City expanding energy demand management program

Kraig Kahler and his staff at Columbia Water and Light are increasing their efforts to persuade people to make their homes and commercial buildings more energy efficient.

They want owners to replace their drafty windows or coat them with clear insulation, add insulation to their attics and exteriors, buy better heating and air conditioning systems and seal the ductwork.

If residents make their homes more energy efficient, they will be rewarded through rebates and other incentives, including lower utility bills. The City, which is facing an energy supply shortage in coming years when coal-burning generators are retired, would in turn save money by reducing the cost of providing electricity.

Kahler, backed by City Manager Bill Watkins, persuaded the Columbia City Council on July 20 to let them hire three more staff members to work on the Demand Side Management program and give them more money to push for energy efficiency.

The Demand Side Management, or DSM, program is “designed to encourage consumers to modify their level and pattern of electricity usage,” the report said. One of the new employees will work with residential customers and contractors while another employee will work with Water and Light’s commercial customers.

Water and Light plans to spend around $40,000 on marketing for its DSM program. The department is doing market research on customer interests and what would trigger them to make their homes and commercial buildings more energy efficient, Utility Services Manager Tina Worley said.

The average homeowner would get around $820 worth of incentives by making the energy-efficiency upgrades, according to Columbia Water and Light evaluations of the Home Performance with Energy Star program.

Water and Light estimates around 600 owners would improve the air infiltration in their homes and over 1,000 of them would put more insulation in their attics. The report given to City Council also predicts that homeowners, for example, would save around 0.48 kilowatts per year if they switch to energy-efficient windows.

The average homeowner would save 3,155 kWh a year after completing the retrofits, according to Columbia Water and Light estimates.

Residents’ savings depend on the house’s age and current energy efficiency, among other factors, but customers participating in Home Performance with Energy Star, which is an EPA program, achieved around a 30 percent reduction in energy costs, Worley said.

Water and Light staff has not estimated commercial customer participation, but contends that typical customers would save around 140 kilowatts if they switch to energy-efficient commercial appliance retrofits. Typical commercial customers would save nearly 250 kilowatts per year if they switch to the recommended industrial HVAC system, according to the department’s report.

Commercial customers have a lot of room for opportunity, including managing their thermostat settings and HVAC maintenance, Worley said.

The updated DSM plan includes a data management system, which will evaluate a home’s energy efficiency. Through the online data management system, contractors in the field will be able to enter energy-efficiency information about the old products being replaced and the new products being installed. Columbia is working with other municipal utilities in Missouri who are collecting the same type of data to create consistency through this software, Worley said.

The plan is projected to cost $659,500 in the 2009 fiscal year. Staff members are estimating the new data management software will cost $250,000 while the refunds are projected to cost $200,000. The FY09 budget will cover $144,500 of the program’s cost, and the remaining $515,000 will come from retained earnings.

Energy-efficiency programs are being worked into the FY2010 budget, but Worley said she doesn’t know what will happen in terms of additional funding.

Worley said she doesn’t believe the program would become mandatory because customers would object.

The residential aspect of the plan includes energy-efficient options for air infiltration, Low E Windows (which do a better job of keeping heat in during the winter and out during the summer), attic insulation, and duct sealing and duct insulation. Each category has estimated participation rates and benefits.

Air Infiltration-Air Changes per Hour:

Homes predicted to take advantage of the incentives: 604
Kilowatts saved per year per home: 0.41
Kilowatts per hour saved per home per year: 1,041
Cost per rebate: $260
Benefit to the utility: $1.5 million

Low E Windows:

kW saved per home per year: 0.48
kWh saved per home per year: 1,102
Rebate per window: $180 with a cap of $580 per customer
Benefit to the utility: $581,588

Attic Insulation:

Homes predicted to take advantage of the rebate: 1,101
kW saved per home per year: 0.34
kWh saved per home per year: 503 kWh
Rebate: based on cost of square foot at $0.18
Benefit to the utility: $120,000

Duct Sealing and Duct Insulation:

Homes that need ductwork done: 10,290
kW saved per home per year: 0.42
kWh saved per home per year: 533
Suggested rebate: $310 per duct sealing and $310 per insulation.
The benefit to the utility: $943,950