Green Electricity and Global Warming

© 2012 by Richard L. Itteilag. All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

Published by AuthorHouse 08/01/2012

ISBN: 978-1-4772-1741-2 (sc)

ISBN: 978-1-4772-1739-9 (hc)

ISBN: 978-1-4772-1740-5 (e)

Library of Congress Control Number: 2012910979

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Contents

Preface

State Utility Demand Programs For Energy Efficiency

Utility Demand Programs

Estimated Costs Of Co2 Emissions Allowances

Co2 Emissions Trading Fundamentals

New Industrial Energy-Efficiency Technologies And The Effects On Industrial Energy Intensity (I.E., Industrial Conservation)

New Industrial Energy-Efficiency Technologies And The Effects On Industrial Energy Intensity (I.E., Industrial Conservation)

Nuclear Power Generation: Capital, Operating And Enduser Costs

Potential Conservation Created by National Demand Response Programs on Electricity Demand Capacity

Potential Conservation Created by Regional Demand Response Electricity Capacity

Epa Co2 Emissions Regulations And Their Impact On Industrial Customers

The New Natural Gas: Drilling Technologies And U.S. Producing Zones

Utility Off-Peak Electricity Load Leveling Programs

Electricity Peak-Shaving Techniques

Preface

Electricity is the power to succeed. However, the United States faces a hidden electricity crisis, i.e., the power to fail. As the economy grows at 2-3 percent per year, the total demand for electricity has grown in tandem at a comparable 2-3 percent per year rate. Inversely, however, electricity capacity margins, the percentage of spinning supply above actual demand, have declined consistently over the last decade from 25-30 percent in 1992 to about 15 percent today. In fact, the Eastern independent power grid, with nearly 75 percent of total U.S. electricity demand, has only a 13.9 percent capacity margin.

To meet that level of demand growth and simultaneously offset the significant decline in capacity margins, the electric utility industry, for example, is planning 138 new coal-fired power plants nationally or the equivalent of $108 billion of new coal-generation capacity. In particular, the American Electric Power Company (AEP) has approved a major new electricity transmission line from West Virginia through Maryland and Pennsylvania to New Jersey in order to satisfy the largest electricity demand region in the country (PJM-Pennsylvania, New Jersey and Maryland).

Similarly, the Energy Policy Act of 2005 (EPact) grants up to $13 billion in subsidies to the nuclear industry to build new facilities, i.e., add new electricity supply. Entergy, one of the nation’s largest utilities, has plans to add reactors to existing plants at Port Gibson and St. Francisville, near Baton Rouge, Louisiana. To date, there are plans for 16-19 new nuclear plants after plans for only three new reactors under consideration in 2005 and a national moratorium on the construction of new plants since 1978.

This compound total demand growth coupled with declines in utility plant capacity margins only masks the serious underlying problem: peak electricity demand, typically for summertime air conditioning, is growing at 5 percent per year, considerably faster than total electricity demand. While the nation considers the need for energy independence as a critical energy policy initiative due to the fact that half the nation’s oil consumption is imported and oil is the nation’s primary transportation fuel, the resulting economic consequences of an electricity shortfall would be equally or more severe given the nation’s near total reliance on electricity to cool, light and power motors and computers. That is the nexus of this book: electrical load-leveling or the techniques required to reduce electricity peaks in the U.S.

State Utility Demand Programs For Energy Efficiency

State legislative energy efficiency programs are widespread across the United States (U.S.). The programs range from financial incentives to program management. The most widely utilized are some form of program funding. The basis of this article is the available programs at utilities in five states to reduce electricity consumption or promote conservation in the U.S.

Alabama

State Loan Program: Local Government Energy Loan Program

Applicable Sectors: Schools, Local Government

Energy Efficiency Conservation Technologies: Heat Recovery Systems, Boiler efficiency and central plant improvements, upgrading water treatment plants for efficiency and/or recovery, HVAC equipment, etc…

Website: http://www.adeca.alabama.gov/C3/Local_Government_Energy_Loan_P/default.aspx

California

Utility Rebate Program: City of Palo Alto Utilities-Commercial Advantage Energy Efficiency Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: City of Palo Alto is offering commercial / industrial customers incentives to replace old equipment with new and more efficient equipment such as steam traps for existing steam systems.

Website: http://www.cityofpaloalto.org/depts/utl/news/details.asp?NewsID=471_and_TargetID=223

Utility Rebate Program: PG&E-Nonresidential Energy Efficiency Rebates

Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Institutional, Agriculture

Energy Efficiency Conservation Technologies: Pacific Gas and Electric Company (PG&E) is offering rebates and incentives to businesses and nonresidential customers to increase energy efficiency. Specified improvements includes: Boilers and Water Heaters and HVAC improvements.

