What’s Up with Energy Efficiency

Tucson Electric Power

1

General Benefits of DSM

• Economic Benefits – Lowest cost resource to all customers (investment now to reduce future costs)

• Non Energy Benefits (not currently valued) – Customer Perspective

• Increased comfort, quality of life

• Improved air quality

• Greater convenience, quality of product

– Societal Perspective

• Job creation and retention (studies show .38 - .59 jobs per GWh saved)

• Reduced air pollution and water use (quantified and can be monetized)

• Increased community health

• Improved aesthetics

• Reduces reliance on imported energy sources

– Utility Perspective

• Potential of reduced customer complaints and shut off notices

• Increased customer satisfaction

2

EE Case Studies: the States of CA & NY

Source: NRC, 2009

Per-capita electricity consumption in CA and NY versus United States 1960-2006

TEP Customer 11,361 kWh/Yr

TEP Cost of Energy (cents / kWh, 2011 $)

0

2

4

6

8

10

12

14

16

18

2011 TEP Energy Efficiency

Energy Efficiency ('12 - '20)

Photovoltaics Biomass Combustion

Wind Nuclear Coal Combined Cycle

2.3

16.0

10.8 11.0

13.6

12.0

8.8

EE Renewable Energy Conventional

1.1

* Gas prices are based on the 2012 IRP Base Case * Solar Technologies are combined

40 MW

2012 2014 2016 2018 2020 2022 2024 2026

35 MW

In 2010

20 MW

150 MW 250 MW 475 MW

45 MW 50 MW

Energy Efficiency

Demand Response

325 MW

175 GWh 700 GWh 1300 GWh 2300 GWh 1700 GWh

Az Energy Efficiency Standard = 22% by 2020

In 2011 TEP EE Portfolio

RESIDENTIAL

New Construction

(GHP)

Low Income Weatherization

Shade Trees Direct Load

Control (Power Partners)

Existing Homes & Audit Direct

Install

Appliance Recycling

Multi-Family

Efficient Products (CFL)

BEHAVIORAL

Home Energy Reports

In-Home Energy Displays (Pilot)

K-12 Energy Education

Direct Canvassing

CFL Giveaway Community Education

COMMERCIAL

C&I Comprehensive

Prescriptive and Custom

Small Business Direct Install

Prescriptive and Custom

New Construction

Direct Load Control

Retro-Commissioning

School Facilities

Combined Heat and Power (CHP)

Bid for Efficiency Pilot

In 2012 TEP EE Portfolio

RESIDENTIAL

New Construction

(GHP)

Low Income Weatherization

Shade Trees Direct Load

Control (Power Partners)

Existing Homes & Audit Direct

Install

Appliance Recycling

Multi-Family

Efficient Products (CFL)

BEHAVIORAL

Home Energy Reports

In-Home Energy Displays (Pilot)

K-12 Energy Education

Direct Canvassing

CFL Giveaway Community Education

COMMERCIAL

C&I Comprehensive

Prescriptive and Custom

Small Business Direct Install

Prescriptive and Custom

New Construction

Direct Load Control

Retro-Commissioning

School Facilities

Combined Heat and Power (CHP)

Bid for Efficiency Pilot

In 2013 TEP EE Portfolio

RESIDENTIAL

New Construction (GHP)

Low Income Weatherization

Shade Trees Direct Load

Control (Power Partners)

Existing Homes & Audit Direct

Install

Efficient Products (CFL)

BEHAVIORAL

Home Energy Reports

COMMERCIAL

C&I Comprehensive

Prescriptive and Custom

Small Business Direct Install

Prescriptive and Custom

New Construction Direct Load

Control

TEP EE Portfolio

RESIDENTIAL

New Construction

(GHP)

Low Income Weatherization

Shade Trees Direct Load

Control (Power Partners)

Existing Homes & Audit Direct

Install

Appliance Recycling

Multi-Family

Efficient Products (CFL)

BEHAVIORAL

Home Energy Reports

In-Home Energy Displays (Pilot)

K-12 Energy Education

Direct Canvassing

CFL Giveaway Community Education

COMMERCIAL

C&I Comprehensive

Prescriptive and Custom

Small Business Direct Install

Prescriptive and Custom

New Construction

Direct Load Control

Retro-Commissioning

School Facilities

Combined Heat and Power (CHP)

Bid for Efficiency Pilot

Timing:

June with TEP’s rate case

?

Questions

9