Electric Growth in Colorado and Utah Normalized Growth (1994 Baseline) As can be seen from Figure 1, energy consumption has increased approximately 5% faster than customer growth over the last decade, but peak demand requirements have exceeded customer growth by over 40% during this same time frame. Both responses to increased peak loads can put upward pressure on rates.įigure 1 illustrates the growth in system peak demand compared to underlying annual energy sales and the corresponding customer base for the utilities evaluated in this paper. Alternatively, utilities may be required to purchase power on the wholesale market during volatile pricing periods. Increases in peak load requirements can lead to the purchase and installation of new generation resources that are only used for a minimal number of hours during the year. From data tracked in Utah Power’s 2003 Cool Cash Incentive program, it is estimated that over 85% of recent residential air conditioner sales within the region are first-time installations, contributing directly to utility peak load requirements. While this may be good news for the local business economies, it’s creating a challenge for the electric utilities that serve this region. In 2002 alone, approximately 160,000 central air conditioners were shipped to these two states, representing a new unit for 1 out of every 16 residential electric customers and a total connected load of over 580 MW (ARI 2003a). Introduction In Colorado and Utah, where the high altitude and low humidity levels contribute to a climate with diurnal temperature swings of 25 to 30 ˚F during the cooling season, the use of compressor-based cooling equipment for residential dwellings was the exception rather than the rule – until now. A review of these programs and their realized impacts on reducing system demand to date are also presented. This paper explores the estimated impacts of increased residential air conditioning penetration rates on utility capacity requirements and summarizes the approaches of three separate utilities in addressing this issue in Colorado and Utah. Through additional program eligibility requirements, some programs also aim to achieve increased savings by addressing common equipment selection and installation mistakes such as over-sizing, improper airflows, and incorrect equipment refrigerant charging. In a region of the country with a relatively short cooling season and where equipment sales are dominated by minimum efficiency equipment – nearly 75% of all units were 10 SEER models in 2002 – these programs offer incentives to help customers offset a portion of the incremental costs associated with higher efficiency equipment. Several local utilities in Colorado and Utah have instituted incentive programs aimed at increasing the efficiency of these installed systems. In 2002 alone, approximately 160,000 central air conditioners units were shipped to these two states, representing a new system for nearly 1 out of every 16 residential electric customers in the region and a connected load of over 580 MW. In Colorado and Utah, annual energy sales have outpaced customer growth by 5% during this period, while peak load requirements have increased by over 40%. Gilroy, PacifiCorp ABSTRACT Over the past decade, the rapid increase in residential air conditioning in the Mountain West has been a major contributor to the explosive growth in summer peak demand requirements for electric utilities. Bob Zaragoza, Xcel Energy Jon Little, Platte River Power Authority James E. Cooling Off While Utilities Heat Up in the Rockies Chris Schroeder, Nexant, Inc.
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