The Future of Pedernales Electric

Moving Forward on
Energy Efficiency & Renewables

Briefing for PEC Board Candidates

April 28, 2011
Pg
Pedernales
2

Risks, Challenges, Ideas

How do we maintain the good work we’ve done and build on it?

How do we deal with rising energy costs?

How do we provide for the growing energy needs of the co-op?

How do we encourage members to use less energy and still

maintain income for the co-op?
Pg
Outline
3

The problems we face
 Water/Energy Nexus

Governance

Legislative and Political
Context

Coal and Natural Gas

Nuclear Energy

Efficiency and
Renewable Energy

Model co-op and utility
programs
Clean Water Action's Mission

National non-profit active since 1972; in Texas since

1988

One million members nationwide; 35,000 in Texas;

7,000 in PEC service area

Empower people to protect America's waters, keep

toxins out of our water and bodies, and make
democracy work

Professional field and phone canvass teams

Water-
Water-Energy Nexus

Impact of coal: polluted run-off due to mining, disposal of toxic

coal ash, mercury emissions from power plant

Impact of natural gas: ground water contamination

Impact of nuclear: radioactive water lasting thousands of years

Water quantity impacts: nationwide, around .45 gal of water

consumer for each KwH of energy – .72 gals per KwH for
nuclear

No water needed for energy efficiency, solar PV, or wind energy

 PEC Outreach

ca. 25,000 Knocks

ca. 12,500 Conversations

ca. 4,500 postcards and letters

of PEC board

Candidate endorsements based

on responses to CWA
questionnaire and on
leadership qualities

2010 – ca. 6,000 mailings,

emails and phone calls
Pg
Risks to PEC
7

Growth in urban areas

Declining rural area sales

Changing costs of fossil fuels
 Pending regulation
 Impacts of coal, natural gas from fracking

Global Warming
 Higher temperatures = higher peak demand
 Declining water for cooling and pumping
Pg
Challenge to the Board
8
How to:

reduce costs for members

maintain reliable service

reduce pollution

create new jobs in the PEC service area

answer…
The answer…
 Mitigating Risk through renewables and efficiency
Pg
9

Energy efficiency and renewable energy are
widely recognized as the best energy options
to reduce risk

Can be dispatched and deployed where they
are needed- decreased need for transmission

Renewables provide power without pollution
and escalating fuel costs
 Why should Co-
Co-ops do energy efficiency or
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renewable energy programs?
10

LCRA charges three different rates for electricity
 Economy – or overnight base load power
 Normal- during the mornings
 Peak – hot summer days or really cold mornings

Peak costs are about $.06 higher than economy – and are
what drive members costs sky high

Renewables and efficiency can:
 avoid line extensions
 avoid costly transmission and distribution system investments
 reduce pollution
 keep members homes warming in in the winter and cooler in
the summer
 Governance
Pg
11

Recovery from previous scandals
 Board elections more open and accessible to
members, and increased access to co-op records.
 Capital credits

Members’ Bill of Rights

Work left to do

Single member districts?

 Principles of Cooperatives
Pg
12

Voluntary and open membership

Democratic member control

Members' economic participation

Autonomy and independence

Education, training, and information

Cooperation among cooperatives

Concern for community
 Rochdale Equitable Pioneers Society of England, 1844
 Members Bill of Rights
Pg
13

Voting and Election Safeguards.
Safeguards A Member has the right to fair and open
Director elections, with nomination to the Director ballot by petition. Proxy
ballots are prohibited for use in any Director election.

Open Meetings.
Meetings A Member has the right to attend every regular, special, or
called meeting of the Board of Directors and its committees, except for
executive sessions as allowed by policy or law. All meetings shall be called with
proper notice, and any final action, decision, or vote on a matter shall be made
in an open meeting.

Open Records.
Records A Member has the right, on written request, to examine and
copy at the Member’s expense the records of PEC, except those records
exempted from disclosure for reasons of: privacy; attorney-client privilege; real
estate subject matter; personnel subject matter; security; or, matters that are
clearly competitive, when the Board determines in good faith that disclosure
presents a compelling risk of likely harm to the Cooperative or its members.”

The Board may not changes these policies without a vote from members.

PASSED!!! Now what?

Pg
SB 1743 -Sen. Troy Fraser (Horseshoe Bay)
14

Good: Puts into statute Open Meetings and Open Records
provisions

Bad: Prohibits PEC from acquiring any electrical generation
resource without permission from the Public Utilities
Commission
 Sen. Fraser expressly said he does not want PEC buying wind,
solar, or efficiency- why?

