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333.7916 N7ends Diiiiiilur l')'M STATE DOCUMENTS COLLECTION MAYGWiS^ g^^RGY EFFICIENCY THROUGH DEMAND-SIDE MONTANA jTATE MANAGEMENT 1515 6th AVE. HELENA, Ô;.NTANA 59620 M A WIN WIN affordable electricityforthe services anywesternMontanans Montanan's wantforcomfort and enjoythe reliability ofenergy from STRATEGY convenience. electric cooperativeswhichtheythem- selves own asmembers. The member Electricutilitieshavea specialnamefor consumerstrusttheirutilityto consis- theprocessofinfluencingthedemand for FOR tentlyprovidetheelectricitythey need electricity Demand Side Management, forheating,cooling, lighting, andother orDSM. Influencing electricalusage purposesduringtheharshestofwinters patterns isnot anewtechnique. For andthehottestofsummers. MONTANA instance, someutilities havealong 'S historyofofferingelectric ratesthat vary Electric cooperativeswantto help their at differenttimesofday, withthe lowest customers save energy. Cooperatives ratesoccurring duringtheperiodsof are inthe business ofselling electricity, ELECTRIC lowest demand. This gives customers an butboth electrical productionand saving incentiveto shiftsomeoftheirelectrical energythroughenergy efficiencyare use awayfromtheutility's period of waysofprovidingnew sources of peak demand. Western Montana's COOPER- energy. Energy efficiencyprograms and electric cooperatives are now energyproductionbothcontributeto developing andimplementing a variety reliable energy services. ofmethods to manage the demand for ATIVES Electric cooperativesrealizethatwhen eelneecrtrgiycietfy.ficRieednucycipnrgogdreammasnids tohnreooufgh consumers purchaseelectricity they are these methods. buyingthe comfortandconveniencethat electricity provides. In effect, autiHty WHY ARE UTILITIES AND THEIR todayis selling an energy service. To PURSUING DSM? remain competitive, autilitymustpro- vide notonlycompetitive rates, but DSM also the energybenefitsthatprovide a First and foremost, many proce- CUSTOMERS comfortable home, hotwater, clean dures and technologies are less expen- clothes, lights at night, atelevisionto siveto implementthanprovidingthe watch, ora stereo to listento. Montana sameamountofpowerthroughadditional cooperativesarecoititftifedVaârc^vittog purchases ornew construction. Also, 11 PPTf s r- December 1994 Page 2 Energy Notes DSM programsinvolvelessriskthan DSM programs alsohelp the economyof buildingpowerplantsbecause energy westernMontana both directly and ^ efficiencycanbedelivered in small indirectly. Thedirectimpactsinclude " increments. Autility canbuilda creation ofjobsforcontractors and crews DSMprogram gradually, butitcannot hired to perform DSM projects such as DSMprocedures build anduse apowerplant in similar weatherization, installing energy efficient DSM increments. Also, ifa program light bulbs,orperformingenergy audits. and technologies isn'tworkingasplanned,theutility Indirecteconomicbenefits ensue forthe are less expensive can keep somepartsofthe program communitythat supportsthe contractsand to implement than goingwhile itmodifiesotherparts. crewsincludingthebankerwho finances theoperation, theaccountant who keeps providing the same the firm'sbooks, andthe lumberyard that amount ofpower Inthepast,the increased demand for providesmaterialsusedin the weatheriza- through additional energy inwesternMontanawasmet tionactivities. bybuyingadditionalpowerftôm purchases ornew outside sources. Thisstrategyworked Implementingenergyefficiencyprograms construction successfullyfordecades. However, canbringtremendous savingsnotonly thehighincrementalcostsofnew locallybutnationally. Energyeflficiency power fi-omnewgeneration sources efforts inthe U.S. overthelast 20 years canpush electricrateshigher. In have led to the use of29 percent less addition, strictregulationsnowin energy thanwasneeded 20 years ago. effectto helpprotecttheenvironment National energyefficiency hasincreased can addtothe cost ofbuildingnew by ahnostathird without any decrease in powerplants. nationalproductivity, andalmostallofthat isdueto actions byindividuals, business, Electric utilities,includingthosein government, andutilitiesto makedailyuse Montana, areadoptingnewmethods ofenergymoreefficient. Theseenergy ofproducing powerthatreducethe savings are very significant for our need forpowerfrom costlynew economy andourenvironment. Ifthe plants. Itisoftenmore cost effective U.S. hadnotbecome more energy effi- forautilityto saveelectricity thanto cient overthe last 20 years, it would have purchase additional power. Saving neededthe equivalentof82 more hydro- electricity can help