REPORT TO COUNCIL
SUBJECT
Title
Note and File the Ten-Year Goals for Silicon Valley Power's Energy Efficiency Program
Report
BACKGROUND
AB 2021, signed on September 29, 2006, requires every local publicly owned electric utility (POU) to identify all potentially achievable cost-effective electricity efficiency savings and to set annual targets for energy efficiency savings and demand reduction over 10 years. The first report was due on June 1, 2007. The bill also requires POUs to report those targets to the California Energy Commission (CEC) within 60 days of adoption. Current law requires updates every four (4) years.
On behalf of its members, the California Municipal Utility Association (CMUA) issued a Request for Proposals and, as a result, contracted with GDS Associates to develop the goals for energy efficiency for each CMUA member utility. These goals are based on a state-wide proprietary model developed for the public power utilities using utility-specific data. For each utility, GDS Associates reviewed historical and proposed sales by customer class, avoided cost data, a summary of past and current utility energy efficiency programs, and past program participation. Upcoming codes and standards changes are also incorporated to determine feasible goals for the utility for the next 10 years. Climate zone and the type of customers in a POU's utility service territory also have an impact on the model output for each utility.
The model provides technical, economic, and market potential for energy efficiency within the City of Santa Clara. Technical potential includes all potential remaining energy savings opportunities where technology exists to save energy. Economic potential looks at what measures will pay for themselves within the life of the measure. Market potential takes into account market saturation and customer decision-making, such as required payback periods or return on investment to install energy efficiency measures. The goals GDS provided...
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