1. by Martin Kushler, Ph.D. Senior Fellow American Council for an Energy-Efficient Economy INSPIRING MUNICIPAL UTILITIES TO MAXIMIZE ENERGY EFFICIENCY… AS A SYSTEM RESOURCE,AND LOCAL ECONOMIC DEVELOPMENT STRATEGY

5. Cost of New Electricity Resources Source: Lazard 2008 for NARUC (midpoint of range)

11. 5 th NW Plan Relied on Conservation and Renewable Resources to Meet All Load Growth Thru 2016 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 2004 2008 2012 2016 2020 2024 Year Installed Capacity (MW or aMW) Conservation (aMW) Wind (MW) DR (MW) SCGTurbine (MW) CCGTurbine (MW) Coal (ICG) (MW)

12. The Region Has Exceeded the 5 th Plan’s Energy Efficiency Targets Every Year

13. Utility Acquired Energy Efficiency Has Been A BARGAIN!

14. Avoided Costs Are Now Forecast to Be Significantly Higher

15. Draft 6 th Plan Goal: Meet 85% of Load Growth with Conservation

16. Pacific NW 6 th Plan Resource Portfolio (2010)

24. ENERGY EFFICIENCY vs. RENEWABLE ENERGY: POLICY IMPACTS ON ELECTRIC SYSTEM COSTS [Source: Next Energy & EOS study for MDEQ, 2007] -8% -7% -6% -5% -4% -3% -2% -1% 0% 1% 2% 3% 4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Difference from Base Case EE1 EE2 RPS1 RPS2 RPS1-EE1 RPS2-EE2

29. Energy Efficiency Resource Standards HI: 4,300 GWh by 2030 20% of load growth by 2010 11.5% by 2020 10% of 2005 sales by 2020 1.5% annual by 2010 >2%% annual by 2015 VT: 2.0% annual now MA: 2.4% annually by 2012 CT: 1.5%/yr now 22 States –February 2010 DC: 20% by 2020 DE: 15% by 2015 ~10% by 2025 VA: 10% by 2020 2% annual by 2015 1.5% annual (post-2010) >1% annual by 2012 1% annual. By 2011 4% by 2020 0.6% annually 2% annual by 2019 1.0% annual by2012 Standard Voluntary Goal Pending Standard or Goal Combined RES/EERS MD: 15% by 2015 (relative to 2007 sales) 20% of 2005 sales by 2020 2% annual by 2019

30. Cumulative Electricity Savings of State EERS Policies Extrapolated to 2020 *Savings beginning in 2009 extrapolated out to 2020 based on final year of annual savings required Note: Assumptions and methodology detailed in full report State Cumulative 2020 Target State Cumulative 2020 Target Vermont* 27.00% Wisconsin* 13.50% Maryland* 26.70% Maine* 13.40% New York* 26.50% Connecticut* 13.14% Massachusetts 26.10% California 12.94% Rhode Island* 25.26% Ohio 12.13% Arizona 22.00% Michigan 10.55% Illinois 18.00% Oregon* 10.40% Hawaii* 18.00% Pennsylvania* 9.98% Washington 17.24% New Mexico 8.06% Minnesota 16.50% Arkansas* 6.75% Iowa* 16.10% Texas 4.60% Delaware 15.00% Florida 4.06% Colorado 14.93% Nevada 3.76% Indiana 13.81% North Carolina 2.92%

31. Results of ACEEE EERS “Progress Report”

32. AN EXCELLENT MUNICIPAL UTILITY EXAMPLE

37. .

39. PART 2 THE CASE FOR ENERGY EFFICIENCY AS ECONOMIC DEVELOPMENT WHY DOES ALL THIS MATTER????

40. UNDERSTANDING THE ECONOMIC PROBLEM KEY POINT #2: ENERGY COSTS ARE A HUGE DOLLAR DRAIN

42. Total Michigan Taxes vs. Michigan Energy Costs 2000 vs. 2008

44. Economic Burden on Michigan Homes and Businesses: Taxes vs. Energy Costs (2008)

55. As a matter of economic policy, cities should be trying to maximize the amount of energy efficiency resources they can acquire, … and minimize the amount of additional fuel imports needed

56. FROM THE BURLINGTON 2010 EE ANNUAL REPORT: Energy efficiency expenditures are made almost entirely locally, typically in the form of professional services, skilled trades employment, and equipment purchases. Not only is the value of the City ’ s building and energy-using equipment improved, but locally-retained dollars are “ multiplied ” many times over by subsequent consumer spending. Absent these energy efficiency expenditures, these funds would have gone towards the purchase of electricity and enhanced infrastructure to satisfy increased demands on the City ’ s electrical system. Most of these dollars would have been exported out of state, and many out of the country. Energy Efficiency is a win-win situation for the city of Burlington through increased local economic activity, and through the avoidance of increasingly costly electricity purchases, their associated infrastructure growth and capital expenses, and their environmental impacts.

58. SOME SOURCES FOR EXCELLENT EE PROGRAMS FROM AROUND THE U.S. Compendium of Champions: Chronicling Exemplary Energy Efficiency Programs from Across the U.S. York, Kushler & Witte, ACEEE, 2008 http://www.aceee.org/research-report/u081 [Presents the results of a national search for exemplary utility-sector energy efficiency programs. A detailed appendix includes summary profiles of a total of 90 programs across 20 different program categories.] Energy Efficiency and Electric System Reliability: A Look at Reliability-Focused Energy Efficiency Programs Used to Help Address the Electricity Crisis of 2001 Kushler, Vine and York, ACEEE, 2002. http://aceee.org/research-report/u021 [22 “case studies” of successful examples of “reliability-focused energy efficiency programs”]