|
e-FFICIENCY NEWS: Would you start off by telling us a little about the unique history and function of the Bonneville Power Administration? Wright: The Bonneville Power Administration (BPA) was created by Congress in 1937, partly to electrify the rural Pacific Northwest. We are a not-for-profit federal power marketing agency under the Department of Energy. BPA markets wholesale power from 31 federal hydroelectric dams and one nonfederal nuclear plant. About 35 percent of the Northwest’s electricity comes from BPA. BPA also owns and operates 75 percent of the region’s high voltage transmission. BPA is self-funding, and we sell our services at cost to the region’s public utilities and municipalities (which have preference) as well as to investor-owned utilities and some large industrial customers. BPA also sells or exchanges power with marketers and utilities in Canada and the western United States. Our service territory includes Oregon, Washington, Idaho, western Montana and small parts of Wyoming, Nevada, Utah, California and eastern Montana. e-FFICIENCY NEWS: Why is there a need for a deferral agency to sell wholesale power to utilities? Wright: As a not-for-profit agency, BPA is both a utility and a public service agency. While BPA is highly cost-conscious, our focus is not solely on the “bottom line.” BPA meets a number of public responsibilities. BPA promotes energy efficiency, renewable energy, new technologies, non-wires solutions to transmission and reductions in greenhouse gas emissions. BPA invests over $600 million a year in protection and mitigation for fish and wildlife affected by hydroelectric development. It is the largest program in the nation to restore a natural resource. As a public service agency, we operate in a manner that engages the region in decision making and is responsive to our stakeholders. We are accountable to the region and transparent in our business and financial dealings.e-FFICIENCY NEWS: In what ways has BPA historically been involved in energy efficiency? Wright: BPA has a long history in its commitment to energy efficiency and, with the passage of the Northwest Power Planning Act in 1980, our historical commitment became a regional responsibility. The landmark legislation of 1980 specified regional planning to meet the Northwest’s electricity needs, and most importantly included a mandate to make energy efficiency the priority resource. Following the Act and in conjunction with the Northwest Power and Conservation Council, BPA promoted model conservation standards for buildings throughout the region. The effort included education and demonstration programs, builder and lender training, marketing (Super Good Cents program) and funding assistance. As a result, Oregon and Washington adopted the new building standards into their codes, and they quickly became a model for the rest of the region and the nation. Today BPA is approaching 30 years of active energy efficiency programs that serve the entire Northwest. A major focus has been on helping utilities achieve energy efficiency at the local level by tailoring program offerings that fit the unique conservation characteristics of our diverse customers.e-FFICIENCY NEWS: What types of savings have these programs generated? Wright: The total energy efficiency savings we have documented through our programs is over 1,000 average megawatts. Essentially that is the equivalent of several thermal power plants that the Northwest has not had to build. By working with our partners in the region, we can document an additional 2,000 MW of energy efficiency that was accomplished to complement agency programs. Taken in total, this is enough electricity savings to power the states of Idaho and western Montana. e-FFICIENCY NEWS:With such a successful history, how do you foresee continuing to push the envelope and take electric utility energy-efficiency programs to the next level? Wright: I am confident that the accomplishments we have experienced to date will serve as the basis for continued success. First, successful energy-efficiency programs can only be achieved with an experienced staff, and we have one of the most talented energy- efficiency work forces in the country. Secondly, there continue to be tremendous opportunities available through market transformation. For example, take a look at the ongoing high profile trend to switch to compact fluorescent lighting. BPA also is an aggressive supporter of the Northwest Energy Efficiency Alliance (NEEA) which supports and promotes market-based energy-efficiency programs in the region. Starting in 2005, BPA committed $10 million for each of the next five years to fund NEEA’s work. By working in partnership with NEEA, we can better leverage our dollars and secure additional cost-effective staff expertise. In addition, I see many opportunities to successfully leverage energy efficiency and BPA staff in the technologies that are rapidly becoming a part of our everyday lives. That is, many of the strategies that today require a specific action by a business or individual can and will be made in the future through an automated technology option that results in a win-win situation for the utility and the consumer.e-FFICIENCY NEWS: Typically in the utility sector you see companies implementing energy-efficiency measures as a means to lower costs and keep rates low. Can you explain why energy efficiency continues to be successful in the Northwest even though your service territory enjoys some of the lowest electricity rates in the nation? Wright: I like to think of the Northwest as the ultimate proving grounds for why energy efficiency can be successful in spite of the factors you cite, such as low electricity rates. While there may be some cases where our avoided costs have precluded a limited amount of measures, there still are tremendous opportunities to pursue a myriad of energy-efficiency opportunities here in the Northwest. Energy efficiency should always be the first fuel when a utility looks at its investment options, even here where hydroelectric power has been our primary resource. While we have a low-cost base, our marginal cost is the same as the rest of country and business logic for employee is the same as other places. And looking forward, like the rest of the country, our avoided costs are rising, which makes the attractiveness of energy-efficiency investments that much more compelling. It is important to note that our staff does not treat conservation as a reaction to crisis. One of our goals has been to avoid the “roller coaster” effect, in which conservation gets high profile support during energy shortages and then recedes into the background during surplus times. Our focus is on the infrastructure--putting sustainable energy-efficiency programs in place that are maintained through high and low market periods. Programs need multi-year stability if they are to reach efficient levels in staffing, materials, and equipment and other support systems. A multi-year funding commitment provides the necessary infrastructure that would lead to lower cost implementation of energy efficiency. Long-term investments in energy efficiency help buffer the region against future resource uncertainties. During periods of price volatility, conservation also helps reduce financial risk associated with relying on the market for energy purchases. Finally, stewardship for the environment is an engrained part of the Northwest ethic. The region has promoted energy efficiency not just as a cost-saving option, but also as the “right thing to do.” Consumer polls indicate that, up to a certain cost point, consumers are highly responsive to this message. Ours is an environmentally-focused culture, which supports employee initiatives in energy efficiency.e-FFICIENCY NEWS: The issue of climate change, specifically greenhouse gas emissions from power generation and transmission, has prompted a consortium of utilities and other groups to establish the National Action Plan for Energy Efficiency. How has BPA been involved in this effort? Wright: We were charter members of the National Acton Plan and continue to be committed to the success of this initiative. Our move to increase the amount of energy efficiency we will deliver over the next several years by almost 20 percent was one of the commitments we made in that National Plan. Being part of the group that comprises the National Plan is an important commitment BPA can make to demonstrate and lead the effort to make energy efficiency a top priority nationally. |
 |
 |
 |
 |
|
||||||||
|
|||||||||
Steve Wright was appointed Administrator of the Bonneville Power Administration (