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Reduction in Permissable Voltage Range Could Provide 1,000s of Megawatts

By Brian Reidy, CEO MIcroPlanet

The US electric utility infrastructure is an integrated system made up of three segments: generation, transmission and distribution. It is regulated at the state level by public utility commissions (PUCs) and operated by electric utilities. The grid operates at extraordinary levels of reliability only because of admirable cooperation between states, PUCs and utilities.

As many US states head into the summer peaking season, state legislators, PUCs and utilities continue to search for opportunities to reduce congestion on their local transmission and distribution (T&D) infrastucture - the weak link generally acknowledged to have driven last summer's disastrous blackout that blanketed the Northeastern US and parts of Canada .

New, proven point of consumption voltage regulation technologies such as those offered by MicroPlanet allow states to quickly and inexpensively take the lead in reducing the strain on the nation's overtaxed T&D system by reducing demand at the user level. The impact would be an average reduction in system wide kilowatt-hour consumption of 10% and commensurate reduction in congestion on the state and regional transmission lines ¹.

State Action

States legislatures and public utility commissions can motivate rapid, broad-scale deployment of these technologies by revising voltage delivery standards set out in the ANSI C84.1 “A” range such that the upper 5 - 7.5% of the permissible voltage band be eliminated with the caveat that service reliability remain at or slightly above the 114v minimum, thereby eliminating wasted energy.

As of 2004, California stands alone as the only US state that has actually eliminated the upper 5% of ANSI C84.1.

History of Voltage Standards

In the 1950's state PUCs, utilities, and infrastructure providers struggled to define “quality” service delivery. Collectively they determined that one of the best measurements of reliability was delivered “voltage” at the point of consumption. In 1954 the industry agreed to combine standards from the Edison Electric Institute (EEI) and National Electrical Manufacturers Association (NEMA) to create ANSI standard C84.1 “A”. This established nominal voltage ratings for utilities to regulate the service delivery and established permissible operating tolerances at the point of use within the range of 120 volts plus / minus 5% (or 114v – 126v).

For the past 50 years ANSI C84.1 has remained static despite unimaginable technological advances. Today's digital technologies enable PUCs and utilities the solutions needed to update to the now ancient ANSI C84.1 at costs that are significantly cheaper than traditional approaches to increasing grid capacity.

As an added benefit, most electrical apparati in homes, businesses and on the utility infrastructure operate most efficiently at 114 - 115 volts. However, the majority of US states allows electric utilities to deliver higher voltage to ensure that customers furthest away from the substation receive the minimum 114 volts. As a result, the vast majority of electric utility customers receive more voltage than necessary. This translates into wasted electricity, higher operating and capital costs for utilities, larger electricity bills, shorter lives for electrical apparatus and increased greenhouse gasses.

Brian Reidy, CEO MicroPlanet

MicroPlanet develops and manufactures innovative point of consumption voltage regulators that maximize the efficiency of the existing electric utility distribution system. MicroPlanet provides PUCs and utilities a fast, cost effective and, easy way to resolve structural inefficiency.

References:

¹ For example, using MicroPlanet's technology and data from the following DOE / BPA report which summarized studies conducted by at least 16 utilities across 20 states, up to a 14% reduction in total kilowatt-hour usage with an average reduction of 10% is possible. In heavily populated states this could amount to over 1,000 megawatts of “found” capacity.

US Department of Energy, Bonneville Power Administration “Assessment of Conservation Voltage Reduction Applicable in the BPA Service Region,” US Department of Energy Contract No. DE-AI79-83BP14031 Task 19, 1987.

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A Win for Energy Efficiency in Georgia

In a decisive victory for the future of energy efficiency in the Southeast, the Georgia Public Service Commission (“Commission”) agreed unanimously on July 9^th to establish a Demand Side Management (DSM) Working Group. In addition, the Commission approved a 30% increase in low income energy efficiency programs and $2.2 million for an energy efficiency consumer awareness campaign.

