Utility Conservation Efforts and DSM Programs

Utilities have long been interested in load leveling. Peak shaving avoids service outages and decreases spot buying resulting in benefits to both customers and a utility’s bottom line. A residential market with an increasing sector of energy-efficient homes can be an important part of a utility’s efforts to promote conservation and demand-side management (DSM) initiatives. Such practices allow a utility to avoid implementing expensive, supply-side solutions. Supply-side solutions, like the fossil fuels that largely drive them, are reaching their limits. For this reason, utilities have more incentive to pursue effective conservation and DSM programs. The E-Star™ program for utilities (Coming Soon) can positively contribute to these utility programs. E-Star is a residential energy expert and routinely networks with builders, real estate professionals, lenders, and others to make increased levels of energy efficiency a reality. E-Star Utility partners use E-Star’s experience and expertise to develop a customized program that enhances consumer service and home energy efficiency.

The Downside of Supply Side Solutions

Fossil fuels heat the bulk of US homes, and natural gas has become the fuel of choice for new power plants. First, the good news: improvements in home energy efficiency means the same amount of energy consumed in homes during 1970 can run 60% more homes today. Next, the bad news: non-OPEC wells will peak by 2005, natural gas production in the U.S. and Colorado is flat despite increased drilling, and prices are expected to markedly increase. Once up, many industry experts do not expect them to decrease. In fact, Xcel Energy increased rates for natural gas by 39% in March 2003, indicating this was a long-term issue. The natural gas glut enjoyed by Colorado utility consumers, as reflected in low prices, ended in May of 2003 with the tapping of these resources by other states and private industry. These events will impact utilities, creating pressure to have good conservation and DSM programs. Consumers, who will look for relief from rising energy costs, will also feel them. E-Star can help utilities design a program that addresses consumer concerns and encourages homeowner participation in energy efficiency and conservation efforts.

E-Star and Home Energy Ratings

Home Energy Ratings, provided by E-Star Raters, identify home improvements to maximize end-use efficiency for both new and existing homes. Ratings can be ordered either by builders or homeowners. Firms in the E-Star Builder Program are committed to constructing homes with high levels of energy-efficiency, using building methods and installing systems that create a home with lower utility usage, as well as increased quality for the homeowner. Ratings on existing homes include suggestions for energy improvement, and the E-Star program includes financing options for homeowners undertaking such improvements. Utilities can promote the use of ratings to improve energy efficiency in the residential market by offering reduced rates for Home Energy Ratings, or rebates for installations of cost-effective improvements based on such ratings. The E-Star solution for utilities (Coming Soon) includes many such customizable concepts for inclusion in a utility’s conservation or DSM programs.

An Example: Peak Shaving, HVAC, and E-Star

On the hottest and coldest days, the performance of energy-efficient homes helps utilities to peak shave. An energy-efficient home has a tighter building envelope. This means the residential HVAC system can more effectively heat and cool the home. Such a home will be kept comfortable by an HVAC system that is smaller than is often installed in a non-energy-efficient home of similar size. HVAC systems are often not properly sized due to a lack of information on how to do so. A big-size-fits-all approach can be seen in the residential market, to the detriment of utility use, the comfort and pocketbook of the homeowner, and the environment. Builders and homeowners can use an E-Star Home Energy Rating to determine the energy efficiency of a home, how to improve it, and, with ASHRAE Manual D and Manual J calculations (Coming Soon) determine the appropriate size HVAC system to install.