Website: http://www.pge.com/mybusiness/energysavingsrebates/rebatesincentives/ref/

Colorado

Utility Rebate Program: Longmont Power & Communications-Commercial Energy Efficiency Rebate Program

Applicable Sectors: Commercial, Industrial, Institutional

Energy Efficiency Conservation Technologies: Longmont Power & Communications, in collaboration w/ Platte River Power Authority, is offering an incentive for its business customer’s incentive to install new or retrofitted energy efficient equipment in their facilities. There are no specified products and it is left customers to find the best way to save energy within their facilities.

Website: http://www.ci.longmont.co.us/lpc/bus/eep_homepage.htm

Utility Rebate Program: Loveland Water & Power-Commercial Energy Efficiency Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Loveland Water & Power, in collaboration w/ Platte River Power Authority, is offering an incentive for its business customer’s incentive to install new or retrofitted energy efficient equipment in their facilities. There are no specified products and it is left customers to find the best way to save energy within their facilities.

Website: http://www.ci.loveland.co.us/wp/power/conservation/c_and_i_ee.htm

Utility Rebate Program: Fort Collins Utilities-Commercial and Industrial Energy Efficiency Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Fort Collins is providing commercial and industrial businesses incentives for new construction projects and existing building retrofits. Mechanical systems and industrial process improvements is encouraged by this program to assist facilities with new energy efficient equipment.

Website: http://www.fcgov.com/conservation/biz-eep.php

Connecticut

State Rebate Program: Connecticut Energy Efficiency Incentive Program

Applicable Sectors: Commercial, Industrial, Schools, Nonprofit, Local Government, Agricultural, Institutional

Energy Efficiency Conservation Technologies: Connecticut electricity customers that install energy efficiency equipment and reduce their energy use during peek hours may be eligible for a rebate.

Website: http://www.ameresco.com/ctdsmeep.asp

Utility Rebate Program: Connecticut Light & Power-Operation and Maintenance Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Commercial and industrial customers are eligible for the Operations and Maintenance Program to help improve the maintenance and operation of electric equipment. Opportunities listed include improvements to compressed air systems, such as repairing leaks or installing solenoid valves that automatically shut-off air supply to machines when not running and repairs or replacement of defective steam traps.

Website: http://www.cl-p.com/business/saveenergy/default.aspx

Utility Rebate Program: The United Illuminating Company-Energy Opportunities Program

Applicable Sectors: Commercial, Industrial, Local, State and Federal Govt.

Energy Efficiency Conservation Technologies: Program is for retrofitting existing commercial, industrial or government buildings in an energy efficient manner. Includes Heat Recovery, Steam-system upgrades and process and manufacturing equipment. Energy / Engineering (Whole-System Concept) Studies are reimbursed after implementation up to $5K max to the customer.

Website: http://www.avistautilities.com/business/rebates/washington_idaho/Pages/incentive_10.aspx

Florida

Utility Rebate Program: Tampa Electric-Commercial Energy Efficiency Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Tampa Electric is offering their customers a variety of incentives for the industrial and commercial sectors. Incentive is to increase the efficiency for their facilities, which includes heat recovery.

Website: http://www.tampaelectric.com/business/saveenergy/

Utility Rebate Program: Lakeland Electric-Commercial Conservation Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Lakeland Electric will pay 50% of the cost, up to $2K, for their commercial customers to have an energy audit performed in their facilities. Please contact Lakeland Electric (863)834-9535 and ask about their PROFESSIONAL OUTSIDE ENERGY AUDIT PROGRAM.

Website: http://www.lakelandelectric.com/Business/CommercialIndutrialInstitutional/ProductsServices/EnergyEfficiencyPrograms/tabid/105/Default.aspx

Idaho

Utility Rebate Program: Idaho Power-Building Efficiency for Commercial Construction Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Idaho Power is offering incentive for its industrial and commercial customers in Idaho and Oregon to upgrade to more efficient equipment in their facilities. Rebates include HVAC equipment and controls and other equipment. Customers interested must first submit a preliminary applications. Contact Customer Service (800)488-6151

Website: http://www.idahopower.com/EnergyEfficiency/Business/Programs/BuildingEfficiency/default.cfm

Illinois

State Rebate Program: DCEO-Large Customer Energy Analysis Program (LEAP)

Applicable Sectors: Commercial, Industrial, Schools, Local Govt and Hospitals

Energy Efficiency Conservation Technologies: Large energy users (w/ $500K+ energy cost) within the applicable sectors has the opportunity to receive an opportunity rebates of 50%, up to $10K towards the cost for developing an energy efficiency action plan and 50%, up to $10K, for the cost of a technical assessment.