Bad: Mandates Single Member Districts
 The mandate is bad, not the SMDs. This should be decided by
the members. What about hybrid model option?

Bad: Applies only to PEC, does not help open up other
cooperatives.

Bad: Closes Board Meetings to members only or invited guests
of members
 Single Member Districts-
Districts- how it will appear on ballot
Pg
15
The Bylaws of the Cooperative require a vote of the Members to recommend to the
Board which system should be used for future Director Elections. Please select which of
the following options that you prefer for electing PEC Directors.

(A) ______ At-Large System. Under the current, at-large system, the seven Directors
reside in different geographical districts. Directors are locally nominated by petition
of Members within their district but elected by a vote of Members from all districts,
across the Cooperative. Under this system, all Cooperative Members are eligible to
vote every year.

(B) ______ Single-Member System. Under a Single-Member System, each of the

seven Directors would reside in a different geographical district. They would be
nominated and elected locally, by action of only Members within their district. Each
Cooperative Member would normally be eligible to vote every three years, when his or
her local Director is up for election.

(C) ______ Hybrid, Combination of At-Large and Single-Member System. Under a

Hybrid system, most Directors would be elected locally, by members within their Single-
Member districts. A smaller number would be elected by all Members of the
Cooperative. Each Cooperative Member would normally be eligible to vote every year.
This method would require Members to approve a change to the Cooperative Articles of
Incorporation.
Pg
Should we have single member districts?
16
Pros

Simple to understand

Accountability- “My”
Board member

Representation for
single constituency

More representation for
the majority of
members
Cons

Pits geographic / demographic
interests against each other

“All in it together” spirit of
cooperatives

Decreased representation for
rural areas

Will low turnout be
compounded?

Requires more frequent
redistricting

Not the norm for co-ops,
standard is nominate from
district, vote at large

Cost allocation: rural v suburban
Pg High Growth Areas
17
 Because of growth, Districts 2 and 3 will
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have to shrink even more
18
 Hybrid – best of both worlds, or benefits of neither?
Pg
19
2

1
4

Every member can vote every year Every district could have some Austin
on at least one at- large board seat suburbs/exurbs OR
2 suburban districts, 2 rural/exurban districts
Pg
How will we meet future needs?
20

Potential new home for

new urbanist community:
•4,000 homes
•Airport complex
•Hospital
•Schools
*Development currently postponed due to market
But plans still exist
Pg
Case study: Buda / Kyle
21

New subdivisions
 An ounce of prevention/planning with new builds
Pg
22

Work with local developers and builders

Provide off-the-shelf packages for high efficiency
packages, geothermal heat exchange, solar systems.

Easier to dig geothermal wells, install solar from
ground up

Increased home values from efficiency/solar systems
 New study from Berkeley Labs: “Installing solar reduces
ownership costs and increases resale value. Now that’s a
value proposition,” said Adam Browning, Executive
Director of the Vote Solar Initiative. The new study finds
that homes in California that include PV installations sold
for a premium of approximately $3.9 to $6.4 per watt.
watt The
finding corresponds to an average home sales price
premium of approximately $17,000 for a relatively new,
typical size PV system.
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=YGE:US&sid=aJQlWeaHn
U6U
 Texas Government Action:
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Efficiency & Renewables
23

Comptroller has proposed new
2009 minimum energy codes for
new construction for 2011

PUC has proposed 500 MW
non-wind Renewable Portfolio
Standard

PUC has adopted new efficiency
goals for IOUs of .3% of growth
in demand by 2014

Legislature is proposing new
efficiency goals of .4% of load

PUC has approved all CREZ
transmission lines for another
9,000 MW of wind, and all routes
already approved

TDHCA will spend
approximately $350 million on
weatherization between 2010 and
2012 from stimulus

SECO will spend $240 million
between 2010 and 2012 on
efficiency and solar loans and
grants from stimulus

PUC & TDHCA under sunset
review

Solar bills --HOAs, Net-metering,
Rebates and RPS --will return in
2011
 What kind of energy will PEC choose to
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meet the growth in demand?
24

Coal

Gas

Nuclear

Renewables

Efficiency

Demand Side Management
Pg
Fossil Fuels
25

Coal and Natural Gas in the PEC Context

A changing marketplace offers risk and

opportunity
 What will PEC face with new federal
Pg
pollution standards?
26

LCRA Energy Mix

Coal: 1,025 MW 34%

Gas: 1585 MW 53%

Chart based on capacity. LCRA reports

energy as:
Hydro: 281.5 MW 9%
50% Coal
46% Natural Gas Wind: 116 MW
4% Hydro/Wind 4%
Pg
The Risk of Coal
27

