A 'Perfect' Vision for Saving Billions: Energy Reforms, Smart-Grid Entrepreneurs and New Technologies

CHICAGO, Jan. 8 /PRNewswire/ -- "Perfection is entirely possible," asserted retired Motorola CEO and Chairman, Robert W. Galvin, to a record-breaking audience of energy leaders, opening the seventh annual Midwest Energy Solutions conference (http://www.meeaconference.org). Galvin, founder of the philanthropic Galvin Electricity Initiative (http://www.galvinpower.org), and co-author of the book Perfect Power, chronicled his pursuit of an energy grid that never fails and that spawns "thousands upon thousands" of energy entrepreneurs.

Hosted by the Midwest Energy Efficiency Alliance (MEEA) (http://www.mwalliance.org), Midwest Energy Solutions is the largest conference of its kind in the region, featuring a broad range of private- and public-sector thought leaders in energy strategy, policy, technology, and program design and implementation. A detailed agenda, followed after the conference by speaker presentations, can be found at http://www.meeaconference.org.

The conference runs January 7-9, 2009, at the Intercontinental Chicago Hotel, 505 N. Michigan Ave. On Thursday, January 8, as part of the conference, MEEA will host the Inspiring Efficiency Awards Dinner and Gala, honoring six Midwestern leaders for their work in advancing energy efficiency.

The first day of Midwest Energy Solutions also offered cutting-edge thought and real-world examples through panels covering the following topics (information following below):

    -- National perspectives on energy policy
    -- Smart grids
    -- Energy efficiency in low income/fixed income households

Galvin Electricity Initiative

Galvin's interest in the electric power system was sparked by an August 2003 blackout, which left nearly 50 million people without power, and cost the American economy as much as $10 billion. Galvin believes it is possible to build a perfect electric power system, which could save the economy nearly $150 billion lost each year due to power outages. He envisions a future that includes the convergence of electricity and telecommunications services; power electronics that increase reliability, controllability and functionality; high-power micro-grids that utilize distributed generation; and self-organizing entrepreneurs that engage in the U.S. electricity enterprise.

The Galvin Electricity Initiative, is currently partnering with the Illinois Institute of Technology and others to implement a prototype of the perfect power grid. Construction has begun on this system, which will pay for itself as it is built, via rate relief, deferring substation development and upgrades, avoiding outage costs, and fundraising and research opportunities. More information can be found at http://www.galvinpower.org/files/IIT_Perfect_Power_Prototype.pdf.

National Perspectives on Energy Policy

Panelists representing U.S. EPA, American Council for an Energy-Efficient Economy, and the Alliance to Save Energy, discussed the status of energy efficiency legislation, codes and standards, and the National Action Plan for Energy Efficiency.

The National Action Plan for Energy Efficiency (http://www.epa.gov/eeactionplan) is a private-public initiative begun in 2005 with the goal of achieving all cost-effective energy efficiency by 2025. Over 120 organizations have made formal commitments to energy efficiency under the Action Plan, including utility commissions, state and local agencies, utilities and end-users.

The plan outlines five key policy recommendations supported by 10 implementation goals. Much progress has been made thus far at the state and national level, including the following:

    -- More than one-third of U.S. states have established policies, goals,
       programs and other mechanisms that recognize and act upon energy
       efficiency as a high-priority resource.
    -- A cumulative savings of 63 billion kWh and 16 MW of electricity and 135
       million therms of natural gas has reduced greenhouse gas emissions by
       50 million tons annually.

The development and implementation of energy policy, codes and standards is gaining traction. Notable trends include the adoption of statewide energy-efficiency resource standards (EERS), and statewide energy-efficiency building codes. EERS establish electric and/or gas savings targets for utilities that must be documented in accordance with evaluation rules established by regulators. Currently, 22 states have adopted EERS and about half have statewide energy efficiency codes that meet or exceed the nation's model code.