Website: http://www.commerce.state.il.us/dceo/Bureaus/Energy_Recycling/Energy/

Utility Rebate Program: Nicor Gas Energy Efficiency Program for Business Customers

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Nicor Gas Energy Efficiency Program is offering business customers on Rates 4 and 74, opportunities to save energy and money through efficiency rebates and energy-saving ideas. Steam Traps are one of the qualifying products that must be purchased and installed between May 1, 2010-May 31, 2011. Rebate for a Steam Trap Replacement is $50.00. Annual natural Gas Savings (Therms) $203 / Annual Cost Savings Estimate $132

Website: http://members.questline.com/Article.aspx?articleID=14480_and_accountID=1951_and_nl=7966_and_userID=973599

Indiana

Utility Rebate Program: Citizens Gas-Commercial Efficiency Rebates

Applicable Sectors: Commercial

Energy Efficiency Conservation Technologies: Citizens Gas of Indiana is offering rebates to its commercial customers for the installation of several different types of efficient natural gas equipment, which includes certain steam trap services

Website: http://www.citizensgas.com/forhomes/appliancerebates.html

Utility Rebate Program: Vectren Energy Delivery-Commercial Energy Efficiency Rebates

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Vectren Energy Delivery is offering natural gas customers rebates for the installation of certain types of highly efficient natural gas equipment for technologies such as steam-system upgrades.

Website: https://www.vectrenenergy.com/web/eenablement/learn_about/conservation/rebates_i.jsp

Kentucky

Utility Rebate Program: Duke Energy-Commercial and Industrial Energy Efficiency Rebate Program

Applicable Sectors: Commercial, Industrial, Schools

Energy Efficiency Conservation Technologies: Duke Energy is offering incentives for manufacturing process equipment. The maximum incentive is up to $50K per fiscal year per facility. Applications for incentives must be completed and submitted within 90 days after equipment has been installed and is operational.

Website: http://www.duke-energy.com/

Maine

Utility Rebate Program: Northern Utilities-Commercial Energy Efficiency Programs

Applicable Sectors: Commercial, Industrial, Schools, Local Government, Institutional

Energy Efficiency Conservation Technologies: Program includes energy efficient upgrades with includes heat recovery equipment and systems.

Website: http://www.northernutilities.com/business/eneraudit.htm

Massachusetts

Utility Rebate Program: Bay State Gas-Commercial Energy Efficiency Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Bay State Gas Co is offering its commercial and industrial customers rebates for energy efficient improvements to their facilities.

Website: http://www.baystategas.com/en/save-energy-money/Energy-Efficiency-Business.aspx

Utility Rebate Program: National Grid-Commercial (Electric) Energy Efficiency Incentive Program

Applicable Sectors: Commercial, Industrial, Schools, Local Government

Energy Efficiency Conservation Technologies: National Grid offers electric energy efficiency programs for its larger commercial and industrial customers. An Energy Efficiency Engineering Study must be completed by a certified energy manager (CEM) or a professional engineer (PE) with a completed application submitted for approval by Dec 31 2009. Acceptable study such as heat recovery of process loads.

Website: http://www.thinksmartthinkgreen.com/

Utility Rebate Program: National Grid-Commercial (Gas) Energy Efficiency Incentive Program

Applicable Sectors: Commercial

Energy Efficiency Conservation Technologies: National Grid’s Commercial Energy Efficiency Incentive Programs provides support services to commercial customers who install energy efficient natural gas related measures. Prescriptive rebates are available for common energy efficiency measures installed after the completion of an energy audit, including steam trap replacements.

Website: http://www.thinksmartthinkgreen.com/

Michigan

Utility Rebate Program: Consumers Energy-Commercial Energy Efficiency Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Incentives available from Consumers Energy for energy efficiency equipment upgrades and improvements, which includes steam-system upgrades. Program expires when approved funds are exhausted or until December 31st of each program year reaching year 2014.

Website: http://www.consumersenergy.com/eeprograms/Landing.aspx?ID=750

Utility Rebate Program: DTE Energy-Commercial Energy Efficiency Program

Applicable Sectors: Commercial, Industrial, Local Government

Energy Efficiency Conservation Technologies: Incentives available from DTE Energy for qualified energy measures. Steam-system upgrades is one of the programs eligible efficiency technology. For more details visit the below website or contact DTE Energy Efficiency (866) 796-0512

Website: http://www.YourEnergySavings.com

Utility Rebate Program: Michigan Gas Utilities (Efficiency United)-Commercial and Industrial Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Various rebates and incentives to commercial and industrial gas customers of Michigan Gas Utilities (Efficiency United) for qualified energy equipment and measures. Steam-system upgrades is one of the programs eligible efficiency technology. Projects must be implemented by December 31, 2010. Visit the program web site for guidelines and application.

Website: http://www.efficiencyunited.com/util_michgasutils.asp

Utility Rebate Program: SEMCO Energy (Efficiency United)-Commercial and Industrial Rebate Program

Applicable Sectors: Commercial, Industrial

Energy Efficiency Conservation Technologies: Program offers rebates and incentives to commercial and industrial gas customers of SEMCO Energy service area. Eligible equipment and measures includes steam trap tests and replacements, boiler tune-ups and controls, etc… Contact SEMCO Energy for approval before work / purchases begin. SEMCO Energy Gas Company PH: (800) 624-2019 / Efficiency United PH: (877) 367-3191. Applicants have 120 days to implement project after approval is