Financing difficult to secure

Fuel and fuel transportation price volatility

Air quality deteriorates
 Threat to human health

Competition for water

Health impacts: NOx, SOx, mercury, particulate
matter

New federal standards on mercury, NOx, and GHGs

 New Mercury MACT caused TVA to plan to shut down 18
aging coal-fired power plants or convert to gas
 Big Risks for New Coal Plants, Ratepayers
Will Hurt if Built
Pg
28

Coal Prices Up 2008-2011

Uncertainty of Regulations, Carbon Costs

Lower Energy Demand in Slow Economy

Potential for Price Squeeze

Transportation costs are increasing

Slide Courtesy of:

 Sandy Creek
Pg
29

LS Power - Near Riesel, TX - 800 MW

LCRA committed to 200 MW from Sandy Creek
(22.28%)
 100 MW purchased power
 100 MW equity ownership
 Recently Permitted Plants (values are taken from permits or permit applications)
SO2 NOX (forms Ozone) Particulate Matter Mercury
Permit Mega- CO2 Mil
Plant City, County # Status watts Tons/yr Tons/yr lb/MMBtu Tons/yr lb/MMBtu Tons/yr lb/MMBtu lb/yr

TXU’s Oak Grove 1 & 2

(2 units)
Permitted – on
Bremond, Robertson 76474 Appeal 1,720 16.6 15,079 0.192 7,500 0.08 3,170 0.04 1,440
Pg CPS Spruce Permitted -
under
30 San Antonio, Bexar 70492 construction 750 7.4 2,102 0.06 1,752 0.05 771 0.022 140
Sandy Creek Energy Permitted –
under
Riesel, McLennan 70861 construction 800 7.5 3,585 0.1 1,793 0.05 1,490 0.04 150
Formosa Plastics (2
Units)
1,091 to 0.083 to
Point Comfort, Calhoun 76044 Permitted 300 3.0 6,518 0.496 920 0.07 446 0.034 78
TXU’s Sandow 5 at Alcoa

Rockdale, Milam 48437 Permitted 581 5.4 5,186 0.2 2,593 0.1 1,037 0.04 192
Permitted and
Calhoun Co. Nav. Dist.
emissions
settlement 2.6
Point Comfort, Calhoun 45586 reached 300 (offset) 2,071 0.179 813 0.07 597 0.051 14
NRG’s Limestone 3
Permitted – on
Jewett, Limestone 79188 Appeal 745 7.4 2,102 0.06 1,752 0.07 1,226 0.04 140

Totals for Recently Permitted Plants 5,196 49.9 36,643 17,123 8,737 2,154
Plants Still Being Pursued
Tenaska Contested Case
Hearing on 0.75 (w/
Sweetwater, Nolan 84167 Permit 900 CCS) 2,183 0.06 1,819 0.05 1,092 0.03 124
White Stallion Contested Case
Hearing on ~10
Bay City, Matagorda 86088 Permit 1,200 (est.) 4,956 0.086 4,048 0.07 1,560 N/A 96
Las Brisas Contested Case
Hearing on 10.4
Corpus Christi, Nueces 85013 Permit 1,200 (est.) 8,096 0.15 3,776 0.07 1,620 0.033 216
Coleto Creek Contested Case
Hearing on
Goliad, Goliad 83778 Permit 650 6.0 1,753 0.06 1,461 0.05 935 0.0325 100

Totals for Other Plants Being Pursued 3,950 27.15 16,988 11,104 5,207 536
 Sandy Creek pollution by the numbers
Pg
31

LCRA has signed a contract for 200 megawatts
from Sandy Creek

At approximately 30% of LCRA’s electric
load, PEC would account for 60 MW of
Sandy Creek power

Megawatts CO2 tons SO2 tons NOx tons Particulate Mercury lbs
per year per year per year matter tons per year
(forms ozone) per year

Sandy Creek 800 7.5 million 3,585 3,226 1,490 150

PEC Share of 60 562,500 268.875 241.95 111.75 11.25

Sandy Creek
 What could PEC’
PEC’s share of Sandy Creek and
Fayette cost in a carbon constrained world?
Pg
32
PEC Share CO2 @ CO2 @
MW & CO2 $20 per ton $35 per ton
Sandy 60 MW $11,250,000 $19,687,500
Creek 562,500 tons

Fayette 307.5 MW $72,000,000 $126,000,000

3.6 million tons
Total 367.5 MW $83,250,000* $145,687,500*
4,162,500 tons

Pedernales total power cost for 2007 = $263,545,140

*Does not include natural gas CO2 emission costs
Pg
33

Nuclear Reactors

Power too cheap to meter

or the most expensive way to boil water?

