HomeMy WebLinkAboutE-5.1. Adoption Of AB 2021 Cost Effective Energy Conservation TargetsAdoption of AB 2021 Conservation Targets
March 22, 2021
Page 3
CONSENT CALENDAR
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2021
SUBJECT: ADOPTION OF AB 2021 COST EFFECTIVE ENERGY CONSERVATION
TARGETS
BACKGROUND:
As required by law, the proposed action will adopt annual energy efficiency program targets for
Fiscal Years 2022-2031 of 0.47% of forecasted electric load.
RECOMMENDATION:
Staff recommends that the Utility Board approve the following action:
1)Adopt an annual Cost Effective Energy Conservation Program target of 0.47% of
annual energy sales for fiscal years 2022-2031 as prescribed in Assembly Bill 2021
and defined in Figure 1. Net Incremental Market Potential by Sector (MWH) and
Percent of Sales (see below).
ANALYSIS:
California Assembly Bill 2021 (Levine), signed into law in September 2006, expanded upon
several of the energy efficiency polices in Senate Bill 1037 previously adopted by Azusa Light &
Water (ALW) in September 2005. Among the many provisions of AB 2021 is a statewide
commitment to cost-effective and feasible energy efficiency, with the expectation all utilities
consider energy efficiency measures before investing in any other resources to meet growing
demand. Originally intended to occur every three years, Assembly Bill 2227 changed the
frequency of the energy efficiency 10-year target setting requirements to once every four years.
California Municipal Utilities Association (CMUA) engaged the GDS Associates, Inc. (GDS)
team to assist the 38 CMUA members meet the CEC requirement and to receive from CMUA
members their 10 year DSM program targets. The target goals were developed for the years 2022
through 2031 using a new model, but still similar to the model the Navigant team used in 2017.
The energy efficiency potential model is designed to estimate technical, economic, and market
energy efficiency potential for a utility’s service area. The model forecasts energy savings and
demand reduction potential within the residential, commercial, and industrial sectors for years
E-5Approved
Utility Board
3/22/21
Adoption of AB 2021 Conservation Targets
March 22, 2021
Page 2
2022-2031 and is customized for each of the 38 POU’s.
The ALW energy efficiency program target for the next 10 years (2022 to 2031) is set at 12,080
MWh. This results in an average annual target of 0.47% of total projected energy sales. Figure 1
provides the market potential for the residential and non-residential sectors, as well as the total
incremental potential as a percentage of total sales for the 10-year period of 2022 to 2031.
Figure 1. NET Incremental Market Potential by Sector (MWh) and Percent of Sales
ALW will continue to focus on the most cost effective conservation measures that will continue
to produce a cost savings by offsetting the cost of purchasing power during peak demand
periods.
FISCAL IMPACT
The cost of meeting the energy efficiency targets is paid for through the state-mandated Public
Benefits charge.
Prepared by: Reviewed and Approved:
Paul Reid Manny Robledo
Environmental Programs Manager Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) GDS Associates, Inc. - 2020 CMUA Energy Efficiency Potential Forecasting Study