A Scoping Study on Energy Efficiency in Market Transformation by California Utility DSM Programs

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Title
A Scoping Study on Energy Efficiency in Market Transformation by California Utility
DSM Programs
Permalink
https://escholarship.org/uc/item/10z9w3th
Author
Eto, J.
Publication Date
1996-07-01
eScholarship.org Powered by the California Digital Library
University of California
LBNL-39058
UC-1322
ERNEST ORLANDO LAWRENCE
BERKELEY NATIONAL LABORATORY
A Scoping Study on Energy-Efficiency
Market Transformation by California
Utility DSM Programs
J. Eto, R. Prahl, and]. Schlegel
Energy and Environment Division
July 1996
0
DISCLAIMER
This document was prepared as an account of work sponsored by the United States
Government. While this document is believed to contain correct information, neither the
United States Government nor any agency thereof, nor the Regents of the University of
California, nor any of their employees, makes any warranty, express or implied, or
assumes any legal responsibility for the accuracy, completeness, or usefulness of any
information, apparatus, product, or process disclosed, or represents that its use would not
infringe privately owned rights. Reference herein to any specific commercial product,
process, or service by its trade name, trademark, manufacturer, or otherwise, does not
necessarily constitute or imply its endorsement, recommendation, or favoring by the
United States Government or any agency thereof, or the Regents of the University of
California. The views and opinions of authors expressed herein do not necessarily state or
reflect those of the United States Government or any agency thereof or the Regents of the
University of California.
LBNL-39058
UC-1322
A Scoping Study on Energy-Efficiency
Market Transformation by California
Utility DSM Programs
Prepared by
1
Joseph Eto, Ralph Prahl, and Jeff Schlegel
Energy & Environment Division
Earnest Orlando Lawrence Berkeley National Laboratory
University of California
Berkeley, California 94720
Prepared for
The California Demand-Side Measurement Advisory Committee
Project 2091 T
July 1996
The work described in this study was supported by the California Demand-Side Measurement Advisory Committee
(CAD MAC), and by the Assistant Secretary of Energy Efficiency and Renewable Energy, Office of Utility Technologies,
Office of Energy Management Division of the U.S. Department of Energy under Contract No. DE-AC03-76SF00098.
Authors are listed in alphabetical order. Ralph Prahl and Jeff Schlegel are independent consultants to the California
Public Utilities Commission, Commission Advisory and Compliance Division.
Contents
Tables ............................................................. iii
Figures ............................................................. v
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Xl
Chapter 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Sources of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Summary of Tasks ............................................ 4
Chapter 2: Market Barriers, Market Effects, and Market Transformation . . . . . . . . . . . 7
2.1 Definitions of Key Terms ...................................... 7
2.2 Market Barriers Relevant to Utility Energy-Efficiency Programs . . . . . . . . 11
2.3 Market Effects Attributable to Utility Energy-Efficiency Programs . . . . . . 17
Chapter 3: Evidence for Market Transformation from Recent California Utility
Energy-Efficiency Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.1 Approach to Utility Energy-Efficiency Program Reviews .............. 21
3.2 A Graphical Tool for Program-Specific Analysis of Market Effects ...... 23
3.3 Residential, Commercial, and Industrial Customer Incentives Programs ... 26
3.4 Information Programs ........................................ 50
3.5 New Construction Programs ................................... 58
3.6 Direct Assistance Programs .................................... 68
3.7 Summary .................... ; ............................. 72
Chapter 4: Does California's Current DSM Policy Framework Support the
Objective of Market Transformation? .......................... 75
4.1 California's DSM Policy Framework Promotes Resource Acquisition .... 76
4.2 The DSM Policy Framework Provides Mixed Incentives
for Market Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
CONTENTS
4.3 California's M&E Protocols Do Not Encourage Measurement
of Market Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
4.4 There Are Modest Compensations for Market Transformation
in the Existing Policy Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
4.5 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Chapter 5: Conclusions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5.1 Summary of Conclusions ..................................... 101
5.2 Recommendations .......................................... 104
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 121
Appendix A: List of Interviews and Interview Guides . . . . . . . . . . . . . . . . . . . . . . . . 123
ii
Tables
Table 1-1. California Utility Energy-Efficiency Programs Reviewed . . . . . . . . . . . . . . . 3
Table 2-1. List of Market Effects Potentially Attributable to Utility
Energy-Efficiency Programs ................................. 20
iii
iv
Figures
Figure 2-1. Organization of Market Actors in an "Idealized" Market . . . . . . . . . . . . . . ·17
Figure 3-1. Sample Market Influence Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 3-2. C & I EEl: Lighting Incentive and Information Program ............. 35
Figure 3-3. RAEI: Refrigerator Incentive and Information Program .............. 39
Figure 3-4. Manufacturer Incentive Program ................................ 44
Figure 3-5. Prototypical Customer Information Program ....................... 56
Figure 3-6. New Construction Program ............................ : . . . . . . 59
Figure 3-7. SCG Direct Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
v
vi