Comanche Peak cost estimate: $26.7 billion

South Texas Project: $22 billion STPNOC estimate- $18.2 billion
Victoria Exelon (project on-hold): $22 billion

33
 Existing Texas Nuclear Reactors
Pg
34

South Texas Project near Bay City – 2 reactors – 144 miles from Austin

Comanche Peak – 2 reactors SW of Ft. Worth, 139 miles from Austin

Generate 13% of power in Texas’ ERCOT market.

http://money.cnn.com/news/specials/nuclear_power_plants_locations/index.html?hpt=C2
 Texas was Ground Zero in the so-
so-called
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“Nuclear Renaissance”
Renaissance”
35
 Fukushima Disaster shows the dangers
Pg of nuclear accidents
36

3 reactor meltdowns, explosions, problems
covering spent fuel pools at Fukushima

Radiation releases, evacuation, food became
unsafe to eat

Radioactive water

Level 7– like Chernobyl,

which has now cost

985,000 lives
 US Reactors Also at Risk from Serious
Pg Accidents
37

STP – could also have loss of power, inability to cool
reactor – meltdown

Hurricanes, heavy storms, fires, explosions

Could cause 18,000 early deaths plus thousands of
cancer - according to 1982 NRC study

Legal case opposing new reactors addresses risks of
co-locating multiple reactors at a site; fires and
explosions
 Re-licensing of Aging Reactors
Pg
38

STP Reactors 1 & 2 are set to retire in 2027 and 2028

NRG seeks to add 20 years of operation past these
dates

Risks increase as reactors age – metal fatigue, stress
cracks

Should retire by original date or sooner and begin
transition to safer, cleaner, more affordable energy
 Nuclear Reactors Consume Vast
Pg Quantities of Water
39

Proposed South Texas Project Reactors would

use 23,000 gallons of water every minute -
Colorado River Water.

Equal to a swimming pool every minute –

1440 of them every day

Water is increasingly precious –

drinking water, agriculture, ranching, recreation
 Nuclear Risks &
Pg Radioactive Contamination
40

Routine releases of radioactive materials go

into our air and water and onto land

EPA allows these routine releases, but no one
knows how much is being released

Radioactive tritium contaminates water

Uranium mining leaves mill tailings; some

South Texas communities still have
radioactive drinking water, 30 years later
 Delays and cost overruns are typical
Pg
41

South Texas Nuclear Project – ran six times over
budget and was 8 years late coming online.

From $964 million to $5.8 billion

Construction time -11 years, largely due to the
inexperience

57 employees alleged widespread safety hazards in a
whistleblower complaint to NRC

HL&P admitted that their workers falsified inspection
reports. (1987)

Austin Energy customers still paying for these two
aging reactors – and still owe $290 million
 Nuclear Plants are Not Carbon-Free
Pg
42

Total fossil fuel emissions from the fuel-cycle chain are typically
unaccounted for, including construction, mining, waste
management and transportation

“Nuclear power is the slowest and costliest way to reduce CO2

emissions when compared to efficiency, distributed generation
and some renewable resources.” (False Promises, NIRS 2008)

1,500 nuclear plants would have to be constructed worldwide to

have a sizeable reduction in GHG (MIT study, 2003)
 Financial Meltdown for South Texas
Pg Project
43

CPS Energy pulled back from 50% to only 7%
ownership of STP – December 2009

NRG scrambled for investors – lobbied to get

Austin Energy, CPS Energy, LCRA and
Central Texas coops to buy in through power
purchase agreements
 NRG Pulls Funding for STP 3 & 4 –
Reactors Less Likely to Be Built, but not dead
Pg
44

NRG will halt investment in STP development – April 19,

2011

Writing off $481 million invested

NRG will support current or future partners moving

forward, could sell reactor license.

