EPRI s Energy Efficiency Initiative Energy Efficiency as Energy

EPRI’s Energy Efficiency Initiative: Energy Efficiency as Energy Costs Increase February 19, 2007 Clark W. Gellings Vice President – Innovation

2006 Summer Seminar: Advancing Energy Efficiency and End-Use Technologies • Joint meeting of EPRI Board and Advisory Council, plus invited guests: – 150 leaders representing 94 different organizations • Utilities (U. S. and International)…………………… 43 • Regulators (State and Federal)…………………… 10 • Academia/NGOs/Government……………………. . 18 • Consumers/technology and equip. suppliers/architects/others. . . 23 • Significant breakthrough statements: – Jim Rogers, CEO, Duke Energy • EE is 5 th fuel, utilities need to change mission, regulatory pact – Diane Munns, President, NARUC • Regulators need to enable utilities to make money Significant opportunity to improve efficiency and effectiveness of energy use. © 2007 Electric Power Research Institute, Inc. All rights reserved. 2

EPRI Board of Directors Ad-Hoc Committee on Energy Efficiency • Michael Chesser (Chair), Great Plains Energy (also the Chair of EEI Task Force) • Charles Shivery, Northeast Utilities • Richard Silverman, Salt River Project • Steve Hickok, Bonneville Power Administration • Kathryn Jackson, Tennessee Valley Authority • Tony Ahern, Buckeye Power • Michael Dworkin, Vermont School of Law • Nick Brown, Southwest Power Pool © 2007 Electric Power Research Institute, Inc. All rights reserved. 3

Energy Efficiency Regional Workshops NU (Hartford, CT) December 13, 2006 North East West Central EPRI (Washington, DC) November 8, 2006 Great Plains Energy (Kansas City, MO) November 3, 2006 SCE (Los Angeles, CA) October 31, 2006 South TVA (Knoxville, TN) November 9, 2006 150 Attendees 85 Organizations © 2007 Electric Power Research Institute, Inc. All rights reserved. Mid. Atlantic 4

Dynamic Systems Infrastructure: Basics Efficient Building Systems Utility Communications Internet Consumer Portal & Building EMS Dynamic Systems Control Advanced Metering Control Interface Smart End-Use Devices © 2007 Electric Power Research Institute, Inc. All rights reserved. 5

Dynamic Systems Infrastructure: Utility Operations Efficient Building Systems Utility Communications Internet Consumer Portal & Building EMS Distribution Operations Dynamic Systems Control Advanced Metering Smart End-Use Devices Data Management © 2007 Electric Power Research Institute, Inc. All rights reserved. Control Interface 6

Dynamic Systems Infrastructure: Consumer Opportunities Efficient Building Systems Utility Communications Internet Consumer Portal & Building EMS Distribution Operations Dynamic Systems Control Advanced Metering Control Interface Plug-In Hybrids Smart End-Use Devices Data Management © 2007 Electric Power Research Institute, Inc. All rights reserved. 7

Approach: Three Elements of Focus Energy Analytics: • Assessments and tools: technical, economic and environmental Infrastructure: • Enabling dynamic energy management, “prices to devices” Smart and Efficient End-Use Devices: • C&I focus in year one Energy Analytics Smart and Efficient End-Use Devices Multiple Information Delivery Modes: Web Site, Reports, Online Tools, Workshops. © 2007 Electric Power Research Institute, Inc. All rights reserved. Infrastructure 8

Workshop Results – Overall • There is enthusiasm for Energy Efficiency and Demand Response – the time is now • EPRI should do this! • There are both immediate needs and longer-term requirements: need some tactical results to enable support for a long-term program • There is a need for catalyzing technology development • Regulatory barriers need to be addressed © 2007 Electric Power Research Institute, Inc. All rights reserved. 9

Interest in Energy Efficiency Infrastructure • Where do I put my money? • Assure interoperability! • Need “Design Basis” • “No Regrets” strategy • Smart appliances © 2007 Electric Power Research Institute, Inc. All rights reserved. 10

Interest in CO 2 Impact of Energy Efficiency • Credible data on environmental benefits of energy efficiency and demand response • Issues of how to use programs and technologies for “credit” © 2007 Electric Power Research Institute, Inc. All rights reserved. 11

Interest in Enabling Increased Energy Efficiency • What can I do now – how do I go about it? • Best practices • Data repository on technologies and programs © 2007 Electric Power Research Institute, Inc. All rights reserved. 12

Interest in Reducing Peak Impact from End-Use Devices • More efficient air conditioners Demand Utility • Reduce peak impact Communications of air conditioners Reduce Peak Demand Pre. Cool Recover 12 Midnight © 2007 Electric Power Research Institute, Inc. All rights reserved. 13 12 Distribution 12 Operations Midnight Noon

EPRI’s Energy Efficiency Capabilities Smart End-Use Devices Infrastructure Analytics Dynamic Energy Management © 2007 Electric Power Research Institute, Inc. All rights reserved. 14 Electrotechnologies Efficient Devices

Public Advisory Group Gain commitment of key public sector stakeholders to help shape the landscape for dynamic energy management Advice and outreach © 2007 Electric Power Research Institute, Inc. All rights reserved. 15

Energy Efficiency Initiative January 31, 2007 – Kansas City, KC • 49 participants • 34 Organizations represented • 16 members have signed Expression of Interest • 13 signed at Summit Target: • 40+ members • $5. 0 M funding Michael Chesser Chairman and CEO Great Plains Energy © 2007 Electric Power Research Institute, Inc. All rights reserved. 16