Willmar Municipal Utilities

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Willmar Municipal Utilities

• Demand Side Management February 27, 2007

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History

• The way we purchase power has changed
• The Cost of Electricity is rising
• New Generation and Transmission are becoming very
  expensive
• The cost of Conservation is less than new
  generation

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Willmar Municipal Utilities Energy Services
Department

• Willmar Municipal Utilities Energy Services
  department was Created in 2002 in response to the
  Minnesota Energy Security and Reliability act of
  2001.
• Requires all municipal utilities to spend 1.5 of
  their gross operating revenue on Conservation
  Improvement Programs (C.I.P.)
• Requires a report of activities every two years
  and an update every year.
• The law outlines where the money can be spent
  and at what percentages.
• If WMU does not spend all this money properly,
  the remainder must be sent to St Paul for their
  discretionary use.
• Energy efficiency investment creates NEGAWATTS.
  Goal is 300 per Kw demand installed.

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• Education
• Program inception
• Research and development

Conservation is best.
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• Conservation is the cheapest form of energy
  generation
• Energy efficient businesses use 30 less energy
  than their competitors

Conservation is best.
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List of Programs Energy Services Provides

• 1991 Off Peak Rate To
  accommodate former KPC customers
• 1993 Heat Pump Credit Initiated
  by the High School and the County
• 2000 Interruptible Load Credit Use
  customer generation for capacity
• 2002 Load Share Network Air
  Conditioner Cycling
• 2002 Off Peak Water Heater Use existing
  rate for load shifting
• 2002 RiverWinds Partner
  with MRES for green power
• 2003 Energy Star Rebates Rebate
  for selected appliances and AC
• 2003 CI Lighting Rebate Upgrade to
  efficient lighting
• 2005 Off Peak Storage Heat Designed
  to build and/or shift load
• 2005 Commercial Off Peak Based on
  Residential OP rate

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The Target

• Peaks, Peaks, Peaks
• 3-10 times each Summer
  Season
• Begin on the 2nd
  or 3rd day of a heat wave
• Typically occur between 11am and 6pm
• Small window of time but VERY
  EXPENSIVE energy

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Load Duration Graph

• Must reserve energy for peak in advance
• Must purchase spot power if reserve is exceeded

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The Solution

• Load Sharing Program
• Ideas are not new
• Similar programs have been used successfully by
  neighboring utilities for over 20 years

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How Does It Work?

• Murphys Law
  All thermostats in the city will call
  for cooling at the same time creating a
  peak demand
• Create a communication network for the
  thermostats
• Coordinate On/Off time with other Air Conditioners

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Method and Motivation

• Educate our customers on the importance of
  reducing peak demand
• Appeal to their civic conscience and
  environmental stewardship
• Explain the avoided costs
• Ask them to volunteer their air conditioner and
  or water heater for cycling

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How Does It Work?

• Network reduces load requirement to 75 instead
  of 100

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Who and Where?

• By far, our most responsive groups have been our
  retired customers
• Fixed income, want the world to be a better place
  for their grandchildren
• Church groups, Senior Citizens, housing
  associations, Service Organizations, Chamber of
  Commerce, neighborhood gatherings

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How to make contact

• Personal contact door to door, one on one, by
  far the most effective, 90
• Radio talk shows, advertising, event
  coverage, news releases, public service
  announcements
• Newspaper advertising, event coverage, news
  releases
• Mail Brochures, simple program applications,
  program mailers
• Public speaking home shows, guest speaker,
  organizational membership

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• Energy Star Rebates
• Receive up to 150 by purchasing Energy Star
  appliances (clothes washer, dishwasher,
  refrigerator)
• Receive 200 by purchasing an Energy Star central
  air conditioner or heat pump

Giving you the power to save.
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• Off-Peak Water Heater
• Includes a rebate plus an additional monthly 10
  credit
• Off-Peak Heating
• Save up to 40 by using off-peak rate with slab
  heating or storage heating

Giving you the power to save.
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• Residential Heat Pump
• Receive a special monthly credit
• Interruptible Load Program
• Results in 3/month/KW interrupted (minimum of
  100 KW load shed)

Giving you the power to save.
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• Commercial Industrial Lighting Retrofit
• Rebate of 300 for every KW saved by upgrading
  lighting system to new technology

Giving you the power to save.
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Willmar Municipal Utilities

• Demand Side Management February 27, 2007