Giving Toshiba $20 million to continue licensing process

Still going for DOE loan guarantees – US taxpayer

 Recent Austin Energy Overnight Cost Estimates (in $/kw)

Austin Energy hired Pace Consulting as part of their 2020 Energy Plan Process

Found that 2020 pricing for solar and wind would be competitive with other resources at less risk for fuel spikes and
Pg regulatory burdens

45
$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0
New Wind Solar-PV- Solar-CPS Biomass Geoth Combined Future Traditional Coal with
Nuclear Utility Trough with ermal- Cycle Efficiency Coal Carbon
Storage Binary Natural Gas Capture

Austin Energy/Pace Mid-Year (2012) Overnight Capital Costs

Austin Energy/Pace 2020 Overnight Capital Costs
 Recent Austin Energy/Pace levelized cost of
energy (in cents/kWh)
Pg
46

12
10
8
6
4
2
0 Advanced Wind Solar Onsite Solar-PV Geoth Biomass Natural Gas Traditional Coal with
Nuclear Utility ermal- Coal Carbon
Binary Capture

Austin Energy/Pace 2012 Estimated Levelized Costs

Austin Energy/Pace 2020 Levelized Cost Estimates
Pg
What is Possible?
47

Potential is Great For more Efficiency &
Renewables
Pg
The Texas Apollo Alliance
48

A coalition of labor, business, environmental, and community groups

organizing for a fair and rapid transition to a clean energy economy
that provides quality, good-paying jobs for Texans

We can create tens of thousands

of new jobs for Texans by:
• Transforming renewable energy use in Texas
• Promoting the efficient use of electricity and natural gas
• Promoting the use of and infrastructure for electric &
alternatively fueled vehicles, and trains
• Making it in Texas by Texans
• Tapping the skills and productivity of the Texas workforce
 Energy Efficiency:
The lowest-
lowest-hanging fruit in cost savings and job creation
Pg
49

H.B. 3693 (Yr. 2007) - Texas
could meet 18 percent of its
electrical demand through energy
efficiency and demand response
programs

Creation of more than 30,000
new jobs (Itron Report)

Let’s get to work:
• Energy Auditing
• Construction & Assembly
• Design
• Technology Research & Dvpt
• Supply
• Administrative
• Training & Instruction
Pg
What Potential Is Out There?
50

Georgia Tech study “Meta-Review of Efficiency Potential
Studies and Their Implications for the South”
 reviewed 19 separate studies and found deployment of energy-
efficient technologies could bring energy consumption in 2020
down 9% in South, 100% of growth
 entirely offset the need to expand electricity generation capacity
in the South

PUC Report on Energy Efficiency potential in Texas (the Itron
Report)
 23% of peak demand cost-effective

American Council for an Energy Efficient Economy (ACEEE)
2007 Report
 76-101% of demand growth can be met with efficiency, CHP,
onsite renewable energy
 23,000+ jobs in DFW, Houston area alone
Pg
NRECA promotes efficiency for co-
co-ops
51
 NRECA: Average consumer benefits from
Pg increased investment in efficiency 2:1 to 3:1
52
Pg
ACEEE 2007 Report
53

 76-101% of demand growth can be met with efficiency, CHP,

onsite renewable energy
 23,000+ jobs in DFW, Houston area alone
 Central Electric Power Co-
Co-op (SC)
efficiency potential study
Pg
54

The technical potential savings for electric energy efficiency measures is
32% of projected 2017 MWh sales

The achievable potential ranges from 5% to 22% of projected 2017
MWh sales (based on low, medium and high market penetration
scenarios).

The achievable cost effective potential ranges from 4% to 20% of
projected 2017 MWh sales (based on low, medium and high market
penetration scenarios).

The maximum achievable cost-effective potential savings is 20%. This
high level of savings is the maximum available, is based on 80% market
penetration, and could only be attained with very aggressive, well-
designed and well-funded programs over a ten-year time period, and
only if very high levels of market penetration can be achieved in South
Carolina (similar to rates achieved in other regions of the US).
Final Report Updated 9/21/2007
Pg
Renewable Energy
55

Large and Small Scale
Pg
56

The map’s symbols show, by state, the types of

renewable energy facilities in which electric
cooperatives have ownership, have invested in,
or are participants as of February 2007. A small
number are evaluation sites, but most projects
are delivering renewable power on a
commercial scale to member-owners.
Pg
PURA § 161.123
57

An electric cooperative may:
(1) generate, acquire, and accumulate electric energy and transmit,
distribute, sell, furnish, and dispose of that electric energy to its
members only;
(2) assist its members only to wire their premises and install in those
premises electrical and plumbing fixtures, machinery, supplies,
apparatus, and equipment of any kind, and in connection with
those activities:
(A) acquire, lease, sell, distribute, install, and repair electrical and
plumbing fixtures, machinery, supplies, apparatus, and
equipment of any kind; and
(B) receive, acquire, endorse, pledge, and dispose of notes, bonds,
and other evidences of indebtedness;
(3) furnish to other electric cooperatives or their members electric
energy, wiring facilities, electrical and plumbing equipment, and
services that are convenient or useful; and
(4) establish, regulate, and collect rates, fees, rents, or other charges for
electric energy or other facilities, supplies, equipment, or services
furnished by the electric cooperative.
 Renewable Energy Cost Trends
Levelized cost of energy in constant 2005$1

