The Utilities’ Program:

California’s investor owned utilities introduced a number of new dynamic pricing rates for large commercial and industrial customers. To help customers take advantage of these options, the utilities developed a program to pay for technical analyses of potential customer savings that can result from switching to the new rates. This program provides cash rebates to reduce the cost to customers receiving the necessary technical assistance and assessment related to their facilities’ potential to reduce peak demand. The utilities call it a “Demand Reduction Engineering Technical Analysis.” The utilities also have money for hardware and software investments necessary for a water agency to participate in these demand response programs.

Under the utility technical assistance program, a member is eligible for payments of up to $50/kW for potential curtailed peak load identified in the technical assessment, paid directly to Efficiency Analysts International (EAnalysts). The utilities will also pay up to $100/kW for hardware and software improvements necessary to achieve the identified peak load drops.

How it Works:

EAnalysts, with its Energy Cost Reduction Analysis, is the only firm pre-qualified by the California Energy Commission to provide the required Demand Reduction Engineering Analysis for water and wastewater utilities. EAnalysts deliverables will include an initial reconnaissance-level evaluation of the potential for peak demand curtailment in the agency, an on-site workshop with agency staff and a final report. The on-site workshop will focus on demonstrating energy cost reduction opportunities and recommend energy cost savings measures, including capital investment payback projections. The final report will document recommended operational guidelines that can be incorporated by agency staff into its operations manual and used to achieve energy cost reductions. It will also provide data acquisition guidelines on plant performance efficiency that can be used in planning preventative maintenance work orders. The entire project will be overseen by Dr. Lon House, who will also provide market analyses specific to the agency's situation.

How Much Does it Cost?

EAnalysts will perform the initial survey, which will provide a rough estimate of the amount of load that can be curtailed, for an estimated $2,000 in out-of-pocket expenses. Once the initial survey is complete, EAnalysts will finalize the project budget. EAnalysts’ preliminary estimate is that its costs for the entire assessment will be covered by the $50/kW utility rebate.

About Efficiency Analysts International:

Blaine T. Reely, Ph.D., PE, Principal Operations Analyst, specializes in the development and implementation of energy cost reduction strategies for water and wastewater utilities. Dr. Reely is the principal developer of the Water Resources Energy Management System (WREMS) that has been used to analyze and optimize water and wastewater utility operations worldwide. He has managed municipal water utilities and has coordinated numerous Demand-Side Energy Management programs for water/wastewater utility clients. He has worked extensively throughout the US and internationally, and has extensive experience working with California agencies.

About Water and Energy Consulting:

Lon W. House, Ph.D., CEM, Principal Energy Economics Analyst, was a university professor, worked for the California Energy Commission as a utility planner, and was the chief utility planner for the California Public Utilities Commission. Since 1990, Dr. House has provided energy consulting services to the water industry. He has been the Association of California Water Agencies (ACWA) energy advisor since 1992, and energy advisor to the Attorney General since 2004. He is also a Certified Energy Manager (CEM).

Dr. House is an active participant in energy policy making activities in California, providing testimony before the California Public Utilities Commission, California Energy Commission, California State Legislature, State Water Resources Control Board, the Federal Energy Regulatory Commission, and Congress.

For more detailed information log on to www.waterandenergyconsulting.com or contact Dr. Lon House at 530.676.8956, lwhouse@innercite.com or Dr. Blaine Reely at 520.360.5657, breely@EAnalystsIntl.com or Marcia Wulff , ACWA’s Program Coordinator at 916.441.4545, marciaw@acwa.com.