Preparing for the NEXT CENTURY - Eugene Water & Electric Board

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6 EWEB: PREPARING FOR THE NEXT CENTURY Thirty years of energy conservation No utility in the Northwest has done more to help its customers use less energy over the past three decades. EWEB customers have saved a cumulative 52 average megawatts over the past 30 years. That’s more energy than is generated annually by all of EWEB’s hydroelectric projects in Oregon. How did it all begin The following is a retrospective of how Eugene citizens and their publicly owned utility came to view energy conservation as a legitimate alternative to energy generation. The “big bang” that ignited the modern era of energy conservation was the 1973 Arab oil embargo against the U.S., which resulted in long lines at gasoline stations and heating oil shortages. But the embargo’s biggest, lasting effect was on the mind-set of most Americans, who for the first time realized that our traditional energy resources are not limitless. At the time, most electric utilities still were promoting the 1950s theme of “living better electrically.” New appliances and all things electrical proliferated at a time when “Redi-Kilowatt,” the animated electricity icon, promised us: “Inside and out, your home will have all the magic that electricity can perform – plus ample horsepower for future conveniences that electrical research is sure to provide.” Things were not much different in Eugene in the early 1970s. When upstart EWEB Commissioner John Reynolds, a University of Oregon architecture professor, made a motion to appoint a citizens’ advisory committee on energy conservation, it died for lack of a second by other board members. We needn’t rush into “lowering the standard of living of the citizens of Eugene,” countered one board member. Yet resource planners recognized that demand for electricity would continue to grow, as new residents, businesses and industry relocated to Eugene. Where would the energy come from Initially, nuclear power was seen as the answer. But in 1970, Eugene voters approved a four-year moratorium on the construction of nuclear power plants in or near the city. Conservation began to emerge as a viable option. “The need for new resources remained, and without the option of nuclear power, EWEB commissioners directed staff to pursue conservation and renewable energy resources,” says Mat Northway, Manager of Energy Management Services since 1984. As a first step, the utility established EWEB’s Conservation Center in 1977 to help customers identify ways to reduce electric waste and improve efficiency of use. “EWEB’s Conservation Center was the very first of its kind in the country,” says Ralph Cavanagh, senior attorney for the Natural Resources Defense Council who is considered one of the founders of the energy conservation movement. “Unlike most utility boards at that time, EWEB commissioners had come to view conservation as an energy resource opportunity, and the Eugene community embraced the concept,” adds Northway. In 1980, Congress approved the Pacific ( ) “It is because of innovators like you that Oregon is a leader in the efficient use of energy.” – Former Oregon Gov. Victor Atiyeh Northwest Electric Power Planning and Conservation Act, which directed the region to adopt plans to ensure a lowcost, sustainable electric energy supply in the future. Those plans included the development of energy conservation, renewables and other resources. Soon, the federal Bonneville Power Administration began working with Northwest utilities to implement broadbased conservation programs. In 1982, EWEB signed a residential weatherization contract with the federal power-marketing agency to begin providing rebates to assist customers in weatherizing their homes. “It was becoming increasingly clear that the cheapest potential source of energy was conservation,” says former EWEB President Camilla Pratt. The new program instantly created a two-year waiting list to participate in the EWEB/Bonneville weatherization initiative. In September 1983, the first month of the initiative, EWEB completed over $1 million in weatherization work, recalls EWEB Key Accounts Manager Mike Logan. The program eventually included an innovative financing method that had never been done before. Using its tax-exempt status as a municipal utility, EWEB sold
EWEB: PREPARING FOR THE NEXT CENTURY 7 $17 million in bonds to provide financial help to customers wishing to weatherize their homes. BPA then promised to repay the bonds as part of its commitment to promote conservation. EWEB’s pioneering weatherization program won both the American Public Power Association’s “Energy Innovator Award” and the State of Oregon’s “Governor’s Energy Award.” “It is because of innovators like you that Oregon is a leader in the efficient use of energy,” Gov. Victor Atiyeh said in presenting EWEB with its award. By 1986, EWEB had weatherized 10,000 electrically heated homes in the utility’s service territory. By 1991, the tally had reached 25,000. In the 1990s, EWEB formalized its conservation efforts by including energy efficiency as a key part of the utility’s Integrated Energy Resource Plan, and affirmed its importance by dedicating 5 percent of annual revenues to finance programs to help customers save on energy costs. “This level of commitment was an important part of EWEB’s energy resource portfolio,” says Susie Smith, another former EWEB commissioner and president. “Not only does conservation offset more expensive energy purchases in an increasingly volatile market, it reduces energy costs while making customers more comfortable in their homes. It also results in reinvestment of local dollars in local jobs and industries.” EWEB also started focusing on helping commercial businesses and industrial customers with their energy improvements, while the utility’s residential programs expanded to include energy efficient appliances, water heating and heating system efficiency. By 1994, Willamette Week had ranked EWEB first among Northwest utilities for its energy conservation efforts. “Eugene Water & Electric Board comes out way on top in terms of percentage of energy conserved,” noted the publication. ( ) In partnership with the BPA and two other local utilities, EWEB opened the Energy Outlet, which helped transform the market for energy-efficient appliances, compactfluorescent lighting and other products that now are commonplace in local commercial home and appliance centers. “Eventually, energy-efficient appliances grew to be quite Amory Lovins prominent in floor display at local retailers, and we found the Energy Outlet had achieved its goal of making the purchase of energy-saving appliances quick and easy for customers,” says EWEB Energy Management Programs Manager Bob Lorenzen (the Energy Outlet closed in 2005). Now, in the first decade of the 21st century, EWEB is continuing to expand its work with commercial and industrial customers to the point that almost 75 percent of the utility’s annual energy savings comes from these customers. For residential customers, EWEB continues to focus on energy efficiency measures around the home, such as the promotion of compact fluorescent lighting. The same financial commitment to “EWEB’s leadership in efficient use of electricity has set an important example for the whole Northwest.” – Amory Lovins, Rocky Mountain Institute conservation – 5 percent of retail revenues – remains intact. And an update of EWEB’s energy-resource plan identifies conservation as the top priority, ahead of acquiring new renewable resources such as wind power. In the past 30 years, EWEB has invested over $93 million in the energy efficiency of local homes and businesses. “The savings from conservation amounts to over $135 million in wholesale power bills, money that would have left the local economy to BPA and other wholesale power generators,” says Northway. “Instead, that money stayed in the community and lowered our cost of energy for everyone.” Amory Lovins, chief executive officer of the Rocky Mountain Institute and another founder of the energy conservation movement, notes that “more efficient use (of electricity) is already America’s biggest energy source – not oil, gas, coal or nuclear power. EWEB’s leadership in efficient use of electricity has set an important example for the whole Northwest.” DAVID MARLOW
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