Pg
58

Source: NREL Energy Analysis Office (www.nrel.gov/analysis/docs/cost_curves_2005.ppt)

1These graphs are reflections of historical cost trends NOT precise annual historical data. DRAFT November 2005
 Solar Power: A Drain on Co-
Co-op Resources
Pg
or a Way to Fund the Future?
59

Concentrating Solar Power
 Centrally located renewable power plant

Distributed Renewable Generation

 For example - solar panels on rooftops
 Member generated power
 Hedge against fuel price volatility
 Reduces investment in transmission
Pg
60
Pg
Solar and electric demand
61
Pg
Solar creates local jobs and local energy
62

Installation of distributed generation represents 70%
of the jobs in the entire Solar chain.

High growth potential for local jobs.

Electricians, roofers, designers, sales, plumbers,
HVAC technicians all have needed skills.

Why send the money to the power plant, that might
be hundreds of miles away, when the jobs and the
energy can be kept in the co-op community.

Reduces needed investment in long transmission
lines.
Pg
The price of Solar is falling
63

Solar costs have dropped dramatically in the
last 2 years.

Recently Southern California Edison, has
selected 250 MW worth of solar bids from
companies able to produce solar electricity for
20 years for less money annually than the 20
year levelized cost of combined-cycle natural
gas turbine power plant energy.
 What are Other Cooperatives and Utilities
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Doing on Efficiency and Renewables?
64
 The National & Texas Context:
Pg
all utilities moving forward
65

Bluebonnet Electric Co-op

Other Co-ops

Austin Energy 2020 Plan

San Antonio: CPS Energy

Investor-Owned TDUs required to double, then quadruple EE
programs by 2014

Portland & Los Angeles have made commitments to shut down
coal plants

Excel Energy made political deal to build solar and wind

0% financing programs by co-ops for members are being
planned by several co-ops (Kit Carson)
 Bigger goals for efficiency
Pg Bluebonnet plans to reduce load by 20% by 2020
66

Using Demand Side Management

Bluebonnet has already completed modernization of its business

information and outage management systems by installing two-way
metering systems to all of its 80,000 meters across 11,000 miles of line..

Bluebonnet deployed a Web portal, which provides members access to the

grid via the Internet and in-home wireless devices that will allow members
to read their meter, understand their load and know the real time cost of
their consumption.
 How smart are our smart meters?

The cooperative will also begin to implement an energy conservation and

demand response program that will encourage members to set up energy
networks to manage their electric load.
 United Services Co-
Co-op - Cleburne, TX
Pg
Efficiency Programs
67

Grants
 Residential: $1000+energy audit for qualifying
homes
 Commercial/Industrial: $1000+energy audit

Online Energy Efficiency Store
 New resource provides one-stop shop for many of
our members’ efficiency needs
 United members receive 20% discount on all
energy-efficient products
 United Services Co-
Co-op - Cleburne, TX
Pg Renewable Programs
68

Distributed Renewable Generation Grants
 $500 for wind
 $1000 for solar

http://www.united-cs.com/distributedgeneration.aspx
 Iowa Co-
Co-ops:
Pg
3 to 1 return on efficiency investments
69

The $11 million that Iowa co-ops invested in

energy-efficiency programs last year will post a
$30.3 million return in energy savings.

1,731 member-consumer-owners purchased

geothermal and air source heat pumps
 Will save a total of $28,970,650 over the life of
those systems
 The cooperatives will save $20,454,610.
http://www.nreca.org/AboutUs/CooperativeDifference/20081222Efficiency.htm
 Kit Carson Electric Cooperative
Pg
Taos, New Mexico
70

Kit Carson Electric Cooperative received $5.4 million in Clean
Renewable Energy Bond authority from the federal government in
2009 to launch small-scale solar projects including Taos, Rio Arriba
and Colfax.

