dynamic and flexible
Diversify sales channels
Make calculated bets
Recognize patterns
Go through the right networks
Let the customer make
some decisions
Get the timing right
Incorporate online tools
Make audits simpler and faster
Explore behavioral change
programs
Move upstream
Seek real-time feedback
Get credit for codes
and standards
Leverage third-party partners
Look externally to non-utility
organizations
Work with regulators
and collaborative working groups
MakeMarketingWork
ImproveSalesExecution
Drive DownTransactionCost
EmbraceCollaboration
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20 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
MAKEMARKETINGWORK
Know the target audience
Get the message right
Build relationships and trust
over time
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21EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
KNOW THE TARGETAUDIENCE
GET THE MESSAGERIGHT
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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22 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
BUILD RELATIONSHIPSAND TRUST OVER TIME
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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23EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
IMPROVESALESEXECUTION
Be dynamic and flexible
Diversify sales channels
Make calculated bets
Recognize patterns
Go through the right networks
Let the customer make some decisions
Get the timing right
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24 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
BE DYNAMIC ANDFLEXIBLE
DIVERSIFY SALESCHANNELS
MAKE CALCULATEDBETS
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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26 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
GET THE TIMING RIGHT
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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27EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
DRIVE DOWNTRANSACTIONCOSTS
Incorporate online tools
Make audits simpler and faster
Explore behavioral change programs
Move upstream
Seek real-time feedback
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28 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
INCORPORATEONLINE TOOLS
MAKE AUDITS SIMPLERAND FASTER
EXPLORE BEHAVIORALCHANGE PROGRAMS
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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29EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
MOVE UPSTREAM SEEK REAL-TIMEFEEDBACK
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
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30 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
EMBRACECOLLABORATION
Get credit for codes and standards
Leverage third-party partners
Look externally to non-utility
organizations
Work with regulators andcollaborative working groups
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31EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS Turbocharging Efficiency Programs
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
GET CREDIT FOR
CODES ANDSTANDARDS
LEVERAGE THIRD-PARTY
PARTNERS
LOOK EXTERNALLY
TO NON-UTILITYORGANIZATIONS
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32 Turbocharging Efficiency Programs EFFICIENCY PROGRAMS CHALLENGES AND RECOMMENDATIONS
MAKE MARKETING WORK IMPROVE SALES EXECUTION DRIVING DOWN TRANSACTION COST EMBRACING COLLABORATION
WORK WITHREGULATORS AND
COLLABORATIVEWORKING GROUPS
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33CASE STUDIES Turbocharging Efficiency Programs
Case Studies
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34 Turbocharging Efficiency Programs CASE STUDIES
NYSERDAs
New Construction Program
Energy Trust of Oregons Strategic
Energy Management Initiative
Northeast Efficiency PartnershipsRetail Products Initiative
Palm Desert Energy DemonstrationPartnership: Set to Save Program
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35CASE STUDIES Turbocharging Efficiency Programs
Pacific Gas and Electric s Monitoring-Based
Persistence Commissioning
(MBPCx) Program
Xcel Energys Energy Star New Homes
Program
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36 Turbocharging Efficiency Programs CCSE
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37
Conclusion
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38 Turbocharging Efficiency Programs
Endnotes
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39Turbocharging Efficiency Programs
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40 Turbocharging Efficiency Programs APPENDIX
AppendixCase Studies
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41 APPENDIX Turbocharg
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42 Turbocharging Efficiency Programs APPENDIX
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43 APPENDIX Turbocharg
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44 Turbocharging Efficiency Programs APPENDIX
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45 APPENDIX Turbocharg
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46 Turbocharging Efficiency Programs REFERENCES
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47REFERENCES Turbocharging Efficiency Programs
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48 Turbocharging Efficiency Programs REFERENCES
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49REFERENCES Turbocharging Efficiency Programs
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50 Turbocharging Efficiency Programs REFERENCES
References
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51REFERENCES Turbocharging Efficiency Programs
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52 Turbocharging Efficiency Programs APPENDIX
Acknowledgements
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53Turbocharging Efficiency Programs
American Council for an Energy-Efficient Economy
Austin Energy
Commonwealth Edison
Consortium for Energy Efficiency
Efficiency 2.0
Energy Solutions
E-Source
Energy Trust of Oregon
Enovity Inc.
Northeast Energy Efficiency Partnerships
Northwest Energy Efficiency Alliance
Northwest Power and Conservation Council
New York State Energy Research
and Development Authority
Lawrence Berkeley National Laboratory
Pacific Gas and Electric
Residential Science
Sempra Utilities
San Diego Gas and Electric
Southeast Energy Efficiency Alliance
Southern California Edison
Rational Energy Network
Simple Energy
Southwest Energy Efficiency Project
Xcel Energy
Vermont Energy Investment Corporation
We are grateful to these organizationsfor sharing their perspectives for this report
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