The decisions came as part of the Integrated Resource Plan (IRP) for the state’s two major Utilities: Georgia Power and Savannah Electric. (An IRP is a planning methodology employed by many state regulatory authorities whereby utilities are required to submit plans for supply and demand-side options that will provide energy services at a cost that appropriately balances the interests of all stakeholders.)  Considering that demand side management programs have been absent in the state of Georgia for the past decade, the PSC’s decision is certainly one to be celebrated!    

The new DSM Working Group is tasked with finding balanced approaches to achieve the Commission's goal of minimizing upward pressure on rates while maximizing economic efficiency. The Working Group will be organized by Commission staff and will consist of representatives from Georgia Power, Savannah Electric Power Company, Commission staff, the Alliance to Save Energy, the Southern Alliance for Clean Energy, and others. The Working Group will begin meeting in August 2004 and will make its recommendation to the Commission in February, 2005, detailing how DSM programs will be implemented and recommending a process for selecting future DSM programs.

The victory in Georgia was achieved through the hard work of many, and with the technical expertise and direct involvement of Alliance staff, local partners and a host of coalition members.  The Alliance to Save Energy and our local coalition partners mounted a campaign in fall 2003 to educate the public and the PSC about the benefits of DSM programs.  The Alliance was an “official intervener” in the IRP, and our testimony before the Commission highlighted the benefits of DSM and illustrated ways to identify and screen potential energy efficiency programs. Our cost-benefit analysis identified $1.6 billion in ratepayer benefits for a package of DSM programs. The Alliance also organized a number of public education and outreach events and prepared dozens of rate-paying citizens to testify before the PSC.

Together, our coalitionraised awareness about energy efficiency issues and motivated Georgians to take action to push for utility efficiency programs. Our outreach efforts in Georgia proved that mobilizing a broad coalition of public and business representatives is a necessary component of ensuring sound public policy.  While continuing to fight for specific DSM programs in Georgia as part of the Working Group, we also plan to use our successful tactics to promote DSM plans in other states, such as Florida.   We believe that Georgia is just the first of numerous successes!   

Harry Misuriello, Director of Buildings and Utility Programs, Alliance to Save Energy

Kate Offringa, Director of Market Transformation, Alliance to Save Energy

California
HB 1468 Re-referred to Committee on Energy, Utilities, and Commerce 6/3/04

HB 1468 would require the state, not later than January 1, 2010 , to adopt and implement measures to reduce petroleum demand to levels not exceeding 2004 levels, and maintain or reduce demand levels for the years from 2010 to 2020.

For more information, click here

House Bill 2311 Committee on Governmental Organization Recommends “ Do Pass. ” Bill Re-referred to Committee on Appropriations 6/22/04

HB 2311 would create a sustainable building goal to make new and current state buildings more efficient. The bill would require the Secretary for State and Consumer Services to facilitate the incorporation of sustainable building practices into the planning, operations, policymaking, and regulatory functions of state agencies.

For more information click here

House Bill 2628 Amended and Re-referred to Committee on Appropriations 6/23/04

HB 2628 would allow advanced technology partial zero-emission vehicles (ATPZEV) to use HOV lanes.

For more information click here

House Joint Resolution 74, Committee on Transportation Recommends “Be Adopted.” Bill Re-referred to Committee on Appropriations 6/16/04

HJR 74 would urge the President and the Congress to take legislative action to allow single-occupant hybrid electric vehicles that achieve a fuel economy highway rating of at least 45 miles per gallon, and conform to any additional emissions category of the federal Environmental Protection Agency or the California Air Resources Board, or meet any other requirements identified by the responsible agency, to travel in California's High Occupancy Vehicle (HOV) lanes.

For more information click here

Senate Bill 1565 Amended, Re-referred to Committee on Appropriations 6/24/04

SB 1565 would require the California Energy Commission to adopt a strategic plan for the state's electric transmission grid to identify and implement investments needed to ensure reliability and to meet future growth in load and generation, including, renewable resources, energy efficiency, and other demand reduction measures. This bill would require the strategic plan to be included in the integrated energy policy report adopted on November 1, 2005.