500 kW UNM Taos Klauer-complete
 A photovoltaic array at a community college is serving both as a source of
power and as part of a renewable energy curriculum

100 kW Solar Parking Canopy-complete

50 kW solar canopy at radio station-near completion;

Two schools are using photovoltaic arrays to power their sports field
lighting and the scoreboard;

Chevron will build 1 MW large PV array at mining site this year,
turning the brown field site into a green field;

Integrating a 140-kW array at the co-op's central office.
 30 MW Solar Plant (Dec 2010)
Pg
Tri-
Tri-State G & T
71
 Delta-
Delta-Montrose Electric Association
Pg
72

Geothermal heat pumps financed through the
co-op
 New Hampshire Electric Co-
Co-op
Pg
73

For institutions, businesses, non-profit
members, the co-op offers rebates for
installing PV and small wind systems up to
$5,000

Solar water heaters - up to $1,500

Geothermal heat pumps - up to $4,000

Converted utility fleet to hybrid or ultra-low
sulfur fuel vehicles
 Austin Energy: 2020 Clean Energy Plan
Pg
with 35% Renewables and 800 MW of EE
74

City Council approved on 800

Efficie ncy
Earth Day 2010

W ind
700

Went through Citizen Task 600
Force and two City 500

Commissions

Gas
400

Biom a ss
Sola r
Ne w Nucle a r

Expanded 2007 goal from 300

200
30% to 35% after examining

C oa l
100
15 scenarios with energy
0
consultant
-100

Expanded EE from 700 New Wind Coal Efficiency
Nuclear
MW to 800 MW with study
to look at 1,000 MW AE 2020 Plan

Solar goal 200 MW
 Central Texas municipal utilities and
Pg
co-
co-ops: Is this the “Solar Corridor”
Corridor”?
75

Austin & San
Antonio already
have solar
programs

Demand is growing
in PEC,
Bluebonnet, San
Marcos, and
elsewhere
 Central Texas Public Power combined forces have the possibility
to create an “economy of scale”
scale” for renewables and efficiency
Pg
76

34 municipally-owned utilities
 Austin, San Antonio: 757,688 + 1,300,000
 LCRA customers: ~336,000
 Total population: 2.39 million

8 electric cooperatives (PEC:215k, BB:80k
“members”)
Pg
What’
What’s Already Here?
77

Austin- 200 MW solar
 Solar PV rebates
 Renewable RPS results being analyzed
 Solar water heater rebates

San Antonio- 100 MW- non-wind

14 on the ground –

30 under contract ( Sun Edison )

50 MW RFP
 Solar PV rebates
 Solartricity -Feed in tariff at .27 cents per KWh commercial
solar RFP out
Pg
CPS’
CPS’s aggressive plan
78

50 MW or more
Target dates of RFP

Proposals sought from
developers that jointly submit  Issuance of RFP
with manufacturers. Project(s) February 1, 2011
need to be within CPS service  Host Day March 31, 2011
territory.  Respondents’ Conference

Request is for 20 year PPA term, (mandatory) April 11, 2011
but preference is given to  Deadline to submit questions
proposals offering a buyout right May 2, 2011
after 6 years of commercial
operation.  Proposal due date May
31, 2011

“Concierge” non-profit third
party (Solar San Antonio) helps  Negotiations completed
match customers to solar w/winning bidder August
installers, hold customers’ hands 31, 2011
through processes of solar install
and insure customer satisfaction.

http://www.cpsenergy.com/Services/Generate_Deliver_Energy/Solar_Power/Solar_RFP/index.as
p
Pg
Texas largest solar plant nearby
79

RRE Solar Austin has announced the 600 acre
Pflugerville Solar Power Plant will be capable of
producing 60 megawatts of electricity—

RRE Solar has plans to start developing on a second
60Mw Project located in Big Spring Texas through its
subsidiary RRE Big Spring Solar

They need customers.
Pg
Texas Investor-
Investor-Owned Utilities
80

Requirement to meet 30% of
In 2010 programs, all major
load growth (2010) through utilities except CenterPoint now
energy efficiency, will go to 50% offer solar rebate programs
of growth or 1% of total
demand by 2014 under PUC
Oncor, which runs the largest of
proposal the IOU programs, has

In 2008, the nine Texas committed $9.8 million in
investor-owned utilities (IOUs) incentives to date, funding 420
achieved 202 MW of peak PV projects throughout its
demand reduction, which was service territory.
76% above their 115 MW goal,
and 581 gigawatt-hours (GWh)
of energy reduction by
spending $96 million.
 PEC Energy Efficiency/Renewable Energy Goals
Pg
81