Montana's electricdams orcoal generation plants in cooperatives deal with the increas- the 500 megawatt range (one of ing energydemandsinhighgrowth Montana's Colstrip plants equals 500 areas inthe state, such as Kalispell megawatts) to produce the amount of andMissoula. energy that was saved. Energy Notes December 1994 Page 3 EXAMPLES OF CURRENT andhasprovidedrebates forinstalhng DSM PROGRAMS energy efficientmeasures in commercial buildings. Approximately 356 commercial ManywesternMontana electric cooperatives projects inwestern Montanahave partici- DSM have alreadyimplemented programsthat pated intheprogram,resulting inapproxi- benefittheirresidential andcommercial mately 883,650 kWh savings. customers. Theseprogramsare constantly being monitored andmodifiedto betterserve Waterwise both the cooperativesand consumers, so DSM interestedparties shouldcontacttheirlocal This program provides a cooperative forthemostcurrentinformation. comprehensiveanalysisoffarming/ranching Themajorprogramscurrently operatingare irrigation systems, includingsoil sampling, listedbelow. terrain, and irrigation system layout. ConsumersparticipatinginWaterwiseshare the cost ofinstalling energy efficient Energy Smart Design irrigationequipment, includingmotors, Sponsored by theBonneville PowerAdminis- nozzles, andotherfittings. Approximately tration since 1988, Energy Smart Design 546 unitshavebeenmodified in Montana providestechnical anddesign assistance for under Waterwise, saving approximately remodelsandnewcommercial construction, 653,000 kWh. Nu-mber- of Homes/'Pr-ojects/Units i WW sec *kWh Savings *653,000 *5,500,400 *6,225,200 December 1994 Page 4 Energy Notes Super Good Cents since 1980. The objective of CONCLUSION Weatherwise is to install cost Begun in 1984, Super Good effective, energy efficient weather- Personsinterestedinsaving Cents promotesthe efficient, izationmeasures in existing site energyshouldkeep informed cost effective use ofelectricity built residences and mobile abouttheirutility'senergy in new homes. The SuperGood homes. Under this program, savingprogramsandlook for Cents program has provided homeowners share in the cost of actions they cantake to reduce incentives to homeowners to installing approved weatherization energy use. Become an help offset the additional cost of measures. Low-income consumers informedconsimierofenergy installing energy efficiency contribute a lower percentage of services andlook forthemost measures (such as advanced the cost. In western Montana, efficient way t^) heat and cool techniques, higher levels of approximately 1,500 homes have yourhome,providemore insulation, and airsealing). In been weatherized, saving approxi- effective Ughting, andperform western Montana, approximately 6,225,200 kWh since the alloftheother servicesthat mately 661 homes have been program began. meet yourhome andlifestyle built under this program, achiev- needs. Energy technologies ing an estimated kWh savings of areconstantlychanging. It 5,500,400. The Super Good Manufactured Housing paysto stay informedofthese Cents program and the educa- Acquisition Program (MAP) changes to make the right tion provided through it alsohas choices forsaving energy. been partially responsible for changing the waymany houses The MAP program is a regional DSM programs increase a all over Montana are built to effort designed to help increase increase energy efficiency. In the energy efficiency ofelectrically utility's energysupplybygiving 1994, the program was ex- heated manufactured homes. An customers sound, money-saving panded to include low-interest incentive is paid to manufacturers reasons to use energymore mortgages for Super Good for each home that meets the efficiently. Theseprograms Cents homes for low-income MAP energy efficiency standards. make sense because it is often Montanans. Started in 1992, MAP has been more costeffectiveforutilities very successful, with 8,075 energy tohelp customers save energy efficient manufactured homes thantopurchaseadditional DSM Residential Weatherization power. Since helps being built intheregion sincethat Program Montanansmeettheirelectrical time. Inwestern Montana, Currently knownasWeatherwise, approximately 102 MAP homes usageneeds in amore cost effective way, Montana's thisprogramhasbeen operating have been sited. electrical cooperativeswillbe betterable to continueto FOR MORE INFORMATION CONTACT YOUR LOCAL supplycost effectiveenergy ELECTRIC COOPERATIVE resources inthe future. i iSSSSijS^S^ Information prepared by Montana Department ot Natural Resources and Conservation 1520 East Sixth Avenue Helena, Montana 59620-2301