An Ignoble Experiment

2. Utilities called upon to promote EV adoption

New research from the Energy Information Administration (EIA) shows an interesting shift in home energy consumption.

According to EIA data collected in 2010 and 2011 and released in 2011 and 2012, 48 percent of home energy consumption in 2009 was for space heating and cooling. This was the year that put an end to decades where space heating and cooling, or space conditioning, accounted for more than half of all residential energy consumption. The drop can be attributed, in part, to more efficient equipment and windows and better insulation.

While energy use for heating and cooling has declined, energy consumption for appliances and electronics continues to rise, despite federal efficiency standards. The sheer volume of devices (laptops, ipads, ipods, smartphones, smart TVs, video game consoles, smart appliances, etc.) have offset any efficiency gains, according to EIA, and energy use for appliances, electronics, water heating, and lighting under normal conditions now accounts for 52 percent of total consumption -- up from 42 percent in 1993.

"With these everyday items accounting for more than a third of home energy use, purchasing energy-saving appliances and light bulbs will have an even greater impact on…energy bills," said Alliance to Save Energy President Kateri Callahan. "Plus, as we all use more electronics at home, saving energy while gaming, watching television and browsing on your computer can lead to greater [efficiency gains]."

Greater efficiency in home energy consumption can be facilitated by utilities. Fueled by a combination of a growing constituency of green consumers and home builders, many customers are excited to take advantage of such utility programs as demand response and time-of-use pricing.

For more:
- see the EIA survey data

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By Barbara Vergetis Lundin

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3. Are unnecessary charges keeping CA IOUs in business?

New information from the Electric Power Research Institute (EPRI) supports previous findings that consumer electric vehicle (EV) buying decisions are heavily influenced by the experiences of friends, family and neighbors.

This round of research goes even further, revealing that consumers surveyed by EPRI will rely strongly on their utility for the information and infrastructure needed for both the vehicle purchase and operation. This opens up the possibility that utilities will not only need to be experts on how the grid will support EVs, but will need to be well-versed in electric vehicles themselves to support customers in their purchasing decisions.

Survey results show consumer education is a primary factor in addressing uncertainties and misconceptions about EV performance and reliability. Once they were familiar with EV operation and performance, more new car buyers showed a preference toward EVs. Even some consumers who initially intended to buy a used car, opted to purchase a new EV once they were armed with information about the advantages of EVs.

EV sales have not yet met manufacturers' sales forecasts, but there are indications that those expectations could be met or even exceeded -- with the right support.

"We are at a critical point in the development of the electric vehicle market," said Julia Jones, CPS energy research manager - technology transfer. "Electric utilities can play an important role in supporting electric vehicle market adoption and ensuring that they are used in ways that achieves the maximum degree of economic, environmental, and societal benefits."

For more:
- get the report

Related Article:
EV sales down, interest up

Read more about: plug-in vehicles, electric vehicles
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By Barbara Vergetis Lundin

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4. American Public Power Association concerned over future of municipal bond taxes

The Sierra Club has identified the top five "money wasters" among California's investor owned utilities. Southern California Edison (SCE) tops -- and appears twice on -- the list.

View the full size image. Credit: PRNewsFoto/Sierra Club

Here are the top five:

1. SCE's Tupman Coal Plant: The Sierra Club claims "recklessness" for attempting to build a coal power plant in this area of high smog and asthma rate and contends that the "Hydrogen Energy California" (HECA) coal project would exceed government standards for smog causing nitrogen dioxide by more than 1,500 percent. So far, customers have been charged $30 million for a feasibility study; the plant will cost $3.15 billion.

2. San Diego Gas & Electric's Pio Pico and Quail Brush plants: SDG&E is pursuing natural gas when it should be taking advantage of abundant sunlight, according to the Sierra Club, which says the project would mean an unnecessary $2 billion on customer bills for power that isn't needed.

3. Pacific Gas & Electric's Oakley Power Plant: PG&E's $1.5 billion natural gas plant draws the ire of the Sierra Club who cites the Division of Ratepayer Advocates as finding, "PG&E does not demonstrate need for the Oakley project, nor is Oakley the appropriate method to fill any perceived need." The California Public Utilities Commission has given the go-ahead for the project.

4. San Onofre Nuclear Generating Station (SONGS): SCE and SDG&E make the list for the now offline nuclear power plant in San Diego County. The Sierra Club says that the utilities are charging ratepayers millions of dollars for a "dangerous and faulty nuclear power plant that's been offline for over a year," with SCE billing $774 million in 2005 for "faulty" equipment. SONGS has come under serious scrutiny since its shutdown and the utilities are actively addressing any remaining safety concerns.

5. PG&E Solar: The Sierra Club blames "archaic billing practices" on the "heavy" fees for solar in PG&E service territory, which the Sierra Club says are five to ten times more than SCE or SDG&E. The discrepancy is attributed to manual billing practices for solar customers.

The bottom line, according to the Sierra Club, is that these unnecessary customer-funded projects are providing huge profits for California utilities.

For more:
- see this article

Read more about: Southern California Edison
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By Travis Mitchell

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5. Despite ARRA funding, smart meter deployments far from over

The American Public Power Association (APPA) today passed several legislative resolutions designed to coalesce U.S. public power companies and help drive the national energy policy debate.

The seven resolutions considered during the session in Washington, D.C. touched on a range of issues. These included: hydropower project approval, municipal bonds, Commodity Futures Trading Commission (CFTC) proposals, rate refund parity for natural gas, and capacity market supply. The resolutions will be finalized early this summer and will be used to guide public power lobbying efforts.

While it's uncertain if each resolution will result in bills being introduced in Congress, the resolutions reflect the needs of the public power companies, which serve about 14 percent of U.S. electric customers.

APPA's biggest priority during the Tuesday session was voicing support for taxes and financing, which are key cornerstones of public utility infrastructure development. Municipal markets in particular are foundations of the capital-intensive public power industry.

"Right now we are concerned, given the interest in deficit reduction and tax reform, that the taxes and financing, along with a number of other issues, are vulnerable," said APPA President and CEO Mark Crisson.

Crisson also highlighted industry concern over an Obama Administration budget proposal to implement a new cap on municipal bond interest tax-exemption policy. APPA members see this as a big departure and a costly mistake, given that municipal bond interest has been tax-exempt since their inception in 1913.

The unanimously-approved resolution notes that, "All publically available research indicates that such taxes would -- at the levels being discussed -- increase state and local borrowing costs, an increase that will result in higher taxes or higher utility rates for state and local residents."

APPA does not have any legislation in progress to address the issue, but it is certain to remain at the head of the debate, especially as the future of renewable tax credits and other federal incentives remain in flux.

For more:
-see the municipal bond resolution
-see complete Washington, D.C. event coverage

By Barbara Vergetis Lundin

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