30% renewable energy by 2020

20% of new demand met with energy

efficiency by 2020
 New LCRA Contract
Pg
EE/RE Highlights
82

Participation in Resource Planning

&
Progressive Power
Pg
83
Pg
84
Pg
85
 How do co-
co-ops finance efficiency and
Pg renewable energy?
86

Rural Utilities Service

National Rural Utilities
Cooperative Finance
Corporation (CFC)

Bank for Cooperatives
(CoBank)

Commercial Banks (esp.
JPMorgan Chase, Goldman
Sachs)

Bonding Authority – CREB

American Recover &
Reinvestment Act (the
Stimulus)

Partnerships with other public
power

Internal loan
programs/member capital
Pg
PURA § 161.123
87

An electric cooperative may:
(1) generate, acquire, and accumulate electric energy and transmit,
distribute, sell, furnish, and dispose of that electric energy to its
members only;
(2) assist its members only to wire their premises and install in those
premises electrical and plumbing fixtures, machinery, supplies,
apparatus, and equipment of any kind, and in connection with
those activities:
(A) acquire, lease, sell, distribute, install, and repair electrical and
plumbing fixtures, machinery, supplies, apparatus, and
equipment of any kind; and
(B) receive, acquire, endorse, pledge, and dispose of notes, bonds,
and other evidences of indebtedness;
(3) furnish to other electric cooperatives or their members electric
energy, wiring facilities, electrical and plumbing equipment, and
services that are convenient or useful; and
(4) establish, regulate, and collect rates, fees, rents, or other charges for
electric energy or other facilities, supplies, equipment, or services
furnished by the electric cooperative.
Pg
Current PEC EE/RE programs
88

GreenWorks® branding initiative

CFL promotion

Energy audits

Weatherization kits

HVAC rebates: $225-1000 per system

Commercial lighting rebates: $75-300

Home Energy Center online resource tool

Youth programs and speaker’s bureau
Pg
Newly proposed PEC Programs
89

30 MW pilot program for renewable energy
 Board will hear proposal from CEO in May board meeting

Beat the Peak!

 Voluntary
 Educates consumers about peak power costs

Social media, text/email alerts

 Asks consumers to reduce consumption

 Reducing demand 1 kWh / customer = $2 million
 Tip of the iceberg!

Not using smart meters, demand side management, or even
social networking to the best of our abilities
Pg
Rural Energy Savings Program
90

“The Rural Energy Savings Program would provide Federal funding to rural
electric co-ops so they could offer “on-bill” financing to their customers,
allowing families and businesses to repay an energy efficiency retrofit loan off
slowly over time through the savings on their monthly energy bill that the energy
retrofit creates.”
http://cleantechnica.com/2010/03/13/energy-efficiency-retrofits-through-rural-electricity-coops/
 Renewable Energy Goal - 30% of energy consumption by 2020
Pg potential programs for PEC
91
Small scale

bring down the cost of buying and
installing distributed PV by developing a
Cooperative Solar buying club

Co-op can make loans for buying and
installing solar on existing and new
homes

Develop a solar hot water program

Solar/geothermal homes in new
neighborhoods

Installing co-op owned geothermal loops

Net metering

Develop new rate to optimize the use of
solar to reduce the co-ops energy cost
Utility scale

Buying into coastal wind plants

Buy into large scale solar farms with
other public power entities
Economic Development

By combining demand for solar
products among Central Texas munis
and co-ops we may be able to attract
new industries

Loaning tradesmen capitol to get into
distributed renewable businesses helps
create local jobs

Using roof top leases we can reduce the
cost of peak power to the co-op and the
costs of operation for schools and
business
 Energy Efficiency-
Efficiency- Goal 20% reducing in growth in demand by 2020

Pg
Potential programs for PEC
92

Reduce peak energy costs by:

Increase goal to reducing 20% of load by 2020

Create an on-bill financing program using RUS or PACE funds for
appliance replacement or home efficiency upgrades

Weatherize old leaking homes

Give building incentives to build new homes/buildings meeting
Energy Star or Austin Energy standards

Develop special programs for small business/ranch/local
governments and schools

Expand Demand Side Management program

Create a program to recover energy efficiency costs from those that
benefit from them
Questions?

Andy Wilson, Public Citizen awilson@citizen.org

512-477-1155
Karen Hadden, SEED Coalition karen@seedcoalition.org
512-797-8481
David Foster, Clean Water Action dfoster@cleanwater.org
512-474-0605
David Power, Public Citizen dpower@citizen.org
512-477-1155
Dave Cortez, TX Apollo Alliance Cortez@apolloalliance.org
512-736-7600