Energy Trust of Oregon: Bright Idea - American Executive - RedCoat Publishing - American Executive

Energy Trust of Oregon: Bright Idea

Utility
Written by Liz Jones
Wednesday, 31 October 2007
Margie Harris describes how this nonprofit is helping Oregonians reduce their energy consumption and embrace renewable energy opportunities. In 1996, with energy prices through the roof and the effects of global climate changes appearing in newspapers every day, the governors of Oregon, Washington, Idaho, and Montana appointed representatives to conduct a regional energy review. For an entire year, the group explored energy conservation and renewable energy opportunities across the region with the hopes of better managing energy costs, particularly for low-income populations. In Oregon, their work led to the establishment of a public purpose charge in 1999, which requires Oregon’s two largest investor-owned electric utilities to dedicate 3% of their customers’ bills to energy efficiency and renewable energy efforts. Unlike other states where such funds are managed by utilities and state agencies, the Energy Trust of Oregon, an independent 501(c)3, was formed to put those funds to appropriate use. Margie Harris, Executive Director Based in Portland, Energy Trust is the largest investor of public purpose dollars, collecting $50 million a year, which is 74% of the total collected (Oregon Housing and Community Services dedicates its funds to low-income housing and weatherization, while Oregon Education Service Districts use a portion to support efficiency improvements in schools). Energy Trust serves residential, commercial, and industrial customers of Portland General Electric and Pacific Power, which represents more than 70% of the electric customers in the state. In 2003, about a year after Energy Trust opened its doors, the state’s largest natural gas utility, NW Natural, created its own public purpose charge and engaged Energy Trust to deliver energy efficiency services to its residential and commercial customers. Cascade Natural Gas followed suit in 2005. A third natural gas utility, Avista, also signed on for limited Energy Trust services. All in all, Energy Trust offers incentive-based, energy-saving, and renewable-energy program opportunities to 1.4 million customers of five utilities. Integrated programs Energy Trust’s mission is to help customers save energy and take advantage of renewable energy opportunities to reduce costs and protect the environment. It does so by raising awareness, mostly through its Web site and call center, as well as offering a series of incentive-based programs. According to Margie Harris, executive director of Energy Trust, such programs were historically offered by individual utilities, “but Oregon has electric-only and gas-only utilities that offered programs based on the type of energy they sell.” As a third-party program administrator, Energy Trust has developed integrated programs that offer savings for both electric and gas consumers and promote renewable energy. For instance, residential customers qualify for a home energy review, during which a trained auditor inspects a home from roof to basement looking for opportunities to save energy. Points of interest include heating systems and furnace efficiency, water heaters, air ducts, insulation, major appliances, and lighting. Energy Trust installs fluorescent light bulbs and new water flow restrictors for no charge. When the review is complete, the auditor creates a list of actions the homeowner can take to conserve energy and the financial payback associated with each. A list of local contractors who belong to Energy Trust’s Trade Ally Network is also provided. Energy Trust’s Trade Ally Network consists of more than 800 contractors across the state who serve residential, commercial, and industrial customers. Members of the network offer their customers Energy Trust cash incentives to install energy efficient equipment and lighting and for taking other energy saving measures. In turn, Energy Trust supports members through additional publicity, information on state and federal tax credits, and training. A home audit can also evaluate a homeowner’s potential to use solar energy. The state of Oregon has seen more solar panel installations in the last four years than it has in the previous 20. With Oregon’s governor, Ted Kulongoski, declaring that economic development in the state will be centered around renewable energy, that number is bound to grow. “Believe it or not, solar panels work in rainy Oregon. When you have the right package of incentives, such as tax credits through the Oregon Department of Energy, the Energy Trust, and federal credits, we can help more people tap the sun,” said Harris, adding that a three-kilowatt solar energy system still costs between $12,000 to $15,000 out of pocket, but she expects the price to go down as demand rises. Domestic solar water heating systems are more cost competitive and affordable at $3,500 to $4,500, after incentives. Step by step Energy Trust also helps its commercial customers make important energy changes, starting with the low hanging fruit: lighting. “Switching to compact fluorescent and/or natural lighting is quick, and the cost benefit is almost immediate,” said Harris. From there, Energy Trust evaluates the site’s HVAC systems, which often results in a recommendation to upgrade or replace some equipment—or consider solar. It also helps customers implement digital controls to monitor the use of energy, for instance, by installing motion sensors on light fixtures so they automatically turn on and off. “Awareness is one of our biggest challenges with our commercial clients,” Harris said. “We work with them to increase awareness of their energy saving and renewable energy opportunities.” For industrial clients, Energy Trust calls on program delivery contractors to carry forth energy saving programs tailored to each industry. These contract engineers have expertise in the food processing, pulp and paper, wood products, and other industries, “and speak in the same terms our customers use,” Harris explained. Energy saving options include improvements to manufacturing processes, such as using variable speed drives to put energy to use only when needed; installing efficient motors, blowers, and compressors; adding new automated digital controls; and installing combined heat and power equipment to generate electricity from waste heat. Energy Trust works cooperatively with its contractors to set energy saving goals by business and industry type. The team also works to identify opportunities in specific sectors, such as hospitality, restaurants, multi-family housing, and healthcare. “We target trade associations and publicize opportunities to save energy—and therefore money. We make our presence known, drum up interest, and then follow up with our contractors.” By building strong relationships with its clients, Energy Trust has grown its book of repeat business. In fact, clients who started with the simple task of switching to compact fluorescent lighting are taking a big leap and installing solar panel systems to reduce their energy consumption. Harris noted that Pepsi Bottling and Kettle Foods have both installed large solar electric systems, and many more are expected to follow. “About 40% of global climate change stems from the burning of fossil fuels to generate electricity. If we can reduce that impact by deriving more of our future energy through conservation, efficiency, and renewable sources, then we reduce the impact of global warming,” Harris concluded.

< Previous Story		Next Story >