    On the horizon for 2009 are three major legislative packages:

    -- Economic Stimulus Bill, which is likely to begin releasing funds in
       February.
       - Includes funding for public transit, low-income home weatherization
          and energy-efficient retrofits for government and residential
          buildings; extension of energy-efficient tax incentives; and
          matching funds for smart grid/smart meter and transmission
          efficiency measures.
    -- Energy Bill, likely to be considered by congress in April or May.
       - Seeking efficiency gains through renewable energy standards (25% by
          2025), EERS (10-15% by 2020-2025), building codes (30% by 2010, 50%
          by 2020), appliance standards and other measures.
    -- Climate change legislation, which president-elect Obama wants to see
       come to the floor early in the 111th Congress.

Smart Grid as an Efficiency Tool (breakout session)

Panelists representing the Illinois Citizen's Utility Board (CUB), Commonwealth Edison, Endurant Energy LLC, and Multiple Wireless Solutions provided perspectives on a topic that seemed to permeate the entire conference: the advent of electricity "Smart Grids."

A Smart Grid is an automated, widely distributed energy delivery network characterized by a two-way flow of electricity and information, capable of monitoring and responding to changes in everything from power plants to customer preferences to individual appliances. Smart Grids use the existing power line infrastructure to send and receive data, a process known as "broadband over power lines."

The panelists described the benefits of a Smart Grid as improved reliability, security and safety; lower electricity prices; new and improved products and services; operational efficiencies; and environmental protection. Smart Grids can offer consumers the ability to take advantage of off-peak pricing by remotely controlling individual appliances, for example. They also provide electric utilities with a host of capabilities, including quickly isolating the source of power outages, reading meters remotely, and opening up entirely new business and partnership opportunities.

The panelists all concurred that in order to maximize the potential that Smarts Grids have to offer, it is essential to establish "smart policy" that factors in retail rate design, utility operations, grid interconnection, and net metering, which can pinpoint electricity usage to individual wall sockets if necessary. When technology investments are combined with policies that provide for consumer participation, consumer savings can exceed costs by more than a factor of four

Energy Efficiency in Low Income/Fixed Income Households (breakout session)

Panelists representing Illinois Department of Commerce and Economic Opportunity, Wisconsin Department of Administration, Ohio Office of Consumers' Council, and ShoreBank, discussed state and utility energy programs aimed at serving low income and fixed income customers.

Generally speaking, cold weather winter energy bills command approximately 6 percent of household income. For low-income households, that percentage can spike to 30 percent or more. For these and other reasons, a number of states offer assistance through utility and state-sponsored programs.

Illinois has recently established the Illinois Energy Efficiency Portfolio (EEP) (http://www.illinoisenergy.org), which includes assistance for low income/fixed income households. The EEP will fund approximately 40 percent of Illinois' existing Energy Efficient Affordable Housing Construction Program in 2009, and virtually all of the state's new Low Income Energy Efficient Residential Retrofit Program, which seeks to leverage existing programs to maximize electricity savings in existing low income households.

Wisconsin's Weatherization Assistance Program has been in place since 2005, and has implemented weatherization upgrades to about 36,000 low-income households, with approximately 8,000 more targeted for 2009. The corresponding reduction in energy bills ranges from 20-32 percent. New weatherization program initiatives include a large multi-family buildings pilot, a weatherization job-training pilot, automatic benefit renewal for fixed income clients, and energy assistance marketing.

Ohio's new Energy Efficiency Portfolio Standard, while not mandating energy savings through low-income assistance, has prompted a number of utilities to propose programs that would provide hundreds of millions of dollars to assist low-income customers through a variety of demand-side management initiatives.

About MEEA -- The Source on Energy Efficiency

The Midwest Energy Efficiency Alliance (http://www.mwalliance.org) is a collaborative network advancing energy efficiency in the Midwest to support sustainable economic development and environmental preservation.

MEEA promotes the market transformation of energy efficiency technologies, processes and best practices within a 13-state area, through policy advocacy, program design and facilitation and piloting of energy technologies. MEEA bridges the gap between policy adoption and program implementation.

Energy efficiency is the critical first step in meeting our nation's myriad energy challenges due to low entry costs, proven and emerging technologies, ease of implementation, fast return on investment and measurable results.

Through our diverse network of members and regional allies, MEEA possesses the practical experience and informed vision to effect positive change today by supporting the region's stakeholders to achieve their efficiency goals for the future.

SOURCE Midwest Energy Efficiency Alliance

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