For more information click here

Senate Bill 1703 Re-referred to Committee on Appropriations 6/23/04

SB 1703 would establish a voluntary California certified green business program to certify businesses that engage in environmentally beneficial operations.

For more information click here

Colorado
House Bill 1225 Vetoed by Governor 6/4/04

HB 1225 would have created a low-income energy assistance program. It would have required utilities to collect an energy assistance charge from each electric and gas customer beginning January 1, 2005. Customer opt-out would have been available.

For more information click here

Delaware
Senate Bill 306 Passed Senate 6/15/04 , Passed House 6/29/04

SB 306 will amend Delaware building codes to conform to International Energy Conservation Code (IECC) standards. All buildings 3 stories or less will conform to the 2000 IECC standards, while all other buildings will conform to the 2001 supplement to the 2000 IECC standards.

For more information click here

Hawaii
SB 2474 Signed Into Law 6/2/04

SB 2474 will require electric utilities to meet a renewable portfolio standard of 15 percent by 2015 and a goal of 20 percent by 2020.

For more information click here

Maine
LD 845 Signed Into Law 5/21/04

LD 845 establishes a plan to reduce greenhouse gas emissions in all sectors of the state to 1990 levels by 2010, and to 10% below 1990 levels by 2020. 

For more information click here

New Jersey
HB 516 Passed by the Assembly 6/24/04

HB 516 would establish minimum energy efficiency requirements for household appliances.

For more information click here

New York
SB 3545 Amended and Recommitted to Senate Cities Committee 6/8/04

SB 3543 would allow cities of more than 1,000,000 people to allow tax credits for expenses incurred in measures taken for home energy conservation. It would apply only to one, two, three, or four family buildings.

For more information click here

SB 4523 Amended and Committed to Senate Committee on Rules 6/22/04

SB 4523 would provide an income tax credit for new hybrid motor vehicles.

For more information click here

Senate Bill 6502 Committed to Committee on Senate Rules 6/22/04

SB 6502 would allow hybrid vehicles to travel in HOV lanes, regardless of the number of passengers.

For more information click here

HB 11139 Amended and Recommitted to Committee on Assembly Ways and Means 6/15/04

HB 11139 would remove hybrid vehicles from the alternative fuels credit against corporation taxes, business franchise taxes and personal income taxes, and establish separate and independent tax credits of $4,000 for the purchase of hybrid vehicles.

For more information click here

House Bill 11638 Passed Assembly and Referred to Senate Committee on Rules 6/22/04

HB 11638 would amend the tax laws pertaining to extending certain tax credits and exemptions for alternative fuel vehicles.

For more information click here

Pennsylvania
HB 2035 Re-Referred to Committee on Appropriations 6/23/04

HB 2035 would establish minimum energy efficiency standards for certain appliances and equipment.

For more information click here

Senate Bill 1042 Considered by full Senate 6/30/04  

SB 1042 would establish the Pennsylvania Energy and Pollution Reduction Program and would establish the Office of Energy and Pollution Reduction within the Department of Environmental Protection.

For more information click here

The Responsible Energy Codes Alliance (RECA) continues its work to promote adoption of the International Energy Conservation Code (IECC). In June, RECA and its members were active in Arizona, Georgia, Illinois, Indiana, New York, Maine, Massachusetts, and Michigan. Thanks in part to the concerted effort of RECA members, Delaware, Rhode Island, Denver, and Phoenix have all adopted various IECC codes.States to watch for code developments in the month ahead are Indiana and Michigan. Click here to visit the RECA website for more information.

Additional Resources:

Building Codes Assistance Project (BCAP), a joint initiative of the Alliance to Save Energy, American Council for an Energy-Efficient Economy, and National Resources Defense Council, is dedicated to assisting states in the development and implementation of statewide building energy codes. For more information click here.

Appliance Standards Awareness Project (ASAP), a joint venture of the Alliance to Save Energy, American Council for an Energy-Efficient Economy, and the Natural Resources Defense Council, provides advice and technical support to parties interested in advancing state standards. ASAP is dedicated to increasing awareness of and support for appliance and equipment efficiency standards. For more information click here.

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